Tagrecession

Tent Cities Still Spreading Across the U.S.

Here in Portland we’ve had a squatter settlement called Dignity Village since long before the financial crisis in 2008. It was joined by a new downtown settlement last year. But I haven’t been hearing much about the tent cities that have sprung up in Sacramento and elsewhere since 2008.

The BBC confirms that not only have these not gone away, but they have actually been growing:

Tent cities have sprung up in and around at least 55 American cities – they represent the bleak reality of America’s poverty crisis.

According to census data, 47 million Americans now live below the poverty line – the most in half a century – fuelled by several years of high unemployment.

One of the largest tented camps is in Florida and is now home to around 300 people. Others have sprung up in New Jersey and Portland.

BBC: America’s homeless resort to tent cities

(via Acrylicist)

Do Entrepreneurs Really Create Jobs?

Barry Ritholtz has an iconoclastic take on entrepreneurs and job creation:

BI is a digital media property. The print industry (aka dead trees) has been fighting a losing battle versus online competition for years. The print news industry itself is shrinking, while the online industry is growing — but online’s gains are not nearly as large as offline’s losses.

Those 75 jobs Henry mentioned? Twenty-five years ago, they would have been 250 jobs at various newspapers and magazines. Writers, copy editors, artists, printers (Humans, not HPs), etc. The enormous gains in productivity allow far fewer people to do the work formerly employing far more people. This is the inevitable path of technology. Ever since the first human sharpened a stick to hunt, that curve has been the accomplishment of more production with fewer people.

What entrepreneurs actually do is facilitate moving workers from one firm to another — from the less productive business model to the more productive one — as they battle it out in the marketplace.

Economonitor: On Job Creation, Creative Destruction and Technology

(Note: It sounds from Ritholtz’s piece that Blodget is claiming that BI created jobs, but Blodget actually does not claim this. The original piece is here)

I do think that in some cases entrepreneurs create economic opportunity where none existed before – this would especially seem to be the case in the “shadow economy” that thrives in squatter settlements all over the world. But many enterprises now are in the business of destroying jobs through technology. Many more jobs now exist for computer programmers. I benefit from the IT revolution as a journalist in that I rather doubt there would be nearly as many people employed as technology journalists otherwise. But the companies that employ these people, the companies that I cover, are upending entire industries, such as legal services and travel agencies.

In the past we could assume the luddite fallacy was indeed a fallacy. However, reading Race Against the Machine or Slate’s Robot Invasion series it appears that concept may soon need to be renamed the luddite principle.

It doesn’t matter when you were born, we’re all a part of generation sell now. But are we about to turn a corner?

3 Reads on the Financial Industry

Wall Street Unoccupied as 200,000 Job Cuts Bring ‘Darkest Days’. Schadenfreude, especially considering:

The 1% are the very best destroyers of wealth the world has ever seen

Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress

But the level of dislocation is disconcerting, especially as it continues to demonstrate how jobless this “recovery”” really is – even the bankers are out of work.

Nassim Nicholas Taleb: End Bonuses for Bankers

it’s time for a fundamental reform: Any person who works for a company that, regardless of its current financial health, would require a taxpayer-financed bailout if it failed should not get a bonus, ever. In fact, all pay at systemically important financial institutions — big banks, but also some insurance companies and even huge hedge funds — should be strictly regulated.

Critics like the Occupy Wall Street demonstrators decry the bonus system for its lack of fairness and its contribution to widening inequality. But the greater problem is that it provides an incentive to take risks. The asymmetric nature of the bonus (an incentive for success without a corresponding disincentive for failure) causes hidden risks to accumulate in the financial system and become a catalyst for disaster. This violates the fundamental rules of capitalism; Adam Smith himself was wary of the effect of limiting liability, a bedrock principle of the modern corporation.

New York Times: End Bonuses for Bankers

The Military-Gang Complex

John Robb at Global Guerillas points to a report from the FBI that finds a a rise both in the number of gang members in the military and in the number of former military members in street gangs.

There are some problems with the report. For example, listing juggalos as gang members is absurd (here’s my prior writing on the subject). But if this trend is real, it could lead to some serious problems. As described by Robb:

The big worry about gangs in the US military is a repeat of what happened in Russia when the Soviet Union collapsed. When the Soviet Union collapsed economically, hundreds of thousands of Soviet soldiers with fresh combat experience in Afghanistan (and little to offer in terms of skills) were dumped onto the street and into the waiting arms of criminal organizations. This process quickly turned Russian economics into a shooting sport. A place where wealth and firepower became synonymous.

The US, currently running a $1.5 trillion a year deficit with the spectre of HUGE cuts in the military (reduction in force) as an absolute certainty, will dump hundreds of thousands of combat vets onto the street w/o an economy able to absorb them. This is particularly true with the US economy about to start its next contraction w/o even recovering from the last one. Guess what happens next…

Global Guerillas: US Military + Gangs

Giganticon wrote on Twitter: “In many states with strict gun laws being a vet can bypass them, probibly desirable in a gang recruit.”

Nicholas Pell mentions that an episode of Gangland covers this subject as well.

Technoccult Interview: Joe Knucklehead Talks About the Occupy Movement, Faux-Populism and More

American Knucklehead

American Knucklehead
Art by Trevor Blake

American Knucklhead has quickly become my favorite podcast. It’s hosted by a local Portland college drop-out turned bowling alley equipment technician who goes by the name of Joe Knucklhead. Joe’s somehow managed to drift from Ohio through the mountain west and on up here to Oregon during his life, and has picked up a lot of observations about the state of the country and the people who inhabit it. Every two weeks or so he speaks his mind – just the perspective of your average American Knucklehead. He was kind enough to answer a few questions for me this week.

Klint Finley: Thanks for taking time to talk to the liberal media Joe. Why don’t you start by explaining who you are and why you started a podcast, for those who aren’t already familiar with your show.

Joe Knucklehead: My name’s Joe and I’m just a regular shmoe that works in a bowling alley in Portland. I started to podcast because it seemed to me that a lot of things were starting to get a little hinky in the good old USA, and I had a few ideas about how us knuckleheads might fix ’em.

You live here in Portland, best known as a place full of anarchists, tree huggers and trust fund hippies. But if I’m not mistaken, you’re from what Sarah Palin once called “The Real America” – Ohio. How different is Portland from the rest of the country?

Well, a lot in someways, and not at all in others. That ambiguous enough for ya? Portland is different in that it seems a lot more tolerant of a wider range of opinions and behaviors. Where I grew up in Dacron, Ohio, it was a pretty homogenous population, and they didn’t take to weirdos too well. If you’ve ever seen Heathers you’ll know what I mean.

On the other hand, knuckleheads abound, and most folks want pretty much the same things; a chance to earn an honest buck, shelter, safety, a future for themselves and their families.

Well, I’ve noticed that if you get outside the inner Portland bubble – which is where I happen to live – and get out to the rest of the city it’s a lot less “hipster.”

Yeah, that’s for sure. There are hipsters and hipsters.

But what do you think? Is there anything to this red state/blue state divide – or urban vs. rural?

Y’know, I’ve seen studies that showed that red state/blue state voting patterns correlate amazingly well with population density. People in higher densities tend to be more “tweetery” – the higher density makes ’em have to deal with a variety of other ideas and opinions. That’s one of the reasons Portland is relatively progressive, I think.

You’ve been talking a bit lately about the Occupy movement. There’s this online counter-movement of conservatives called the “53%” who claim to be subsidizing the Occupy movement via taxes. They say that the protesters need to “stop whining.” What do you think about this – is it a real populist sentiment, or just more divisiveness?

Naw, it’s a total PR ploy. The guy that dreamed it up, Erick Erickson, is a woofer blogger, CNN talking head, and radio talk show host. I’d say he’s been amazingly effective at providing a pointless distraction.

I talked to one of the organizers of Occupy Portland in the last show. He was very eloquent in dismissing the 53% movement as a divisive right-wing talking point.

Well, sure Erickson dreamed it up – but all those people sending in their pictures can’t just be paid actors can they?

Sure, they could be paid actors or just liars. Don’t trust the Internets!

OK – maybe I shouldn’t be so dismissive. It’s pretty easy to whip up anti-Occupy sentiment by resorting to old prejudices and bigotry. Things are scary right now, and people can behave oddly when they’re scared. I’m sure the Occupy movement seems real scary to plenty of Knuckleheads out there.

Yeah, the right wing talking heads have convinced people that the Occupy movement is all about communism. I was just at Occupy Wall Street last week and even I was surprised at how level headed and non-socialist it was. The organizers spent a lot of the time I was there talking about how Occupy to support local small businesses.

Yeah, Occupy Portland seems pretty broad-minded, too. The way the conflict with the Portland Marathon was handled was pretty impressive. They came to an amicable agreement, and both sides were pleased with the extra attention. Synergy, friends and neighbors!

I talked to a league bowler who’s been coming into the alley for years. he ran in the race, and I thought he’d be carping about the “hippies” at the finish line. Instead he said they were really great – applauding the runners as they came in.

It seems they’re really interested in pitching a big tent and creating a platform for people to discuss how best to address the issues we’re facing as a country. But do you think there’s any room for the Tea Party and Occupy to form an alliance, or are they too culturally different? I know the Tea Party has a certain amount of establishment support, from Fox News, the GOP and so on, but it does seem that there’s a legitimate grass roots element there that could lend its support to the goals of Occupy.

I think that’s the next logical step – although sometimes logic don’t play too well in Peoria. Still, I hope that the Knuckleheads in both the Tea Party and the Occupy movement will realize that there’s a lot of common ground, and that the extremists are better off on the margins. Perhaps this group could be mobilized to create one or more new parties – I don’t have much hope for the two parties we have now.

It seems that when anyone starts talking about wanting to improve our economic situation, the right wing response is to accuse those tho speak out against economic injustice as having a sense of “entitlement.” Entitlement has become a dirty word. But really – do you think the average American deserves better than what we’re getting?

There’s a big difference in having a sense of entitlement and wanting a level playing field. It seems that things for the average Knucklehead have gotten worse over the last two or three decades. Wages remain stagnant while the costs of education, healthcare, and so forth have really gone through the damn roof.

OK, we’ve so far in this interview we’ve been pretty friendly to liberals. What message would you like to send the liberal readership? What should liberal elitists like me know about knuckleheads like you?

The main problem I have with tweeters is that they get too focused on pet causes and issues – usually with a maniacal zeal that turns off Knuckleheads like me who aren’t totally on board with that particular pet issues. Right now, I think everybody ought to stick with a wider view. Let’s look at the forest, and we can obsess over individual trees later, huh?

What do you read, watch or listen to keep up with current events?

Everything that the Alaska Quitter does! I usually get my news from mainstream media websites: CNN, Reuters, AP, the Onion. Sometimes I can hoark a copy of the Economist from a friend.

Has anyone approached you about doing a “real” radio show? Have you talked to KBOO?

Hadn’t really thought of it. I did college radio before I got kicked out of Ohio State – it was a blast. That’s what I like about the podcasting – also I don’t have to do something like pull a weekly shift in some godawful 3 a.m.to 6 a.m. slot – the horror, the horror…

Klintron Guest Post at Innovation Patterns

Bear in a taxi cab

I don’t believe I’ve linked to Innovation Patterns here yet. It’s a new link blog from former Technoccult guest editor Justin Boland of Brainsturbator and Skilluminati. Every day there’s a nice big plate of brain food all prepared for you and ready to consume and digest.

Anywhoo, I guest curated the latest post. Some of these links will look familiar to regular readers here, but there’s some new stuff in there as well.

Klintron’s guest post at Innovation Patterns

China Miéville’s Rejected Iron Man Pitch

Iron Man 2020
OK, that’s not Scrap Iron Man, it’s Iron Man 2020

An extraordinary figure in bizarre makeshift power armour the colours of rust and hazard-warning yellow has appeared, fighting burglars, thieves, drug-dealers, graffiti-taggers. Flashback: he’s Dan, an ex-worker in one of the high-tech heavy defence plants, horrified at the social breakdown, going through the many scrapheaps of the town and cobbling together his suit from industrial junk, trying to save his home.

Dan smashes up a crack house, but while most of those within run, one stays and jeers at him, calls him a bully. Dan knows her: Louise was the union rep at his factory. He’s ashamed: he always liked her. They get talking. ‘You really want to do right by Flinton?’ Louise says eventually. ‘By all the other Flintons? Then quit messing with symptoms. It’s time to take down the real villain.’

China Miéville: Rejected Pitch

The Forgotten History of the Bonus Army

Police attack the Bonus Army

For Memorial Day, some dismal reading about the way the U.S. treats its soldiers (yes, this would actually be more appropriate for Veterans Day):

On 11 March 1932 Waters called for a march on Washington and 250-300 men from Portland joined him. They marched behind a banner reading “Portland Bonus March – On to Washington.” The veterans and their families had popular support and the support of some authorities. A Portland railroad offered the use of dung-stained cattle cars to transport the Bonus Army. The Indiana National Guard and the Pennsylvania National Guard used military vehicles to transport the Bonus Army. Toll bridge operators let the Bonus Army march silently across bridges without pay, and police officers refused to arrest Bonus Army veterans for trespassing. Thousands joined the Bonus Army as it marched towards Washington with Sergent Waters as their elected leader. Waters forbade drinking, panhandling, and ‘anti-government’ or ‘radical’ talk.

When Waters and his Bonus Army arrived in late May 1932 they were twenty thousand strong. The veterans and their families camped in buildings abandoned during the Great Depression and in giant shantytowns. Communists showed up at the shantytowns and agitated for their cause among the veterans. In reply, Bonus Army veterans seized the communists, held trials and sentenced them to fifteen lashes. More than two hundred communists were expelled from the Bonus Army camps. But supporters who were not communists showed up at the shantytown with material support. Among them were eight German soldiers, each having fought against US soldiers, each wounded twice or more in World War I, all naturalized citizens and bearing a total of eight tons of food and supplies for the Bonus Army.

On 29 June the US Government announced it would not meet the demands of the Bonus Army and that the Bonus Army had to leave by 15 July. By 5 July there was no food remaining. On 7 July congress offered $10,000 to the Bonus Army if it would simply leave Washington DC. Some did take the money and leave, but many more took the money and stayed while other veterans joined for the first time. One thousand more veterans and their families had joined the Bonus Army in Washington and more were on their way. On 17 July 1932 Congress voted down the bonus and then adjourned. President Hoover went on a vacation.

OVO: The Bonus Army

Somewhat related: Nightline on how hundreds of soldiers wounded in Iraq have ended up owing the military money. That is from 2006. The problem is ongoing. And that’s just one of many of the problems today’s veterans face.

An Education in For-Profit Education

Via that panel on comics as journalism, here’s a great comic/infographic on for-profit education by Susie Cagle for Campus Progress.

An Education in For-Profit Education

See also: Earn 45% of Credits Towards a Bachelor’s Degree by Working at Wal-Mart

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