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Corporate chain retailers homogenize communities, taking what was once local money and transforming it into corporate revenue. Supporting locally owned businesses does not only preserve communities—it makes the difference between local economic growth and fueling corporate greed.
For every $100 spent at a locally owned business, $45 remains in the local economy. If this money is spent at a big-box mart or chain store, only $14 remains while the rest is redistributed at corporate headquarters. This works because local businesses typically follow what has become known as the “local multiplier effect”—instead of outsourcing labor and redirecting profits to the corporate machine, local business owners invest in local labor and keep their profits in the local economy.
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Imagine how much harder the last three years would have been without the safeguards erected over the past 80 years, in many cases with bipartisan support. Social Security, Medicare, Medicaid, and unemployment insurance are the broadest, but there are also the programs specifically targeted toward low-income Americans: the earned income tax credit, community health centers, school lunch programs, and food stamps, to name a few.
These policies have two things in common. They’ve historically enjoyed high levels of support, not just from the Democratic Party, but from Republicans as well. And today’s GOP plans to dismantle or seriously weaken all of them, setting back almost a century of progress.
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“According to the U.S. Census Bureau, a higher percentage of Americans is living in extreme poverty than they have ever measured before. In 2010, we were told that the economy was recovering, but the truth is that the number of the “very poor” soared to heights never seen previously. Back in 1993 and back in 2009, the rate of extreme poverty was just over 6 percent, and that represented the worst numbers on record. But in 2010, the rate of extreme poverty hit a whopping 6.7 percent. That means that one out of every 15 Americans is now considered to be “very poor”. For many people, this is all very confusing because their guts are telling them that things are getting worse and yet the mainstream media keeps telling them that everything is just fine. Hopefully this article will help people realize that the plight of the poorest of the poor continues to deteriorate all across the United States. In addition, hopefully this article will inspire many of you to lend a hand to those that are truly in need.”
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There’s no doubt that this economy is especially grim for young people. Unemployment among young adults continues to hover around 18 percent, and a report by the Federal Reserve found that full-time undergraduate students are borrowing 63 percent more for school than they did a decade ago. (Outstanding student-loan debt broke the trillion-dollar mark for the first time this year.) Young people have few prospects for decent jobs. This bleak situation is clearly a driving factor behind the emergence of the Occupy Wall Street movement; studies suggest that the “occupiers” skew young, don’t have a lot of income and suffer from a much higher rate of unemployment than the country as a whole.
The Pew study’s main finding is that, “in 2009, households headed by adults ages 65 and older possessed 42% more median net worth (assets minus debt)” than they did in 1984, but that trend was reversed in younger households. In 2009, “households headed by adults younger than 35 had 68% less wealth than households of their same-aged counterparts had in 1984.”
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A moral economy for our own time would certainly take on the unbridled accumulation of wealth at the expense of the majority (and the planet). It would also single out for special condemnation the creation of an ever-larger stratum of people we call “the poor” who struggle to survive in the shadow of the overconsumption and waste of that top 1%.
Some facts: early in 2011, the U.S. Census Bureau reported that 14.3% of the population, or 47 million people — one in six Americans — were living below the official poverty threshold, currently set at $22,400 annually for a family of four. Some 19 million people are living in what is called extreme poverty, which means that their household income falls in the bottom half of those considered to be below the poverty line. More than a third of those extremely poor people are children. Indeed, more than half of all children younger than six living with a single mother are poor. Extrapolating from this data, Emily Monea and Isabel Sawhill of the Brookings Institution estimate that further sharp increases in both poverty and child poverty rates lie in our American future.
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The response of the country’s financial elites to the protests in Liberty Plaza and around the country seem not all that different from the police and security guards nervously watching outside the Goldman office. They don’t want to overreact and show that the actions are working, but they clearly wish they had a way to shut them down.
It’s been over a month since New York’s financial district found a mini-society growing in one of its parks, a month of impromptu marches, organized bank withdrawals, teach-ins, arrests, and creative actions of all kinds. But aside from the snarled “Get a job!” from angry be-suited passersby, how have the financial elites who are the target of the protests reacted?
Are the occupiers, for lack of a better phrase, getting inside their heads?
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I’m just old enough to remember the Great Depression. After the first few years, by the mid-1930s, although the situation was objectively much harsher than it is today, the spirit was quite different. There was a sense that we’re going to get out of it, even among unemployed people. It’ll get better. There was a militant labor movement organizing, CIO was organizing. It was getting to the point of sit-down strikes, which are very frightening to the business world. You could see it in the business press at the time. A sit-down strike was just a step before taking over the factory and running it yourself. Also, the New Deal legislations were beginning to come under popular pressure. There was just a sense that somehow we’re going to get out of it.
It’s quite different now. Now there’s kind of a pervasive sense of hopeless, or, I think, despair. I think it’s quite new in American history and it has an objective basis. In the 1930s unemployed “working people” could anticipate realistically that the jobs are going to come back. If you’re a worker in manufacturing today — and the unemployment level in manufacturing today is approximately like the Depression — if current tendencies persist, then those jobs aren’t going to come back. The change took place in the ’70s. There are a lot of reasons for it. One of the underlying reasons, discussed mainly by economic historian Robert Bernard, who has done a lot of work on it, is a falling rate of profit. That, with other factors, led to major changes in the economy — a reversal of the 700 years of progress towards industrialization and development. We turned to a process of deindustrialization and de-development. Of course, manufacturing production continued, but overseas (it’s very profitable, but no good for the workforce). Along with that came a significant shift of the economy from productive enterprise, producing things people need, to financial manipulation. Financialization of the economy really took off at that time.
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Those were heady years, as heady, I have no doubt, as this moment is for you. But that doesn’t mean our moments were the same. Not by a long shot. Here’s one major difference: like so many of the young of that distant era, I was surfing the crest of a wave of American wealth and wellbeing. We never thought about, but also never doubted, that if this moment ended, there would be perfectly normal jobs — good ones — awaiting us, should we want them. It never crossed our minds that we couldn’t land on our feet in America, if we cared to.
In that sense, while we certainly talked about putting everything on the line, we didn’t; in truth, economically speaking, we couldn’t. Although you, the occupiers of Zuccotti Park and other encampments around the country, are a heterogeneous crew, many of you, I know, graduated from college in recent years.
Most of you were ushered off those leafy campuses (or their urban equivalents) with due pomp and ceremony, and plenty of what passes for inspiration. I’m ready to bet, though, that in those ceremonies no one bothered to mention that you (and your parents) had essentially been conned, snookered out of tens of thousands of dollars on the implicit promise that such an “education” would usher you into a profession or at least a world of decent jobs.
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Thursday, October 6 marked the opening round of Occupy Philadelphia, just one facet of a widening movement. Hundreds of protesters massed in front of City Hall and promptly began settling in for a long stay. The crowd immediately began organizing itself, creating everything from a “Welcoming and Comfort Committee” to a “Security Committee.” The encampment soon rang with the familiar chant “This is What Democracy Looks Like” and the theme of the occupations: “We Are the 99 Percent.” People erected tents, lofted signs, and debated each other ceaselessly. The mood was electric.
“This is one of the most amazing turnouts for an event I’ve ever seen and I’ve been organizing for 10 years,” said Amanda Geraci, organizer and participant.
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According to statistics from the National Association for Colleges and Employers, the number of students at four-year colleges who took internships increased from nine percent to more than 80 percent between 1992 and 2008. Once the economy crashed, and a paying job became a luxury rather than a fact of life, many jobs were re-packaged as internships, promising experience and career connections in exchange for free labor.
Recent graduates, disturbed by the dearth of job opportunities, began to take internships as a last resort to stay competitive in the labor market. Although an internship used to be akin to an apprenticeship—a temporary stint of unpaid, hands-on labor resulting in an eventual job offer—the explosion of both college students and recent graduates taking internships no longer guarantees a paid position. Instead, as more and more young people demonstrated they were willing to supply an unpaid labor force so long as it was framed as an “internship,” internships have become a means for companies and non-profit organizations to re-package once paying jobs and cut corners in a tight economy.
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