More on Frank v. Brooks

Carl Remick carlremick at hotmail.com
Thu Dec 7 17:35:15 PST 2000


[More (below) from the continuing exchange between Tom Frank and David Brooks in this week's Slate, with special guest star Doug Henwood. The following is Frank's reply to Brooks' comment: "I see you and Dick Cheney believe we are headed for a NASDAQ collapse and a recession. ... A little Schadenfreude may be a good thing, but I've never understood people who look forward to others' economic pain and suffering."]

Let me change gears here and address your curious remark about "Schadenfreude." Obviously no one looks forward to a recession, especially someone with my political sentiments: Workers are able to bargain most effectively when the labor market is tight (as they're about to find out at Amazon.com). And wage workers will also bear the brunt of any economic collapse, especially now that the far-sighted liberals of the Clinton administration have ended welfare. But at the same time, markets left to their own devices go through business cycles. It's systemic. There's no avoiding it, despite the shimmering fantasies of the New Economy believers. And trying to pin the savage ups and downs of the market on anyone other than those who have worked for deregulation, privatization, and de-unionization over the last 20 years--as the Wall Street Journal does so frequently--is close to political derangement.

One other thing: The health of the stock market is most definitely not the health of the nation. A terrific amount of resources have gone into persuading us otherwise over the last 10 years, of course, but it is simply not the case. Stocks do well when wages do not. Stocks do well when unions are beaten, when workers live under austerity regimes, when all the power is with management. True, 48 percent of families own some shares. But, as Doug Henwood of the great newsletter Left Business Observer points out, the top 1 percent of stockholders actually control 48 percent of total stock while the top10 percent control 86 percent. The bottom 80 percent of stockholders control only 4 percent. Yes, some people have 401(k)s, but why should their earnings from those tiny holdings always be privileged over their earnings from wages?

Would I feel a little cheery if the Nasdaq tanked? I admit it might be nice to see James Cramer and the CNBC gang eat a little crow. But the real point is this. Today you suspect critics of the market of Schadenfreude; tomorrow (when Bush II has "invested" Social Security in the markets) others will accuse us of taking bread from the mouths of dotards, widows, and orphans. That's the problem with these putatively results-oriented "market solutions." They are in fact a gun pointed at the head of any politician or interest group that doesn't march in lockstep with Wall Street.

[Actually, it would be nice to see the insufferable James Cramer not just "eat a little crow" but eat shit and die, but what the hell, peace on earth, good will toward all, etc. Full text is at http://slate.msn.com/code/breakfast/breakfast.asp?Show=12/6/2000&idMessage=6633&idBio=219#6633]

Carl

_____________________________________________________________________________________ Get more from the Web. FREE MSN Explorer download : http://explorer.msn.com



More information about the lbo-talk mailing list