Editorial, ASR 90

As this issue goes to press, the U.S. elections are two months away. One candidate promises to return us to the dark days of the 1950s, when America was “great” (for a few, though many unionized workers had stable jobs and could afford to buy homes); Democratic politicians insist that everything’s great and the millions who believe otherwise are being misled by the media and lying politicians. Most economists – who earn good livings apologizing for the capitalists at colleges, think tanks and commercial banks – agree, even if they would prefer wages to be lower and unemployment higher.
And so many workers have turned to Trump, saying they have no choice because the elites have abandoned them to poverty and early death. Average life expectancy fell for the second year in a row in 2023, to 76 (73 for men). Some of this is continuing fall-out from the Covid epidemic, but it has much more to do with the stress and other health impacts resulting from unstable jobs, decaying communities, pollution and climate change, and the resulting epidemics of addiction, homelessness and suicide.
U.S. consumer debt reached a new record this year: $14.5 trillion. While unemployment is down from its Covid-19 peak, it is not even close to being as “low” as official statistics claim (4.2% – nearly 8 million people). Other counts, which include people who have given up on finding jobs, working part time while they look for a job with predictable hours and benefits, forced into early retirement, etc., put real unemployment over 20 percent. No matter how you look at it, tens of millions are unemployed or underemployed, and so struggle to access the necessities of life.
Half of U.S. workers live on the brink of economic ruin. Only 44% say they could cover a $1,000 emergency (a car repair, emergency room visit, week off from work, etc.), and so would have to turn to credit cards, payday lenders or friends to cover it. This economic precarity results in rising personal debt and the emergence of “services” allowing workers to buy groceries and other necessities on a buy now, pay later basis. When later comes around they have to borrow even more to cover the interest – catching up is nearly impossible, and the resulting debt and low credit scores prevent our fellow workers from getting better jobs, housing, bank accounts, health care, and so much more.
Average incomes have risen, but this is driven by the growth of very well paid professional and bossing jobs. Millions of middle income jobs have disappeared and entire communities have been hollowed out. Social mobility still exists, but only for the very few. Opportunity Insights, a Harvard University research group, reports that Americans born to low-income families in 1992 earned significantly less by the time they turned 27 than did those born in 1978. There were exceptions, but the pattern held for 38 of 50 metropolitan areas studied. Philadelphia had the biggest drop, with those born in 1992 making just $27,200 at age 27, compared to an inflation-adjusted $31,200 for those born in 1978 (down 12.8%). Neither is enough to afford decent housing, food and medical care.
The researchers note that “upward mobility for low-income white children in the coasts and in the Southwest fell markedly [by about $2,000] to rates on par with those observed in Appalachia and other areas that historically offered the lowest chances of upward mobility,” and which remain mired in deep poverty. Black children born in 1992 saw slightly higher incomes 27 years later, but although the gap had narrowed they remained much poorer than their white peers. And class gaps expanded significantly: the difference in incomes at age 27 between white children growing up in low- and high-income families increased by 28% – a result of the poor getting poorer and the rich richer at the same time.
A fourth of Americans say the economy is doing well, while 46% say things are going badly (the rest say conditions are “fair”); younger workers, minorities and (for different reasons) Republicans see conditions as being much worse. Economists and pundits think they know better. As a Washington Post columnist put it on May 8, “nearly everything Americans believe about the economy is wrong.” They point to the solid majority of people who say their personal finances are ok (“only” 31% say they are in worse shape than they were a year ago) as proof that everything’s great. This only goes to show the moral bankruptcy of the pundit class. Millions are unemployed, a third of the population is getting poorer, most workers can’t cover an emergency, and our fellow workers are mired in debt – all while the rich and their hangers-on are rolling in cash. Faced with such a reality, anyone with any sense of human solidarity – any decency – would have to agree that we’re facing a serious economic problem, one that urgently needs addressing.
While many of us can find joy in our families and friends, falling wages, social disintegration, climate change and the like make the outpouring of joy at the Democratic convention seem frankly bizarre. Little wonder that the U.S. has dropped out of the top 20 on the World Happiness Report, led by declines in happiness among young workers.
The failure to confront these issues could result in Trump returning to the White House next year. Warning of the dangers of authoritarianism is clearly nor enough to persuade many workers to ignore the failures of the current system and a “prosperity” that does little to meet the needs (let alone the dreams) of the vast majority.
For this issue we asked for contributions envisioning the outlines of a future society, but also thinking about what workers and our organizations could do to get us there. Several pieces in this issue do the former, there’s a lot less on how we get there. We continue to welcome articles, reviews and other contributions exploring this vital question.