New APPS: Art, Politics, Philosophy, Science

Late Capitalism Makes COVID-19 Worse

By Gordon Hull

I know there’s a lot of ways to develop that thesis!  Let me focus on one: the fetishization of “efficiency,” and its corollary, just-in-time supply chains.  In a recent piece in The Atlantic, Helen Lewis argues that a lot of the disruption in consumer goods (toilet paper, etc.) is initially attributable not to hoarding, but tiny, unanticipated fluctuations in demand.  Stores don’t carry extra product in the back any more; rather, they keep their shelves stocked by way of a very elaborate, data-intensive logistical operation that delivers enough product to keep items on the shelf, but no more.  Hence the name “just-in-time” capitalism.  Why would you prefer such a system?  Excess stock is inefficient: it just sits there taking up space when it could be sold elsewhere, and you had to pay people to make it, even though you’re not getting paid for selling the product that’s sitting in the back of the store.

The innovations to supply-chain that enable just-in-time capitalism go well beyond the idea that stores should keep minimal stock, however.  If neoliberal financialization has taken a lot of the theoretical attention since 2008, it’s important to remember that financialization hasn’t been the only point of late capitalism.  For example, a pair of McKinsey reports in the early 2000s looked back on productivity growth in the late 1990s, widely attributed at the time to developments in IT.  As one argues, IT was not the cause: within the sectors that grew, “the most important cause of the productivity acceleration after 1995 was fundamental changes in the way companies deliver products and services.”  In “The Wal-Mart Effect,” McKinsey’s Bradford Johnson argues that:

“More than half of the productivity acceleration in the retailing of general merchandise can be explained by only two syllables: Wal-Mart. In 1987, Wal-Mart had a market share of just 9 percent but was 40 percent more productive than its competitors as measured by real sales per employee (the measure used for all company-level analyses in this study). A variety of Wal-Mart innovations, both large and small, are now industry standards. Wal-Mart created the large-scale, or “big-box,” format; “everyday low prices”; electronic data interchange (EDI) with suppliers; and the strategy of expanding around central distribution centers. These innovations allowed the company to pass its savings on to customers. By 1995, it commanded a market share of 27 percent and had widened its productivity edge to 48 percent” (McKinsey Quarterly 2002:1, p. 41).

In other words, our current retail scene – the one existing before Amazon – is attributable to Wal-Mart.  The efficacy of this logistical innovation was evident in the immediate aftermath of Hurricane Katrina, in which Wal-Mart was able to deploy trucks of aid to the New Orleans area much faster the George W. Bush’s mismanaged FEMA.   Amazon, in a sense, represents the intensification of this trend: maintaining brick-and-mortar stores is inefficient, if the logistical operation can be made sufficiently nimble and efficient.

The Ferguson Lesson: Another Way to "Take Up Arms"

As someone who has spent the better part of her career researching, analyzing and teaching not only about the structure and nature of oppressive power regimes, but also better and worse ways to resist or transform such regimes, I've nevertheless been unable to settle in my own mind, to my own satisfaction, my position with regard to the moral or political value of revolutionary violence.  I can say that my core moral intuitions (for whatever those are worth) definitely incline me toward favoring nonviolence as a principled ethical commitment... though, over the years, I have found those intuitive inclinations fading in both intensity and persuasiveness.  As a philosopher, a citizen and a moral agent, I continue to be deeply unsettled by my own ambivalence on this matter.

First, a preliminary autobiographical anecdote: I spent a year between undergraduate and gradate school in the nonprofit sector, as the Director of the M.K.Gandhi Institute for the Study of Nonviolence.  (That was back in 2000, when the Gandhi Institute was still housed at Christian Brothers University in Memphis, which is now my academic home, evidencing the kind of bizarro turn-of-fate that can only be credited to some particularly clever-- or ironically humorous-- supernatural bureaucrat.)  I went to the Gandhi Institute initially because nonviolence was an all-but-unquestioned moral virtue for me at the time.  But, after a few years in graduate school and consistently since, the many and varied until-then-unposed questions about the moral or political legitimacy of violence pressed their way to the fore of my mind.  In roughly chronological order, I'd say that the combination of (1) my first real engagement with Frantz Fanon's argument in "Concerning Violence" (from his Wretched of the Earth), the arguments by Marx (and Marxists) in various texts advocating more or less violent revolution, and Noam Chomsky's considerations of the same, (2) my extensive research into human rights violations, transitional justice and transitional democracies, postcolonial theory, feminist theory and critical race theory, which collectively constituted the subject of my dissertation, (3) the radically dramatic shift in what counts as properly-speaking "political" and/or "revolutionary" violence in the post-9/11 world and (4) my own experiences, from near and afar, with the increasing number of (threatened, proto-, aborted, defeated and/or more-or-less successful) revolutions taking place in my adult lifetime (e.g., OWS, the Arab Spring and, much closer to home and far less violent, the current and ongoing academic revolution surrounding the Salaita case), all worked together to contribute to my rethinking the merits and demerits of violence as a way of resisting/combatting/correcting oppressive, exclusionary or otherwise unjust power regimes.

Institutional Debt and the Crisis of U.S. Higher Ed (again)

Back in March, I wrote a long piece about the effects of institutional debt on the current, destructive trends in U.S. Higher Education.  In the same vein, there's a new article by Michelle Chen up at The Nation discussing a new report by the Debt and Society group called Borrowing Against the Future: The Hidden Costs of Financing U.S. Higher Education. 

The report concerns the ways in which debt manifests itself throughout the system, and how these various forms are tied to one another—thus the titlte of Chen's piece "Colleges Are Buying Stuff They Can’t Afford and Making Students Pay For It." But Chen is right to highlight the institutional debt side of the equation, which has been overlooked despite the fact that it appears to be a structural driver for other forms of debt and institutional disinvestment in education, etc. She also emphasizes the degree to which one of the most pernicious consequenes of rising debt: the degree to which it makes even public institutions essentially subservient bond ratings agencies.

In the long run, however, these amenities often don’t pay off in terms of revenue for the schools, which grow increasingly beholden to bond investors. Those financiers, in turn, often favor not the highest-quality schools but rather “the safest prospects for investment.” Because of market pressures, the researchers warn, “bond markets can reward behaviors that generate greater revenue but are at odds with the goals of public higher education.” In other words, do you want your university’s future budget projections dictated by a Moody’s rating?

Or, as I've been arguing for awhile, rising institutional debt is what is making 'revenue at any cost' into a management imperative that trumps all others and essentially stripping institutional leaders of the freedom to make management decisions on the basis considerations like their institutions' primary missions, the best interests of their faculty, staff and students, etc.  I urge folks to read the whole piece.

[punkrockmonday #29] Kommunizm (Egor Litov) - Stop the Rolling Stones; Yanka Dyagileva - On a Rainy Day; Dean Reed - Elizabeth; Alina Simone - My Love is a Mountain

While lecturing on Tristan Garcia's chapter on history today I couldn't help but remember  this essay by Adam Curtis on music and youth rejection in the Soviet Union.

Curtis explores the psychic fallout of the widespread failure of communism to deliver on the very promises that legitimated it (e.g. we keep breaking all these eggs and nobody I know is ever going to get that omelet).  He explores how the widespread recognition of civilizational hypocrisy lead to despair and a general collapse of belief in anything. His main thesis is that the same thing is happening in neo-liberal regimes now.

This seems plausible to me, both in the European Union and the United States. Consider the latter. With their constitutionally affirmed right to buy and sell politicians, Shelden Adelson and the brothers Koch are very close to becoming nothing less than our version of late Soviet era gerontocracy (Brezhnev/Andropov/Chernenko, etc.). To see what happens when American politicians are commodities, look at West Virginia. This kind of thing is going to get much worse.

The real problem is that these people (successful Soviet apparatchiks and our 1%ers) are very good at gaming the system so that they land on top. But, for various reasons, the system is not very good at putting people on top who will be very good at running things. And at some point the population starts to see through the relentless propaganda about how great everything is becoming.* And then, according to Curtis, rock and roll ceases being rock and roll. It becomes phony.

Revenue at Any Cost: Institutional Debt and the Crisis of U.S. Higher Education

As Protevi likes to keep reminding everyone on Facebook, it's been awhile now since I first started arguing that we haven't been paying sufficient attention to the role of institutional debt as a driver of the increasingly alarming developments in U.S. universities, especially those in the public sector.  I've gestured in this direction before on NewAPPS, but the appearance of a new piece on the subject by Josh Freedman on Forbes.com provides a perfect opportunity to develop the point a bit more.  

Let me begin, then, by making a fairly bold claim. Taking the problem of institutional debt seriously makes it possible to provide a consistent account of many of the major problematic trends in U. S. higher education: rapidly accelerating tuition costs; significant declines in financial aid coverage; cuts to or elimination of low-enrollment departments and programs, experiments with mass-market distance learning and online education, and a general move toward 'Responsibility Centered Managment' (RCM) administrative models; dramatically increasing pressure on faculty at the level of compensation, workload, job security and working conditions; the outsourcing of many university functions to private contractors; building booms, especially those aimed at increasing campus amenities or leveraging university owned real estate for commercial purposes; and finally, continuing increases in administrative spending, especially in development offices and other areas concerned with financial management and business operations.

All of this, which may otherwise seem contradictory and difficult to make sense of, can consistently be referred back to the urgent pressure that rising institutional debt imposes upon university operations: the need to maintain a sufficiently robust revenue stream to satisfy credit rating agencies and thus keep borrowing costs, and the costs of servicing existing debt, from exploding. Freedman provides, especially in the later parts of his article, an excellent discussion of how this works. 

Excellence, Schmexcellence Part IV*: an attempt to be clearer about the main problems with assessment.

In comment #9 at this post, Susan makes a kind of canonical case I've heard from lots of assessment people.

First, I should say that I agree with 95% of the intended answers to Susan's rhetorical questions. We should be much clearer about what we want our students to get out of their degrees, and we should put in the hard work of assessing the extent that we are successful.

But "assessment" in contemporary American bureaucracies almost always accomplishes exactly the opposite of the laudable goals that Susan and I share. And there are deep systematic reasons for this. Below, I will first explain three fallacies and then explain why everyone involved in assessment faces enormous pressure to go along with these fallacies. Along the way I hope to make it clear how this results in "assessment" making things demonstrably worse.**

Even Foucault couldn't make this up (hat-tip Rod Dreher)

Why do things like "professional development," "continuing education," "team-building," and (yes, this too) "assessment" always have to tend towards infantalizing the poor people subjected to them?

It's one thing to bureaucratically humiliate people by making them waste huge gobs of time. But this business of making them engage in ritualistic idiotic performances (which always involve to some extent enthusiastically presupposing that everyone is not in fact wasting time) is a much higher echelon of evil. How can the adult human beings in this video (courtesy Washington Post) have any self-respect?*

Mark my words. First they came for the high school teachers. . .**

[*To be fair, everyone involved in making the video and smuggling it to the Washington Post gained back their self-respect fourfold.

**If I was doing my normal thing and putting a rock video in the upper right hand corner, it would probably have been Jane's Addiction's "Idiots Rule." But I realized that it didn't scan because even if team-builder/professional development/assessment types are self-deluded enough to believe in the rightness of what they make the rest of us do, it takes quite a bit of intelligence to get people so complicit in their own immiseration.]

I've Been to the Mountaintop

On viewing and participating in pleasing cruelty

He may say with Parmenides, who, upon reading a philosophical discourse before a public assembly at Athens, and observing, that, except Plato, the whole company had left him, continued, notwithstanding, to read on, and said that Plato alone was audience enough for him.--Adam Smith

The English Bill of Rights (1689) expressly forbids ""cruel and unusual" punishment, and this found its way into the U.S. Constitution. One important, enduring argument against such punishment -- and many other forms of cruelty that may not, in fact, constitute 'punishment' -- can be found in Seneca's Letter 7: viewing and otherwise participating in the degradation and cruelty of others, even in the context of justified punishment  [ille meruit ut hoc pateretur], can harm not just the victims or punished, but perpetrators and spectators alike. This is especially so if the cruelty produces pleasure as it is likely to do at public spectacles [spectaculo]* because then this pleasure makes our soul receptive; a desire for more cruelty creeps up on us  [per voluptatem facilius vitia subrepunt].

Seneca's particular target is the institution of aestheticized, public spectacles of cruelty and inhumanity [crudelior et inhumanior].** He emphasizes the significance of audience participation [spectatoribus suis obiciuntur]. He reorients and subtly transforms Plato's arguments for censorship of the arts to focus on the more pernicious institutions that indirectly teach people to celebrate cruelty. Seneca's argument applies to a lot of issues that we are not likely to consider primarily in terms of political speech: mass sporting events; war coverage; disaster tourism, and any form of entertainment that rely on the pleasures derived from exposure to the suffering of others. (This is not to deny that the targets of Seneca's argument can overlap with Plato's, and that his argument is indebted to Plato's moral psychology.) 

The end of open-ended progress is near...

It may well be irrational to believe that history is progress after the unprecedented moral and political calamities of the twentieth century. But it does not follow, as [John] Gray apparently assumes, that history has no meaning. There is another possibility. To my knowledge Gray never endorses it, and it extremely difficult for a post-Darwinian mind to grap, but it has been presumed true by most civilizations and philosophies of the past, and is still so regarded by many non-Westernized cultures today. The possibility is that history does indeed have a meaning, purpose and end, and that these can easily be discerned by human beings, but that the direction of history's development is backward not forwards. History is not progress but regress, not advance but decline, and it leads to destruction rather than to utopia.--David Hawkes reviewing John Gray "The Silence of Animals" in TLS (30 August, 2013).

Let's distinguish four main conceptions of history:

Eternal Return. Within philosophy this goes back to Book 3 of Plato's Laws. It was revived by Nietzsche (and is part of the sub-structure of much continental philosophy and via Ian Hacking it is seeping into philosophy of science). It accords well with a cyclical conception of history with a rise and fall narrative or with periodic destruction of civilization(s) (think of the Atlantis story in the Timaeus and Bacon's riff on it). I expect it to become increasingly attractive to people as we head for man-made environmental catastrophe.

Spatial and temporal frames in discussing Detroit's bankruptcy

This NYT article on the Detroit bankruptcy* is a perfect illustration of the pernicious effects of "localism" and "presentism" in political economy.** That is, here we see the unquestioning acceptance of a spatial scale focused on political boundaries (i.e., city limits) instead of the functional economic unit (i.e., the metro area), and a temporal scale focused on the short-term ("the crisis") rather than on the long-term (the processes allowing for the production of "the crisis"). Of course, the spatial and temporal scales are related; to understand the causes of the crisis you would have to understand post-war suburbanization and the concomitant ability of the surburbs to shift tax burdens while still benefitting from proximity to the city. 

*This is an ongoing story of course: see here for a judge's ruling against the bankruptcy claim and here for targeting of the municipal art collection by the disaster capitalists.

**If you want to be fancy about it, you could say this is an example of the trouble you get into by focusing on the properties of a product while neglecting the production process. (See the "illusion" discussed at Difference and Repetition, 240E.)