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LOS ANGELES TIMES CARTOON: Roommates from Hell

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Ted Rall

Roommates

 

Southern California has always had one of the priciest real estate markets in the United States, but in recent years the gap between what people can afford to pay for rent or mortgage and median housing prices has opened to a gaping chasm.

Tim Logan of the Times reports about new data that reflects just how bad things have gotten for most Southlanders:

            Nearly half of all working-age adults in Los Angeles and Orange counties live in a home with another adult who is not their spouse — a higher percentage than any other big city in the country, according a new report by real estate website Zillow. In second place: the Inland Empire.

Economists at Zillow crunched U.S. census numbers and found that 47.9% of adults in metro L.A. lived in “doubled-up” households in 2012, a number that has grown rapidly — up from 41.2% in 2000 — as the recession and yo-yo-ing housing market have pushed more people to share apartments.

“You’ve got a lot of households that are blending together,” said Zillow economist Skylar Olsen. “They’re doing that to make housing more affordable.”

That’s especially true in Southern California, where relatively high costs and relatively low wages combine to create what is, by some measures, the least affordable housing market in the country, especially for renters.

One has to wonder: how is this sustainable? Although there’s been some improvement in the economy, unemployment, especially long-term, remains stubbornly high. Wages remain stagnant. You can’t squeeze blood out of a stone. Won’t people just move away to somewhere more affordable?

Maybe eventually. For the time being, the pull of family ties, whatever work they currently hasveand just plain inertia is keeping hundreds of thousands of people stuck in houses and apartments that they can’t really afford. Until things turn around, maybe, someday, who knows when, they are doubling up and tripling up with friends, lovers and random people they find on Craigslist. As someone who has from time to time been forced to participate in the so-called “sharing economy” to make ends meet, I have nothing but sympathy for this situation.

Having a roommate you don’t want, simply for economic reasons, violates your privacy and sense of personal calm at least as much as secret government surveillance programs that intercept your email. This goes double if, like me, you are an introvert.

For this week’s cartoon, however, I do appreciate the fact that this predicament makes for a fun sight gag. If I had the ability to add sound here, imagine all the characters either snoring or growling ominously like zombies.

Neel Kashkari Takes to the Mean Streets of Fresno

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Ted Rall

Will Governate 4 Food

Yes, Virginia, the Republicans are running someone against California governor Jerry Brown. His name is Neel Kashkari.

Kashkari has been virtually invisible throughout what has passed for the campaign. (Not literally. There is no evidence that he has mastered the ability to bend light around himself so as to render his physical form undetectable to the human eye. Just in the media, which has decided that he isn’t worth covering because he probably won’t win. Which is true, since the media won’t cover him. Funny how that works.)

What do you do when the struggle for visibility gets tough?

Publicity stunt!

In what his supporters would likely say was an earnest attempt to showcase the ongoing problem of un- and underemployment in California despite the economic “recovery” — if anyone bothered to ask his supporters — and what everyone else, including pundits, would call a cheap ploy, Kashkari says he spent the last week playacting as a homeless person in search of work.

Seema Mehta of the Times reports:

“Kashkari wrote that he took a Greyhound bus from Los Angeles to Fresno on July 21 with ‘only $40 in my pocket (and no credit cards), a backpack, a change of clothes and a toothbrush.’ He said he planned to find a job. “I am an able-bodied 41-year-old. Surely I could find some work. ‘Kashkari was accompanied by two videographers, who produced a 10-minute video. The footage shows a scruffy Kashkari saying, ‘This has been one of the hardest weeks of my life.'”

All Gen X smirkery aside, I think it’s admirable that any politician, especially a Republican — the difference between Democrats and Republicans is that Republicans don’t even pretend to care about poor people — is drawing attention to the misery experienced by millions of Californians suffering through grinding poverty with no foreseeable end in sight. Sure, Kashkari is a multi-millionaire who could, and did, go home whenever he wanted. But when’s the last time you slept outside to see what it was like? Hell, I don’t even like camping.

So, good on Kashkari.

Still, I have some logistical and logical questions for him.

Like, why Fresno? The economy isn’t that bad there, relatively.

Why forty bucks? Why not $20 or $100?

Did the $5 bus fare come out of the $40?

Did he panhandle? Steal? I would.

Why was a toothbrush deemed essential, but not floss? Was there even toothpaste, and if not, why not, and if so, why wasn’t it mentioned? How about mouthwash? (Note to Gov. Brown’s opposition research team: Kashkari’s commitment to oral hygiene halfhearted at best. 92% of voters say ‘ewww.’)

When the Man Who Would Be Governor approached foremen at Fresno area construction sites, how eager for work did he appear? After all, this was an experiment that would have failed mightily had his able-bodied 41-year-old self been scooped off the mean streets of the Raisin Capital and offered a zillion bucks to run a hedge fund. Did he, full of honesty and integrity, pledge to work hard at low wages with little concern for his personal safety? Or was he all Little Lord Fauntleroy about it: “I don’t do sweat, dude”?

So many questions. I’d ask them all, too. But that would be against the rules. He’s a long-shot gubernatorial candidate and I’m a pundit.

The Bad News About the Good News

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Ted Rall

35% of Americans have debts and unpaid bills that have been reported to collections agencies. But it’s not all bad news. The collections industry is hiring. But wait.

LOS ANGELES TIMES CARTOON: Sick Days as “Job Killer”

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Ted Rall

Sick Days as Job Killer

There they go again.

Whenever anyone floats an idea that would improve the lives of workers — shorter hours, higher wages, or better working conditions — employers claim they’ll be forced to fire workers.

They’re always wrong. But they never shut up.

The California Chamber of Commerce, which represents business, has elevated this argument to a media event. This year’s annual CCOC “Job Killer” list features 26 bills the organization would like to kill. (Last year, the CCOC killed 35 out of 36 pro-worker bills on its hit list.)

Among the “killer 26” is AB 1522, sponsored by Lorena Gonzalez, a San Diego Democrat. Gonzalez’s bill would guarantee California workers at least three paid sick days a year. (The exact formula is one sick hour for every 30 hours worked.)

To hear employers whine, you’d think that letting employees stay home sick less than one percent of the year — as opposed to dragging themselves to their jobs where they may infect coworkers and customers — would destroy the capitalist system.

Assemblyman Donald P. Wagner (R-Irvine) called the bill an “ill-considered, heavy-handed, one-sided piece of legislation,” Melanie Mason reports in The Times.

A similar law recently went into effect in New York over the objections of the city’s billionaire then-mayor, Michael Bloomberg, who argued that sick leave laws “hurt small businesses and stifle job creation.”

But there’s a problem with the Chamber of Commerce “job killer” talking point: it’s baseless. There’s no evidence that requiring companies to provide paid sick leave hurts business. A year and a half after such a law went into effect in Connecticut, for example, a study by the Center for Economic and Policy Research found that “the impact of the new law on business has been modest…nearly two-thirds said it had led to no change or an increase of less than 2% in their overall costs. About another 12% didn’t know how much their costs had increased.”

“Virtually none [of the companies] reported reducing wages,” the authors wrote. “About 90% did not reduce their workers’ hours; 85% did not find it necessary to raise prices.”

Job killer? Job annoyer, at most.

Meanwhile, Seattle enacted a major increase in the minimum wage, to $15 per hour, prompting predictions that similar wage hikes could spread across the nation. As usual, pro-business extremists are predicting doom. ” Seattle’s economy will be hurt by this policy and so will some low skill workers who will lose their jobs thanks to the people claiming to be helping them,” Jeffrey Dorfman writes in Forbes.

In the real world, however, minimum wage increases have not caused job losses — even in isolated hamlets like SeaTac, Washington, where restaurants and other low-wage employers could seemingly pick up and move a few miles away.

Courtesy of the big business lobby, that’s the screw-the-workers propaganda machine for you. Why let facts get in the way of the eternal quest for an extra buck?

SYNDICATED COLUMN: America is in Decline. Get Used To It.

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Ted Rall

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We knew this was coming.

The American Century, after all, was the 20th.

Things were bound to go downhill.

Like 4th century Romans and post-World War II Europeans, Americans are beginning to realize that they are no longer citizens of an unrivaled superpower. And they’re kind of freaking out about it.

Using a novel “purchasing power parity” measure, the World Bank estimates that China’s economy will surpass the United States later this year. By per capita GDP — and most useful indices — the U.S. still maintains its lead. Nevertheless, many Americans agree with the thesis of Marxist economist Thomas Piketty’s book “Capital in the Twenty-first Century” thatAmerica’s boom days are behind us, unlikely to be seen again. As The Economist summarizes Piketty: “The middle of the last century was unusual in its growth rates as well as in the distribution of income; the good times most of us see as our due as residents of rich economies were in fact a fleeting anomaly.”

By historical terms, back to normal slogging is a yawner. But humans don’t live in historical terms. We compare where we are now with where we were 10, 20, 30 years ago, and where our parents were. Psychologically if not fiscally, you’re better off never having experienced prosperity than to have had it and lost it. Downward mobility as America’s middle class has experienced it over the last 40 or 50 years — a boom-and-bust cycle featuring shorter expansions and longer, deeper recessions and depressions — is a bummer.

“We’re walking small,” New York Times columnist Frank Bruni wrote on May 3rd. “And that shift in our gait and our gumption has been palpable for many years, during an unusually sustained period of frustration that has the feel of something more than a temporary dive: a turned corner, the downward arc of a diminished enterprise.”

As Bruni points out, we have good cause for bad ennui: America’s shameful global ranking on education quality (#39), collapsing social mobility (it’s easier to get rich in Old Europe and Canada), and our crumbling infrastructure. China unveils its awesomely cool pressurized bullet train to the Tibetan plateau; when they’re not hours late, our Amtraks derail.

Not that there aren’t upsides. “Less assertiveness could mean less overreach. Less confidence could mean less hubris. And money isn’t everything,” Bruni allows.

Not that the U.S. doesn’t have at least as much money as it used to. Overall, the U.S. is richer. The trouble is, all our loot has gotten aggregated into the claws of too few people. As The Times’ Nicholas Kristof notes in a piece titled “We’re Not No. 1! We’re Not No. 1!”: “Over all, the United States’ economy outperformed France’s between 1975 and 2006. But 99% of the French population actually enjoyed more gains in that period than 99% of the American population. Exclude the top 1%, and the average French citizen did better than the average American.”

Of course, Americans have always worried that America was in decline.

A kind of depression has set in,” Washington Post columnist Richard Cohen wrote in 2011. “We’ve lost our mojo, our groove.”

Jimmy Carter’s 1979 “malaise” speech (which despite our faulty collective memory contains neither the word malaise nor its existential French cousin “ennui”), addressed what he called a “crisis of confidence…the growing doubt about the meaning of our own lives and in the loss of a unity of purpose for our nation.” (And that was before the Iran hostage crisis.)

The Atlantic’s James Fallows (age 64) addressed America’s longstanding we’re-screwed vibe in 2010:

“Through the entirety of my conscious life, America has been on the brink of ruination, or so we have heard, from the launch of Sputnik through whatever is the latest indication of national falling apart or falling behind. Pick a year over the past half-century, and I will supply an indicator of what at the time seemed a major turning point for the worse. The first oil shocks and gas-station lines in peacetime history; the first presidential resignation ever; assassinations and riots; failing schools; failing industries; polarized politics; vulgarized culture; polluted air and water; divisive and inconclusive wars. It all seemed so terrible, during a period defined in retrospect as a time of unquestioned American strength. ‘Through the 1970s, people seemed ready to conclude that the world was coming to an end at the drop of a hat,’ Rick Perlstein, the author of Nixonland, told me. ‘Thomas Jefferson was probably sure the country was going to hell when John Adams supported the Alien and Sedition Acts,’ said Gary Hart, the former Democratic senator and presidential candidate. ‘And Adams was sure it was going to hell when Thomas Jefferson was elected president.'”

Context matters, and it’s smart not to panic.

Unless…

Unless we really are screwed now. The usually-ignored takeaway from The Boy Who Cried Wolf is that there really was a wolf.

In other words, it is entirely possible the events Fallows and Perlstein downplayed — environmental degradation, the military disasters in Vietnam, Iraq and Afghanistan, soaring energy prices and institutionalized political corruption that has gotten so much worse that Nixon now looks like a saint — really were as bad as the worrywarts fretted because, throughout the conscious life of someone Fallows’ age, the U.S. really has been in decline.

Aside from a lot of geopolitical and ecological (metaphorical) birds coming home to roost, the simple truth is that there’s only one world and the U.S. is being forced to share its stuff. Despite a foreign policy centered around disruption and harassment of emerging major regional powers such as China, India, Brazil and Iran, Americans had better get used to a smaller share of power and wealth.

Which isn’t the worst thing. It sucked at the time, but losing their colonial empires is the best thing that ever happened to Europe’s once great powers, both morally and economically. The question for Americans is: What do we do about it? Do we allow our slide into Third Worldism to continue? Or do we scale back the drones and stupid wars, reject the NSA’s Orwellian (and wildly expensive) security nightmare, tax the hell out of the rich, and rebuild the social safety net?

One thing’s for sure: we can’t vote our way out of this problem.

(Support independent journalism and political commentary. Subscribe to Ted Rall at Beacon.)

COPYRIGHT 2014 TED RALL, DISTRIBUTED BY CREATORS.COM

SYNDICATED COLUMN: Suicide Kills More Americans Than Gun Violence

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Ted Rall

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As I waited for the body of a man who jumped in front of my train to be cleared from the tracks — less than a week before another train I was riding struck a suicide victim — it occurred to me that (a) I should check whether suicide rates are increasing due to the bad economy (they are, especially among men in their 50s), and that (b) talking about suicide is long overdue.

With modernity comes depression; depression sometimes leads to suicide. And it’s a global phenomenon. “The World Health Organization reports that suicide rates have increased 60 percent over the past 50 years, most strikingly in the developing world, and that by 2020 depression will be the second most prevalent medical condition in the world,” T.M. Luhrmann wrote in The New York Times recently.

Why are so many people opting out?

Can we eliminate or reduce the number of our brothers and sisters who kill themselves?

Disclosure: my best friend committed suicide when we were 15. Bill’s death, and his inability/unwillingness to find a reason to keep living among his friends and family, left me angry and confused, unable to process an unsolvable equation. No day passes without me thinking about Bill hanging himself. His death makes me question my own daily decisions to go on living. I am not in touch with anyone else who knew him, but I imagine their trauma was not wildly dissimilar from mine.

So, yeah, it’s a personal issue for me. Given that 30,000 Americans commit suicide and 800,000 attempt it every year, it’s personal for 5,000,000 survivors of close friends and relatives too.

Nobody talks about it, but suicide is a national epidemic. Suicide by gun kills more Americans — a lot more Americans — than gun violence committed against others. (Though research shows that having a gun in your house greatly increases the chance that you’ll shoot yourself.) More American soldiers have killed themselves than have died in the war against Afghanistan.

Perhaps public discussion is inhibited by the cultural myth of the rugged individual, personal responsibility, etc. — hey, it’s your choice to live or die — but we’re all in this together. We need to save as many people as we can.

One way to reduce the suicide rate would be to get rid of capitalism. Though not a truly communist state, citizens of the Soviet Union were far less likely to kill themselves before the collapse of socialism in 1991.

There is a relentless tendency toward monopoly, consolidation of wealth and rising inequality under capitalism. Inequality — specifically, awareness of inequality — kills.

Studies show that relative poverty — how much poorer you are than your societal peers — is strongly correlated to mental illness, including depression. Of course, you can find a study to support just about anything; there’s even a theory that country music prompts people to kill themselves. Still, as Lurhmann says: “We know that social position affects both when you die and how sick you get: The higher your social position, the healthier you are. It turns out that your sense of relative social rank — literally, where you draw a line on an abstract ladder to show where you are with respect to others — predicts many health outcomes, including depression, sometimes even more powerfully than your objective socioeconomic status alone.”

Being poor doesn’t bum people out. Being poorer than other people — people whose relative wealth you personally witness — does. Mali, Bangladesh and Afghanistan are poor countries. Yet their rates of inequality are low, similar to those of Germany and the Scandinavian countries. And so are their suicide rates.

“Overall life expectancy also tracks with inequality, with a bigger wage gap meaning shorter lives and worse health — for both rich and poor, though the poor are hit much harder,” Maia Szalavitz wrote in a much-cited 2011 Time magazine article. “Researchers suspect that this gradient is linked to stress caused by our place in the social hierarchy: Stanford’s Robert Sapolsky, for example, has found that even in baboons, lower ranked animals have higher levels of stress hormones and worse health. But when status conflicts are reduced, producing a more egalitarian situation, these differences are also reduced.”

In a famous 2003 experiment with monkeys, the animals refused to accept small food allotments than those offered to neighboring monkeys. They became angry at the researchers, throwing objects at them — apparently because they blamed them for unequal distribution of the treats.

Those monkeys were on to something. Better to turn our rage against those responsible for inequality than against ourselves.

(Support independent journalism and political commentary. Subscribe to Ted Rall at Beacon.)

COPYRIGHT 2014 TED RALL, DISTRIBUTED BY CREATORS.COM

Zero Employment = Zero Unemployment

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Ted Rall

Welcome to the paradox of falling labor participation rate: as people drop out of the workforce, we’re moving closer to a time when unemployment is zero at the same time that there are no jobs left.

SYNDICATED COLUMN: Get Pissed Off and Break Things

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Ted Rall

File:Keep-calm-and-carry-on-scan.jpg

 

Why Are Americans So Passive?

There’s a reason “Keep Calm and Carry On” is everywhere. When people lose everything — their economic aspirations, their freedom, their privacy — when there’s nothing they can do to restore what they’ve lost — all they have left is dignity.

Remember Saddam? Seconds before he was hanged, disheveled and disrespected, the deposed dictator held his head high, his eyes blazing with contempt as he spat sarcastic insults at his executioners. He “faced death like a lion,” said his supposed body double, Latif Yahia, and no one could argue. He left this life with the one thing he could control intact.

Dignity. That’s what “Keep Calm and Carry On” is all about. That’s what we think of when we think of the Battle of Britain. As German bombs rained down, the English went about their business. Like the iconic photo of the milkman tiptoeing over rubble. Like the bomb-damaged stores whose shopkeepers posted signs that read “We are still open — more open than usual.”

Man, that is so not us.

You’ve seen the T-shirts, with their clean Gill Sans-esque lettering and iconic crown. There are mugs, postcards and posters. Of course. It’s a reproduction of a propaganda poster from World War II, an (unsuccessful, because it wasn’t distributed) attempt by the British government to steel jittery citizens during the Blitz.

“Keep Calm and Carry On” merch dates to 2000 but really took off after 9/11; the popularity of the image, the stoicism of its call to stiffen upper lips everywhere, and numerous parodies (“Stay Alive and Kill Zombies”) has generated millions of dollars of profits, inevitably sparking lawsuits and inspiring a song by John Nolan.

Why is a meme originally prepared for a possible German invasion of the UK (which is why it wasn’t released) popular now? Zizi Papacharissi, communications professor at the University of Illinois at Chicago, points to the crappy economy. “We are undergoing a profound and fairly global economic crisis, so it is natural to revisit the saying: Keep calm and carry on. It reminds us of courage shown back then, and how courage shown helped people pluck through a crisis.”

It’s also a reaction to terrorism — or more accurately a reaction to the initial reaction to the 9/11 terrorist attacks: hysteria, jingoism, multiple wars of choice, all doomed. More than any other factor, Obama owed his 2008 victory to his (Maureen Dowd called him) Vulcan personality: cool, implacable, possibly non-sentient, the anti-Dubya.

What wouldn’t we give for a 2001 do-over? No invasions, no Patriot Act, no Gitmo, no “extraordinary renditions,” no New York Times op-ed pieces arguing in favor of “enhanced interrogation techniques.” Treat 9/11 like a crime, let the FBI go after the perps. Reach out to Muslims, reconsider our carte blanche to Israel, and most of all: go slow. Don’t freak out.

Perspective: 3,000 deaths is awful. 9/11 was shocking. We killed 2 million Vietnamese people, yet they’re going strong. With a minimum of whining.

And yet…

Sometimes you need some perspective to your perspective.

There are times when it’s appropriate to freak out. When, in fact, it’s downright weird and unhealthy and wrong not to flip your lid. For example, when you get diagnosed with a terrible disease. When someone you love dies.

There are also times when big-picture, impersonal stuff, including politics and the economy, ought to make you crazy with rage or grief or…something. Not nothing. Not just keeping calm and carrying on.

Keeping calm and carrying on was an appropriate response to the Blitz.  Short of moving away from the targeted area, there’s nothing you can do about bombs. Living or dying is a matter of happenstance. Keeping calm might help you make smart decisions. Panic is usually more dangerous than self-control.

The same is true of terrorism. Terrorists will kill you, or not — probably not. You can’t fix your fate.

But that is decidedly not true about the economy. Not when what is wrong with the economy is not something no one can control — a giant meteor, bad weather, panic in the markets — but something that most assuredly can and indeed should be, like the systemic transfer of wealth from the poor and middle-class to the rich that has characterized the class divide in Western nations since the 1970s. The appropriate, intelligent and self-preserving response to mass theft is rage, demands for action, and decisive punishment of political and economic leaders who refuse to change things.

As one revelation about the National Security Agency’s spying follows another, the “Keep Calm and Carry On” meme seems less like an appeal to dignity and calm reserve than the much older, classic response of the power elite to their oppressed subjects: Shut the Fuck Up.

(Ted Rall’s website is tedrall.com. His book “After We Kill You, We Will Welcome You Back As Honored Guests: Unembedded in Afghanistan” will be released in March 2014 by Farrar, Straus & Giroux.)

COPYRIGHT 2013 TED RALL

SYNDICATED COLUMN: The Mayors of Brokesville

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Ted Rall

To Be Young, Technodouchey and Shilly at SXSW

It’s not like I didn’t know what I was getting into.

This was my second year at South by Southwest, the Austin music festival that has morphed into a trilateral Comic Con of the tattered remnants of the music industry, the on-the-ropes independent film sector, and a New Third Thing, the tantalizingly monetizable-for-a-few culturo-fiscal tsunami that left the first two that way, which SXSW hath dubbed Interactive.

Which is, of course, the Internet. Or more exactly, the hapless wretches who want to make money from it because, this being 2013, what else are they going to do – build real stuff and sell it? They seek to profit directly, by coming up with an awesome app like Foursquare which, as every article about this topic is required by law to mention, launched at SXSW in 2009 (and which said articles are never allowed to say, is pretty boring and useless and lame and, anyway, isn’t it kind of sad to have to point back four years to find a Big SXSW Launch?). Either that, or indirectly – by sucking dry a gullible VC (venture capitalist).

In case you’re wondering what goes on SXSW and why you should care, here’s what (why comes later; feel free to skip ahead, I would if I didn’t have to write this):

It’s a bunch of incredibly douchey – you think you know douche? you think you’ve met douches? oh, no, not like these douches you don’t – 25-to-37-year-old wannabentrepreneurs trying to market Webby things, 99% of which are apps for smartphones. And 99% of those 99% of those apps are redundant.

Redundant as in: “You can find restaurants in your area and review them. You can talk to other patrons about them in our online community.”

“Like Yelp?”

“Yeah, well, yes, but…”

“Like Yelp?”

Sad confused face.

I told you they were douches.

Speaking of which:

So during SXSW 2012 I wandered down to the lobby of my hotel to get coffee. Some douches were ambling zombie-aimlessly around, heads cocked in the familiar 20°-forward-head-tilt-toward-iPhone position. Other douches were clustered on the floor, deeply engaged in a random hackathon that accomplished little more than stressing the Hilton’s already technorati-overburned wi-fi network. But that still left other douches to notice that I wasn’t wearing shoes.

“Dude,” a tall male douche, about 32 years old, smiled at me. And pointed at my feet.

“What?” I asked, grouchily. Which was appropriate, considering that he was standing between me and the coffee line. Which was long. Shilling redundant apps requires caffeine as well as gall.

“No shoes,” he replied. “What are you promoting?” He actually seemed interested in my answer to his question.

Another douche, apparently the first douche’s comrade, joined us. “Hey, that’s great!” the second douche chimed in. “Are you repping a foot app? A shoe app? What is it? I gotta know! Hey guys” – he motioned toward a small douche-flock – “check it out!”

They were visibly, crushed-like-kids-who-got-lame-presents-on-Christmas-morn disappointed by my explanation, which was boring and simple: I didn’t feel like putting on shoes since I was just going back upstairs to my room. They thought I was lying.

“No one just doesn’t wear shoes,” the first douche accused. “You are promoting something.” Because, you know, the way you promote a product is by refusing to admit it.

To paraphrase Bruce Springsteen and Dave Edmunds, from big dumb things small dumb things one day come. So what came out of tens of thousands of douches dropping millions of dollars into Austin’s tourism industry?

“The breakout star of [the 2012] SXSW was Highlight, a location-aware app that alerts you when people you know are nearby, and attempts to introduce you to people you might want to know,” the Austin Business Journal reported. “Highlight dominated the buzz at the conference and was crowned the winner early on. However, it struggled to expand afterward because it was a battery hog, and it didn’t work as well outside of SXSW’s target-rich environment, where everyone was using it.” Which is why you’ve never heard of it.

So anyway, this year was more of the same. It was depressing and maddening. Except, without anything as thrilling as Highlight. It was also enlightening. Because SXSW is a metaphor for what’s going on in the American economy.

Like most U.S. businesses, SXSW attendees wanted to sell stuff. The problem was, no one wanted to buy, or hire, or invest.

So no one was selling or getting hired or invested in.

If the balance in Austin at SXSW and in the U.S. (and for that matter internationally) were less extreme – if, in Marxist terms, the oversupply of production merely exceeded rather than dwarfed consumer demand – you’d merely have downward pressure on wages and prices. Which, in fact, we’ve seen since the end of the Vietnam War. And isn’t good.

As things stand, the demand side – companies that want to hire people, which increases the number of goods and services consumers want to buy – is virtually nonexistent. And that’s catastrophic. The U.S. economy added 177,000 jobs in January, 237,000 in February, and 158,000 in March. Moody’s Analytics chief economist Mark Zandi estimates that overall growth is running at about 175,000 a month. Since the U.S. needs to add 180,000 jobs per month just to keep up with population growth, the U.S. in “recovery” is losing 5,000 jobs a month. “If that’s the case, underlying job growth is not changed appreciably,” Zandi says dryly.

Sassy ex-Reagan budget chief David Stockman – say what you will about his blame-the-Fed politics, he’s the most thrilling economist-writer ever – says America is doomed because of failed government intervention. “The United States is broke — fiscally, morally, intellectually — and the Fed has incited a global currency war (Japan just signed up, the Brazilians and Chinese are angry, and the German-dominated euro zone is crumbling) that will soon overwhelm it. When the latest [Wall Street] bubble pops, there will be nothing to stop the collapse.”

Stockman is probably wrong about the why – more old-fashioned socialist state control would have avoided or at least mitigated this mess by redistributing wealth, thus stimulating consumer demand – but right about the what. When you’ve got a marketplace full of would-be sellers but no one who wants to buy, you’ve got no market at all.

All that’s left is a bunch of douchebags looking at your feet.

(Ted Rall’s website is tedrall.com. His book “After We Kill You, We Will Welcome You Back As Honored Guests: Unembedded in Afghanistan” will be released in November by Farrar, Straus & Giroux.)

COPYRIGHT 2013 TED RALL

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