Rentier Policy Diffusion

What’s wrong with a new, lovely almshouse in London employing a research director and housing academics to diffuse its model not only in London, not only in England, but around the Commonwealth and world?

One of the signature problems of capitalism is its geography, as exploitative and expropriative capitalists rely on a very few financial law centers–London and New York City–to securely craft their asset claims, and, if needed, to enforce those asset claims (Pistor 2019). This means that these metropoles are agglomerations of global financial rents, just as oil states, from Saudi Arabia to Texas, are agglomerations of rents from non-renewable fuels. Whether based directly upon financial rents or oil and gas rents, these domineering rentier capitols or cores are built on, with, and to reproduce rarified economic conditions that by the accumulative and exclusionary nature of proprietarian capitalism do not exist elsewhere on this Earth.

One of the means by which this inequality is reproduced is that by virtue of the accumulated resources exclusively secured by these rentier cores, they become associated with prestige and merit. Rentier cores are exporters of best practices, policies, infrastructure and institutional models. As a matter of course with all inegalitarian ideology reproducing inequality, the context and the conditions under which the rentier capitols’ practices, policies, infrastructure and institutions are formed are mystified, including by being packaged in technocratic style. Thus, they constitute Counterenlightenment knowledge and not Enlightenment science.

By contrast, an Enlightenment scientific contextualized comparativist approach to policy, infrastructure, and institutional varieties and innovations is just that: contextualized, not mystified. This contextualization helps moderate the export of meritocratic, prestige rentier innovations and models that distort priorities and planning, and so disrupt and disorganize communities and societies that are exploited and expropriated, rather than centers of rent accumulation. Certainly rentier cores accumulate human capital in addition to financial and social capital. An emphasis on scientific contextualization can allow rentier-core innovations and models (or aspects thereof) to be considered in capitalism’s tributaries alongside innovations and models from societies (such as the Nordic social democracies) that have attempted to stem exploitation and expropriation and foster the circulation of wealth. Disseminating and adapting/adopting social democratic policy innovations in tributary hinterlands is the essence of responsible governance. Rentier-core innovations may then be rigorously, judiciously compared and analyzed, and potentially adapted within regions without premier access to rents so that capitalist tributary societies can build capacity and prevent policy and planning distortion, preventing the disruption and disorganization that aids the accumulation of inequality and its prodigious miseries.

Case studies:

Today’s Guardian has a news story, replete with attractive photos, that is an advertisement for a luxurious almshouse (retirement complex). Obnoxiously named Appleby Blue, the luxury almshouse is well designed. It’s not clear how much it costs for retirees to buy or rent an apartment in this almshouse, but behind the news story/advertisement is a drive to move the elderly out of whatever valuable London real estate they inhabit and into multi-unit, aging-adapted housing.

In London’s rentier-core policy model, luxury real estate developers are required to set aside funding for religious charities to employ in building and managing housing that profit-maximizing market actors will not provide. Providing wrap-around support to its financial core, this heavily-exported model assigns responsibility for managing the local problems of capitalism to religious institutions, the operational budgets of which are funded by the public. Where luxury penthouses built in this arrangement sell on the market for $20M pounds each, the almshouse cost $25M pounds to build.

In the task of managing Appleby Blue, the religious charity also promotes the model, including by employing an in-house head of research, ‘whose role is to initiate these kinds of partnerships and disseminate their findings beyond academic circles. “We don’t just want the research to be published in a peer-reviewed journal that only academics read,” she says. “We want it to inform and influence others in the housing and ageing sector, to really understand not only how to help people live longer, but to live well for longer”’ (Wainwright, O. 2023. “”Live better, live longer: The retirement home that’s more like an alpine spa.” The Guardian, November 1).

Not only does this model almshouse employ a research director, it houses (embeds) two university aging researchers. With business school researchers, the almshouse research director has produced a study suggesting that seniors survive longer in communal living. That’s a contribution to a growing scientific consensus linking conditions supporting human attributes (like sociability) to human health outcomes. (For a sociologist with a passion for biology, I feel exasperated even writing that sentence. Only in capitalism would we have to science our way to that knowledge.) It’s likely beneficial to export the finding that in wealth-accumulation cores, communal, age-adapted living extends the life of the elderly. Perhaps age-adapted, communal living will also be found to moderate dementia amongst the affluent in wealth-accumulation cores. But you probably don’t hire a research director and house two university researchers to stop there.

What does an almshouse or retirement home look like in a relatively impoverished tributary region? It’s also compact, communal living for the elderly. But perhaps it’s too compact. Perhaps there is no money for convivial, comfortable socialization spaces. Without the wealth, many humane and healthy attributes–such as care, respect, patience and mercy, intellectual stimulation and fun, walkability, green space, spacious but human-scaled architecture, insulated windows permitting interior fresh air and ample interior sunlight, insulation and comfortable temperature, sources of warmth, softness, non-toxic materials, cleanliness, and comfortable furnishings–are normally stripped down and stripped out of living spaces and work places. On the other hand, compensatory humane and healthy attributes more accessible in capitalist hinterlands–such as pleasant, healthy, lively and stimulating outdoor environments and activities–including balconies, companion animals, family visits, trusting relationships–may be underappreciated and underprovided where rentier core innovations are indiscriminately exported to, and stupidly imposed upon tributary hinterlands.

Moving valuable real estate is not the driver–or source of public revenue–in all tributary regions, as it is in rentier metropoles. What else would drive almshouse infrastructure, and what issues might these drivers entail? For example, the erection of tributary almshouses to house the elderly is much more likely to be driven by families’ need to work long hours to live, disruptive and health-damaging lack of control over their work, and consequent inability to care for aging family members who have already sustained the health damages inflicted by dehumanizing inequality. Commonwealth tributaries replicate the heavily-marketed financial core model of charity-provided retirement homes, but in the tributary there is insufficient overflow from FIRE (finance-insurance-real estate) rents to build cutting-edge design, healthy, humane housing for the aging, and the incidence of poverty is great. Instead, charities such as the Manitoba Lion’s Club are incentivized by the state to provide mass housing for the low-income elderly, fostering a business model culminating in the charity board of the patriarchal charity club repeatedly selling off housing assets on the commercial market to the personal gain of board members and their politicians. In this institutionalized graft machine, low-income elders and their families are abandoned to the resulting expensive, disruptive chaos. Conditions differ across geographic inequality, and different drivers produce different problems to be solved.

There is good, scientific reason to presume that the knowledge generated under rentier metropole or oil state conditions is keyed to those conditions and is of limited use outside those conditions. By exporting that knowledge with de-emphasis on those conditions, we hazard distorting knowledge, imposing inappropriate models as raw “innovation”, and wasting resources and incurring negative outcomes–such as leaking more wealth from the tributaries. Exported, technocratic and meritocratric rentier core knowledge can reproduce inequality and its manifold harms.

This problem could be seen in the pandemic, where New York City health authorities immediately demanded the lockdown of people in their homes in the city’s tributary hinterlands. While wildly inappropriate in many ways, this inegalitarian rentier-core technocratic reflex was authorized by the inegalitarian ideology of the militarized, patriarchal, population-management model from which “expert” pandemic policy was borrowed. A capacity to moderate Counterenlightenment knowledge dissemination with scientific knowledge–validly-contextualized comparativism–would have reduced the health and economic harms of pandemic policy, and allowed more effective, efficient, reliable, scientific policy formation. By moderating capitalist inequality and inegalitarianism, Enlightenment science would support political democratization.

Likewise, prestigious investment and management consultants regularly prescribe, to non-elite universities’ managers specifically, university management policies built primarily to expropriate securable assets to their wealthy clients. Yet these policies are diffused and adopted as managerial “innovation” neutral to place-based requirements, such as sustaining a university as a locally-accessible agglomeration of regional assets.

Knowledge dissemination is necessary but not sufficient. Importing policy and infrastructure models from the core regions of an inequality regime is not a particularly efficient approach. Importing policy and infrastructure models from the core demands high, critical analytical and democratic deliberation capacity in the importing community or institution. Often such capacity is disorganized in tributary regions, though for example some Rural Sociologists like Neal and Jan Flora and Stephen Gasteyer work to help tributary communities organize the dispersed local capacities required to research, assess, and adapt knowledge.

The formative context and conditions of model innovations must be scientifically interrogated to really understand what they are designed to do, the limits of what they are capable of doing, and how that is likely to impact the region (or social group) to which they are marketed and exported. A crucial variable in the conditions and context of so-called innovations is how they are built to sustain the geography of proprietarian inequality. We need to assess how management and policy models, and infrastructure exports, ameliorate–or reproduce–the manifold problems that cascade from inequality and unevenly beset the geographic, social gradient. That’s because inequality and inegalitarianism are the master problems of our time (Piketty 2020). If upon assessment, an inequality core model can be reasonably expected to counterproductively reproduce inequality problems in situ, its implementation would be predatory, and the next step would be to identify if it has any constructive principles or components that can be beneficially adapted in the tributary.

Capitalist “Mass” Housing

I read Pretty Good House (Kolbert, Mottram, Maines & Briley, 2022) cover to cover, in order to understand houses better. In the process, I learned about the limits capitalism imposes on mass housing. Here’s what I found:

Architects and housing designers developed the Pretty Good House (PGH) model in order to meet the call for less environmentally-destructive housing in cold-climate (horticultural Zone 6) regions. The target market for the PGH is the American upper middle class with both some demand for environmentally-responsible and health-oriented housing, and comfortable wealth and incomes, but without the plutocrat budgets that can fulfill architects’ dreams. This market affords architects and housing designers the ability to pursue parsimony and technical problem solving, within the constraints of the current building supply mass market, local Earth conditions, and human requirements for light, air, health, conviviality, distraction reduction, and most of all, protection from common Earth conditions outside the human comfort range: water and cold. This housing solution to the climate crisis is anchored in the following principles:

The PGH is built parsimoniously–perhaps with only one dormer interrupting a two-story, peaked-roof box shape–between 1500 and 3000 sq ft, and with a near-total seal from the surrounding environment. The PGH is set upon, but not in the Earth, with an insulated slab at the foundation, but no basement. The PGH model rejects basements as leaky and too accommodating of storage.

The house exterior is allowed to dry with a rainscreen, a layer of wood strips attached to the house vertically under the siding.

The PGH house is climate-controlled with insulating cellulose packed between two layers of framing, double-stud wall construction, and a near-unbroken, total wrapping of plastic membranes designed to variously block air and water flow between the cellulose-filled framing and the rainscreen. To maintain a temperature comfortable for humans, these houses also use externally-appended dual cold/hot air-conditioning machines, air-source heat pumps. Heat pumps pump either heat or cold into the house by toggling the differential evaporating temperatures of chemicals.

Houses sealed off from the Earth require machines appended to the exterior and linked to machines in the interior. These ventilation machines function to replenish the Earth’s fresh air to the interior, and to exhaust the air fouled inside the house. These ventilators are either ERVs or HRVs, which protect interior temperature optimization by transferring the heat of exhausted air to the fresh air they draw into the house. With the expulsion of fouled air comes air pressure imbalance, so a minimum complement of mechanically-covered holes must bore the house to restore air pressure equilibrium. When you think of the PGH, think not so much New Mexico Earthship, but more of an early Mars colony housing prototype.

Jane Jacobs note: By and large, Continental Europeans–and not North Americans–design, manufacture, and sell housing components calibrated to maintain comfortable temperature and humidity. I suspect that this is because the largest regional economy and market in Continental Europe is colder Germany, whereas the largest regional economy and market in North America is warmer California or Texas. Like wet, cool London, cold New York is really a global financier’s state, rather than a mass market.

Because its core principle is sealing housing off from the air and moisture in the surrounding environment, PGH design and construction is not applicable to renovating existing housing, which is designed to refresh the internal air supply by not sealing the house off from the surrounding environment–a design principle in contradiction to the PGH. The Pretty Good House book provides a couple of examples of what looks like very extensive and expensive renovation, allowing that it would have been preferable to tear the houses down and start new.

Even and especially when it is brand new, but also across homeowners, the PGH demands constant management. The final chapters of the Pretty Good House book detail the testing to ensure that the house is optimized–sealed off from the environment–as well as both the ongoing monitoring and the ongoing maintenance required for the machines that maintain temperature and humidity optimization and habitability, including fresh air intake, fouled air exhaustion, and pressurization. Inside the sealed PGH, the monitoring machine tracks the habitability variables of CO2, CO, and air pressure, inter alia, and of course the house-integrity and comfort variables the PGH optimizes: humidity and temperature. The machines maintaining comfort, structural integrity, and habitability within the PGH must be maintained: ventilation must be run, filters must be changed, photovoltaic panels must be cleaned, animals must be driven from inside warm heat pumps, and so on. The PGH requires the homeowner to maintain a thick, detailed owner’s manual from the build onward, in order to manage the single-family house. Owners must keep expensive PGH contractors on their Rolodex, in order to diagnose and solve the mechanical problems that accrue with sealing out the world.

Limits of the PGH Climate-crisis Response

Here is where we need to point out the limits of the capitalist climate-crisis problem-solving capacity. Not only does the capitalist solution to climate crisis target a minority of housing–the new builds of quite (though not supremely) affluent consumers near the capitalist financial core. As well, it continues to require ever-smaller, aging, individual families to diligently manage a house–possibly at the expense of the paid employment that keeps them affluent, to speak nothing of their civic, political, social, active leisure, or other human-development time (their total social reproduction workload). It even may increase the amount of time required to manage a house, over and above the widespread, older, California version of housing that passively optimizes air refreshing rather than minimizing ongoing energy consumption.

Even if some of the PGH technology and design dribbled down to less affluent consumers or new mass developments, it is unlikely that households less protected from the disruptions of exploitative and extractive capitalist relations will be able to reliably undertake such high levels of house maintenance–including the regular replacement of its key mechanical components. The central technology of the PGH is the air-supplied heat pumps, which the authors admit are delicate machines that wear out and require regular replacement over the life of a house.

Takeaways

First, it’s regrettable that Jane Jacobs wasn’t more correct, so that North Americans living in temperate-to-cold climates had ready access to European housing technology and know-how, rather than the same-old, inappropriate California and Texas technology and know-how. Or: It’s too bad that North America is ruled by Manifest Destiny. Once again, it would be less harmful on social and ecological dimensions if the US were not so large, lashing together disparate regions to optimize imperial domination.

Second, to build or renovate a house to reduce mass housing’s impact on the climate, I would reduce from PGH principles (which are reduced from LEED principles) and merge with other, humane principles the following technologies and design:

Insulated basements with capillary break between concrete basement and wood house;

Rainscreens under siding; general principle: give water an exit; allow house to air dry;

Kitchen and bathroom air and moisture venting to the outdoors;

Cellulose-packed, plastic membrane-wrapped, double-stud wall construction;

Efficient European windows and doors;

Large picture windows paired with smaller ventilating windows;

Use regional wood generously throughout the house and garage;

Non-toxic paints or plaster;

Layered task lighting in crepuscular-colored LED;

The living space, dining space, and kitchen should be contiguous, with shared sightlines; office space and entertainment space should be separate;

Bedrooms should never be smaller than 12’x12′ with an additional, shallow (3′ deep), sliding-door closet spanning one wall;

Install compost toilets in two baths–one 3/4, one 4-piece;

The garage can have, adjacent to the car port, an enclosed equipment room, for tools, gardening supplies, bikes, skis, and boats, with a big door;

Situate the high-efficiency, European fireplace at the cusp of the outdoors, or site a chimnea design outdoors;

PNW houses should have a covered outdoor space or outdoor hot tub;

Never get rid of old, functional boilers. Maintain them. In dry winter climates, heat from radiators is optimal;

Collect water on-site. Use for house water-supply backup or gardening;

Organize a neighborhood solar bank for multi-dwelling electrical supply. Private solar banks are second-best;

Communal kitchens both reduce exposure to toxic exhaust and, with proper incentives, allow more rational sharing of household management work. The same principles go for hot tubs, saunas, exercise space, libraries, outdoor fireplaces, grills, vehicles, craft shops and art studios, and yard maintenance equipment. To support sharing capacity, international, national and regional governments should be held responsible for maintaining the democratic supports for distributed, lifelong, autonomous human development, health, and ordered living–unequal and inegalitarian governance is no substitute;

Sufficient roof pitch for local precipitation type and load; outsulation or vapor-open roof assembly with vented suspended soffit;

Optimal yard landscaping involves eco-stained wood decks and Hawaiian-colored (various shades of purple and green) bushes, some with edible fruit, interspersed with food and herb beds.

Intergenerational Housing Conflict: Another Result of Inegalitarian Incapacitation Security

In 1998 Sociologist Nina Eliasoph ended up at the important question Conor Dougherty wends to today in “Twilight of the NIMBY,” New York Times 2022: Why do smallholders organize myopically (“Close to Home” Eliasoph characterized it.), even when they know their personal troubles–their lack of capacitating security, in Ruth Wilson Gilmore‘s insightful conceptulization–are continuously generated by enveloping institutions and incentives organized and maintained for the primary benefit of powerful interests, for financial and military leaders?

The question languishes because elitist reflexes have long provided a too-easy, ready-made answer: Smallholders are small thinkers–unfit to govern.

Abolitionists, however, have the valid answer: Unmoderated, militarized American labor repression (see Alex Gourevitch 2015 ) leaves American smallholder communities balkanized and politically ineffectual, reeling backwards, ever Old and In the Way, reproducing inequality and smallholder decapacitation when they need to organize to make an egaliberte difference.

In short, there’s too much damn policing and there’s not enough labor rights. American institutions spend all day and all night dismantling nonelite organizing, communication, and collective action capacity, all our lives long. That’s why, inter alia, aging immigrant waves are reduced to channeling their constrained political capacities into competitively shafting newcomers, both American youth and new immigrant waves. In the American governance model, US smallholders labor away in variously pleasant and unpleasant corners of a large prison yard, frequently pausing to shiv each other; and that’s also why the world’s expropriators and exploiters plow their money into the US. In the Anglo imperial tradition, it’s a refined military-commercial system, administered by a political class, for securing global elite class stability and vast, endless, profitable smallholder dehumanization, disruption and destabilization.

The comms professionals leading the Dem Party to exchange patronage with the military and the ultra rich have long made the choice to leave rural Americans, with their outsized vote, to conservatives.
https://theintercept.com/2022/06/04/deconstructed-chloe-maxmin-rural-america-dirt-road-revival/

References

Eliasoph, N. 1998. Avoiding Politics. Cambridge.

Gourevitch, A. 2015. Police Work: The Centrality of Labor Repression in American Political History.

The party at the end of the US’s economic reign

The US Hindenburg is going down.

Under the not-really-suppressed sanctimoniousness and judgmentalism (bad hoi poloi!) of this NYTimes article on average people who’ve stopped paying banks (moral hazard contagion?) on foreclosed homes, is a sign about where the post-1969 ascendance of financial capital is headed.

At this point, 40 years on, the only way the financialized capitalism of the US can keep it up is by stripping the working class of any capacity to consume for the world market. Without mass consumption, the dollar won’t be the global exchange currency anymore. When that happens, the strip-mining goes into overdrive.

There’s only one rational course for the working class and smallholders now: People are partying before the fall. Why not? Because whatever consumption (past or present) we throw our tiny, suppressed incomes at, there’s not enough in our wallets to pay for it all. Kind of like a drained aquifer.

Here the NYTimes lamely suggests debt-riddled working class people should get more jobs. What’s the hurry for us to kill ourselves in overwork now? Ha! As if there were not gigantic –and more hidden!–unemployment. As if that treadmill of pain were not also headed off the cliff. It’s not a debt-management strategy. It’s a desperate debt collection ploy, for the benefit of the rich who are dimly beginning to suspect that they’ve been shitting in their kitchen for a number of decades, if not as a fundamental capitalist practice.

We will be in a lot of pain, and by and large people believe they can’t do anything about it. The militarized law’n’order state has crushed both pessimism of the intellect and optimism of the will. There’s no Left left to plan and push from the other direction; there’s complete repression. We can’t organize and push for change anymore. There are no tools but our elites.

Where do you want to be when the bolts of fascism are all screwed in? I’ll tell you one place I don’t want be: The US.

There seems to be some fringe elite economic policy thought to de-financialize the US economy (cf Christina Romer of Obama’s Council of Economic Advisors; James K. Galbraith on definancializing Europe). But they won’t be able to do it in time–because, as with the environment, the insular, self-satisfied political-economic elites can’t get it together to see that the tank wheels of this leviathon are spinning hard for the edge of the cliff.

In the meantime, here’s a link to how to declare bankruptcy protection (!Si, se puede!) from student loan collections.

Right: Christina Romer allegedly once publicly mentioned reducing financial capital’s role in the US economy.

Fannie Mae & Freddie Mac

Excerpt from Krugman, Paul. 2008. “Fannie, Freddie, and You.” New York Times, July 14.

In which Mr. Krugman explains that while “profits are privatized” and “losses are socialized” (the defining feature of American capitalism) in the federally-sponsored private mortgage companies Fannie Mae and Freddie Mac, in this particular case, and by the fluke of good timing, the government actually briefly REGULATED these companies, reducing the threat of capitalist irresponsibility.

“The case against Fannie and Freddie begins with their peculiar status: although they’re private companies with stockholders and profits, they’re “government-sponsored enterprises” established by federal law, which means that they receive special privileges.

The most important of these privileges is implicit: it’s the belief of investors that if Fannie and Freddie are threatened with failure, the federal government will come to their rescue.

This implicit guarantee means that profits are privatized but losses are socialized. If Fannie and Freddie do well, their stockholders reap the benefits, but if things go badly, Washington picks up the tab. Heads they win, tails we lose.

Such one-way bets can encourage the taking of bad risks, because the downside is someone else’s problem. The classic example of how this can happen is the savings-and-loan crisis of the 1980s: S.& L. owners offered high interest rates to attract lots of federally insured deposits, then essentially gambled with the money. When many of their bets went bad, the feds ended up holding the bag. The eventual cleanup cost taxpayers more than $100 billion.

But here’s the thing: Fannie and Freddie had nothing to do with the explosion of high-risk lending a few years ago, an explosion that dwarfed the S.& L. fiasco. In fact, Fannie and Freddie, after growing rapidly in the 1990s, largely faded from the scene during the height of the housing bubble.

Partly that’s because regulators, responding to accounting scandals at the companies, placed temporary restraints on both Fannie and Freddie that curtailed their lending just as housing prices were really taking off. Also, they didn’t do any subprime lending, because they can’t: the definition of a subprime loan is precisely a loan that doesn’t meet the requirement, imposed by law, that Fannie and Freddie buy only mortgages issued to borrowers who made substantial down payments and carefully documented their income.”