Sunday, May 22, 2016

The Middle Class- A Daydream or Worthy Vision?

    A young lady, writing of her future plans for a college scholarship application, indicated her intent to major in computer science.

     “I cannot wait to learn from experts in the field,” she stated, adding, “I believe that technology is such an important part of our lives, and that as we progress as a society, it is only going continue to grow in the way it impacts us.”

   Reading that statement, there’s no doubt of the excitement and optimism this soon-to-be high school graduate feels about what lies ahead. As for computer science, my guess is that she’s right; it will to continue to play an important role in the coming years. Whether the outcome of technological advances, in every case, will constitute “progress” remains to be seen.

    An article entitled “The End of the American Daydream” that appeared on May 1, 2016 in The New York Times Magazine offered a less rosy outlook of what sort of future awaits us. A subhead in the piece, written by Charles Homas, noted that “Middle-class aspirations have shaped the country’s politics for decades,” then asked the question: “What happens when Americans stop believing in them?”

    Put another way: What happens when more and more Americans feel a middle-class standard of living, and the way of life it encompasses, is becoming harder and harder to obtain or, worse, may be out-of-reach?

   Well, as we are currently seeing, what happens is a lot of uncertainty, pessimism, discouragement, fear, anger, finger pointing, fist shaking and--depending on what segment of the population we’re looking at--support for the candidacies of Bernie Sanders and Donald Trump.

    “These two insurgent candidates are capturing one of the two demographic groups that converged in the great middle-class experiment that began seventy years ago,” wrote Homas. “When people spoke of the middle class in the years immediately after World War II, they were typically talking about the group identified by the sociologist C. Wright Mills in his 1951 book, “White Collar”: the usual college-educated, deskbound employees of a newly technocratic, corporate economy. It was only a few years later that the definition was generally extended to include skilled blue-color workers, who were now earning solid incomes on account of a booming postwar industrial economy and of unions that made sure their members got an equitable piece of it.”

   In a nutshell, what helped create this American middle-class was a lot of good-paying jobs that were the result of a booming economy. The income helped to fuel economic activity and growth. Families bought homes and cars, sent the kids to college, went on vacation, invested in the stock market, and treated themselves to a lot of luxuries. 

   What’s been happening over the last few decades has been an erosion of those good-paying jobs, both for the white collar and blue collar segments, as companies streamlined their operations, merged, or moved operations to other nations. Along with the loss of these good-paying jobs has been a flattening of wages, coupled with a steadily increase in the cost-of-living.

   As we’ve evolved into more of a service-driven economy, and less of a manufacturing one, the money paid for this work has been much less generous. To keep the wolf from the door, many families have needed two paychecks.

   This issue of the magazine, which had other articles devoted to the subject of the beleaguered middle class, included sidebars on solid middle-class, good-paying jobs that still exist.

    One was Human Resources Specialists. The sidebar stated that “the number of H.R. Workers is projected to grow about as fast as the overall work force.  But the long-term threat to H.R. from outsourcing and automation is real, as companies turn to low-cost vendors for things like benefits administration. That said, the complication of our country’s employment laws and the changing health-insurance landscape might increase demand for this work.”

   Another job category was Truck Drivers. This sidebar noted: “It is a tough job—monotonous, lonely, and high-pressure. But truck driving has proved a middle-class stalwart, with about 1.8 million people on the road, most of them men, making an average of $19 an hour. Right now, the employment outlook is pretty good. But in the long term, the threat from automation is real. Oil and gas outfits are already using remote-control vehicles to transport iron ore and crude oil, and automotive companies are investing heavily in driverless trucks. For this profession, a technological doomsday might me nigh.”

   In the current presidential campaign, we’ve been hearing (among other issues) about Wall Street millionaires gaming the system, illegal immigrants, Islamic terrorists, unfair trade agreements, and how the Establishments in both the Republican and Democratic Parties are out-of-touch with the voters and their concerns.

    Some of these issues are blamed for causing our economic angst; some are just part of the general dissatisfaction and sense of once solid ground suddenly becoming like shifting sands under our feet.

   Certainly, as statistics show, a gap of financial inequality has been widening since the 1980’s, with the very rich using the tools of wealth to begat more wealth and employing lobbyists to protect their interests in the halls of government. A small portion of the population has secured more and more of the fruits of American labor and investment.

    Certainly companies have taken advantage of free-trade agreements to move manufacturing operations south of the border or overseas where lower wages, less regulation, and nearly non-existent environmental oversight combine to boast their bottom lines. But, on the other hand, less restricted trade and the free flow of ideas seem to enhance economic activity and result in less costly products for consumers as well as more innovation.

    Certainly a shift in demographics and expectations is occurring. After a long history of bondage and then legalized discrimination, Black Americans want a share of the American pie and equal footing. Over the years, people of Hispanic, Middle Eastern, and Asian origins have immigrated here—some legally and some not—and, once here, found jobs, established businesses, created neighborhoods, and embraced the American Dream.

   They, and many others, see the Dream as an ideal available to all men and women, not the exclusive property of only a few or a particular segment of the population.
  
  Certainly there are terrorists, many of them coming from countries in the Middle East and Sub Saharan Africa with a predominant Muslim population. But there have been terrorists in other countries—those in Northern Ireland, for example—and we did not paint the entire nation with the same brush.

    In the late 1940s thru the 1950s, when the middle class was reaching its high-water mark, our fears centered on Communism and a Cold War that threatened nuclear annihilation. Those worries resulted in McCarthyism, with a number of lives and livelihoods ruined in the wave of allegations and accusations.

  Certainly people running for office or seeking to retain their position of power will tell voters what they want to hear—in some cases catering to their anxieties—then acting contrary to those promises when elected or re-elected. Many of them seem more beholden to the special interests that backed them with campaign donations or assisted them with supportive ads than to the voters who cast ballots in their favor. While this is hardly a new occurrence, the Supreme Court decision that removed any limits to campaign donations has tilted the allegiance even more in favor of the well-heeled supporters.
  
All of this and more has emerged as part of the current public discourse in the campaign. It all gets a bit muddled in the explaining and sorting out.

    Yet, in both of those solid job forecasts for the Human Resource Specialists and the Truck Drivers, the prediction of future problems was found in the word “automation.” This is the term we use for the technological progress that creates automatic equipment, including robots and electronic devices to make manufacturing and other production processes as well as office work faster, more efficient, and cheaper by shrinking or eliminating human labor.

   The advancements of invention and innovation in human terms have always been a mixed bag. A farm wife a hundred years ago would hardly complain when the new washing machine replaced the tub and washboard. However, those English textile workers and self-employed weavers, put out-of-business in the early part of the 19th century by the development of stocking frames, spinning frames and power looms, responded with violent acts of sabotage. They gained the name of Luddites—a label that lives on—and many of them ended up on the gallows, the victims of both technological progress and British justice.

   So what will all of those Human Resource Specialists and Truck Drivers do, somewhere down the road, when automation or outsourcing erodes the need for their work along with the number of possible jobs?

   What will all of the other people now employed in trades or occupations do when a robotic machine or electronic device or automated process is invented or refined and then installed at their workplace?

      The mantra is that new technology creates unforeseen jobs and business opportunities; which is true. The folk wisdom being dispensed like aspirin is that workers now and in the future need to continuously improve and update their skills and overall knowledge in order to operate the automated processes and robotic machines; which is advisable.

   Like the young lady who is graduating, computer science would seem to be a good career choice. Yet are there enough of these sort of jobs to go around? Will the future create enough new ones? Those are questions we ought to be asking in a campaign. Not out of fear, but of a need for preparation.

   As a government and as a society, we can built walls, deport people, ban entry, enact tariffs, modify free-trade agreements, raise taxes on the rich, and provide additional governmental services or help for those in need. Some of this, I see, as a negative and self-destructive reaction—of Americans turning on other Americans. Some could be viewed as a positive approach—of Americans helping each other and shouldering the burden.

    But it seems prudent to deal with the shifting paradigm involving jobs, middle-class wages, and automation.

    Even those overseas and south-of-the-border manufacturing jobs will likely fallen victim to technological innovation—whether they are brought back to the United States or remain there.

   Words like “sustainability” and proposals like providing people with a ‘universal basic income’ (UBI) will become more and more part of our vocabulary and public discussion.

    The “haves” and the “have not’s” have existed a long time. But for much of the past 70 years, many of those who might normally have fall into the latter classification have had the opportunity to be part of the large American middle class and share in the bounty. Not as many as there should have been or should be, but more than in most nations.

   Has it been a daydream we’re beginning to awaken from or a way-of-life that should remain our goal? Maybe a little of both. Maybe we put too many eggs in the economic basket and saw money and material goods as the measure of happiness and a good life. Maybe we need to embrace a more downscaled and sustainable approach.

   Still, the middle-class vision remains a laudable one: to work at a meaningful job, to earn a decent wage for our time and toil, to provide for ourselves and our families with the necessities, to have enough cash left over for a few amenities and enjoyments, and to see our children and grandchildren prosper. The middle class is a large tent, premised on the notion that it can be and ought to be expanded to include as many people as possible rather than confined to a privileged few.

   Underpinning it has been the excitement and optimism, witnessed in the young lady’s scholarship application. No machine can give you that sense of eager possibility; it comes from human hope.


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