The destruction of the wage class, the politics of resentment and Donald Trump

[jimmy olsen]

Valmy keeps asking why everyone thinks America is on the verge of destruction. It's because he's a blinkered stooge of the salary class, reaping success from the ruins of blue collar America.


http://thearchdruidreport.blogspot.com/2016/01/donald-trump-and-politics-of-resentment.html

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It so happens that you can determine a huge amount about the economic and social prospects of people in America today by asking one remarkably simple question: how do they get most of their income? Broadly speaking—there are exceptions, which I'll get to in a moment—it's from one of four sources: returns on investment, a monthly salary, an hourly wage, or a government welfare check. People who get most of their income from one of those four things have a great many interests in common, so much so that it's meaningful to speak of the American people as divided into an investment class, a salary class, a wage class, and a welfare class.

It's probably necessary to point out explicitly here that these classes aren't identical to the divisions that Americans like to talk about. That is, there are plenty of people with light-colored skin in the welfare class, and plenty of people with darker skin in the wage class.  Things tend to become a good deal more lily-white in the two wealthier classes, though even there you do find people of color. In the same way, women, gay people, disabled people, and so on are found in all four classes, and how they're treated depends a great deal on which of these classes they're in. If you're a disabled person, for example, your chances of getting meaningful accommodations to help you deal with your disability are by and large considerably higher if you bring home a salary than they are if you work for a wage.

As noted above, there are people who don't fall into those divisions. I'm one of them; as a writer, I get most of my income from royalties on book sales, which means that a dollar or so from every book of mine that sells via most channels, and rather less than that if it's sold by Amazon—those big discounts come straight out of your favorite authors' pockets—gets mailed to me twice a year. There are so few people who make their living this way that the royalty classlet isn't a significant factor in American society. The same is true of most of the other ways of making a living in the US today. Even the once-mighty profit class, the people who get their income from the profit they make on their own business activities, is small enough these days that it lacks a significant collective presence.

There's a vast amount that could be said about the four major classes just outlined, but I want to focus on the political dimension, because that's where they take on overwhelming relevance as the 2016 presidential campaign lurches on its way. Just as the four classes can be identified by way of a very simple question, the political dynamite that's driving the blowback mentioned earlier can be seen by way of another simple question: over the last half century or so, how have the four classes fared?

The answer, of course, is that three of the four have remained roughly where they were. The investment class has actually had a bit of a rough time, as many of the investment vehicles that used to provide it with stable incomes—certificates of deposit, government bonds, and so on—have seen interest rates drop through the floor.  Still, alternative investments and frantic government manipulations of stock market prices have allowed most people in the investment class to keep up their accustomed lifestyles.

The salary class, similarly, has maintained its familiar privileges and perks through a half century of convulsive change. Outside of a few coastal urban areas currently in the grip of speculative bubbles, people whose income comes mostly from salaries can generally afford to own their homes, buy new cars every few years, leave town for annual vacations, and so on. On the other end of the spectrum, the welfare class has continued to scrape by pretty much as before, dealing with the same bleak realities of grinding poverty, intrusive government bureacracy, and a galaxy of direct and indirect barriers to full participation in the national life, as their equivalents did back in 1966.

And the wage class? Over the last half century, the wage class has been destroyed.

In 1966 an American family with one breadwinner working full time at an hourly wage could count on having a home, a car, three square meals a day, and the other ordinary necessities of life, with some left over for the occasional luxury. In 2016, an American family with one breadwinner working full time at an hourly wage is as likely as not to end up living on the street, and a vast number of people who would happily work full time even under those conditions can find only part-time or temporary work when they can find any jobs at all. The catastrophic impoverishment and immiseration of the American wage class is one of the most massive political facts of our time—and it's also one of the most unmentionable. Next to nobody is willing to talk about it, or even admit that it happened.

The destruction of the wage class was largely accomplished by way of two major shifts in American economic life. The first was the dismantling of the American industrial economy and its replacement by  Third World sweatshops; the second was mass immigration from Third World countries. Both of these measures are ways of driving down wages—not, please note, salaries, returns on investment, or welfare payments—by slashing the number of wage-paying jobs, on the one hand, while boosting the number of people competing for them on the other. Both, in turn, were actively encouraged by government policies and, despite plenty of empty rhetoric on one or the other side of the Congressional aisle, both of them had, for all practical purposes, bipartisan support from the political establishment.

It's probably going to be necessary to talk a bit about that last point. Both parties, despite occasional bursts of crocodile tears for American workers and their families, have backed the offshoring of jobs to the hilt. Immigration is a slightly more complex matter; the Democrats claim to be in favor of it, the Republicans now and then claim to oppose it, but what this means in practice is that legal immigration is difficult but illegal immigration is easy. The result was the creation of an immense work force of noncitizens who have no economic or political rights they have any hope of enforcing, which could then be used—and has been used, over and over again—to drive down wages, degrade working conditions, and advance the interests of employers over those of wage-earning employees.

The next point that needs to be discussed here—and it's the one at which a very large number of my readers are going to balk—is who benefited from the destruction of the American wage class. It's long been fashionable in what passes for American conservatism to insist that everyone benefits from the changes just outlined, or to claim that if anybody doesn't, it's their own fault. It's been equally popular in what passes for American liberalism to insist that the only people who benefit from those changes are the villainous uber-capitalists who belong to the 1%. Both these are evasions, because the destruction of the wage class has disproportionately benefited one of the four classes I sketched out above: the salary class.

Here's how that works. Since the 1970s, the salary class lifestyle sketched out above—suburban homeownership, a new car every couple of years, vacations in Mazatlan, and so on—has been an anachronism: in James Howard Kunstler's useful phrase, an arrangement without a future. It was wholly a product of the global economic dominance the United States wielded in the wake of the Second World War, when every other major industrial nation on the planet had its factories pounded to rubble by the bomber fleets of the warring powers, and the oil wells of Pennsylvania, Texas, and California pumped more oil than the rest of the planet put together.  That dominance went away in a hurry, though, when US conventional petroleum production peaked in 1970, and the factories of Europe and Asia began to outcompete America's industrial heartland.

The only way for the salary class to maintain its lifestyle in the teeth of those transformations was to force down the cost of goods and services relative to the average buying power of the salary class.  Because the salary class exercised (and still exercises) a degree of economic and political influence disproportionate to its size, this became the order of the day in the 1970s, and it remains the locked-in political consensus in American public life to this day. The destruction of the wage class was only one consequence of that project—the spectacular decline in quality of the whole range of manufactured goods for sale in America, and the wholesale gutting of the national infrastructure, are other results—but it's the consequence that matters in terms of today's politics.

It's worth noting, along these same lines, that every remedy that's been offered to the wage class by the salary class has benefited the salary class at the expense of the wage class. Consider the loud claims of the last couple of decades that people left unemployed by the disappearance of wage-paying jobs could get back on board the bandwagon of prosperity by going to college and getting job training. That didn't work out well for the people who signed up for the student loans and took the classes—getting job training, after all, isn't particularly helpful if the jobs for which you're being trained don't exist, and so a great many former wage earners finished their college careers with no better job prospects than they had before, and hundreds of thousands of dollars of student loan debt burdening them into the bargain. For the banks and colleges that pushed the loans and taught the classes, though, these programs were a cash cow of impressive scale, and the people who work for banks and colleges are mostly salary class.

Attempts by people in the wage class to mount any kind of effective challenge to the changes that have gutted their economic prospects and consigned them to a third-rate future have done very little so far. To some extent, that's a function of the GOP's sustained effort to lure wage class voters into backing Republican candidates on religious and moral grounds. It's the mirror image of the ruse that's been used by the Democratic party on a galaxy of interests on the leftward end of things—granted, the Democrats aren't doing a thing about the issues that matter most to you, but neither are the Republicans, so you vote for the party that offends you least. Right? Sure, if you want to guarantee that the interests that matter most to you never get addressed at all.

There's a further barrier, though, and that's the response of the salary class across the board—left, right, middle, you name it—to any attempt by the wage class to bring up the issues that matter to it. On the rare occasions when this happens in the public sphere, the spokespeople of the wage class get shouted down with a double helping of the sneering mockery I discussed toward the beginning of this post. The same thing happens on a different scale on those occasions when the same thing happens in private. If you doubt this—and you probably do, if you belong to the salary class—try this experiment: get a bunch of your salary class friends together in some casual context and get them talking about ordinary American working guys. What you'll hear will range from crude caricatures and one-dimensional stereotypes right on up to bona fide hate speech. People in the wage class are aware of this; they've heard it all; they've been called stupid, ignorant, etc., ad nauseam for failing to agree with whatever bit of self-serving dogma some representative of the salary class tried to push on them.

And that, dear reader, is where Donald Trump comes in.

The man is brilliant. I mean that without the smallest trace of mockery. He's figured out that the most effective way to get the wage class to rally to his banner is to get himself attacked, with the usual sort of shrill mockery, by the salary class. The man's worth several billion dollars—do you really think he can't afford to get the kind of hairstyle that the salary class finds acceptable? Of course he can; he's deliberately chosen otherwise, because he knows that every time some privileged buffoon in the media or on the internet trots out another round of insults directed at his failure to conform to salary class ideas of fashion, another hundred thousand wage class voters recall the endless sneering putdowns they've experienced from the salary class and think, "Trump's one of us."

The identical logic governs his deliberate flouting of the current rules of acceptable political discourse. Have you noticed that every time Trump says something that sends the pundits into a swivet, and the media starts trying to convince itself and its listeners that this time he's gone too far and his campaign will surely collapse in humiliation, his poll numbers go up?  What he's saying is exactly the sort of thing that you'll hear people say in working class taverns and bowling alleys when subjects such as illegal immigration and Muslim jihadi terrorism come up for discussion. The shrieks of the media simply confirm, in the minds of the wage class voters to whom his appeal is aimed, that he's one of them, an ordinary Joe with sensible ideas who's being dissed by the suits.

Notice also how many of Trump's unacceptable-to-the-pundits comments have focused with laser precision on the issue of immigration. That's a well-chosen opening wedge, as cutting off illegal immigration is something that the GOP has claimed to support for a while now. As Trump broadens his lead, in turn, he's started to talk about the other side of the equation—the offshoring of jobs—as his recent jab at Apple's overseas sweatshops shows. The mainstream media's response to that jab does a fine job of proving the case argued above: "If smartphones were made in the US, we'd have to pay more for them!" And of course that's true: the salary class will have to pay more for its toys if the wage class is going to have decent jobs that pay enough to support a family. That this is unthinkable for so many people in the salary class—that they're perfectly happy allowing their electronics to be made for starvation wages in an assortment of overseas hellholes, so long as this keeps the price down—may help explain the boiling cauldron of resentment into which Trump is so efficiently tapping.

It's by no means certain that Trump will ride that resentment straight to the White House, though at this moment it does seem like the most likely outcome. Still, I trust none of my readers are naive enough to think that a Trump defeat will mean the end of the phenomenon that's lifted him to front runner status in the teeth of everything the political establishment can throw at him. I see the Trump candidacy as a major watershed in American political life, the point at which the wage class—the largest class of American voters, please note—has begun to wake up to its potential power and begin pushing back against the ascendancy of the salary class.

Whether he wins or loses, that pushback is going to be a defining force in American politics for decades to come. Nor is a Trump candidacy anything approaching the worst form that could take. If Trump gets defeated, especially if it's done by obviously dishonest means, the next leader to take up the cause of the wage class could very well be fond of armbands or, for that matter, of roadside bombs. Once the politics of resentment come into the open, anything can happen—and this is particularly true, it probably needs to be said, when the resentment in question is richly justified by the behavior of many of those against whom it's directed. 

[The Brain]

The wage class is revolting.

[Martinus]

Poor people are uneducated, unhealthy and have shitty lives. Film at 11.

[Martinus]

Also, how the fuck is Trump addressing the needs of the poor is beyond me.

[The Brain]

Also, how the fuck is Trump addressing the needs of the poor is beyond me.

He has a bad hairstyle.

[katmai]

Also, how the fuck is Trump addressing the needs of the poor is beyond me.

He's speaking the truth, telling it like it is!

[Eddie Teach]

Also, how the fuck is Trump addressing the needs of the poor is beyond me.

The Western poor don't benefit from immigration, or free markets.

[Admiral Yi]

The archdruidreport?

[Jaron]

I always ask fast food workers to wear gloves before they handle my food.

[Martinus]

Incidentally, has the "wage class" ever not been powerless and exploited in the history of the West? Sure, in the past the elites let them think they are better than, and can abuse, niggers, faggots, kikes and chinks - and now they are upset because they can't do it anymore - but has anything really changed in their socio-economic position? I don't think so. Equality and civil rights movements simply made them realise how shitty they have always been.

[Admiral Yi]

Since universal suffrage.

[alfred russel]

A couple of technical complaints:

1) Tim, you bolded half the article.
2) This is the second election related thread Tim has started in the past few days (the other being "who would you vote for Trump v. Sanders"). At least that one was a poll. This is just one of a thousand "what does it all mean" articles that will be written on this election between now and the election. It belongs in the election megathread, or we are going to be swamped with election threads.

[Eddie Teach]

2) This is the second election related thread Tim has started in the past few days (the other being "who would you vote for Trump v. Sanders").

That one was started in August.

[jimmy olsen]

A couple of technical complaints:

1) Tim, you bolded half the article.
2) This is the second election related thread Tim has started in the past few days (the other being "who would you vote for Trump v. Sanders"). At least that one was a poll. This is just one of a thousand "what does it all mean" articles that will be written on this election between now and the election. It belongs in the election megathread, or we are going to be swamped with election threads.

That thread was posted in August

[alfred russel]

Then why are people still posting in it now?