Burning California

I keep forgetting to publish this. So it gets a little bit longer and a little bit longer and a little bit longer. There really hasn’t been a lot.


Racism

In the Pittsburgh area, while driving for Lyft, I had noticed that a large proportion—almost certainly a majority—of my passengers were Black. Since switching to Uber,[1] my passengers are now predominantly white.

One of my Lyft passengers had mentioned to me that Uber doesn’t accept debit cards as a form of payment. I don’t know if that’s true, but if it is, this is an example of systemic discrimination, that is, discrimination that may occur without racist intent but in which rules and systems have a discriminatory effect.

If indeed you need a credit card to pay for an Uber ride (I think you can get around this with PayPal), that tends to exclude people with poor or no credit. To the extent that racial stratification coincides with class stratification, which is very visibly the case in the Pittsburgh area, it becomes systemic racism. And the failure to recognize and rectify systemic racism is, itself, racist.

Of course, to say this means that I should (as I have in the past) recognize the classism in the gig economy: It does generally require an electronic form of payment, which “unbanked” folks will have a harder time managing. On the other hand, it also means that Uber and Lyft drivers are not sitting ducks for cash robberies (a significant risk for traditional taxi drivers).

One of my passengers, a Black, told me that western Pennsylvania is one of the worst places in the country to be Black. He says that Blacks are informed here upon arrival that they exist to serve the capitalist economy; they are not persons, but numbers.

Which is yet another example of how it is impossible to separate classism from racism. These forms of discrimination form a hydra-headed monster. You have to cut them all off at once to destroy the beast.

Blacks also bear the brunt of criminal injustice.[2] In California, fire fighting relies upon inmate labor,[3] making it part of the prison-industrial complex.[4] Again, it will be Blacks who bear the brunt of inadequately compensated risks in this activity. And again, this is systemic racism.


California

Kevin Fixler, “From fierce winds to flames: How the Kincade fire made Sonoma County history,” Santa Rosa Press Democrat, November 1, 2019, https://www.pressdemocrat.com/multimedia/10249729-181/how-the-kincade-fire-spread

Nicole Goodkind, “Prisoners Are Fighting California’s Wildfires on the Front Lines, But Getting Little in Return,” Fortune, November 1, 2019, https://fortune.com/2019/11/01/california-prisoners-fighting-wildfires/


Long term unemployment

Patricia Cohen, “Lots of Job Hunting, but No Job, Despite Low Unemployment Lots of Job Hunting, but No Job, Despite Low Unemployment,” New York Times, November 1, 2019, https://www.nytimes.com/2019/10/31/business/economy/long-term-unemployed.html


Kamala Harris

Kamala Harris should be a cautionary tale for neoliberals: At least some progressives want real progressives and are fed up with the fake ones the neoliberal party has been pushing on them.

Shikha Dalmia, “The real reason Kamala Harris is tanking,” Week, November 4, 2019, https://theweek.com/articles/875020/real-reason-kamala-harris-tanking


Recession

It’s one thing to note that economists are bad at predicting recessions[5] and are even bad at recognizing them once they’ve started.[6] All these decades later, they finally seem to be recognizing what just about any idiot at the local tavern could have told them: It’s the unemployment:[7]

The unemployment rate has risen sharply in every recession, and thus economists have long looked for recession signals in its behavior. Ms. [Claudia] Sahm spent weekends playing with a massive spreadsheet, testing different rates of increase over varying periods of time, to arrive at the following formula: If the average of unemployment rate over three months rises a half-percentage point or more above its low over the previous year, the economy is in a recession. . . .

“The reason [this formula has] been getting attention is it is simple, it is understandable, it is something people can observe themselves,” Mr. [Jay] Shaumbaugh said.[8]

Sorry, but it’s hard—really hard—for me to imagine that economists couldn’t have come up with this sooner and it is very telling that Claudia Sahm had to work on this on her own time. Had this sort of inquiry even a chance of being taken seriously before she had the numbers to prove it, she’d have been able to work on it during office hours. But economists before Sahm didn’t come up with this and the Federal Reserve didn’t enable her to work on it on their dime, because they all really just don’t fucking give a damn. What Sahm has done—and she deserves a great deal of credit for overcoming what were surely formidable institutional obstacles—is to shame the fuck out of them with the blindingly obvious.

By the way, going by Sahm’s formula, we are not yet in a recession.[9]

Kate Davidson, “Are We in a Recession? Experts Agree: Ask Claudia Sahm,” Wall Street Journal, November 3, 2019, https://www.wsj.com/articles/are-we-in-a-recession-experts-agree-ask-claudia-sahm-11572789602


  1. [1]David Benfell, “Uber, again,” Irregular Bullshit, October 19, 2019, https://disunitedstates.com/2019/10/19/uber-again/
  2. [2]Jeffrey Reiman, The Rich Get Richer and the Poor Get Prison, 7th ed. (Boston: Allyn and Bacon, 2004).
  3. [3]Nicole Goodkind, “Prisoners Are Fighting California’s Wildfires on the Front Lines, But Getting Little in Return,” Fortune, November 1, 2019, https://fortune.com/2019/11/01/california-prisoners-fighting-wildfires/
  4. [4]Empty Cages Collective, “What is the Prison Industrial Complex?” n.d. http://www.prisonabolition.org/what-is-the-prison-industrial-complex/; Daniel Moritz-Rabson, “‘Prison Slavery’: Inmates are paid cents while manufacturing products sold to government,” Newsweek, August 28, 2018, https://www.newsweek.com/prison-slavery-who-benefits-cheap-inmate-labor-1093729
  5. [5]Hites Ahir and Prakash Loungani, “‘There will be growth in the spring’: How well do economists predict turning points?” Vox, April 14, 2014, https://voxeu.org/article/predicting-economic-turning-points; Richard Alford, “Why Economists Have No Shame – Undue Confidence, False Precision, Risk and Monetary Policy,” Naked Capitalism, July 19, 2012, https://www.nakedcapitalism.com/2012/07/richard-alford-why-economists-have-no-shame-undue-confidence-false-precision-risk-and-monetary-policy.html; Ha-Joon Chang and Jonathan Aldred, “After the crash, we need a revolution in the way we teach economics,” Guardian, May 10, 2014, https://www.theguardian.com/business/2014/may/11/after-crash-need-revolution-in-economics-teaching-chang-aldred; Barry Eichengreen, “Economists, Remove Your Blinders,” Chronicle of Higher Education, January 12, 2015, http://www.chronicle.com/article/Economists-Remove-Your/151057/; Paul Krugman, “How Did Economists Get It So Wrong?” New York Times, September 2, 2009, https://www.nytimes.com/2009/09/06/magazine/06Economic-t.html; Paul Krugman, “Triumph of the Wrong?” New York Times, October 11, 2012, https://www.nytimes.com/2012/10/12/opinion/krugman-triumph-of-the-wrong.html; Andrew Simms, “Economics is a failing discipline doing great harm – so let’s rethink it,” Guardian, August 3, 2019, https://www.theguardian.com/commentisfree/2019/aug/03/economics-global-economy-climate-crisis; Mark Thoma, “Restoring the Public’s Trust in Economists,” Fiscal Times, May 19, 2015, http://www.thefiscaltimes.com/Columns/2015/05/19/Restoring-Public-s-Trust-Economists; Amelia Thomson-DeVeaux, “Economists Are Bad At Predicting Recessions,” FiveThirtyEight, August 21, 2019, https://fivethirtyeight.com/features/economists-are-bad-at-predicting-recessions/
  6. [6]For example, it took about a year to formally recognize the financial crisis of 2007-2008 as a recession: National Bureau of Economic Research, “Determination of the December 2007 Peak in Economic Activity,” December 11, 2008, http://www.nber.org/cycles/dec2008.html
  7. [7]Kate Davidson, “Are We in a Recession? Experts Agree: Ask Claudia Sahm,” Wall Street Journal, November 3, 2019, https://www.wsj.com/articles/are-we-in-a-recession-experts-agree-ask-claudia-sahm-11572789602
  8. [8]Kate Davidson, “Are We in a Recession? Experts Agree: Ask Claudia Sahm,” Wall Street Journal, November 3, 2019, https://www.wsj.com/articles/are-we-in-a-recession-experts-agree-ask-claudia-sahm-11572789602
  9. [9]Kate Davidson, “Are We in a Recession? Experts Agree: Ask Claudia Sahm,” Wall Street Journal, November 3, 2019, https://www.wsj.com/articles/are-we-in-a-recession-experts-agree-ask-claudia-sahm-11572789602

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