Killing the Middle Class

July 26th, 2010

Michael Snyder has a Yahoo Finance article detailing the many ways the fortunes of the American middle class are crumbling.

It’s depressing to learn that “66 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans” while “As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.” At the same time, Snyder doesn’t offer much in policy prescriptions; he seems to conclude the middle class has been doomed by cheaper overseas competition.

Of course, I think people will find the most fault with the statement that “In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.” In Chicago, at least, we like to blame our budget issues on those blasted public servants who have the temerity to earn a living wage.

It’s easier to complain about the bus driver getting paid vacation than it is to figure out a way to leverage some of those top-1% gains for the greater good of our shared society.

Bronco Booster

July 23rd, 2010

Sports Illustrated‘s Gary Smith has a moving story on how fan Tom Mackie helped to carry the Hall of Fame candidacy of Broncos great Floyd Little.

2010 Pitchfork Roundup

July 22nd, 2010

The 2010 Pitchfork Music Festival gave us three days of sweat, guitars and reasonably priced vegan food. Here’s my recap of all the acts I managed to catch.

Wolf Parade

Ready for bigger things. That was my impression after Wolf Parade’s sweaty set, a big rock tradeoff between guitar and organ, filled with little grace notes and more noise than four members should be able to put out. The sound was thick and urgent, a big, shimmering sound that still seemed unchecked when it was choked off by its time limit.

Titus Andronicus

Titus Andronicus rocks the red, white and blue.

One of the fest’s top energy shows, Titus Andronicus set their stage with a big American flag hanging from their Rhodes. Lead singer Patrick Stickles had a little flaggie dangling from his bottom guitar peg when he came out, a testament to the Civil War theme of their latest album, “The Monitor,” and perhaps a nod to the Boss as well.

Stickles is clearly influenced by anthemic sound of his fellow New Jerseyan, even as he adds punk noise and Bright Eyes lyricizing to the mix. Even with the sun trying to sweat them out, the crowd was game. They were moshing, shirtless and singing along, feeding back with the contagious unity on stage. The band was young and sincere, pushing out angst and making it some kind of celebration.

LCD Soundsystem

I was ready for a reason to leave when Saturday’s headliners took the stage. I’ve listened to their albums and found their dance pop to be a bit narrow and bloodless. But they won me over live, recreating a layered studio sound with an ambitious live set-up featuring multiple drummers and organ dabblers.

The live setting brought out an extra note of urgency, thickening the precise rhythms. Frontman James Murphy was excellent, throwing himself into raver bon mots and falsetto cries. The crowd loved it, embracing “All My Friends” and “Losing My Edge” en masse before letting go with a plaintive—and surprisingly moving—“New York, I Love You But You’re Bringing Me Down.”

Lightning Bolt

Kings of the “how do they do it with only two people” movement, Lightning Bolt issued an abrasive arc of noise rock, owning the main stage with just drums, bass and a mic hidden beneath a handmade luchador mask. They pummeled the crowd, playing songs that strayed from standard rhythmic currents, stepping outside clean four-beat time with frenzied strikes. They were hungry and a bit wild, a welcome contrast to the pre-tracked tunes that marked the later day on Sunday.

Modest Mouse

These shambling indie godfathers were the only act we managed to catch Friday night. They delivered a strong set, punching through tunes old and new with an assertive guitar/organ/dual drum lineup. Isaac Brock delivered his Jekyll and Hyde vocals, trading off yelps and pretty bits of singing. He periodically swapped out guitar for banjo to take on “Good News for People Who Like Bad News” tunes, with trumpet accompaniment adding some howl to “The Devil’s Workday.”

The set fizzled a bit at the end when they stepped off for a faux-encore with twenty minutes remaining. The crowd didn’t call them back with much intensity, and there was a bit of a muddled wait for the inevitable. Brock seemed sour during the two-song callback. “Black Cadillacs” was the last tune played, and I think much of the audience was waiting for “Float On” when the lights were called on.

Jon Spencer Blues Explosion

After a several-yearhiatus, Blues Explosion strutted back unchecked. Frontman Jon Spencer flaunted his rock and roll soul by taking the stage in leather pants, long-sleeved shirt and vest, despite the brutal heat. Spencer and fellow guitarist Judah Bauer pushed each other through some mean grooves as the singer howled through his gibbering Elvis routine. The power didn’t quite funnel to the crowd, however. Maybe it was heat, maybe the faint scent of schtick, maybe the open spaces instead of scummy walls, but the set was great and hollow at the same time.

Beach House

This duo (plus a traveling drummer) exudes mood. Through their three albums they’ve mined a rich, narrow vein of sultry little tunes. Organ and dripping guitar licks provide a sturdy foundation for singer Victoria Legrand’s dreamy musings. Some of my friends found them too subdued for the oppressive heat, but I found myself untethered for the duration of their set, grounded again afterward.

Pavement

The big name for the weekend put on the set I expected, shrugging disjointedly through their back catalogue with periodic bursts of focus and energy. The sound wavered for much of the night, with the guitar, bass and vocals falling in and out of focus. “Stereo” was a highlight, but the set as a whole felt murky and aimless…maybe as it was supposed to.

Big Boi

I’ve always admired Outkast’s inventiveness and energy, so I was looking forward to Big Boi taking his stage. His live sound left me disappointed, though. Instead of a live drummer, he went with DJ and drum machine, which left the beats feeling thin and inorganic. The rest of the band—guitar, bass and brass—couldn’t add much life to the sound, especially since Big Boi seemed to be rapping into a karaoke microphone that had been dropped one-too-many times by a drunk patron.

Smith Westerns

The Smith Westerns on the B stage.

This Chicago group of youngins’ (their lead singer referenced being underage at one point) seemed unready for the Pitchfork platform. On record, they offer some nice cuts of poppy fuzz/reverb punk, but like many self-recorders, they were exposed live without the wall of effects under them. They need to get some more gigs under their belt.

Sleigh Bells

Another act ruined by their sound, Sleigh Bells couldn’t add up to the beats-and-bash energy of their debut. The guitar-and-vocals duo took to the stage with ample pre-tracked backing, which drained most of the interest from their performance. The occasional strums and shouts seemed like random flourishes on top of the preprogrammed sound, lending their set a muted, uninspired air.

Major Lazer

DJ time on the main stage. Despite some early spectacle with Chinese New Year–themed dragons, the act mainly offered a strip-club hash of party beats and DJ exhortations. Ladies in underwear writhed on speakers and random dudes from the crowd, including one prone, pasty fellow whose genitals were jumped on from a full run. Pitchfork 2011: not this, please.

Betting on Lives

July 13th, 2010

From today’s New York Times:

In the fall of 1999, the drug giant SmithKline Beecham secretly began a study to find out if its diabetes medicine, Avandia, was safer for the heart than a competing pill, Actos, made by Takeda.

Avandia’s success was crucial to SmithKline, whose labs were otherwise all but barren of new products. But the study’s results, completed that same year, were disastrous. Not only was Avandia no better than Actos, but the study also provided clear signs that it was riskier to the heart.

But instead of publishing the results, the company spent the next 11 years trying to cover them up, according to documents recently obtained by The New York Times. The company did not post the results on its Web site or submit them to federal drug regulators, as is required in most cases by law.

The particulars are obviously different from BP’s compromised safety record, but they highlight a shared trend: corporations disregarding any notion of social responsibility in their grab for short-term profits. They’re also laying waste to the conservative argument that corporations can police themselves. This was happening under arguably the best regulatory body we have, the FDA.

If possible, I think the authorities need to look into distributing some serious jail time as a deterrent to future corner-cutters. Perhaps the government should explore revoking GlaxoSmithKline’s corporate charter as well. Of course, given current feelings about corporate personhood, I would wager the literal death penalty has more support.

Spam-Suits

July 12th, 2010

To follow up my earlier post about debt collectors turning to law enforcement to criminalize debt…apparently they can’t even be bothered to personalize their lawsuits. As the New York Times reports, they’re using database mining to spam the court system.

BP’s Bad Safety Bets

July 12th, 2010

But even as he became the toast of Britain’s business world and was made a knight and member of the House of Lords, Mr. Browne was ruthlessly slashing costs. He outsourced many operations and fired tens of thousands of employees, including many engineers.

Tom Kirchmaier, a lecturer in strategy at the Manchester Business School, said that Mr. Browne tried to run BP like a financial company, rotating managers into new jobs with tough profit targets and then moving them before they had to deal with the consequences. The troubled Texas City refinery, for example, had five managers in six years.

This New York Times article on BP’s safety disasters highlights the need for enforceable regulation. Instead, we continue to believe the myth of laissez faire excellence. As we’ve seen with the oil school in the Gulf, it’s disastrous when companies attempt to profit at the margins of recklessness.

Advocating Full Employment

July 10th, 2010

Benjamin Kunkel has an interesting article in N+1 examining the influence of employment policy on economic growth. He ends by presenting his vision of full employment.

Our Betters Bail On Their Homes Too

July 9th, 2010

I’m sure Rush Limbaugh and all the other bottom dwellers who blame poor, minority home-owners for the economic implosion will get right on this one (from the New York Times).

Biggest Defaulters on Mortgages are the Rich
Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.

Of course, rich people defaulting isn’t what caused the downturn either, but it’s a sweet rebuttal to remoras whose economic platform is to rub the sub-90th percentile’s faces in the dirt.

Krugman Was Right

June 29th, 2010

For months now the Noble-prize winning economist has been decrying the conventional wisdom that governments need to cut deficit spending, arguing that continuing stimulus is what’s needed to boost a still-shaky economy. Now the on-the-ground situation in Ireland seems to bolster his argument. Two years after the country imposed deep austerity measures, the country’s economy is in worse shape because of it.

Despite its strenuous efforts, Ireland has been thrust into the same ignominious category as Portugal, Italy, Greece and Spain. It now pays a hefty three percentage points more than Germany on its benchmark bonds, in part because investors fear that the austerity program, by retarding growth and so far failing to reduce borrowing, will make it harder for Dublin to pay its bills rather than easier.

As Krugman interprets:

That’s why the Irish debacle is so important. All that savage austerity was supposed to bring rewards; the conventional wisdom that this would happen is so strong that one often reads news reports claiming that it has, in fact, happened, that Ireland’s resolve has impressed and reassured the financial markets. But the reality is that nothing of the sort has taken place: virtuous, suffering Ireland is gaining nothing.

Unfortunately, as the New York Times reports, the leaders of the G-20 nations are continuing the “cut and ye shall be rewarded mania.” Hopefully we don’t all end up paying far more than whatever deficits would have been incurred.

Planning to Fail

June 26th, 2010

The New York Times has an informative article on how Louisiana governor Bobby Jindal is trying to claim the federal government’s response to the Gulf oil spill is being undermined by bureaucratic dithering. Problems aside, in reality, the state is responsible for much of the relief planning, and their planning – thanks in part to funding cuts – was incomplete and unready.

As a result of this lack of planning, Jindal et al. want to rush forward with an emergency engineering response that will take months to complete and cost hundreds of millions of dollars…even as experts think it won’t work.

If the White House were proposing this plan, Jindal would ridicule it as undercooked pork, a la volcano monitoring. But apparently asking the experts to weigh in before committing to throwing hundreds of millions of dollars into this crude pit is the height of nanny-state incompetence.