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Joe Biden’s Class War

Joe Biden may present himself as a ‘working-class hero’, a claim reiterated recently in the leftist American Prospect, but increasingly America’s workers are showing signs not of common cause but disquiet. Hollywood workers just announced a large-scale strike, some of whom blame their hard times on the ‘disruption’ to their industry wrought by tech firms, which are distinctly hostile to unions. There’s also increased tensions at Disneyland, as well as numerous organising efforts targeting Biden’s oligarch allies like Amazon and Starbucks.

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If Your Rent is Going Up, This Episode is for You

By: Jane Coaston
On: The Argument

Rent is soaring, but close to two-thirds of renters remain on leases because of financial reasons. In 2019, nearly 70 percent of millennials surveyed said that they could not afford to buy a home on account of rising prices, and the number of people in the United States without shelter has increased by about 30 percent in the past five years. We’re in a housing crisis. Read more

Gavin Newsom’s White Privilege

By: William McGurn
On: Wall Street Journal

If the polls going into Tuesday’s recall election in California hold up,

Gavin Newsom will keep his job as governor. But if he does, no one should ever again take seriously progressive complaints about white privilege.

Because if white privilege is a thing, Mr. Newsom is drenched in it. Mr. Newsom’s father was a well-connected state judge who once managed one of the trusts for the family of oil magnate J. Paul Getty.

As for his son, the Los Angeles Times says that “a coterie of San Francisco’s wealthiest families has backed him at every step of his rise.” This privilege is reflected in the $70 million Mr. Newsom raised to fight the recall—more than five times the $13 million raised by his leading challenger, Republican Larry Elder.

“California has become the epicenter of neo-feudalism, and Newsom symbolizes this new autocracy,” says Joel Kotkin, a fellow in urban studies at Chapman University in Orange County. “The irony is that Elder is attacked as the candidate of the rich and greedy by this new elite—high tech, teachers unions, the media and some of the state’s wealthiest citizens.”

Covid has put this privilege in stark relief. While many of California’s public schools remained closed, for example, Mr. Newsom’s own children were at a private school that offered in-person learning. Perhaps the governor’s most Marie Antoinette moment came when he was caught flouting his own guidelines by dining out with a group of lobbyists at the French Laundry, where, the New York Times reports, “dinner for two costs more than many people earn in a week.”

Progressives Have Ruined California

The very idea of a recall vote seemed absurd at first in California, this bluest of US states. Yet Californians’ surprisingly strong support for the removal of Democratic governor Gavin Newsom has resulted in precisely that, with the vote scheduled for 14 September. This reflects a stunning rejection of modern progressivism in a state thought to epitomise its promise.

Some, like the University of California’s Laura Tyson and former Newsom adviser Lenny Mendonca, may see California as creating ‘the way forward’ for a more enlightened ‘market capitalism’, but that reality is hard to see on the ground. Even before the pandemic, California already had the highest poverty rate and the widest gap between middle and upper-middle income earners of any state in the US. It now suffers from the second-highest unemployment rate in the US after Nevada.

Today, class drives Californian politics, and Newsom is peculiarly ill-suited to deal with it. He is financed by what the Los Angeles Times describes as ‘a coterie of San Francisco’s wealthiest families’. Newsom’s backers have aided his business ventures and helped him live in luxury – first in his native Marin, where he just sold his estate for over $6million, and now in Sacramento.

California’s well-connected rich are predictably rallying to Newsom’s side. At least 19 billionaires, mainly from the tech sector, have contributed to his extraordinarily well-funded recall campaign, which is outspending the opposition by roughly nine to one.

There is little hiding the elitism that Newsom epitomises. In the midst of a severe lockdown, he was caught violating his own pandemic orders at the ultra-expensive, ultra-chic French Laundry restaurant in Napa.

Newsom insists California is ‘doing pretty damn well’, citing record profits in Silicon Valley from both the major tech firms and a host of IPOs. He seems to be unaware that California’s middle- and working-class incomes have been heading downwards for a decade, while only the top five per cent of taxpayers have done well. As one progressive Democratic activist put it in Salon, the recall reflects a rebellion against ‘corporate-friendly elitism and tone-deaf egotism at the top of the California Democratic Party’.

Much of this can be traced back to regulatory policies tied to climate change (along with high taxes). These policies have driven out major companies – in energy, home construction, manufacturing and civil engineering – that traditionally employed middle-skilled workers. Instead, job growth has been concentrated in generally low-pay sectors, like hospitality. Over the past decade, 80 per cent of Californian jobs, notes one academic, have paid under the median wage. Half of these paid less than $40,000.

Read the rest of this piece at Spiked.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Garcetti’s Legacy

President Joe Biden has nominated Los Angeles mayor Eric Garcetti as ambassador to India. Assuming the Senate confirms him, Garcetti, who would leave office early (his second term ends in December 2022), might find India familiar in certain respects. Like Mumbai or Delhi, Los Angeles now has massive homeless encampments throughout the city, even increasingly in posh neighborhoods like Brentwood and throughout the middle-class strongholds of the San Fernando Valley. Late last week, as Garcetti prepared to leave town, homeless advocates, angered by a city ordinance against indiscriminate camping on city streets, vandalized Getty House, the mayor’s official residence.

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How America Abandoned the World—and Our Own Inner Cities

In America and across the globe, COVID-19 is diminishing people’s prospects, exacerbating inequality and creating ever-more feudal societies as the pandemic ravages the health and the pocketbooks of the poor and the poorly educated.

Globally developing countries are suffering from what The Nation describes as “a gargantuan north-south vaccination gap” between developing countries where fewer than 10 percent of people have been vaccinated compared to around 70 percent in Western Europe, Israel, Canada and US. And within affluent countries, there’s nearly as wide a gap between well-off and well-educated populations, and rural and urban backwaters still suffering from “a pandemic of the unvaccinated.”

In the long history of pestilence and plague, French historian Fernand Braudel noted, there was always a “separate demography for the rich”. As today, the affluent tended to eat better and could often escape the worst exposure to pestilence by retreating to country estates, while the poor have been left to fend for themselves as “victims of the urban graveyard effect” that’s persisted since the fall of Rome.

Despite attempts in the media to deny or downplay the links between density and disease, COVID death and infection rates remain worse in dense urban counties where poorer residents often have to navigate insufficiently ventilated enclosed spaces that their more affluent and mobile counterparts have been mostly able to avoid.

Generally speaking, educated and affluent city and suburban dwellers recovered their incomes within the first year of the pandemic, even as millions of Americans have fallen into poverty or are on the verge of destitution, and the federal moratorium on evictions is about to expire. Overall, upper-income workers recovered completely while lower-wage workers suffered major income declines.

As of May, employment for those making $60,000 a year or more is up by 7.4 percent since the pandemic began, while employment for those making $27,000 a year of less has plunged by 21 percent, according to tracktherecovery.org. The drop in low-wage employment has been even steeper in affluent areas, like Manhattan, as the high-wage workers who had clustered there are now dispersed while working remotely and buying services in their new locales.

This trend could accelerate if new pandemics emerge in the near future, as many fear they will. But for now, at least for developed countries, vaccinations offer a way out. Since January, COVID-19 has dropped from the leading cause of death in America to the seventh leading cause. But even here, the widely varied inoculation rates suggest future social problems, particularly as COVID-19 is becoming “hyper-regionalized” in communities with both low vaccination and low immunity rates, according to former FDA commissioner Dr. Scott Gottlieb.

These come primarily in two very different, but historically impoverished and poorly educated populations: rural America, where the national media has mocked the people getting sick as Trumpist rubes, and inner-city America.

Read the rest of this piece at Daily Beast.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Homepage photo: MCJ1800, via Wikimedia under CC 4.0 License. Composite, R. Howard.

Dumb and Dumber

By: Jane Wells
On: Wells Street

One of the funny things about being human is that no matter how successful we are, we always end up doing something stupid. I prove this point hourly. The hope is that over time we learn from our mistakes and don’t repeat them.

But who am I kidding?

So let’s get to it! Here’s a summary of dumb moves from Wall Street to Main Street to Tokyo. Read more

Upward and Outward: America on the Move

These are times, to paraphrase Thomas Paine, that try the souls of American optimists. A strain of insane ideologies, from QAnon to critical race theory, is running through our societies like a virus, infecting everything from political life and media to the schoolroom. Unable to unite even in the face of COVID-19, the country seems to be losing the post-pandemic struggle with China while American society becomes ever more feudalized into separate, and permanently unequal, classes.

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The New Labor Crisis is the Biggest Opportunity in a Generation

The COVID-19 pandemic has left pain and tragedy in its wake. But it has also created a unique opportunity to address the country’s persistent class divides, thanks to a persistent lack of labor resulting from the pandemic. In a world economy that has seen labor’s share of income drop for generations, this labor shortage could provide some restored leverage for both white and blue collar workers.

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The (Next) Great Migration

By: Here Comes Everybody Podcast
On: The Solo Project

“The great thing about this migration is the ability for reinvention. And the ability for reinvention is directly tied to innovation and entrepreneurship.”

Kotkin has written about every conceivable form of entrepreneurship. He is, in fact, a career soloist himself.

These days, it seems that everyone — and in particular soloists — are moving somewhere.

In this episode, Kotkin tells us exactly where we’re going — and why.

 

Related:

Buy Joel’s latest book, The Coming of Neo-Feudalism
The Politics of Migration: From Blue to Red
The Emergence of the Global Heartland