
Here are the links to my two oD pieces, the first of which is a revised version of my last post here:
The Battle between Countries and Companies
Cool Capitalism: changing principles of protest
"Katherine Losse was a pioneer Facebook employee who used to ghost-write posts for Mark Zuckerberg himself, and in her recent book 'The Boy Kings' she offers a disturbing picture of his thinking. The main points of his credo include youthfulness, openness, sharing power and 'companies over countries'. Asked what he meant by the latter he told her 'it means that the best thing to do now, if you want to change the world, is to start a company. It’s the best model for getting things done and bringing your vision to the world.' So the model for a new world is the Californian youth-oriented corporation, untramelled by pesky laws and regulations, by messy old-world stuff like pensions and having to win elections. The Nation State is just plain out-of-date, it still practices stupid stuff like secrecy and taxation, it doesn't get the New Digital Narcissism where everyone can be an (unpaid) star of their own channel. All rather reminiscent of the 1960s counterculture mixed with a dash of Orwell's Oceania, Eurasia, EastAsia. But actually it starts to look rather like a new variation on feudalism where you'll only get fed if you become a retainer of one of these mega-corporations, as the boring old centralised state and its services wither away."Commentators are beginning to wake up to the scale of this problem. For example in a recent blog post Robert Reich notes that while politicians are all talking the talk about ending tax evasion and havens, nothing actually ever gets done about it:
"The same disconnect is breaking out all over the world. The chairman of a British parliamentary committee investigating Google for tax avoidance calls the firm 'devious, calculating, and unethical,' yet British officials court the firm’s CEO as if he were royalty. Prime Minister David Cameron urges tax havens to mend their ways and vows to crack down on tax cheats, yet argues taxes must be low in the UK because 'we’ve got to encourage investment, we’ve got to encourage jobs and I want Britain to be a winner in the global race'. These apparent contradictions are rooted in the same reality: global capital, in the form of multinational corporations as well as very wealthy individuals, is gaining enormous bargaining power over nation states."Of course modern nation states are still more powerful than corporations like Apple, Google, Amazon and Facebook, if only because they make the laws and can enforce them, in the last resort by using a police force and an army which those corporations don't possess. In a sci-fi fantasy film the next step would be for the corporations to buy their own private armies, but that isn't how the real world works - the danger is actually far more insidious than that. It involves a subject I've touched on here in another recent post, the idea of the "surplus wage".
"Animals that are sensitive physically are also sensitive morally, and feel the friendliness or hostility which surrounds them. Even pain and pleasure are no idle sensations, satisfied with their own presence: they violently summon attention to the objects that are their source. Can love or hate be felt without being felt towards something – something near and potent, yet external, uncontrolled, and mysterious? When I dodge a missile or pick a berry, is it likely that my mind should stop to dwell on its pure sensations or ideas without recognising or pursuing something material? [...] But when aroused to self-transcendent attention, feeling must needs rise to intelligence, so that external fact and impartial truth come within the range of consciousness, not indeed by being contained there, but by being aimed at."
Pret will have been disappointed to discover that any of its staff were unhappy enough in their work to have want of a union. Pret workers aren’t supposed to be unhappy. They are recruited precisely for their ‘personality’, in the sense that a talent show host might use the word. Job candidates must show that they have a natural flair for the ‘Pret Behaviours’ (these are listed on the website too). Among the 17 things they ‘Don’t Want to See’ is that someone is ‘moody or bad-tempered’, ‘annoys people’, ‘overcomplicates ideas’ or ‘is just here for the money’. The sorts of thing they ‘Do Want to See’ are that you can ‘work at pace’, ‘create a sense of fun’ and are ‘genuinely friendly’. The ‘Pret Perfect’ worker, a fully evolved species, ‘never gives up’, ‘goes out of their way to be helpful’ and ‘has presence’. After a day’s trial, your fellow workers vote on how well you fit the profile; if your performance lacks sparkle, you’re sent home with a few quid.I was rather taken aback by such a blatant outbreak of compulsory optimism and so I dashed straight off to Pret's website to make sure Myerscough wasn't exaggerating. I drew a blank because, although the page "The Pret Behaviours" is still listed on the navigation menu, the page appears to have been removed (one wonders whether as a result of Myerscough's article). Further along in Myerscough's piece he explains the most unusual bonus system the company employs:
To guard against the possibility of Pret workers allowing themselves to behave even for a moment as if they were ‘just here for the money’, the company maintains a panoptical regime of surveillance and assessment. Not only do workers watch each other, chivvying, cajoling, competing, high-fiving; they are also watched. Mystery shoppers visit every branch of Pret A Manger every week. If their reports are positive – more than 80 per cent of them are – the entire staff gets a bonus that week. Workers cited for ‘going the extra mile’ get a further £50 in cash, which they have to distribute among their colleagues. But if the mystery shopper happens to be served by someone momentarily off their game, who may be named and shamed in the report, no one gets rewarded. The bonus is significant, £1 per hour for the week’s work, upping the starting salary of £6.25 (just higher than the UK minimum wage of £6.19) by 16 per cent.Now I've recently finished reading Daniel Kahneman's seminal work on economic psychology, "Thinking, Fast and Slow", and that trick of getting the bonus receivers to distribute their £50 among their colleagues sounds exactly like the sort of games that Kahneman devises in his lab when probing the human perception of fairness. Indeed Pret's personnel policy is impeccably modern in making maximum use of that most emetic of modern concepts, "emotional intelligence".
‘The authenticity of being happy is important,’ a Pret manager tells the Telegraph, ‘customers pick up on that.’ It isn’t clear which is the more demanding, authenticity or performance, being it or faking it, but in either case it’s difficult to believe that there isn’t something demoralising, for Pret workers perhaps more than most in the high street, not only in having their energies siphoned off by customers, but also in having to sustain the tension between the performance of relentless enthusiasm at work and the experience of straitened material circumstances outside it.
“Sabotage” is a derivative of 'sabot' which is French for a wooden shoe. It means going slow, with a dragging, clumsy movement, such as that manner of footgear may be expected to bring on. So it has come to describe any manoeuvre of slowing-down, inefficiency, bungling, obstruction.
[The Engineers and the Price System, p4]Veblen isn't easy to read because of his repetitious style, his love of playing devil's advocate which can confuse the unwary, and his straight-faced sarcasm which even extends to the terminology he employed ("sabotage" being a perfect example). He appropriates this familiar term and gives it a technical economic meaning broader than, though clearly connected to, its popular usage. He delighted in thus provoking the economic establishment by mocking and ironic use of terms like "idle curiosity" (science), "captains of industry" (business men) and "parental bent" (altruistic behaviour).
"...the common welfare in any community which is organized on the price system cannot be maintained without a salutary use of sabotage... such restriction of output as will maintain prices at a reasonably profitable level and so guard against business depression".This amounts to a claim that the "free market", which neoliberals have managed to raise to the status of graven idol over recent decades, is a sham. Pricing has become a science that creates strange paradoxes: you might naively believe that maximum profit would be obtained by producing the largest amount of some highly-desirable commodity, but that's very far from the truth. Most often maximum profit can be achieved by somewhat restricting supply in order to raise its price.
"The mechanical industry of the new order is inordinately productive. So the rate and volume of output have to be regulated with a view to what the traffic will bear — that is to say, what will yield the largest net return in terms of price to the business men who manage the country's industrial system. Otherwise there will be 'overproduction', business depression, and consequent hard times all around. Overproduction means production in excess of what the market will carry off at a sufficiently profitable price. So it appears that the continued prosperity of the country from day to day hangs on a 'conscientious withdrawal of efficiency' by the business men who control the country's industrial output."Marx thought that capitalism makes overproduction structurally inevitable, because the extraction of surplus value by owners guarantees that total wages paid will be insufficient to purchase all of the product. For Veblen sabotage is capitalism's mechanism for controlling overproduction, and Keynes later added to this that governments could intervene during crises of overproduction to sustain demand via public works and welfare payments — though he conceded that such measures would only delay the problem, which must periodically recur and drive the dreaded boom/bust cycle. Our current global economic crisis is ultimately caused by overproduction, and more particularly by the cheap credit that was freely ladled out to temporarily hold it at bay. The overselling in the USA of cheap mortgages (still too dear to be repaid) prior to 2007 lead directly to contamination of the world financial system by the resulting bad debt, cunningly concealed inside the sugared pills of complex and unfathomable financial derivatives. This contamination has not yet been removed — despite all the quantitative easing and other fiddles employed over the last five years — and can't be without imposing massive losses on banks, investors and bond holders that might sink the whole ship. With banks unwilling to lend and employers unwilling or unable to invest and hire, it would seem that sabotage is becoming the norm, just as it was in the mid-1930s. And the spread of debt contagion to states themselves, in the shape of sovereign debt, renders Keynesian intervention less and less feasible.
"Far from being limited to managers, the category of workers earning a surplus wage extends to all sorts of experts, administrators, public servants, doctors, lawyers, journalists, intellectuals and artists. The surplus takes two forms: more money (for managers etc), but also less work and more free time (for–some–intellectuals, but also for state administrators etc). The evaluative procedure used to decide which workers receive a surplus wage is an arbitrary mechanism of power and ideology, with no serious link to actual competence; the surplus wage exists not for economic but for political reasons: to maintain a ‘middle class’ for the purpose of social stability."["Revolt of the Salaried Bourgeoisie", London Review of Books, Vol 34 No 2, 26th Jan 2012]
It can’t have escaped some of my readers that customary Left-wing analyses have become a rather poor fit with our current predicament, namel...