We Have Never Been Middle Class. Hadas Weiss

We Have Never Been Middle Class - Hadas Weiss


Скачать книгу
managed to ferret away give us a fair shot at living the kind of life we want to live, and that it is high time to sit back and reap what we have sown? Economists call the incomes generated by property “rents” and those who live off them “rentiers.” They distinguish rents from the earnings that come from work and from the profits that come from enterprise. The fantasy of rentier leisure is one in which we can afford to work less, selectively or not at all, by living off our property. This sounds great for us but not so much for capitalism’s imperative of accumulation. The institution of private property can very well boomerang for capitalism in the sense of providing not a common incentive but a common disincentive to work and invest.

      And there’s more. With only so much surplus generated through each cycle of production, how thinly—from the standpoint of potential profitability—can it be spread in globally available household property on top of other hoards of cash or assets that working households can simply hold on to for a rainy day? Recall that the promise of profit appropriated from the economy’s surplus has the potential to encourage production’s independent organizers, facilitators and financiers to forge ahead, risks and all. When a broad spectrum of the population has the political power to reclaim a portion of the surplus in the form of privately stored savings, cars, homes, social protections, academic degrees and the like, this could prove too heavy a drag on profitability and growth, even if most of them still work for a living. Economists have been discussing such dangers since household property has become pervasive, and tinkering with solutions that chip away at it, such as inflation and taxation. But the most insidious solution has been taking shape in recent decades, following an era of unprecedented growth in the rates of property ownership and the proliferation of household assets and savings.

      Over the course of the 1980s and 1990s, national and regional markets have been deregulated and integrated into a global financial market, easing the flow of capital and the provisioning of credit to governments and firms everywhere in the world. It has helped stimulate competition and make accumulation smoother and more flexible. Capital is fed to profitable enterprises while overcoming social and geographic barriers between them. It is also withheld from enterprises that do not perform as well, regardless of their significance for national economies and regional populations. Novel financial instruments allow the risks attached to different kinds of investment (like changes in currency values or interest rates) to be pooled, subdivided, priced and sold off as further investment products. As a result, the volume of trade and enterprise as well as the bulk of global investment capital has grown exponentially, all the while creating new risks and opportunities for profit. Economic actors facing intensified competition as well as pressures by shareholders to increase the value of their holdings have come to rely on financing to survive and prosper. The reliance cuts both ways, as the intensification of economic activity and competition has amplified pressure on the global financial market to provide credit, bonds and shares, channel investment and manage risk.

      The profit-hungry agencies of global finance are ever on the prowl for new investment opportunities, including in goods and services that had previously been financed publicly through taxes and social insurance arrangements, or privately through work earnings and bank-deposited savings. Industrial capitalism has given way to finance capitalism, flagging the dominance of global finance in public and private funding arrangements and in setting the terms for economic growth. Risk estimates and pricing signal, to investors, avenues of potential profit or loss. Through this pricing, finance comes to regulate all aspects of economic, political and social life. It insinuates itself into the way in which institutions operate, the infrastructure through which services are provided, and the choices that national economies as well as firms and enterprises must weigh in order to remain viable.

      The scholarly term for finance’s dominance in the economy and society is “financialization.” In advanced economies, financialization has dovetailed with other economic trends grouped under the heading of neoliberalism, mainly the decreased readiness of states to pool risks, stabilize incomes and provide goods and services through taxation and social insurance arrangements. The public safety nets that had spread piecemeal after the Second World War in advanced economies have been rolled back to varying degrees in each of them. Salaries have not grown apace with rising prices, while employment has become more precarious with the removal of work protections and the weakening of organized labor. The convergence of stagnant and unreliable work incomes with diminishing public goods and services has created urgent need among workers and citizens to counter mounting insecurity with whatever resources they manage to get their hands on.

      Enter global finance. Through credit cards, installment plans, mortgages, student loans and other long-term lending, along with the financial management of savings, insurances and pensions, financial institutions rush in to cater to cultivated mass demand; hence the growing significance of financial services and instruments in household economics. This is accompanied by an imperative that requires anyone ensnared in the web of finance to become financially literate, able to recognize investment opportunities and use financial instruments with discernment while shouldering risks and taking responsibility for the outcomes of their investments or lack thereof. This responsibility often includes a self-imposed reduction in spending to balance family budgets and make sure that one’s capital inflows and outflows are sustainable over time.

      To ease the ongoing circulation of capital, institutional investors such as banks, insurance companies and pension funds intermediate between households and global finance. They do so through the provisioning and management of mortgages, pensions and other long-term savings products, insurance policies and consumer credit. They bundle the payments and repayments organized by these products, and they price them in bulk before selling them on to other market players. The value that household property represents flows back into the market to become credit for more investment. Because the value of this property is implicated in the ebb and flow of financial markets, it is itself in flux. Consider all those homes whose value is finally determined only after thirty years of mortgage repayments whose size changes, in turn, according to interest rates and currency values. Consider also retirement annuities determined by savings invested over decades in potentially volatile stocks and bonds. Then consider academic degrees whose price is calculated over many years of student-loan repayments while relying for validation on a mercurial job market. The danger of property providing too much security, or of its taking too much away from the economy’s surplus, is lifted by the proliferation, among high and low earners alike, of property of unstable value. This kind of property requires invigorated investment while delivering erratic returns. All but the wealthiest owners cannot dream of finally settling for what assets they’ve succeeded in piecing together. Instead, many more are lured in by the promise of ownership, only to discover that in order to enjoy its benefits they must continue to relentlessly invest.

      Конец ознакомительного фрагмента.

      Текст предоставлен ООО «ЛитРес».

      Прочитайте эту книгу целиком, купив полную легальную версию на ЛитРес.

      Безопасно оплатить книгу можно банковской картой Visa, MasterCard, Maestro, со счета мобильного телефона, с платежного терминала, в салоне МТС или Связной, через PayPal, WebMoney, Яндекс.Деньги, QIWI Кошелек, бонусными картами или другим удобным Вам способом.

/9j/4AAQSkZJRgABAQEBLAEsAAD/2wBDAAEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEB AQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQH/2wBDAQEBAQEBAQEBAQEBAQEBAQEBAQEB AQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQH/wAARCAn3BpkDASIA AhEBAxEB/8QAHwAAAQUBAQEBAQEAAAAAAAAAAAECAwQFBgcICQoL/8QAtRAAAgEDAwIEAwUFBAQA AAF9AQIDAAQRBRIhMUEGE1FhByJxFDKBkaEII0KxwRVS0fAkM2JyggkKFhcYGRolJicoKSo0NTY3 ODk6Q0RFRkdISUpTVFVWV1hZWmNkZWZnaGlqc3R1dnd4eXqDhIWGh4iJipKTlJWWl5iZmqKjpKWm p6ipqrKztLW2t7i5usLDxMXGx8jJytLT1NXW19jZ2uHi4+Tl
Скачать книгу