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    • A word on Abenomics, QE and doing Stimulus right
      Quantitative Easing, to put it simply, no matter what form you do it in, is only marginally effective. Most of the money goes to the rich, you may or may not get a technical win in GDP, and in many cases the money may flow out of the country. If you want to improve the [...]
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Precariat- Learn this word

No, precariat is not a misspelling of a group of single celled organisms.  It’s a very disturbing word, an ominous word, a word that has already arrived here in the United States and is slowly moving up the food chain:

Precariat- a social group consisting of people whose lives are difficult because they have little or no job security and few employment rights

It’s a portmanteau of “precarious” and “proletariat”.  A precariat is a person who doesn’t have a reliable job.  Precariats initially were service workers who may have been working a 40 hour work week, but maybe not.  A precariat could be called in to work a 6 hour shift, every other day and one long 12 hour day at some other point in the week or come to work expecting a full 8 hours but sent home after 2.  The amount of work can vary from day to day, week to week.  This worker typically has no benefits.

I think most of us can see right away the limitations of the precariat world.  If you can’t say for sure how many hours you’ll be working each month, can you afford to rent a nice apartment or buy a house?  Can you buy a new car?  If you have children, how do you schedule and pay for their child care?  Can you depend on your paycheck to feed them?  Work and living become precarious.  Here is a video about the precariat from The Precariat: the New Working Class:

Precariats usually spring up in countries where workers are not protected by unions or strict labor laws.  Right now, the UK is starting to come to terms with the precariat but in a way, the Welsh precariat has it good compared to the American version.  Here in the US, there is no national health care system or reasonably priced, government subsidized schools of higher education.  So, the land of opportunity in America is starting to look like the last place you want to live if you are forced into precariatism.

Another feature of precariatism is the appearance of the middle man hiring agency.  That agency stands between the employer and you.  The employer hands off responsibility of hiring and paying the worker.  The worker becomes a true human resource to be hired when needed and laid off when not.  Benefits and risks are born by the employee.  The hiring agency takes a cut of the worker’s pay, I hesitate to call it a salary because that would imply some kind of security and regularity.

A couple of years ago, we who were salaried employees would have looked down on the precariat with pity.  Now, we are one.  From my vantage point, this is the way the pharmaceutical industry has decided to handle its well educated, experienced workforce.  We are now service workers.  More and more of us can only find contract work.  The work is parceled out in 3, 6 or 12 month contracts.  There are no benefits.  In some cases, the worker pays both sides of the social security tax.  It is hard to plan where to live because you don’t know if you’ll be able to pay the rent.  You can’t make any major purchases on credit because there is no guarantee that you’ll be able to afford the car payment.

One of the reasons I suspected that the McKinsey reports of employers dropping health insurance coverage for their employees after the passage of the Affordable Care Act was true was because it fits so well with the precariat worker norm.  Since a universal mandate meant that workers would be legally compelled to spend whatever the insurance companies could charge for health insurance, the employer could cut this benefit out of their compensation packages guilt free. To escape the employer mandate, all the employer would have to do is make many of its permanent employees into contractors.  The number of layoffs would be expected to increase. Responsibility and risk would now be transferred to the employee.   You don’t have to be a highly paid consulting company or economist to see how this would work.  All you have to do is think a couple of steps ahead. Mandatory universal coverage without a public option or a single payer system that requires employers to pay in puts much of the American workforce at risk of falling from the middle class into the precariat.

The new middle man hiring agency becomes the new growth sector.  Expect to hear more horror stories of foreign students brought to the US by a hiring vendor promising that they will learn English only to spend their summer in a chocolate factory in Pennsylvania doing manual labor for subsistence wages.  Expect Hershey the company to deny all responsibility.  Or Amazon.  Or {{your company name here}}

It’s hard to say whether Barack Obama was onboard with this or whether he was so overwhelmed by his job that it never was evaluated properly.  But I think we can say pretty unequivocally that the acceleration of the expansion of precariatism within the American culture is related to the measures that were  or weren’t taken in the wake of the financial collapse.  So much attention was focused on shoring up the banks at taxpayer expense that homeowners were allowed to foreclose, jobs were allowed to disappear and healthcare reform was rushed through to score political points without much thought of how  those reforms would affect the workforce.  In fact, hardly any thought at all has been spent on the workforce.  Well, Elizabeth Warren was thinking about it for years but as Adam Davidson pointing out in that blistering Planet Money interview from 2009, Warren’s opinions didn’t really count because she wasn’t a “serious” person.  Did Davidson see the rise of the precariat?  Does he know that free lancing is going to appear at an NPR station near him someday?

If the US economy is in a slump right now, it may very well be because there are so many more precariats where once there were college educated salaried people.  In my own sphere, precariatism is the norm these days, not the exception.  It wasn’t like this before 2008.  But now, if you’re a precariat, you can not plan for the future.  There IS no future.  Everyday is a struggle and stress about where the next mortgage payment will come from, what will happen if the car breaks down, how to pay for the plumbing that keeps getting backed up or the last of the orthodontic appointments.  It’s the reason why so many grocery stores are shuttering their stores and why Lowes is laying off workers in the northeast and why people are hoarding their money instead of spending it.  And it will get worse until more working people realize what is happening to them.  The people who are kissing the whip today are going to be tomorrow’s precariats.

We have been subjected to years of politicians relaxing the rules for the 1% and tightening the rules for everyone else.  The rise of the number of precariats can be attributed to the politicians who let this happen.  We need to replace as many of them as possible.  Because it wasn’t too long ago that Americans were pretty cool with capitalism.  When we were all making money and productivity gains went to the middle class, we had a vibrant, robust economy.  But when the rules went out the window and labor came under attack from the superwealthy and the whip kissers who brainlessly listen to Rush Limbaugh, Glenn Beck and Fox News, an opportunity arose to force many of us to live on the edge of a knife.  Now, those of us who didn’t necessarily want to be rich but wanted to work for its own sake are considered losers.  And the infection of the precariat is bound to spread.  There is no profession that is safe.  Once the public unions are broken, precarianism will be the norm, not the exception.  Your degrees cannot protect you.  Even senior citizens are not sheltered from the effects of precariatism because as the salaries disappear to be replaced with lower, precarious wages, the tax base will continue to shrink.  It won’t be that we don’t want to pay for social security. It will be that we just can’t anymore.

The 99% don’t want to live a precarious life.  We know who was responsible for the ruination of the American middle class.  We focus on the robber barons of Wall Street now but come November 2012, with a handful of notable exceptions in Congress, they ALL have to go, Obama included.

What the OccupyWallStreet protestors object to is the increasing economic injustice forced on the precariat and what they demand is that it stop.

Given #1: The media is not your friend

Mike Lux can’t understand why the networks are getting all giddy about the TeaParty movement.  It’s all they ever cover.

To be clear, the tea partiers aren’t the only angry people in America. There are plenty of working class swing voters who aren’t inclined to buy into the tea party stew of racism, nativism, and Ayn Rand style libertarianism, but are deeply troubled that the jobs situation isn’t improving and that no one in government seems to be looking out for them. There are plenty of progressive activists angry at the Wall Street bankers, the health insurance companies, and the other corporate interests that are screwing them, and are angry that too many politicians seem to be in their pocket. In both cases, Obama and his fellow Democrats still have the opportunity to reach them, still have the ability to make absolutely clear whose side they are on. If Democrats show those voters that they will reject those special interests, and fight hard for average folks’ interests, they can still win this election. If they show voters that they are just as angry about what’s been done to regular people as the regular people, they will have a better 2010 than anyone is predicting right now.

The media loves-loves-loves this tea party story, but the tea partiers really aren’t anything new, and they don’t represent a very big group of voters. There is a lot of anger out there, but most of it is righteous anger that Democrats can and should tap into – anger that Wall Street and other bad actor big companies have been allowed to destroy our economy, and that no one is taking them on for it.

I have to go back and do my research but wasn’t OpenLeft one of the places that was dumping all over “the bubbas” during the primaries?  You know, the working class women who weren’t in love with Obama because they knew poison when they saw it? Well, whatever.  We’ll come back to that later.  The primaries are where this problem started.  If only Mike Lux would have a Soylent Green moment about them, we could start talking the same language again and get on with it.

Anyway, about the TeaParty.  Mike probably already knows the answer to this.  There have been reports in various places, the latest in The Big Short by Michael Lewis, that Hill staffers are glued to cable TV. The media shapes their worldview with  distortion and misdirection and bad information. Yep, you can put any stupid thing you want on CNN or CNBC and Congresscritters act like Rupert Murdoch and the other media owners have sunk their electrodes deep into the brains of the American public. But it isn’t true.

What the media has the power to do is amplify the voices it likes and mute the voices it doesn’t like.  It likes the TeaPartiers because they are militantly anti-government, anti-immigrant, anti-progressive.  Sweeet!  The neo-feudalists don’t have to lift a finger.  Well, that’s not strictly true.  We know that hard-ass Republican movement conservatives are funding the TeaParties.  But it’s a drop in the bucket compared to all of the attention they’re getting.

Nevertheless, there are people on Capitol Hill who are watching that nonsense and getting the heebie-jeebies.  OMG, the TeaParty is on the march!  They’re in your Walmart.  They’re pissed off.  They want you to do Republican things and be all bi-partisan and sell out women. And it’s working so well. Congress is scared to death of TeaParty people.  They’re so scared that they don’t even see the ax that’s about to fall on them from their (former) friends.

Mike, the media is never going to cover your frustration with the Democratic party.  The Democrats aren’t listening to you because they are transfixed by Fox News.  No matter how much you tell them they are pissing you off, they will ignore you because you and your rowdy band of progressive activists are not on the TV.  If the cameras aren’t covering you marching on the Mall and shouting slogans or throwing cherry bombs through the windows of some Democrat who just voted on the most regressive Republican health care reform bill in history, then you don’t really exist to those Hill staffers. And the cameras are never going to cover you, no matter how many millions you get to march on Washington.

Even Corzine’s loss and Martha Coakley’s defeat won’t register for awhile because it takes effort to analyze the polls and it’s so much easier to hear some blond spokesmodel tell you what those elections really meant based on some slanted poll the network conducted.

If you want to make a difference, you have to stop trying to get your politician’s attention through the media.  The people you want to reach are those very same voters you dumped on during the 2008 primaries.  Remember the working class?  Yeah, well, they don’t even know you exist.  They don’t read blogs.  But they might read a bumpersticker.  They might read guerilla messaging.  You can infiltrate them with signs and unanswered questions.  You could write a book.  Don’t fill it with tree hugging, birkenstock wearing, vegan, recycling crap though.  They really don’t care about that stuff.  They want to know whether you feel for them and their unemployment status.  Do you know what it’s like to work so hard and never seem to get ahead?  Have you ever had to take a 30% cut in salary to keep the lousy job you have?  Can you sympathize with the newly unemployed couple who can’t pay the mortgage on their house and will soon have no home for themselves and their two kids? Have you seen your friends with PhDs in the sciences wandering around the grocery store, not knowing what to do with themselves because they’ve lost their jobs and their industry has gone to Hyderabad for the indefinite future?

Those are the people you have to reach out to, not your politicians.  Not all of those working class schlubs are watching Fox.  They are waiting for a different answer.

You will not get good media.  If you get to be popular, the parties will dump on you.  Your friends will abandon you.  You will face humiliation, jeers, lies about you.  People will find out where you live and put dead bunnies on your doorstep.  You will not get to sit at the kewl lunch table.

You know what?  Forget about the media.  Hillary did and she almost beat the bastards.  She was knifed by her own, not by Fox news.  Go around them, Mike.  Be the anti-media.  Get all mysterious.  When you start to attract their attention, don’t return their phone calls.  Play hard to get.  Deliver your messages without them.  When the pols lose and lose and lose, they’ll eventually get a clue.  The Republican party is a lost cause.  The Democrats have an infection that needs to be cured.  But don’t put your faith in either one.  Put your faith in the people you scorned in 2008.  Women, working class people, Hillary supporters, the FDR style liberals.  Get them on board, Mike, and you can turn this thing around.

But don’t expect the media to acknowledge your existence.  They have you right where they want you right now.  Silent and invisible. Accept that as a given and move on.

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