Our Obsolescent Economy

Our Obsolescent Economy

     by Local Futures

A friend of mine from India tells a story about driving an old Volkswagen beetle from California to Virginia during his first year in the United States. In a freak ice storm in Texas he skidded off the road, leaving his car with a cracked windshield and badly dented doors and fenders. When he reached Virginia he took the car to a body shop for a repair estimate. The proprietor took one look at it and said, “it’s totaled.” My Indian friend was bewildered: “How can it be totaled? I just drove it from Texas!”

My friend’s confusion was understandable. While “totaled” sounds like a mechanical term, it’s actually an economic one: if the cost of repairs is more than the car will be worth afterwards, the only economically ‘rational’ choice is to drive it to the junkyard and buy another one.

In the ‘throwaway societies’ of the industrialized world, this is an increasingly common scenario: the cost of repairing faulty stereos, appliances, power tools, and high-tech devices often exceeds the price of buying new. Among the long-term results are growing piles of e-waste, overflowing landfills, and the squandering of resources and energy. It’s one reason that the average American generates over 70% more solid waste today than in 1960.[1] And e-waste – the most toxic component of household detritus – is growing almost 7 times faster than other forms of waste. Despite recycling efforts, an estimated 140 million cell phones – containing $60 million worth of precious metals and a host of toxic materials – are dumped in US landfills annually.[2]

Along with these environmental costs, there are also economic impacts. Not so long ago, most American towns had shoe repair businesses, jewelers who fixed watches and clocks, tailors who mended and altered clothes, and ‘fixit’ businesses that refurbished toasters, TVs, radios, and dozens of other household appliances. Today, most of these businesses are gone. “It’s a dying trade,” said the owner of a New Hampshire appliance repair shop. “Lower-end appliances which you can buy for $200 to $300 are basically throwaway appliances.”[3] The story is similar for other repair trades: in the 1940s, for example, the US was home to about 60,000 shoe repair businesses, a number that has dwindled to less than one-tenth as many today.[4]

One reason for this trend is globalization. Corporations have relocated their manufacturing operations to low-wage countries, making goods artificially cheap when sold in higher-wage countries. When those goods need to be repaired, they can’t be sent back to China or Bangladesh – they have to be fixed where wages are higher, and repairs are therefore more expensive. My friend was confused about the status of his car because the opposite situation holds in India: labor is cheap and imported goods expensive, and no one would dream of junking a car that could be fixed.

It’s tempting to write off the decline of repair in the West as collateral damage – just another unintended cost of globalization – but the evidence suggests that it’s actually an intended consequence. To see why, it’s helpful to look at the particular needs of capital in the global growth economy – needs that led to the creation of the consumer culture just over a century ago.

When the first Model T rolled off Henry Ford’s assembly line in 1910, industrialists understood that the technique could be applied not just to cars, but to almost any manufactured good, making mass production possible on a previously unimaginable scale. The profit potential was almost limitless, but there was a catch: there was no point producing millions of items – no matter how cheaply – if there weren’t enough buyers for them. And in the early part of the 20th century, the majority of the population – working class, rural, and diverse – had little disposable income, a wide range of tastes, and values that stressed frugality and self-reliance. The market for manufactured goods was largely limited to the middle and upper classes, groups too small to absorb the output of full throttle mass production.

Advertising was the first means by which industry sought to scale up consumption to match the tremendous leaps in production. Although simple advertisements had been around for generations, they were hardly more sophisticated than classified ads today. Borrowing from the insights of Freud, the new advertising focused less on the product itself than on the vanity and insecurities of potential customers. As historian Stuart Ewen points out, advertising helped to replace long-standing American values stressing thrift with new norms based on conspicuous consumption. Advertising, now national in scope, also helped to erase regional and ethnic differences among America’s diverse local populations, thereby imposing mass tastes suited to mass production. Through increasingly sophisticated and effective marketing techniques, Ewen says, “excessiveness replaced thrift as a social value”, and entire populations were invested with “a psychic desire to consume.” [5]

In other words, the modern consumer culture was born – not as a response to innate human greed or customer demand, but to the needs of industrial capital.

During the Great Depression, consumption failed to keep pace with production. In a vicious circle, overproduction led to idled factories, workers lost their jobs, and demand for factory output fell further. In this crisis of capitalism, not even clever advertising could stimulate consumption sufficiently to break the cycle.

In 1932, a novel solution was advanced by a real estate broker name Bernard London. His pamphlet, “Ending the Depression through Planned Obsolescence” applauded the consumerist attitudes that advertising created during the 1920s, a time when “the American people did not wait until the last possible bit of use had been extracted from every commodity. They replaced old articles with new for reasons of fashion and up-to-dateness. They gave up old homes and old automobiles long before they were worn out.” [6] In order to circumvent the values of thrift and frugality that had resurfaced during the Depression, London argued that the government should “chart the obsolescence of capital and consumption goods at the time of their production… After the allotted time had expired, these things would be legally ‘dead’ and would be controlled by the duly appointed governmental agency and destroyed.”[7] The need to replace these ‘dead’ products would ensure that demand would forever remain high, and that the public – no matter how thrifty or satisfied with their material lot – would continue to consume.

London’s ideas did not catch on immediately, and the Depression eventually ended when the idle factories were converted to munitions and armaments production for World War II. But the concept of planned obsolescence did not go away. After the War its biggest champion was industrial designer Brooks Stevens, who saw it not as a government program but as an integral feature of design and marketing. “Unlike the European approach of the past where they tried to make the very best product and make it last forever,” he said, “the approach in America is one of making the American consumer unhappy with the product he has enjoyed the use of…, and [making him want to] obtain the newest product with the newest possible look.”[8]

Brooks’ strategy was embraced throughout the corporate world, and is still in force today. Coupled with advertising aimed at making consumers feel inadequate and insecure if they don’t have the latest products or currently fashionable clothes, the riddle of matching consumption to ever-increasing production was solved.

The constant replacement of otherwise serviceable goods for no other reason than “up-to-dateness” is most clear at the apex of the garment industry, tellingly known as the “fashion” industry. Thanks to a constant barrage of media and advertising messages, even young children fear being ostracized if they wear clothes that aren’t “cool” enough. Women in particular have been made to feel that they will be undervalued if their clothes aren’t sufficiently trendy. It’s not just advertising that transmits these messages. One of the storylines in an episode of the 90s sit-com “Seinfeld”, for example, involves a woman who commits the faux pas of wearing the same dress on several occasions, making her the object of much canned laughter.[9]

Obsolescence has been a particularly powerful force in the high-tech world, where the limited lifespan of digital devices is more often the result of “innovation” than malfunction. With computing power doubling every 18 months for several decades (a phenomenon so reliable it is known as Moore’s Law) digital products quickly become obsolete: as one tech writer put it, “in two years your new smartphone could be little more than a paperweight”.[10] With marketers bombarding the public with ads claiming that this generation of smartphone is the ultimate in speed and functionality, the typical cell phone user purchases a new phone every 21 months.[11] Needless to say, this is great for the bottom line of high-tech businesses, but terrible for the environment.

Innovation may be the primary means by which high-tech goods are made obsolete, but manufacturers are not above using other methods. Apple, for example, intentionally makes its products difficult to repair except by Apple itself, in part by refusing to provide repair information about its products. Since the cost of in-house repair often approaches the cost of a new product, Apple is assured of a healthy stream of revenue no matter what the customer decides to do.

Apple has gone even further. In a class-action lawsuit against the company, it was revealed that the company’s iPhone 6 devices were programmed to cease functioning – known as being “bricked” – when users have them repaired at unauthorized (and less expensive) repair shops. “They never disclosed that your phone could be bricked after basic repairs,” said a lawyer for the complainants. “Apple was going to … force all its consumers to buy new products simply because they went to a repair shop.”[12]

In response to this corporate skulduggery, a number of states have tried to pass “fair repair” laws that would help independent repair shops get the parts and diagnostic tools they need, as well as schematics of how the devices are put together. One such law has already been passed in Massachusetts to facilitate independent car repair, and farmers in Nebraska are working to pass a similar law for farm equipment. But except for the Massachusetts law, heavy lobbying from manufacturers – from Apple and IBM to farm equipment giant John Deere – has so far stymied the passage of right-to-repair laws.[13]

From the grassroots, another response has been the rise of non-profit “repair cafés”. The first was organized in Amsterdam in 2009, and today there are more than 1,300 worldwide, each with tools and materials to help people repair clothes, furniture, electrical appliances, bicycles, crockery, toys, and more – along with skilled volunteers who can provide help if needed.[14] These local initiatives not only strengthen the values of thrift and self-reliance intentionally eroded by consumerism, they help connect people to their community, scale back the use of scarce resources and energy, and reduce the amount of toxic materials dumped in landfills.

At a more systemic level, there’s an urgent need to rein in corporate power by re-regulating trade and finance. Deregulatory ‘free trade’ treaties have given corporations the ability to locate their operations anywhere in the world, contributing to the skewed pricing that makes it cheaper to buy new products than to repair older ones. These treaties also make it easier for corporations to penetrate not just the economies of the global South, but the psyches of their populations – helping to turn billions of more self-reliant people into insecure consumers greedy for the standardized, mass-produced goods of corporate industry. The spread of the consumer culture may help global capital meet its need for endless growth, but it will surely destroy the biosphere: our planet cannot possibly sustain 7 billion people consuming at the insane rate we do in the ‘developed’ world – and yet that goal is implicit in the logic of the global economy.

We also need to oppose – with words and deeds – the forces of consumerism in our own communities. The global consumer culture is not only the engine of climate change, species die-off, ocean dead zones, and many other assaults on the biosphere, it ultimately fails to meet real human needs. The price of the consumer culture is not measured in the cheap commodities that fill our homes and then, all too soon, the nearest landfill.  Its real cost is measured in eating disorders, an epidemic of depression, heightened social conflict, and rising rates of addiction – not just to opioids, but to ‘shopping’, video games, and the internet.

It’s time to envision – and take steps to create – an economy that doesn’t destroy people and the planet just to satisfy the growth imperatives of global capital.

 

Photo credit:  Sascha Pohflepp / Wikimedia

Trump Trauma

Trump Trauma

     by  / Local Futures

While we mourn the tragedy that fear, prejudice and ignorance “trumped” in the US Presidential election, now is the time to go deeper and broader with our work. There is a growing recognition that the scary situation we find ourselves in today has deep roots.

To better understand what happened—and why—we need to broaden our horizons. If we zoom out a bit, it becomes clear that Trump is not an isolated phenomenon; the forces that elected him are largely borne of rising economic insecurity and discontent with the political process. The resulting confusion and fear, unaddressed by mainstream media and politics, has been capitalized on by the far-right worldwide.

Almost everywhere in the world, unemployment is increasing, the gap between rich and poor is widening, environmental devastation is worsening, and a spiritual crisis—revealed in addiction, domestic assaults, and suicide—is deepening.

From a global perspective it becomes apparent that these many crises—to which the rise of right-wing sentiments is intimately connected—share a common root cause: a globalized economic system that is devastating not only ecosystems, but also the lives of hundreds of millions of people.

How did we end up in this situation?

Over the last three decades, governments have unquestioningly embraced “free trade” treaties that have allowed ever larger corporations to demand lower wages, fewer regulations, more tax breaks and more subsidies. These treaties enable corporations to move operations elsewhere or even to sue governments if their profit-oriented demands are not met. In the quest for “growth,” communities worldwide have had their local economies undermined and have been pulled into dependence on a volatile global economy over which they have no control.

Corporate rule is not only disenfranchising people worldwide, it is fueling climate change, destroying cultural and biological diversity, and replacing community with consumerism. These are undoubtedly scary times. Yet the very fact that the crises we face are linked can be the source of genuine empowerment. Once we understand the systemic nature of our problems, the path towards solving them—simultaneously—becomes clear.

Trade unions, environmentalists and human rights activists formed a powerful anti-trade treaty movement long before Trump came on the scene. And his policies already show that he is about strengthening corporate rule, rather than reversing it.

Re-regulating global businesses and banks is a prerequisite for genuine democracy and sustainability, for a future that is shaped not by distant financial markets but by society. By insisting that business be place-based or localized, we can start to bring the economy home.

Around the world, from the USA to India, from China to Australia, people are reweaving the social and economic fabric at the local level and are beginning to feel the profound environmental, economic, social and even spiritual benefits.  Local business alliances, local finance initiatives, locally-based education and energy schemes, and, most importantly, local food movements are springing up at an exponential rate.

As the scale and pace of economic activity are reduced, anonymity gives way to face-to-face relationships, and to a closer connection to Nature. Bonds of local interdependence are strengthened, and a secure sense of personal and cultural identity begins to flourish. All of these efforts are based on the principle of connection and the celebration of diversity, presenting a genuine systemic solution to our global crises as opposed to the fear-mongering and divisiveness of the dominant discourse in the media.

Moreover, localized economies boost employment not by increasing consumption, but by relying more on human labor and creativity and less on energy-intensive technological systems—thereby reducing resource use and pollution. By redistributing economic and political power from corporate monopolies to millions of small businesses, localization revitalizes the democratic process, re-rooting political power in community.

The far-reaching solution of a global to local shift can move us beyond the left-right political theater to link hands in a diverse and united people’s movement for secure, meaningful livelihoods and a healthy planet.

Republished with permission of Local Futures.  For permission to repost this or other entries on the Economics of Happiness Blog, please contact info@localfutures.org

Will the Poor Always Be With Us?

Will the Poor Always Be With Us?

It’s a familiar story. On his final journey toward Jerusalem, Jesus stops in Bethany to eat at the home of Simon, a leper. A woman enters with an alabaster jar of expensive ointment; she breaks the jar and pours the ointment on his head. Her gesture invokes the fury of some of those present. The ointment was worth a year’s wage, they grumble. It could have been sold, and the money given to the poor.

“The poor will always be with you” was Jesus’ righteous and innocent enough reply. Jesus clearly did not pretend by his remark to be shedding new light on the problem of poverty. And when we remind ourselves, as we so often do, that “the poor will always be with us” (as they always have been), we are merely borrowing a manner of stating a fact we all accept without a second thought. It was a fact as unquestioned in Jesus’ time as it is today. But it is not exactly a fact about the poor – that they always have been (and always will be) with us. It is one of those collectively held assumptions that constitute the mythology of our culture, the culture of what has become our global civilization.

It is not an idle myth, that the poor will always be with us, but a vital myth, a powerful and essential means of sustaining our culture and the business of it as usual. It is a myth that has haunted me throughout my two and a half decades of feeling and actively expressing both compassion and indignation in relation to the persistence of hunger, homelessness and poverty in our affluent nation and abroad. Most of this time I have spent working in a soup kitchen and homeless shelter, trying, I suppose, to escape my own affluence and privilege as well as meet basic human needs and challenge the political powers.

The cultural ‘purpose’ of the myth is as clearly straightforward as it is debilitating to the caring activist: there’s no sense in trying to end poverty, except in our dreams. The dreams are reflected in our rhetoric, but under the surface we realize that the prize we can reasonably strive for is amelioration.

Consider, on the other hand, that poverty as we know it is not and has never been the fate of humanity, but instead is largely a product of civilization, as we know it. Columbus and other European explorers and colonists, for example, did not discover poverty here in the Americas; they created it. Defined in terms of security, control and access to life-sustaining resources, poverty and affluence take on a meaning apart from our conventional ‘standard of living’ measure. This reinterpretation prompted anthropologist Marshall Sahlins 50 years ago to identify tribal hunter-gatherers as the “original affluent societies”.  He recognized a kind of wealth enjoyed – and enjoyed equitably – by tribal people that far surpassed in value the benefits we associate with having wealth in our culture. Perhaps because we have begun to change our own conventional measures of wealth, hunter-gatherers are beginning to be perceived by us in a more favorable light. My students do generally pause to consider if the Native Americans were ‘poor’ when encountered by European explorers, but then uniformly insist that they were not.

And although scientists discovered over a century ago that humans lived in this hunter-gatherer way for hundreds of thousands of years before the ‘Agricultural Revolution’ spawned our civilization and culture a mere 10,000 years ago, our history and our collectively held and lived mythology reduce the human experience to civilization-building. Our collective frame of reference not only omits the vast human experience prior to our history, it excludes the experience of humans flourishing in egalitarian tribes concurrent with our history. There are still today scattered pockets of tribal people who have never known the kind of poverty we take so for granted. This vast experience suggests that poverty is a function of culture, not of nature, which is relatively immutable.

So one way we perpetuate the myth of never-ending poverty is by continuing to believe, against the facts, that our history, the history of our culture, our civilization is the history of humanity itself and that anyone outside or predating this history is a poor, half-human savage. Many of us individually will nod to the facts when confronted by them. This matters little, because mythology is something a culture of people buy into together and give expression to in the way they live as a group.

In the same vein, a second and more recent source of fuel for the myth is that, in an important sense, we really don’t want poverty to go away. It is therefore convenient to believe that the poor will always be with us (as they have always been). We don’t want poverty to go away for at least two broad reasons.

The first is that our economic system necessarily generates poverty; but more specifically, our own employment increasingly depends on it. One day at Amos House, a young man was ejected from the soup kitchen for a rule infraction. On the curb outside, he shouted back at our social worker, “you know, if it wasn’t for me, you wouldn’t have a job!” I still ponder that remark 10 years later.

Automation and cheap foreign labor have challenged our economy to find new ways to sustain growth and keep people busy, and our economy has responded brilliantly. The service ‘industry’ has taken up the slack. As the Agricultural/Industrial Revolution displaced not only laborers, but also the life-sustaining role of small communities (tribes and then villages), it created tremendous neediness and marginalization, adding to the effects of automation. The demand for services to address mounting social problems provided the new raw material. Private and public service programs nicely fit the bill because they ease the pain and give the appearance of an effective response without actually solving the problem. Indeed, the kinds of short-term, palliative interventions provided by services often permit the problem to worsen long term. Additionally, this neat economic solution has inspired the cultural fabrication of more frivolous needs and wants to which an infinite number of new services can be introduced to stoke the furnace.

A second reason why we cling to the continuation of poverty, and also to marginalization more broadly, is that many of us, at least, need a place to actively express our care and compassion. We need people – beyond our immediate family members – to care for in the absence of the tribal context within which we once freely shared our care with other members in a mutual support network. I’m like my dog, Pearl, who without the opportunity to hunt instinctively, finds herself playing out the hunt in our house or backyard (sometimes in absurdly comical ways). I can’t say that humans are instinctively compassionate or that we were meant by God or anything else to live in tribes. But there is clearly a compassionate streak in us, expressed more in some people than in others, and humans have lived tribally for 99% of our time on earth. Tribalism is a way of life that has tested out, notwithstanding its relatively recent setback in the face of our own civilizational expansion (Despite how the balance of this competition appears to us, it is too early to call the match.)

Mutual care, generated more by survival needs and self interest than by altruism, is the basis of support in the tribe. In our world, this support has been supplanted by services, mainly professional services working within a service system. Service, in fact, is simply the attempt to meet needs outside the context of community. Just as we do not use the word ‘service’ to label the care we provide within our families, likewise there is no equivalent concept of ‘service’ among tribal people. For individuals with an especially caring disposition, the service system provides the only available outlet, other than the care provider’s own family. The weakening nuclear family, however, like the extended family, clan, village and tribe before it, has increasingly surrendered its support function to professional services. Following this trend, we could all soon find ourselves supported by service providers alone.

John McKnight makes a compelling case that the professional service system is a poor substitute for the kind of support system only a genuine community can provide. It is inferior on many counts, not the least of which is that it frustrates the caring service provider who enters the field of teaching, health care or social work in order to give care only to face one systemic obstacle after another. McKnight insists that the professional service system and its network of private and public institutions and agencies are not geared to providing care, only professional services. To give and receive care, there is no substitute for community. I consider the tribe to be the archetype of community in this sense.

So far I have identified our collectively held assumption that “the poor will always be with us” as a tragic, self-fulfilling prophecy based on mistaken assumptions.   I have also named four factors contributing to the perpetuation of the myth and the consequent perpetuation of poverty:

  1. We collectively believe that human poverty is an inevitable part of the natural order in general and of the nature of humans in particular.
  2. We understand that, in fact, the poor have always been with us.
  3. An increasing number of jobs and institutions (and the economy itself) depend on the continuation or worsening of poverty and marginalization.
  4. The marginalized provide caregivers somewhere to direct their compassion.

A revised understanding of the inevitability of poverty lends itself to at least two general change strategies. Although activists like myself tend to favor more action-sounding suggestions, the first and perhaps most radical thing we can do is help surface our cultural mythology and replace it with principles of living that will work better for us – and possibly lead to the elimination of poverty. For “the poor will always be with us” we might substitute something like: “The universe consists of cycles of creation and destruction, birth and death, but within this framework, the earth will provide.” Our planet and its abundant and richly diverse community of life offer an adequate and acceptable support system for us, as they do for all other species. No one should languish in the kind of marginal destitution we commonly call ‘poverty’. This strategy is one of learning and relearning.

The second avenue is building community – finding small and more ambitious ways of reintegrating ourselves into small-scale economies of support founded on trusting relationships. In My Ishmael, Author Daniel Quinn distinguishes between a tribal economy founded on the exchange of human energy:

and our economy that is founded on the exchange of products, including service products:

To the extent that we can transfer our faith and reliance from the products system to the communal support system, we contribute to the atrophy (and eventual elimination) of the products system, its institutions and political structures and jurisdictions. The kind of poverty we are familiar with has been with us through the emergence of our civilization because it is inherent in the culture of our civilization, if not in civilization as a mode of social organization in general. Poverty can be eliminated, but it will require a fundamental break from the way we have been thinking and living.

Our current worldview, allegiances and psychological attachments strongly favor the prevailing way of life, as does the usual default assumption that the world is simply going to continue on its trajectory toward a ‘more and bigger’ version of what we have today. But like a recessive gene, our capacity to trust the earth and live by each other’s support and unique gifts lies within each of us, dormant for the most part, but ready to surface and engage after an initial adjustment process. Many disaffected youth, still partially dependent on the products system, have nevertheless chosen to live tribally simply to support their refusal to eke out a living in the usual way, preferring the freedom and vitality of life on the outside. Less dramatic experiments, ranging from intentional rural communities to urban block association activity, point in the ‘give support/get support’ direction.

By the standards of tribal wealth, even our financially well off are quite poor. In my facilitation work with the materially comfortable in churches and nonprofits, I find a surprising receptivity to this disturbing message. A million dollars, for example, is not enough to insure against having to spend the last decade of life in a nursing home. One source of hope for me – as distant as it appears – lies in the potential for defection within the middle and upper classes. As ‘winning’ the products contest rewards us with a life that is increasingly accelerated, virtual, alienating and superficial – as well as ecologically perilous – the rewards of abandoning the game we play for life with the trees and sky – and each other – will prove increasingly irresistible. The ‘simple living’ trend of the past decade may portend a shift that is deeper and more widespread; this shift could provide a catalyst for the cultural break necessary to end poverty.

It certainly lies outside the box to imagine rich people releasing their hold on product wealth and the means of creating it, but this will be a natural side effect of their shifting attention in the direction of acquiring a different kind of wealth. The marginalized poor would then have a better chance of reestablishing access to land resources. Unfortunately, the prevailing models of development in poor communities and countries are the models offered by the products system, which the poor themselves generally look to as the only way out. Alternatively, organizations committed to reducing poverty should emphasize strategies that regenerate the kind of self-reliant, give support/get support community life that can regenerate the kind of wealth we have paved over with a product-driven culture of winners and losers.

This essay is adapted from Jim Tull’s new book, Positive Thinking in a Dark AgeA somewhat different version first appeared in The Other Side, May-June 2002, Vol. 38, No. 3.  Republished with permission.

 

An Economy of Meaning – or Bust

An Economy of Meaning – or Bust

     by John Boik, PhD / Local Futures

It’s not often that a scientist gets to use the words love, creativity, and wisdom in a paper, especially when writing about economics. Perhaps that’s because economics, the dismal science, is obsessed with dismal systems – make that abysmal systems, relative to need.

To be clear, I’m not speaking of the specific policies of the US, the EU, China, the World Bank or others. I’m speaking of dominant economic systems as wholes – especially their underlying conceptual models (macro and micro) and the worldviews upon which they are based.

A human has only so many minutes in life. Time is the bedrock scarcity. If a person isn’t doing something meaningful in a given moment, he’s doing something less than meaningful. He’s wasting at least some of his potential. By meaningful, I don’t mean productive, in an economic sense. I mean important to the person, to her own wellbeing. The Chilean economist Manfred Max-Neef identifies nine categories of human need: subsistence, protection, affection, understanding, participation, leisure, creation, identity, and freedom. Others might make a slightly different list, but the important concept is that meaning stems from addressing real human needs.

It’s not that we should be doing something meaningful with our time, it’s that we want to. We want to express and receive affection, for example, and to fulfill the other eight needs. We want to, that is, unless external pressures so exhaust, distract, distort, or confuse us that we lose touch with who we are.

Current economic systems are dismal-abysmal because they waste our precious time. As a case in point, only 13 percent of workers worldwide are engaged in their jobs. This means, in effect, that 87 percent of workers feel more or less forced to go to work. Short of force, why would someone spend half their waking hours (or more), day after day, doing something that didn’t engage them?

Except for receiving a paycheck, it appears that most workers don’t really care about their jobs. That’s not surprising. Work doesn’t count as a real human need. It’s only a vehicle by which some needs can be (but for most people aren’t) met. Work doesn’t meet our needs because economic systems, as they exist, didn’t evolve to fulfill the real needs of ordinary people. They evolved largely under pressures exerted by powerful people and groups who wanted to maintain and expand their own privileges.

Suppose that we pause to reevaluate. Using insights from psychology, environmental sciences, public health, complex systems science, sociology, and other fields – that is, using as clear and scientifically sound a picture as we can muster of what humans and natural environments actually need in order to thrive – we can ask ourselves the following question: What economic system designs, out of all conceivable ones, might be among the best at helping us meet real needs?

Strange as it might sound, this question is rarely asked in academia, the science and technology sector, or elsewhere. Or if it is asked, the investigation usually lacks imagination. Surely we can move beyond a discussion of capitalism vs. socialism, as if these were the only two possibilities. A wide-open, largely unexplored space of interesting, potentially viable systems exists.

In my recent paper, “Optimality of Social Choice Systems: Complexity, Wisdom, and Wellbeing Centrality,” I call on the academic community, as well as the science and technology sector, to begin a broad exploration in partnership with other segments of society into what optimality means with respect to economic and political system design. I term this nascent program wellbeing centrality, due to the central role that the elevation of wellbeing would play in systems that help us to fulfill real needs.

Viewed abstractly, economic and political systems are problem-solving systems. One could call them technologies of a sort. As such, they are subject to scientific inquiry and engineering innovation aimed at discovering new designs that improve problem-solving capacity. Further, if we seek ideas for new designs, we don’t have to look far. Nature provides a blueprint.

From a complex systems science perspective, the environment is replete with successful problem-solving systems (cells, organisms, immune systems, ecosystems, and so on). Although all look different physically, successful systems tend to exhibit similar underlying mathematical properties. That is, nature has hit upon a good problem-solving approach, and repeats it widely. If we wish our problem-solving systems to be successful, to be as good as they can be, we might want to pay close attention to what nature does.

Moreover, we can view the nine needs Max-Neef identifies as gifts of nature, stemming from eons of evolution over countless ancestral species, to help us focus on and solve problems that matter. Our need to express and receive affection, for example, is also responsible, in part, for our tendency to seek cooperation in solving difficult problems.

In short, “good” economic systems would produce economies of meaning that help us to help one another live meaningful lives—to meet real needs and solve problems that matter.

We don’t have much time to make a transition from current systems to better ones. Mass extinction and other global catastrophes loom on the horizon. We face the unthinkable, not so much because a few CEOs, companies, or politicians have acted greedily (some have), but rather because today’s problem-solving systems didn’t evolve to help us meet real needs. They waste our precious time, as mentioned, rather than focusing our talents and natural drives on things that do matter, such as caring for others and the planet.

But how do we get from here to there? No matter how promising the design of a new system might be, it would be unreasonable to expect that a nation would abruptly drop an existing system in favor of a new one. Nevertheless, a viable, even attractive strategy exists by which new systems could be successfully researched, developed, tested, and implemented. I call it engage global, test local, spread viral.

Engage global means to engage the global academic community and technical sector, in partnership with other segments of society, in a well-defined R&D program aimed at computer simulation and scientific field testing of new systems and benchmarking of results. In this way, the most profound insights of science can be brought into play.

Test local means to scientifically test new designs at the local (e.g., city or community) level, using volunteers (individuals, businesses, non-profits, etc.) organized as civic clubs. This approach allows testing by relatively small teams, at relatively low cost and risk, in coexistence with existing systems, and without legislative action.

Spread viral means that if a system shows clear benefits in one location (elimination of poverty, for example, more meaningful jobs, or less crime) it would likely spread horizontally, even virally, to other local areas. This approach would create a global network of communities and cities that cooperate in trade, education, the setup of new systems, and other matters. Over time, its impact on all segments of society would grow.

Trump’s Populist Deceit

Trump’s Populist Deceit

     by  / Local Futures

While misogyny, racism, and ethnic taunts were conspicuous signposts on Donald Trump’s path to the White House, much of that road was paved with “populist”, “anti-establishment” and “anti-globalization” rhetoric. Trump’s inaugural address featured numerous populist lines (e.g. “What truly matters is not which party controls our government, but whether our government is controlled by the people”), attacks on the status quo (“The establishment protected itself, not the citizens of our country”), and barbs aimed at globalization (“One by one, the factories shuttered and left our shores, with not even a thought about the millions upon millions of American workers left behind.”)

Are these themes accurate predictors of how Mr. Trump and his administration will govern for the next four years?

Hardly. Long before the election, it was widely pointed out that the populist platitudes issuing from the silver-spooned mouth of a billionaire plutocrat represented little more than elite hucksterism. [1] Of course, post-election, the band of fellow billionaire corporate rascals and knaves Trump assembled for his cabinet and close advisors should have put an end to this fatuous ‘anti-establishment’, ‘populist’ charade once and for all. As one observer noted, “Trump’s cabinet has begun to resemble a kind of cross between the Fortune 500 rich list, a financier’s reunion party and a military junta.” [2]

What about Trump as an ‘anti-globalization’ crusader? Apart from the inconvenient fact that his own loot was built upon global outsourcing and the exploitation of cheap labor abroad for which ‘globalization’ is shorthand, the fact is that a “former Chamber [of Commerce] lobbyist who has publicly defended NAFTA and outsourcing more generally was appointed to Trump’s transition team dealing with trade policy.” [3] Did anyone really buy the notion that the swaddled child of corporate globalization had morphed into a working-class hero battling the ravages of that same globalization?

Some of Trump’s voters were undoubtedly among those who have been economically marginalized by globalization and wealth inequality – the common folk on whose behalf populism historically emerged. No doubt some allowed Trump’s populist, anti-globalization legerdemain to blind them to his scapegoating of fellow displaced working-class victims of globalization – aka immigrants from non-European countries. That these constituted the majority of his voters, however, is questionable. As Jeet Heer argued convincingly back in August,

“Rather than a populist, Trump is the voice of aggrieved privilege—of those who already are doing well but feel threatened by social change from below, whether in the form of Hispanic immigrants or uppity women. … Far from being a defender of the little people against the elites, Trump plays to the anxiety of those who fear that their status is being challenged by people they regard as their social inferiors.” [4]

In other words, Donald Trump is no populist, but an “authoritarian bigot”[5], and his election represents the victory of the rich – and a victory for corporate globalization. He is “not an outlier, but instead the essence of unrestrained capitalism.” [6] (To be clear, this should in no way be read as an implicit endorsement of the neoliberal Democratic Party, whose economic and trade policies are largely pro-corporate as well.)

To see Trump as an anti-globalization crusader is to misunderstand one of the main structural features of globalization itself: the concentration of wealth by fewer and fewer corporations and the consequent widening of the gulf between rich and poor. According to a recent report, [7] here are some relevant trends from 1980 to 2013 – roughly the period of hyper globalization:

  • Corporate net profits increased about 70 percent;
  • Three-quarters of this increase went to the largest corporations (those with over $1 billion in annual sales);
  • Just 10 percent of publicly listed companies account for 80 percent of corporate profits; the top quintile earns 90 percent;
  • Two-thirds of 2013 global profits were captured by corporations from rich, industrialized countries;
  • During this period in these same “rich countries”, labor’s share of national income has plummeted. Needless to say, labor in poorer countries has not fared better – indeed, exploitation of labor’s “cheapness” in the poorer countries is the sine qua non of this spasm of corporate profits.

As Martin Hart-Landsberg explains in his summary of the report, “the rise in corporate profits has been largely underpinned by a globalization process that has shifted industrial production to lower wage third world countries, especially China; undermined wages and working conditions by pitting workers from different communities and countries against each other; and pressured core country governments to dramatically lower corporate taxes, reduce business regulations, privatize public assets and services, and slash public spending on social programs.” [8]

This strategy has not “helped lift hundreds of millions to escape poverty over the past few decades”, as is repeatedly, unquestioningly claimed in the mainstream media. [9] As scholar Jason Hickel has shown, such a claim rests on propagandistic World Bank-sponsored poverty statistics; if poverty were to be measured more accurately, “We would see that about 4.2 billion people live in poverty today. That’s more than four times what the World Bank would have us believe, and more than 60% of humanity. And the number has risen sharply since 1980, with nearly 1 billion people added to the ranks of the poor over the past 35 years.” [10]

Additionally, inequality has reached nauseating heights: the latest analysis by Oxfam shows that “Eight men own the same wealth as the 3.6 billion people who make up the poorest half of humanity.” [11] Globalization – an abbreviated way of describing the worldwide evisceration of regulations hampering corporate profits and the institutionalization of those that enhance them – is an engine of extreme inequality and corporate power, within and between countries, full stop. It is not cosmopolitanism, humanism, global solidarity, multicultural understanding and tolerance, or any of the other noble liberal virtues claimed for it by its votaries. In fact, while a ‘borderless’ world was seen as the pinnacle of the globalization project, physical barriers at the world’s borders have actually increased by nearly 50 percent since 2000 [12] – with the US, India and Israel alone building an astounding 5,700 km of barriers. [13]

Widespread hostility towards globalization by the working class in ‘rich countries’ is understandable and justified. The problem is that this animosity is being misdirected against fellow working-class victims of corporate profiteering (“immigrants”, “the Chinese”), and not against the banks and corporations that are the source of working-class misery. This is the strange creature called ‘right-wing anti-globalization’, or, ‘right-wing populism’ – concepts that seem rather contradictory insofar as right-wing politics is about defending and strengthening status quo arrangements of power, privilege and hierarchy. Anti-globalization, on the other hand, is about challenging the gross inequality and injustice of the status quo; and populism – historically at least – is supposed to be about advancing the interests of common people and creating a more egalitarian society. [14]

Nonetheless, it is common in the mainstream media for ‘anti-globalization’ to appear on the ugly right-wing and reactionary side of a simplified binary ledger of political ideologies. It is listed, almost automatically, alongside such distasteful qualities as “inward-looking” and “anti-immigrant”, while the opposite side is ascribed noble qualities like “tolerance” and “solidarity”. This is merely a recycling of the popular (and very much corporate-sponsored) notion of globalization-as-humanizing-global-village. This Thomas Friedman-esque framing works to deflate the would-be critic of corporate globalization by threatening to tar her by association with reactionaries and xenophobes.

To accede to this binary framing would be a grave error, since it further empowers the existing system of corporate exploitation and wealth concentration. However, because there is undeniably an element of the anti-immigrant, xenophobic right that is also – at least rhetorically – anti-globalization, it is absolutely essential for the left to articulate in the clearest terms possible an anti-globalization stance rooted in international solidarity, intercultural openness and exchange, environmental justice, pluralism, fraternity, solidarity, and love, and to continually expose the fact that globalization is intolerant of differences in its relentless dissemination of a global consumer monoculture. In other words, the right should not be allowed to hijack the anti-globalization discourse, and contaminate and confuse it with racist, anti-immigrant sentiment, nor let localization – the best alternative to globalization – become equated with nativism, nationalism, xenophobia etc. It is unfortunate that we have to do this, since peoples’ movements against globalization and for decentralization/re-localization have already clearly drawn this distinction, indeed emerged in large measure in opposition to global injustice. But do it we must, since the corporate media is happily using the rise of the right-wing to discredit the spirited, leftist opposition to globalization that has stalled such corporate power grabs as TPP, CETA, and TTIP.

Should the left make common cause with those on the right when it comes to opposing globalization, irrespective of our profound opposition to the rest of the rightist agenda? Can we hold our noses and engage with this strange bedfellow to slay our ‘common’ foe, globalization? I do not think so. Not only is right-wing anti-globalization based on a deeply flawed and internally incoherent analysis, more importantly the political expediency of the implicit message – “as long as you join us in opposing corporate free trade treaties, your xenophobia, racism et al. can be temporarily ignored and tacitly tolerated” – is noxious and inexcusable.

Fortunately, a number of writers and activists have already been busy on the critical project of framing an inclusive anti-globalization stance. Chris Smaje, agrarian and writer of the Small Farm Future blog in the UK has spelled out a vision of “left agrarian populism” that is genuinely anti-establishment and pro-people (all people), is based on and strengthens local economies, and is fiercely internationalist. [15] Localist and internationalist? Yes. Localization of economic activity is, perhaps counter-intuitively, supportive of greater global collaboration, understanding, compassion and intellectual-cultural exchange, while corporate-controlled economic globalization has hardened, and even produced, cultural/national friction and competition.

Political theorist Chantal Mouffe has similarly acknowledged the right-wing hijacking of legitimate political discontentment against corporate elitism across Europe, the answer to which, she says, must involve “the construction of another people, promoting a progressive populist movement that is receptive to those democratic aspirations and orients them toward a defense of equality and social justice. Conceived in a progressive way, populism, far from being a perversion of democracy, constitutes the most adequate political force to recover it and expand it in today’s Europe.” [16]

Degrowth scholar-activists Francois Schneider and Filka Sekulova have, in line with Smaje’s left-green localism-populism, articulated the important concept of ‘open-localism’ or ‘cosmopolitan localism’.  “Open-localism”, they write, “does not create borders, and cherishes diversity locally. It implies reducing the distance between consumer and producers … being sensitive to what we can see and feel, while being cosmopolitan”. [17] These visions, and many other related ones, provide an important foundation for social justice and environmental activists to build upon in boldly reclaiming the anti-globalization narrative and resistance in these difficult times.

Alex Jensen is Project Coordinator at Local Futures/International Society for Ecology and Culture. He has worked in the US and India, where he co-ordinated Local Futures’ Ladakh Project from 2004-2015. He has also been an associate of the Sambhaavnaa Institute of Public Policy and Politics in Himachal Pradesh, India. He has worked with cultural affirmation and agro-biodiversity projects in campesino communities in a number of countries, and is active in environmental health/anti-toxics work.

Endnotes

[1] See for example Naureckas, Jim, “Hey NYT – the ‘Relentless Populist’ Relented Long Ago”, Fairness and Accuracy in Reporting, January 22, 2017; Lynch, Conor, “Don’t be fooled: Trump’s populist economic rhetoric is a fraud”, Salon, July 9, 2016; Paarlberg, Michael, “Donald Trump is a pretend populist – just look at his economic policy”, The Guardian, August 10, 2016.

[2] Warner, J. (2016) “Donald Trump’s cabinet of oil men and generals is just what’s needed to get US out of its rut “, The Telegraph, December 16, 2016.

[3] Hart-Landsberg, M. (2016) ‘Confronting Capitalist Globalization’, Reports from the Economic Front.

[4] Heer, J. (2016) ‘Donald Trump Is Not a Populist. He’s the Voice of Aggrieved Privilege’, New Republic, 24 August.

[5] Ibid.

[6] Cuadros, A. (2016) ‘The Other Buffett Rule; or why better billionaires will never save us’, The Baffler, No. 33.

[7] McKinsey Global Institute (2015). “Playing to Win: the new global competition for corporate profits”, September 2015.

[8] Hart-Landsberg, M. (2016) ‘The Trump Victory’, Reports from the Economic Front, 18 November, 2016.

[9] See for example Pylas, P. and Keaten, J. (2017) ‘Will Trump end globalization? The doubt haunts Davos’ elite‘, Associated Press, January 20, 2017.

[10] Hickel, J. (2015) “Could you live on $1.90 a day? That’s the international poverty line”, The Guardian, November 1, 2015.

[11] Oxfam (2017) ‘Just 8 men own same wealth as half of humanity’, Oxfam International Press Release, 16 January, 2017.

[12] Harper’s Index, ‘Percentage by which the number of international borders with barriers has increased since 2014: 48’, Harper’s Magazine, January 2017.

[13] Jones, R. (2012) Border Walls: Security and the War on Terror in the United States, India and Israel, London: Zed Books.

[14] cf. Heer 2016, op.cit.

[15] Smaje, C. (2016) ‘Why I’m still a populist despite Donald Trump: elements of a left agrarian populism’, Small Farm Future, 17 November.

[16] Mouffe, C. (2016) ‘The populist moment’, Open Democracy, 21 November.

[17] Schneider, F. and Sekulova, F. (2014) ‘Open-localism’, paper presented at the 2014 International Conference on Degrowth, Leipzig, Germany.