Understanding the "recession" from a political perspective.

by NAOMI KLEIN

This article appeared in the February 18, 2008 edition of The Nation.
January 31, 2008

Remember the "ownership society," fixture of major George W. Bush addresses for the first four years of his presidency? "We're creating...an ownership society in this country, where more Americans than ever will be able to open up their door where they live and say, welcome to my house, welcome to my piece of property," Bush said in October 2004. Washington think-tanker Grover Norquist predicted that the ownership society would be Bush's greatest legacy, remembered "long after people can no longer pronounce or spell Fallujah." Yet in Bush's final State of the Union address, the once-ubiquitous phrase was conspicuously absent. And little wonder: rather than its proud father, Bush has turned out to be the ownership society's undertaker.

Well before the ownership society had a neat label, its creation was central to the success of the right-wing economic revolution around the world. The idea was simple: if working-class people owned a small piece of the market--a home mortgage, a stock portfolio, a private pension--they would cease to identify as workers and start to see themselves as owners, with the same interests as their bosses. That meant they could vote for politicians promising to improve stock performance rather than job conditions. Class consciousness would be a relic.
It was always tempting to dismiss the ownership society as an empty slogan--"hokum" as former Labor Secretary Robert Reich put it. But the ownership society was quite real. It was the answer to a roadblock long faced by politicians favoring policies to benefit the wealthy. The problem boiled down to this: people tend to vote their economic interests. Even in the wealthy United States, most people earn less than the average income. That means it is in the interest of the majority to vote for politicians promising to redistribute wealth from the top down.
So what to do? It was Margaret Thatcher who pioneered a solution. The effort centered on Britain's public housing, or council estates, which were filled with die-hard Labour Party supporters. In a bold move, Thatcher offered strong incentives to residents to buy their council estate flats at reduced rates (much as Bush did decades later by promoting subprime mortgages). Those who could afford it became homeowners while those who couldn't faced rents almost twice as high as before, leading to an explosion of homelessness.
As a political strategy, it worked: the renters continued to oppose Thatcher, but polls showed that more than half of the newly minted owners did indeed switch their party affiliation to the Tories. The key was a psychological shift: they now thought like owners, and owners tend to vote Tory. The ownership society as a political project was born.
Across the Atlantic, Reagan ushered in a range of policies that similarly convinced the public that class divisions no longer existed. In 1988 only 26 percent of Americans told pollsters that they lived in a society bifurcated into "haves" and "have-nots"--71 percent rejected the whole idea of class. The real breakthrough, however, came in the 1990s, with the "democratization" of stock ownership, eventually leading to nearly half of American households owning stock. Stock watching became a national pastime, with tickers on TV screens becoming more common than weather forecasts. Main Street, we were told, had stormed the elite enclaves of Wall Street.
Once again, the shift was psychological. Stock ownership made up a relatively minor part of the average American's earnings, but in the era of frenetic downsizing and offshoring, this new class of amateur investor had a distinct shift in consciousness. Whenever a new round of layoffs was announced, sending another stock price soaring, many responded not by identifying with those who had lost their jobs, or by protesting the policies that had led to the layoffs, but by calling their brokers with instructions to buy.
Bush came to office determined to take these trends even further, to deliver Social Security accounts to Wall Street and target minority communities--traditionally out of the Republican Party's reach--for easy homeownership. "Under 50 percent of African Americans and Hispanic Americans own a home," Bush observed in 2002. "That's just too few." He called on Fannie Mae and the private sector "to unlock millions of dollars, to make it available for the purchase of a home"--an important reminder that subprime lenders were taking their cue straight from the top.
Today, the basic promises of the ownership society have been broken. First the dot-com bubble burst; then employees watched their stock-heavy pensions melt away with Enron and WorldCom. Now we have the subprime mortgage crisis, with more than 2 million homeowners facing foreclosure on their homes. Many are raiding their 401(k)s--their piece of the stock market--to pay their mortgage. Wall Street, meanwhile, has fallen out of love with Main Street. To avoid regulatory scrutiny, the new trend is away from publicly traded stocks and toward private equity. In November Nasdaq joined forces with several private banks, including Goldman Sachs, to form Portal Alliance, a private equity stock market open only to investors with assets upward of $100 million. In short order yesterday's ownership society has morphed into today's members-only society.
The mass eviction from the ownership society has profound political implications. According to a September Pew Research poll, 48 percent of Americans say they live in a society carved into haves and have-nots--nearly twice the number of 1988. Only 45 percent see themselves as part of the haves. In other words, we are seeing a return of the very class consciousness that the ownership society was supposed to erase. The free-market ideologues have lost an extremely potent psychological tool--and progressives have gained one. Now that John Edwards is out of the presidential race, the question is, will anyone dare to use it?

Totally believable!

This is our new pride and joy in Limerick, you gotta hand it to the people behind Knock, Lourdes and Medjourdwhateveryacallit.

This stuff is as good for business as a beach full of Pamela Anderson's in red swimsuits, I'm just a little disappointed that Michael O'Leary has not figured out how to put one close to the funny airports an hour from every European city.

Now here's a few you may not have seen
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The Nun bun.
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Oh and I can't find the cheese on toast one... I know I left it somewhere.




And the images won't go up right, it must be a sign...... lol

Magnificent Lily!

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oh pure credit to Lily, I'd love to be seeing her at Oxygen this weekend, but Roscommon are playing and hey... needs must.

This is a brilliant take on all the world had become pre recession, she produced it in April 2008, Lots of interesting things happened that month, but to write and produce this work of art was totally fabulous, she explains how the "fear" had worked and what people wanted in modern society, and how simply fucked up and ridiculous it all was.

So Hat's off to Lily Allen, she was the first artist to explain the consumption bullshit that had taken over society, I was amazed when one day my daughter had 2 friends in the car and I played the song, and the other girls did not know Lily was takin the piss, they thought she really did want those things... I wish people would just pay attention to the lyrics, which is why I've printed them here.

I want to be rich and I want lots of money
I don’t care about clever I don’t care about funny
I want loads of clothes and i want fuckloads of diamonds
I heard people die while they are trying to find them

And i’ll take my clothes off and it will be shameless
Cuz everyone knows that’s how you get famous
I’ll look at the sun and I’ll look in the mirror
I’m on the right track yeah I’m on to a winner

[Chorus]
I don’t know what’s right and what’s real anymore
I don’t know how I’m meant to feel anymore
When do you think it will all become clear?
‘Cuz I’m being taken over by The Fear

Life’s about film stars and less about mothers -
It’s all about fast cars concussing each other
But it doesn’t matter cause I’m packing plastic
and that’s what makes my life so fucking fantastic

And I am a weapon of massive consumption
And its not my fault it’s how I’m programmed to function
I’ll look at the sun and I’ll look in the mirror
I’m on the right track yeah we're on to a winner

Chorus
I don’t know what’s right and what’s real anymore
I don’t know how I’m meant to feel anymore
When do you think it will all become clear?
‘Cuz I’m being taken over by The Fear

[Bridge]
Forget about guns and forget ammunition
Cause I’m killing them all on my own little mission
Now I’m not a saint but I’m not a sinner
Now everything's cool as long as I’m gettin thinner

[Chorus]
I don’t know what’s right and what’s real anymore
I don’t know how I’m meant to feel anymore
When do you think it will all become clear?
‘Cause I’m being taken over by fear

Brilliant!!!!

I really did LOL

It's not often I crack up at a joke, but this one I loved, maybe Einstein's theory of Relativity did have common practical applications after all