Can
this possibly have appeared in the neo-liberal Guardian that is
everything this article talks about?!
The new elite’s phoney crusade to save the world – without changing anything
Today’s titans of tech and finance want to solve the world’s problems, as long as the solutions never, ever threaten their own wealth and power.By Anand Giridharadas
22 January, 2019
A
successful society is a progress machine. It takes in the raw
material of innovations and produces broad human advancement.
America’s machine is broken. The same could be said of others
around the world. And now many of the people who broke the progress
machine are trying to sell us their services as repairmen.
When
the fruits of change have fallen on the US in recent decades, the
very fortunate have basketed almost all of them. For instance, the
average pretax income of the top 10th of Americans has doubled since
1980, that of the top 1% has more than tripled, and that of the top
0.001% has risen more than sevenfold – even as the average pretax
income of the bottom half of Americans has stayed almost precisely
the same. These familiar figures amount to three-and-a-half decades’
worth of wondrous, head-spinning change with zero impact on the
average pay of 117 million Americans. Globally, over the same period,
according to the World Inequality Report, the top 1% captured 27% of
new income, while the bottom half of humanity – presently, more
than 3 billion people – saw 12% of it.
That
vast numbers of Americans and others in the west have scarcely
benefited from the age is not because of a lack of innovation, but
because of social arrangements that fail to turn new stuff into
better lives. For example, American scientists make the most
important discoveries in medicine and genetics and publish more
biomedical research than those of any other country – but the
average American’s health remains worse and slower-improving than
that of peers in other rich countries, and in some years life
expectancy actually declines. American inventors create astonishing
new ways to learn thanks to the power of video and the internet, many
of them free of charge – but the average US high-school leaver
tests more poorly in reading today than in 1992. The country has had
a “culinary renaissance”, as one publication puts it, one
farmers’ market and Whole Foods store at a time – but it has
failed to improve the nutrition of most people, with the incidence of
obesity and related conditions rising over time.
The
tools for becoming an entrepreneur appear to be more accessible than
ever, for the student who learns coding online or the Uber driver –
but the share of young people who own a business has fallen by
two-thirds since the 1980s. America has birthed both a wildly
successful online book superstore, Amazon, and another company,
Google, that has scanned more than 25m books for public use – but
illiteracy has remained stubbornly in place, and the fraction of
Americans who read at least one work of literature a year has dropped
by almost a quarter in recent decades. The government has more data
at its disposal and more ways of talking and listening to citizens –
but only a quarter as many people find it trustworthy as did in the
tempestuous 1960s.
Meanwhile,
the opportunity to get ahead has been transformed from a shared
reality to a perquisite of already being ahead. Among Americans born
in 1940, those raised at the top of the upper middle class and the
bottom of the lower middle class shared a roughly 90% chance of
realising the so-called American dream of ending up better off than
their parents. Among Americans born in 1984 and maturing into
adulthood today, the new reality is split-screen. Those raised near
the top of the income ladder now have a 70% chance of realising the
dream. Meanwhile, those close to the bottom, more in need of
elevation, have a 35% chance of climbing above their parents’
station. And it is not only progress and money that the fortunate
monopolise: rich American men, who tend to live longer than the
average citizens of any other country, now live 15 years longer than
poor American men, who endure only as long as men in Sudan and
Pakistan.
Thus
many millions of Americans, on the left and right, feel one thing in
common: that the game is rigged against people like them. Perhaps
this is why we hear constant condemnation of “the system”, for it
is the system that people expect to turn fortuitous developments into
societal progress. Instead, the system – in America and across much
of the world – has been organised to siphon the gains from
innovation upward, such that the fortunes of the world’s
billionaires now grow at more than double the pace of everyone
else’s, and the top 10% of humanity have come to hold 85% of the
planet’s wealth. New data published this week by Oxfam showed that
the world’s 2,200 billionaires grew 12% wealthier in 2018, while
the bottom half of humanity got 11% poorer. It is no wonder, given
these facts, that the voting public in the US (and elsewhere) seems
to have turned more resentful and suspicious in recent years,
embracing populist movements on the left and right, bringing
socialism and nationalism into the centre of political life in a way
that once seemed unthinkable, and succumbing to all manner of
conspiracy theory and fake news. There is a spreading recognition, on
both sides of the ideological divide, that the system is broken, that
the system has to change.
Some
elites faced with this kind of gathering anger have hidden behind
walls and gates and on landed estates, emerging only to try to seize
even greater political power to protect themselves against the mob.
(We see you, Koch brothers!) But in recent years a great many
fortunate Americans have also tried something else, something both
laudable and self-serving: they have tried to help by taking
ownership of the problem. All around us, the winners in our highly
inequitable status quo declare themselves partisans of change. They
know the problem, and they want to be part of the solution. Actually,
they want to lead the search for solutions. They believe their
solutions deserve to be at the forefront of social change. They may
join or support movements initiated by ordinary people looking to fix
aspects of their society. More often, though, these elites start
initiatives of their own, taking on social change as though it were
just another stock in their portfolio or corporation to restructure.
Because they are in charge of these attempts at social change, the
attempts naturally reflect their biases.
For
the most part, these initiatives are not democratic, nor do they
reflect collective problem-solving or universal solutions. Rather,
they favour the use of the private sector and its charitable spoils,
the market way of looking at things, and the bypassing of government.
They reflect a highly influential view that the winners of an unjust
status quo – and the tools and mentalities and values that helped
them win – are the secret to redressing the injustices. Those at
greatest risk of being resented in an age of inequality are thereby
recast as our saviours from an age of inequality. Socially minded
financiers at Goldman Sachs seek to change the world through
“win-win” initiatives such as “green bonds” and “impact
investing”. Tech companies such as Uber and Airbnb cast themselves
as empowering the poor by allowing them to chauffeur people around or
rent out spare rooms. Management consultants and Wall Street brains
seek to convince the social sector that they should guide its pursuit
of greater equality by assuming board seats and leadership positions.
Conferences
and ideas festivals sponsored by plutocrats and big business – such
as the World Economic Forum, which is under way in Davos,
Switzerland, this week – host panels on injustice and promote
“thought leaders” who are willing to confine their thinking to
improving lives within the faulty system rather than tackling the
faults. Profitable companies built in questionable ways and employing
reckless means engage in corporate social responsibility, and some
rich people make a splash by “giving back” – regardless of the
fact that they may have caused serious societal problems as they
built their fortunes. Elite networking forums such as the Aspen
Institute and the Clinton Global Initiative groom the rich to be
self-appointed leaders of social change, taking on the problems
people like them have been instrumental in creating or sustaining. A
new breed of community-minded so-called B Corporations has been born,
reflecting a faith that more enlightened corporate self-interest –
rather than, say, public regulation – is the surest guarantor of
the public welfare. A pair of Silicon Valley billionaires fund an
initiative to rethink the Democratic party, and one of them can
claim, without a hint of irony, that their goals are to amplify the
voices of the powerless and reduce the political influence of rich
people like them.
This
genre of elites believes and promotes the idea that social change
should be pursued principally through the free market and voluntary
action, not public life and the law and the reform of the systems
that people share in common; that it should be supervised by the
winners of capitalism and their allies, and not be antagonistic to
their needs; and that the biggest beneficiaries of the status quo
should play a leading role in the status quo’s reform.
This
is what I call MarketWorld – an ascendant power elite defined by
the concurrent drives to do well and do good, to change the world
while also profiting from the status quo. It consists of enlightened
businesspeople and their collaborators in the worlds of charity,
academia, media, government and thinktanks. It has its own thinkers,
whom it calls “thought leaders”, its own language, and even its
own territory – including a constantly shifting archipelago of
conferences at which its values are reinforced and disseminated and
translated into action. MarketWorld is a network and community, but
it is also a culture and state of mind.
The
elites of MarketWorld often speak in a language of “changing the
world” and “making the world a better place” – language more
typically associated with protest barricades than ski resorts. Yet we
are left with the inescapable fact that even as these elites have
done much to help, they have continued to hoard the overwhelming
share of progress, the average American’s life has scarcely
improved, and virtually all of the US’s institutions, with the
exception of the military, have lost the public’s trust.
One
of the towering figures in this new approach to changing the world is
the former US president Bill Clinton. After leaving office in 2001,
he came to champion, through his foundation and his annual Clinton
Global Initiative gatherings in New York, a mode of public-private
world improvement that brought together actors like Goldman Sachs,
the Rockefeller Foundation and McDonald’s, sometimes with a
governmental partner, to solve big problems in ways plutocrats could
get on board with.
After
the populist eruption that resulted in Hillary Clinton’s defeat in
the 2016 US election, I asked the former president what he thought
lay behind the surge of public anger. “The pain and road rage we
see reflected in the election has been building a long time,” he
said. He thought the anger “is being fed in part by the feeling
that the most powerful people in the government, economy and society
no longer care about them or look down on them. They want to become
part of our progress toward shared opportunities, shared stability
and shared prosperity.” But when it came to his proposed solution,
it sounded a lot like the model to which he was already committed:
“The only answer is to build an aggressive, creative partnership
involving all levels of government, the private sector and
nongovernment organisations to make it better.”
In
other words, the only answer is to pursue social change outside of
traditional public forums, with the political representatives of
humankind as one input among several, and corporations having the big
say in whether they would sponsor a given initiative or not. The
public’s anger, of course, has been directed in part at the very
elites he had sought to convene, on whom he had gambled his theory of
post-political problem-solving, who had lost the trust of so many
millions of people, making them feel betrayed, uncared for and
scorned.
What
people have been rejecting in the US – as well as in Britain,
Hungary and elsewhere – was, in their view, rule by global elites
who put the pursuit of profit above the needs of their neighbours and
fellow citizens. These were elites who seemed more loyal to one
another than to their own communities; elites who often showed
greater interest in distant humanitarian causes than in the pain of
people 10 miles to the east or west. Frustrated citizens felt they
possessed no power over the spreadsheet- and PowerPoint-wielding
elites commensurate with the power these elites had gained over them
– whether in switching around their hours or automating their plant
or quietly slipping into law a new billionaire-made curriculum for
their children’s school. What they did not appreciate was the world
being changed without them.
Which
raises a question for all of us: are we ready to hand over our future
to the plutocratic elites, one supposedly world-changing initiative
at a time? Are we ready to call participatory democracy a failure,
and to declare these other, private forms of change-making the new
way forward? Is the decrepit state of American self-government an
excuse to work around it and let it further atrophy? Or is meaningful
democracy, in which we all potentially have a voice, worth fighting
for?
There
is no denying that today’s American elite may be among the more
socially concerned elites in history. But it is also, by the cold
logic of numbers, among the more predatory. By refusing to risk its
way of life, by rejecting the idea that the powerful might have to
sacrifice for the common good, it clings to a set of social
arrangements that allow it to monopolise progress and then give
symbolic scraps to the forsaken – many of whom wouldn’t need the
scraps if society were working right. It is vital that we try to
understand the connection between these elites’ social concern and
predation, between the extraordinary helping and the extraordinary
hoarding, between the milking – and perhaps abetting – of an
unjust status quo and the attempts by the milkers to repair a small
part of it. It is also important to understand how the elites see the
world, so that we might better assess the merits and limitations of
their world-changing campaigns.
There
are many ways to make sense of all this elite concern and predation.
One is that the elites are doing the best they can. The world is what
it is, the system is what it is, the forces of the age are bigger
than anyone can resist, and the most fortunate are helping. This view
may allow that elite helpfulness is just a drop in the bucket, but
reassures itself that at least it is something. The slightly more
critical view is that this sort of change is well-meaning but
inadequate. It treats symptoms, not root causes – it does not
change the fundamentals of what ails us. According to this view,
elites are shirking the duty of more meaningful reform.
But
there is still another, darker way of judging what goes on when
elites put themselves in the vanguard of social change: that doing so
not only fails to make things better, but also serves to keep things
as they are. After all, it takes the edge off of some of the public’s
anger at being excluded from progress. It improves the image of the
winners. By using private and voluntary half-measures, it crowds out
public solutions that would solve problems for everyone, and do so
with or without the elite’s blessing. There is no question that the
outpouring of elite-led social change in our era does great good and
soothes pain and saves lives. But we should also recall Oscar Wilde’s
words about such elite helpfulness being “not a solution” but “an
aggravation of the difficulty”. More than a century ago, in an age
of churn like our own, he wrote: “Just as the worst slave-owners
were those who were kind to their slaves, and so prevented the horror
of the system being realised by those who suffered from it, and
understood by those who contemplated it, so, in the present state of
things in England, the people who do most harm are the people who try
to do most good.”
Wilde’s
formulation may sound extreme to modern ears. How can there be
anything wrong with trying to do good? The answer may be: when the
good is an accomplice to even greater, if more invisible, harm. In
our era that harm is the concentration of money and power among a
small few, who reap from that concentration a near monopoly on the
benefits of change. And do-gooding pursued by elites tends not only
to leave this concentration untouched, but actually to shore it up.
For when elites assume leadership of social change, they are able to
reshape what social change is – above all, to present it as
something that should never threaten winners. In an age defined by a
chasm between those who have power and those who don’t, elites have
spread the idea that people must be helped, but only in
market-friendly ways that do not upset fundamental power equations.
Society should be changed in ways that do not change the underlying
economic system that has allowed the winners to win and fostered many
of the problems they seek to solve.
The
broad fidelity to this law helps make sense of what we observe all
around: powerful people fighting to “change the world” in ways
that essentially keep it the same, and “giving back” in ways that
sustain an indefensible distribution of influence, resources and
tools. Is there a better way?
The
secretary-general of the Organisation for Economic Co-operation and
Development (OECD), a research and policy organisation that works on
behalf of the world’s richest countries, has compared the
prevailing elite posture to that of the fictional 19th-century
Italian aristocrat Tancredi Falconeri, from Giuseppe Tomasi di
Lampedusa’s novel The Leopard, who declares: “If we want things
to stay as they are, things will have to change.” If this view is
correct, then much of today’s charity and social innovation and
buy-one-give-one marketing may not be measures of reform so much as
forms of conservative self-defence – measures that protect elites
from more menacing change. Among the kinds of issues being sidelined,
the OECD leader wrote, are “rising inequalities of income, wealth
and opportunities; the growing disconnect between finance and the
real economy; mounting divergence in productivity levels between
workers, firms and regions; winner-take-most dynamics in many
markets; limited progressivity of our tax systems; corruption and
capture of politics and institutions by vested interests; lack of
transparency and participation by ordinary citizens in
decision-making; the soundness of the education and of the values we
transmit to future generations.” Elites, he wrote, have found
myriad ways to “change things on the surface so that in practice
nothing changes at all”. The people with the most to lose from
genuine social change have placed themselves in charge of social
change – often with the passive assent of those most in need of it.
It
is fitting that an era marked by these tendencies should culminate in
the election of Donald Trump. He is at once an exposer, an exploiter
and an embodiment of the cult of elite-led social change. He tapped,
as few before him successfully had, into a widespread intuition that
elites were phonily claiming to be doing what was best for most
Americans. He exploited that intuition by whipping it into frenzied
anger and then directing most of that anger not at elites, but at the
most marginalised and vulnerable Americans. And he came to incarnate
the very fraud that had fuelled his rise, and that he had exploited.
He became, like the elites he assailed, the establishment figure who
falsely casts himself as a renegade. He became the rich, educated man
who styles himself as the ablest protector of the poor and uneducated
– and who insists, against all evidence, that his interests have
nothing to do with the change he seeks. He became the chief salesman
for the theory, rife among plutocratic change agents, that what is
best for powerful him is best for the powerless too. Trump is the
reductio ad absurdum of a culture that tasks elites with reforming
the very systems that have made them and left others in the dust.
One
thing that unites those who voted for Trump and those who despaired
at his being elected – and the same might be said of those for and
against Brexit – is a sense that the country requires
transformational reform. The question we confront is whether moneyed
elites, who already rule the roost in the economy and exert enormous
influence in the corridors of political power, should be allowed to
continue their conquest of social change and of the pursuit of
greater equality. The only thing better than controlling money and
power is to control the efforts to question the distribution of money
and power. The only thing better than being a fox is being a fox
asked to watch over hens.
What
is at stake is whether the reform of our common life is led by
governments elected by and accountable to the people, or rather by
wealthy elites claiming to know our best interests. We must decide
whether, in the name of ascendant values such as efficiency and
scale, we are willing to allow democratic purpose to be usurped by
private actors who often genuinely aspire to improve things but,
first things first, seek to protect themselves. Yes, the American
government is dysfunctional at present. But that is all the more
reason to treat its repair as our foremost national priority.
Pursuing workarounds of our troubled democracy makes democracy even
more troubled. We must ask ourselves why we have so easily lost faith
in the engines of progress that got us where we are today – in the
democratic efforts to outlaw slavery, end child labour, limit the
workday, keep drugs safe, protect collective bargaining, create
public schools, battle the Great Depression, electrify rural America,
weave a nation together by road, pursue a Great Society free of
poverty, extend civil and political rights to women and African
Americans and other minorities, and give our fellow citizens health,
security and dignity in old age.
Much
of what appears to be reform in our time is in fact the defense of
stasis. When we see through the myths that foster this misperception,
the path to genuine change will come into view. It will once again be
possible to improve the world without permission slips from the
powerful.
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