The Power and the Mediocrity of the Sign

In “What Americans Keep Ignoring about Finland’s School Success,” Anu Partanen reveals capitalist Anglo-America’s elephant-in-the-room-sized blind spot, why its focus on competition and “excellence” results in diminishing performance in order to promote concentrated power and idealism.

The Finns (Per Sahlberg) on education reform that demands accountability from teachers: “There is no word for accountability in Finnish. Accountability is something that is left when responsibility has been subtracted.” In Finland all teachers and administrators are given prestige, decent pay, and a lot of responsibility.

The Finns (Samuli Paronen) on competition: “Real winners do not compete.” There are no lists of best schools or teachers in Finland. The driver of education policy in Finland is not competition amongst teachers and schools, policy forcing the ideal conservative conditions of bellum omnia contra omnes, but rather cooperation. School choice is not an issue, nor is putting education in the hands of the private sector and profit motive. This is in distinct contrast to America, Sahlberg observes, where “schools are a shop.”

The Finnish education reform goal was always equality and equity, never “excellence” or whatever conservative daydreams that word stands in for. “Education has been seen first and foremost not as a way to produce star performers, but as an instrument to even out social inequality.” What the world dominated by conservative Anglo-american capitalist dogma still cannot face is that it is equality that most efficiently produces star performances and substantive excellence.

Tiger Moms’ genius boys in Shanghai and Singpore can put in 20-hour days of rote memorization and exhaustive cramming, and only manage to approximate in performance the Finnish children who are simply well cared for and supported by valued, independent, unionized teachers and their egalitarian society. Surely, the East Asian genius boys are better poster boys for conservative capitalist discipline; but just as surely they are inefficient…and 99% of these memorizers and crammers will never be able to write a non-plagiarized essay, that is, communicate independently, like humans can.

Why does egalitarianism more efficiently make excellence? The answer is right in front of our nose, right in front of our blind spot. It’s because in the inequality tradition, poor people are overwhelmingly, structurally prevented from attaining their human potentials, and, a factor that perversely torments conservative theorists much more, the rich enjoy the comfort of knowing that surrounded by throngs of shackled “competitors,” they can enjoy many a good old slack.

In such a conservative culture, it is the appearance and ideal of excellence that matters, because the sign unmoored is directed by and justifies power. To be chosen is a sign, necessarily imposed upon the material world. The grim “play” of signs, only ordered by the mystified, atopic distribution of power in a reified collective imagination (a world not made but given, or made by all because you cannot choose unfreely), is Anglos’ obsession, and the more people you can induce to submit to this obsession, the more human life chances are allocated by market power and the more absolutely necessary capitalism (or its feudal and slavery complements)  is for any life chance at all.

At or adhered to central nodes of global capitalist accumulation, Anglo-Americans are altogether too kind, too attentive to, too solicitous of the promotional, the unmoored sign, constantly mistaking it for the legitimate, autarkic limits of knowable (meta)reality. Our literature, for one example, is far too ready to believe that the con man is the true knower.

Distinguishing social democracy

Distinguishing social democracy:

Under left-liberal (as opposed to soc dem) regimes, organized labor does not participate in mid- to longer-range socio-economic planning. However, left think tanks can contribute mid- to long-range planning analyses.

Conversely, there are a variety of ways in which business leaders contribute to public policy formation, because business (public and private, but not cooperative) is regarded by the lib-left govt as the engine of growth.

This exclusion of cooperatives from the field of perceived contributors to growth indicates that lib-left govts may also be distinguished from social democratic govts by an assumption that growth is a product of “efficient” social-hierarchy-inflating organizational forms.

In lib-left regimes, labor views its role, and the liberal government views labor’s role as (often obstructive) ballast to economic growth initiatives that are seen as the natural concern of business. That’s labor’s negative role. It’s not a leadership role.

Labor’s positive role in capitalist democracy thus largely devolves to delivering votes to the left-liberal govt, because although the lib-left does not regard labor as a central social or economic policy resource, as opposed to conservative govts the lib-left govt will not actively try to break organized labor and it may implement those modest proposals of labor that do not impede the business-driven growth planning.

Hence, with a range of ruling (capitalist) political perspectives that always preemptively block information from labor (except what little leaks obliquely through the market), we repeatedly sink into crisis cycles–crisis of profit begets > capital deregulation and overmobilization, working class overregulation, demobilization, and dispossession beget > speculative bubbles/primitive accumulation beget > underconsumption crisis begets > further primitive accumulation, repeat. We fixate on the speculative bubbles moment in the midst of all this autistic failure, hoard wealth, and laud ourselves endlessly for being such top-notch managers and philanthropistes.

This is why for Rawlsianism to work, socialist politics and the communist horizon must be more highly valued, and even defended– by liberals.
As far as I know, this seeming impossibility has only been (temporarily) accomplished in Scandinavia and Minnesota. (While Latin America leftists tried to forge a left-lib coalition from scratch, the US destroyed this effort and enforced conservative rule in Latin America, see Greg Grandin.)

In “Right-wing Rawlsianism: A Critique” (forthcoming in Journal of Political Philosophy) Samuel Arnold argues that if liberals agree that agency is the essence of justice, then liberals have to pick which side they are on–because economic democracy fosters more agency than Trickledown provides.

Arnold’s is a clever detonation of a bridge from liberalism to conservatism, using some of the bridge-builders’ own ideal theory tools. (Particularly with respect to Rawls’ difference principle: A liberal justice-maximizing directive to choose the political-economic system that maximizes the least-advantaged group’s expectations for an index of primary goods that include income and wealth, but also status (qua capacity for agency in the workplace and self-respect in society).)

Upon deriving the optimal realization of liberal justice (agency) in workplace democracy, Arnold concludes (p. 32),

Milquetoast liberal egalitarianism is unstable: liberal egalitarianism must move far to the left in order to avoid being jerked far to the right.”

We need to keep heaping on the demonstrations that economic democracy fosters more agency than GDP/GNP tumescence.

For one example, insofar as political-economic systems can be said to have intentions, how plausible is it that capitalism does not intend to support social pathologies (Arnold, p.29)? Studies of primitive accumulation, the WEB DuBois tradition, socialist feminists, Harvey et al have a lot to say about how capitalism “intends to” (is built and maintained to) and does depend upon and support social pathologies. This approach apprehends the connection between economic (eg. workplace) tyranny and racism, sexism, colonialism, etc., for a powerpunch assertion that inequality is both fundamental to capitalism (even if it is shifted around across some social groups, over time and space) and fatally (from the perspective of justice) undermines agency (power to).

…& on the matter of historical-materialism’s putative incapacity to deal with difference (from a postmodern POV), from Arnold (p. 29):

Patriarchy, discrimination against the weak or the different, pressure to conform, and countless other social practices that prevent people from realizing their full agential potential: how long can these pathologies withstand the countervailing winds of a social democracy, with its democratic workplaces, its flattened division of labor, its robustly egalitarian public institutions?”

Primitive Accumulation, Negative Externalities and Growth

Over the years, Stefano Bartolini has modeled economic growth, showing that whereas most models of economic growth feature accumulation and technical progress as engines of growth, a third engine is needed to ensure self-perpetuating economic growth. History, the theory of Polanyi & Hirsch, and Bartolini’s models suggest that third engine is 2 negative externalities that combine to drive growth: 1) positional externalities, and 2) externalities that reduce social and natural capital.

Pagano 1999 defined a positional good: consumption by an individual of a positive amount of a positional good involves the consumption of an equal negative amount by someone else. Power and status are fundamental positional goods; others include education and housing.  The positional goods/services/externalities theoretical tradition extends from Veblen 1899/1934 and Hirsh 1976. In addition to Bartolini, Robert H. Frank (“Falling Behind”) has continued to explore this tradition as well as Bowles and Park 2002, Schor 1998, and Corneo and Jeanne 2001.

“Industrial revolutions are the paradigmatic example of this (Growth as Substitution) mechanism: they are the most striking processes of labor supply and accumulation increase because they are the most striking processes of social and environmental devastation recorded by economic history” (Stefano Bartolini, “Beyond Accumulation and Technical Progress: Negative Externalities as an Engine of Economic Growth.” 2003: 9).

Williamson 1995, Krugman 1995, and Bartolini et al have shown that the transition to an industrial economy has always been associated with explosive growth in the labor force participation rate.

Such growth-propelling negative externalities are discussed within the Marxist tradition as primitive accumulation. To further explore: The relationship between primitive accumulation and other capitalist strategies of promoting profit-restoring growth to the point of increasing contradiction / social and environmental irrationality.

Bartolini’s growth-model can better explain the failure of conservative economics’ predicted relationship between growth and happiness (Bartolini 2003). Inter alia, political scientist Lane 2000 shows that American growth is not associated with increased happiness.

Micro Neoliberal Diffusion & Adoption

Hypothesis about neoliberal policy diffusion & adoption, receiving end:

Junior professionals a) have got wherever they are because they embody “good boys/girls” rational actor culture, & use the ideology of meritocracy for self-promotion, b) have not developed a hegemony-strategic collective-action repertoire or habitus, and c) have low horizontal social capital. This means junior professionals are not very capable when it comes to engaging in collective action in any capacity independent of the professional hierarchy. It also means that they have been and are being socialized as sharks.

At a minimum, extra organization must be undertaken to move junior professionals to action independence from the professional hierarchy in which they are embedded and receive their incentives.

Papandreou: Occupy!

The deposed Greek prime minister advocates Occupy!

The Greek parliament forced Papandreou to resign from his position of Prime Minister when he suggested holding a national referendum to allow the Greek people to have a say in whether they would accept the European Union’s bailout plan which would necessitate severe austerity cuts.

Democracy Now! speaks with Papandreou about the financial crisis, the role of banks, and the importance of the growing Occupy Wall Street movement.

 “The Occupy Wall Street movements … are saying something very, very specific, that inequality, in the end, is an inequality of power, and we need to redistribute power, not just money—power—and this is, I think, the democratic challenge that we have today,” Papandreou says.

Inequality, Economic Growth & Standards of Living

In this 2011 PERI paper by Thompson & Leight, “Searching for the Supposed Benefits of Higher Inquality,” the authors review the messy literature on the relationship between economic inequality and economic growth. They propose an alternative approach to this research stalemate.

If you are interested in charting the relationship between inequality and economic growth, urban & regional-level data is your best bet. Only in 2006 did Saez & Picketty pull together (fairly) reliable international comparative data on income inequality. See Saez‘s data and analysis on his Berkeley website.

The US Model of Social Exclusion

Here is a link to Schmmitt & Zipperer’s “Is the US A Good Model for Reducing Social Exclusion in Europe?” (2006) CEPR.

Not so much, contend the authors, analyzing social exclusion through the variables of income inequality, poverty, education, health, crime and punishment, the labor market and finally, the coup de gras, social mobility.