Posts tagged: recession
Nicole Aschoff on the “Alt-Labor” movement, such as the Walmart and fast food strikes:
University of Colorado-Denver management professor Wayne Cascio has shown, through a comparison of Walmart/Sam’s Club and Costco, that low wages are not necessary for high profits and productivity. Costco employees average roughly $35, 000 per year ($17 per hour), while Sam’s Club workers average roughly $21, 000 per year ($10 per hour) and Walmart workers earn an average of less than $9 an hour. Costco also provides it workers predictable, full-time work and health benefits. However, contrary to popular assumptions, Costco actually scores higher in relative financial and operating performance than Walmart. Its stores are more profitable and more productive, and its customers and employees are happier.
Costco is not exceptional. Zeynep Ton, of MIT’s Sloan School of Management, has studied retail operations for a decade and argues that “the presumed trade-off between investment in employees and low prices can be broken.” “High-road” employers like Trader Joe’s, Wegmans, and the Container Store have all found ways to make high profits and provide decent jobs. Catherine Ruetschlin’s research shows that a modest wage increase—bumping up the average annual salary of Walmart or Target workers to $25,000—would barely make a dent in big retailers’ bottom line, costing them the equivalent of about 1% of total sales. Even if a company like Walmart passed on half the cost of the increase to customers, the average customer would pay roughly $17 more per year, or about 15 cents per shopping visit. And, considering most low-wage workers spend nearly their entire paycheck on necessities, the industry would see a boost in sales ($4 billion to $5 billion more per year) to its own workers. Fast-food companies are highly profitable. McDonald’s alone saw profits more than double between 2007 and 2011. They could easily send some of these profits downstream to franchise owners and workers.
So why do most big retailers and fast-food chains insist on a bad-jobs or “low road” model? There are a few reasons. MIT’s Ton argues that labor costs are a large, controllable expense, and retailers generally view them as a “cost-driver” rather than a “sales-driver.” Store-level managers are pressured by higher-ups to control labor costs as a percentage of weekly or monthly sales. And because store managers have no control over sales (or merchandise mix, store layout, prices, etc.) they respond to pressure from above by cutting employment or forcing workers to work off-the-clock when sales dip. Another factor is financialization—the increasing dominance of finance in the economy. Firms feel a lot of pressure from Wall Street to be a Walmart and not a Costco. As Gerald Davis has argued, the rise of finance and the dominance of “shareholder value” rhetoric have resulted in an emphasis on short-term profits that register in increased share prices and big CEO bonuses.
Full Story: Dollars and Sense:
This is encouraging, but the possibility of fast food companies switching to “less-costly, automated alternatives like touch-screen ordering and payment devices” is not an idle threat. I’ve seen something like this setup in the food court at the JFK airport. But as I wrote earlier, cultural issues could stop this from becoming widespread — it’s not clear that customers will settle for robots and touch screens over human beings. But I sure wouldn’t rule it out.
Tim Maughan uses design fiction to sketch a vision of our precarious future:
Nicki is awake even before her mum calls her from the other side of the door. She’s sat up in bed, crackly FM radio ebbing from tiny supermarket grade speakers, her fingers flicking across her charity shop grade tablet’s touchscreen. She’s close to shutting down two auctions when a third pushes itself across her screen with it’s familiar white and green branded arrogance. Starbucks. Oxford Circus. 4 hour shift from 1415.
She sighs, dismisses it. She’s not even sure why she still keeps that notification running. Starbucks, the holy fucking grail. But she can’t go there, can’t even try, without that elusive Barista badge.
Which is why she’s been betting like mad on this Pret a Manger auction, dropping her hourly down to near pointless levels. It says it’s in back of house food prep, but she’s seen the forum stories, the other z-contractors who always say take any job where they serve coffee, just in case. That’s how I did it, they say, forced my way in, all bright faces and make up and flirting and ‘this coffee machine looks AMAZING how does it work?’ and then pow, Barista badge.
Full Story: Medium: Zero Hours
Bram E. Gieben’s “Search Engine” is sort of a journalist/blogger’s version of this scenario.
Zygmunt Bauman interviewed on the subject of the “precariat”:
The notion of precariat seems quite general and vague to many people. Who are therefore the precarians?
The “general” and “vague” character of the notion of precariat bothers people accustomed to the division of society into “classes” and, in particular, to the phenomenon of “proletariat” or its idea, which the concept of “precariat” should, in my conviction (but not only mine), replace in the analysis of social divisions. In comparison to its successor, proletariat appears indeed almost as an emblem of the “specific” and “concrete”…
How easy it was, when compared to precariat, to determine its content and limits… But the fluidity of composition is one of the features defining the phenomenon of precarity; one cannot get rid of that fluidity without making the notion of “precariat” analytically useless. […]
What issues do, in your opinion, differentiate precariat most distinctly from proletariat? To what extent can one connect the two notions? And finally: is precariat a social class?
Well, I have serious doubts about that. I would prefer to call precariat a social category. The mere similarity of situation is not enough to transform an aggregate of individuals bearing similar characteristics into a “class” – that is, into an integrated group willing to pursue common interests as well as proceeding to integrate and coordinate actions stemming from that will. If workplaces of the times of “solid modernity” were, irrespective of the kind of products manufactured, also the factories of social solidarity, liquid-modern workplaces are, irrespective of their business objectives, the producers of mutual suspicion and competitiveness.
Full Story: r-evolutions: Far Away from Solid Modernity (PDF)
Nafeez Ahmed writes for the Guardian:
Why have Western security agencies developed such an unprecedented capacity to spy on their own domestic populations? Since the 2008 economic crash, security agencies have increasingly spied on political activists, especially environmental groups, on behalf of corporate interests. This activity is linked to the last decade of US defence planning, which has been increasingly concerned by the risk of civil unrest at home triggered by catastrophic events linked to climate change, energy shocks or economic crisis – or all three.
Here’s my article for Wired about why so many scientists ended up working in the tech industry:
Tech companies are snapping up scientists with backgrounds in fields like physics, mathematics and bioscience — people we might expect to be busy curing cancer, saving the environment or discovering the origin of the universe. It’s easy to be cynical about this. “The best minds of my generation are thinking about how to make people click ads,” former Facebook data scientist Jeff Hammerbacher told Business Week in 2010. But it’s happening for a reason.
It’s not that tech companies need people with PhDs. Many of the best data scientists in the business only have bachelor’s degrees. It turns out that many scientists are moving into tech because opportunities aren’t as prevalent as you might think.
The U.S. produced 100,000 PhDs between 2005 and 2009, while creating only 16,000 new professorships, according to data cited by The Economist. Though we’re used to hearing about PhDs in the humanities ending up as low-paid adjunct professors or baristas, we tend to expect another fate for people who major in fields like bioscience or physics. But even the natural sciences produce more PhDs than professorships. […]
Those that do land jobs are often frustrated. “Scientists spend more time chasing funding than thinking about the science,” Berkolz says. And because funding sources are so risk adverse, the type of research funded tends to be conservative. “Scientists are supposed to be all about falsifiability,” Miller says. “But your job as a professor is to never be wrong. It’s hard to be intellectually experimental when you’re a scientist.”
I think this is also probably why some researchers fabricate experimental data.
I wrote for Wired:
In Issac Asimov’s classic science fiction saga Foundation, mathematics professor Hari Seldon predicts the future using what he calls psychohistory. Drawing on mathematical models that describe what happened in the past, he anticipates what will happen next, including the fall of the Galactic Empire.
That may seem like fanciful stuff. But Peter Turchin is turning himself into a real-life Hari Seldon — and he’s not alone.
Turchin — a professor at the University of Connecticut — is the driving force behind a field called “cliodynamics,” where scientists and mathematicians analyze history in the hopes of finding patterns they can then use to predict the future. It’s named after Clio, the Greek muse of history.
These academics have the same goals as other historians — “We start with questions that historians have asked for all of history,” Turchin says. “For example: Why do civilizations collapse?” — but they seek to answer these questions quite differently. They use math rather than mere language, and according to Turchin, the prognosis isn’t that far removed from the empire-crushing predictions laid down by Hari Seldon in the Foundation saga. Unless something changes, he says, we’re due for a wave of widespread violence in about 2020, including riots and terrorism. […]
There are competing theories as well. A group of researchers at the New England Complex Systems Institute — who practice a discipline called econophysics — have built their own model of political violence and concluded that one simple variable is sufficient to predict instability: food prices. In a paper titled “The Food Crises and Political Instability in North Africa and the Middle East,” they explain that although many other grievances may be aired once the violence begins, the cost of food is the primary trigger. They make a similarly grim prediction: large-scale riots over food, beginning around October of this year.
I’d actually recommend reading journal articles I cite before reading my article:
Dynamics of political instability in the United States, 1780–2010 by Peter Turchin
The Food Crises and Political Instability in North Africa and the Middle East by Marco Lagi, Karla Z. Bertrand and Yaneer Bar-Yam.
Also check out Turchin’s blog.
Kansas City police uncovered an underground suburb used by the homeless on the city’s northeast side.
“This one kind of goes back, and that’s deep,” Kansas City police Officer Jason Cooley said.
KMBC’s Haley Harrison reported that a homeless outreach group said it was unlike anything they’ve ever seen. The subterranean refuge has caves and tunnels.
(via David Forbes)
A rising tide does not lift all boats:
The Silicon Valley is adding jobs faster than it has in more than a decade as the tech industry roars back. Stocks are soaring and fortunes are once again on the rise.
But a bleaker record is also being set this year: Food stamp participation just hit a 10-year high, homelessness rose 20 percent in two years, and the average income for Hispanics, who make up one in four Silicon Valley residents, fell to a new low of about $19,000 a year— capping a steady 14 percent drop over the past five years, according to the annual Silicon Valley Index released by Joint Venture Silicon Valley, representing businesses, and the philanthropic Silicon Valley Community Foundation.
Simply put, while the ultra-rich are getting even richer, record numbers of Silicon Valley residents are slipping into poverty.
Photo: a Sacramento tent city, by ThinkingStiff
Damien Williams on library closures:
People who know about but don’t fully understand history may ask, “Why do conquerors and fanatics always go for the Libraries?” Our most famous example has always been the Library of Alexandria, but it is by no means the sole instance. And if you take a look at that list, you can see something of a distinction: sometimes invaders burn libraries and loot them, and sometimes they just burn them. Why is that?
It’s because a library, more than any other thing humans have ever made, is the physical promise of a wider, more inclusive world.
A library teaches us about the potential for human knowledge to bring us to a better place.
A library challenges our perceptions. A library shows us that there is more to religion than zealotry, more to belief than delusion, more to the search for meaning than fanatical heresies.
A library presents to us, gives to us, for free, the benefits of human inquiry and allows us the time, and space, and resources to connect all of these things in ways that no one before has managed to do.
Mark Fisher describes the contemporary economy and the precarity it involves as a “Time War” in which more and more work of our time is dedicated to work:
To understand the time-crisis, we only have to compare the current situation with the height of punk and post-punk in the UK and the US. It’s no accident that the efflorescence of punk and post-punk culture happened at a time when cheap and squatted property was available in London and New York. Now, simply to afford to pay rent in either city entails giving up most of your time and energy to work. The delirious rise in property prices over the last twenty years is probably the single most important cause of cultural conservatism in the UK and the US. In the UK, much of the infrastructure which indirectly supported cultural production has been systematically dismantled by successive neoliberal governments. Most of the innovations in British popular music which happened between the 60s and the 90s would have been unthinkable without the indirect funding provided by social housing, unemployment benefit and student grants.
(via Bruce Sterling)
See also: Radical Atheism