Monthly Archives: December 2012

The Christmas issue of the conservative Spectator magazine featured an article titled “Why 2012 was the best year ever”, offering up positive news about the state of things in 2012. According to the article, there is more prosperity and less people dying worldwide now thanks to global capitalism. People are dying less from malaria and AIDS, inequality is dipping and the developing world is booming. Politicians, meanwhile, are a bunch of pessimists, jealous of the free market’s success where government programs have presumably failed. The Spectator offers that the reason why we weren’t popping champagne when the Millennium Goal to halve extreme poverty was met in 2008 was because “it was not achieved by any government scheme but by the pace of global capitalism”.

I spent a lot of time in graduate school going over the sorts of indicators quoted by the Spectator. The program I attended was a haven for pessimists such as myself, and attending my courses and conducting research made me an even stronger and better-prepared pessimist. Of course, pessimism is out of style. My friends moan and groan about my constant doomsdaying, but the fact of the matter is that I, along with my legion of pessimist like-minders, wouldn’t be in the business of shouting to the skies about impending doom if there wasn’t a leg to stand on. Meanwhile, the status quo has every interest in making things seem like they’re better than ever. This is where loyal magazines such as The Spectator come in handy, working together with recent releases like “Abundance: The Future Is Better Than You Think” and “The Rational Optimist: How Prosperity Evolves” to paint rosy views of the future, where life will be improved by buying toys from China and fracking our way out of an energy crisis (here they linked to a BP study, ha ha) – all supplemented by advances in smart phone technology, of course.

Even a pessimist such as myself has to recognize that, worldwide, mortality indicators have improved over the last several decades. Global inequality has eased between countries, and of course, we have all made exciting advances in new technology. My pessimism is actually couched in the deep belief that human potential is far greater than is currently recognized. This is why we should not shy away from the reality of our situation.

Here are some basic facts to consider, though. Things might be getting better, but they are getting better for some far faster than they are getting better for others. For example, taking China and India out of most calculations of global indices changes the numbers completely. Even within China and India, we must admit that calculations can be misleading. China especially has refused to release GINI calculations for over a decade now.  Papers published that measure GINI as meaningfully improving worldwide depend on shoddy data and tilt the numbers to their pleasure. And the real reason why the UN might not have been celebrating the drop in global poverty is because the number of those who are living on less than $2 per day (as opposed to $1 per day) have increased in recent years, and not all of them from the $1 per day crowd. People got poorer, though they middled out at a more acceptable number. Wealth is growing – at the top – and it comes from somewhere. Watching a graph about income growth in the last 10 years, it becomes clear from where this wealth is extracted. Productivity gains are out of the ballpark, the wealth at the top gets more and more massive, and the income levels of those behind the top 10% worldwide generally squeak by just a tiny bit below rates of inflation.  This is the growing income gap.

Of course, it will be argued that – despite lack of strong data – the worldwide GINI has lessened. This is probably true. There are nearly a million millionaires in China now, joined by new millionaires popping up all over the global south. Having a million millionaires will certainly bring your overall standing with other millionaires in other countries closer. However, the GINI index within countries is not improving. Indeed, it’s going down. The spread of millionaires is more fair, perhaps, but the spread of wealth outside of privileged circles is not.

c/o the economist

In countries like Russia, nearly 20% of the GDP is from counting billionaires. If we were to count millionaires in this figure, the number would be far higher worldwide. Growth is coming from spawning new millionaires and billionaires, who are hoovering up productivity gains at the expense of those actually creating wealth.

USA: c/o mother jones

Of course, these “rising standards”, so quickly being hailed as results of the free market by magazines such as The Spectator, are actually the cause of state intervention. The neoliberal reforms of the past three decades have paved the way for this extraction at expense of labor.

So back to the idea that 2012 was better than any year in history: we must ask, by what standards? Mortality has fallen steadily since the dawn of the 20th century, but this less about free market reforms and more about lessening infant mortality rates. It’s not difficult to do this. Fifty cents worth of education can prevent most deaths in infancy, vaccines and basic childcare can do the rest. This is not a trillion dollar project, though there are plenty at the UN who have made a very nice living doing it. Advances in medicine and technology cannot be chalked up to capitalism either. The Soviets were first in space and our own domestic R&D sector is the most subsidized part of the United States government – otherwise known as the defense industry.

It used to be that you could call out a piece of filthy propaganda for what it was. If the Soviets or the Chinese were putting out ridiculous information about how great everything was, nobody felt too bad about calling it out. If the Nazis said life was never better in Germany while the Red Army was beating down their door, we knew it to be horse shit. Yet today, calling out articles such as those in The Spectator or putting down books like Thomas Friedman’s “The World is Flat” is met with groans and rolled-eyes. Our eyes are glued to our smartphones with the world collapsing down around us. Things are actually getting worse for most, though far better for some. Of course, those who are benefiting from the status quo also happen to own all the newspapers, happen to take more part in bankrolling research at universities and also have more influence in government than the guy who is living on $2 a day.