Barbara Ehrenreich: Smashing Capitalism

[marmar]

from The Nation:


comment | posted August 20, 2007 (web only)
Smashing Capitalism
Barbara Ehrenreich


Somewhere in the Hamptons a high-roller is cursing his cleaning lady and shaking his fists at the lawn guys. The American poor, who are usually tactful enough to remain invisible to the multi-millionaire class, suddenly leaped onto the scene and started smashing the global financial system. Incredibly enough, this may be the first case in history in which the downtrodden manage to bring down an unfair economic system without going to the trouble of a revolution.

First they stopped paying their mortgages, a move in which they were joined by many financially stretched middle class folks, though the poor definitely led the way. All right, these were trick mortgages, many of them designed to be unaffordable within two years of signing the contract. There were "NINJA" loans, for example, awarded to people with "no income, no job or assets." Conservative columnist Niall Fergusen laments the low levels of "economic literacy" that allowed people to be exploited by sub-prime loans. Why didn't these low-income folks get lawyers to go over the fine print? And don't they have personal financial advisors anyway?

Then, in a diabolically clever move, the poor--a category which now roughly coincides with the working class--stopped shopping. Both Wal-Mart and Home Depot announced disappointing second quarter performances, plunging the market into another Arctic-style meltdown. H. Lee Scott, CEO of the low-wage Wal-Mart empire, admitted with admirable sensitivity, that "it's no secret that many customers are running out of money at the end of the month."

I wish I could report that the current attack on capitalism represents a deliberate strategy on the part of the poor, that there have been secret meetings in break rooms and parking lots around the country, where cell leaders issued instructions like, "You, Vinny--don't make any mortgage payment this month. And Caroline, forget that back-to-school shopping, OK?" But all the evidence suggests that the current crisis is something the high-rollers brought down on themselves.

When, for example, the largest private employer in America, which is Wal-Mart, starts experiencing a shortage of customers, it needs to take a long, hard look in the mirror. About a century ago, Henry Ford realized that his company would only prosper if his own workers earned enough to buy Fords. Wal-Mart, on the other hand, never seemed to figure out that its cruelly low wages would eventually curtail its own growth, even at the company's famously discounted prices. ......(more)

The complete piece is at: http://www.thenation.com/doc/20070827/ehrenreich

[PDJane]

1. Thank you........

I might have missed this, and that would have been a crime.

Ehrenreich is worth reading and listening to; she's a powerful advocate.

[Mist]

2. Thanks for posting this--I need to keep up with Ehrenreich's writing. She is a

distinctive and humane voice.

[Mist]

3. Thanks for posting this--I need to keep up with Ehrenreich's writing. She is a

distinctive and humane voice.

[Mist]

4. Please excuse the double post! nt

[Karmadillo]

5. Think how effective the working class would be if they had their own political party

nt

[Selatius]

7. Yeah, but they'll never get rid of the two-party system. It serves power fine as it is.

Otherwise, workers might have a choice between Social Democrats, Greens, Socialists, Labor parties, etc. Proportional representation or a mixed system like Germany has would cause the disintegration of the two-party system.

[Hydra]

6. Too bad this is all smoke and mirrors

watch for a deliberate system collapse soon. I shudder to think what will take its place.

[The Backlash Cometh]

8. Who knew that the demise of capitalism would be its free market nature. Who knew?

[bluestateguy]

9. And yet the Chardonnay Socialist Barbara Ehrenreich voted for Nader in 2000

And in Florida of all places.

The problems of which she speaks would be much less severe if she had voted for Gore.

Sorry, but she has no credibility.

[Karmadillo]

11. No credibility? Why?

And that Chardonnay Socialist stuff from an Edwards supporter makes me think of glass houses.

[JVS]

16. Glass houses or 32000 sq ft houses with $400 haircuts?

[RandomKoolzip]

21. Oh bullshit. *I* voted for Nader in 2000 too, pal.

Sure, I regret it NOW. Not everyone is blessed with your fabulous psychic gifts, oh great one. :eyes:.

And as far as credibility is concerned, let's see you write something as powerful as Nickel and Dimed. 'kay? I won't hold my breath.

[renate]

10. there's a link to a Business Week article in there that's worth a read

Although she didn't write the Business Week article, it reminds me of her book "Nickeled and Dimed." Which is also very very much worth a read.

[SpiralHawk]

12. k and r

Spiral Hawk displays his elegantly powerful KICK

[Karmadillo]

13. Kick

nt

[Deja Q]

14. When people can't afford the products, people won't buy them.

Revelation 18:11, anyone?

The working class is not at fault. They're too busy trying to pay rent, food, and medical insurance.

[NaturalHigh]

15. I read the article earlier today.

I don't always agree with Ms. Ehrenreich, but this article was excellent.

[Karenina]

19. Kick!

:kick:

[SoCalDem]

17. In a perfect world, Barbara would have her own show every day

and write books in her spare time..

[1932]

20. Motley Fool, Wall St. Week, Nightly Business Report -- public radio and TV has plenty of room for

the voices of capital in their schedules, but I don't know of a single radio or TV program that gives consumers or the working class an opportunity to share their perspective.

[whoneedstickets]

18. This is why I subscribe to the Nation...

....you get to read the truth occasionally and that's a good feeling.

[Laelth]

22. Barbara Ehrenreich rocks!

Excellent essay. Thanks, OP, for posting it.

:dem:

-Laelth