Author: Russell Cole - Date: August 16, 2008 - Category: Uncategorized, academe, economics, populism
A new Gilded Age is upon us. The rich are accumulating vaster stores of wealth while those who work and toil to subsist are benefiting little from the current trends of economic growth. Wages for laborers situated in the middle classes have remained stagnant since the inception of the Reagan era, and de- spite assurances from pundits, run-of-the-mill economists, and Third Way neoliberals that the economy is growing and that these positive trends should benefit all sectors - both labor and capital - the middle class is working longer and harder in order to simply maintain its level of material existence. According to the mythology of the free-market, the removal of trade restrictions, opening both consumer and labor markets to American capitalists, will result in outsourcing to less expensive labor markets.
This process will improve productivity; thus, freeing capital for new and innovative ventures in the American economy that promise to generate higher skilled and higher paying jobs for the American la- borers, who might have been displaced from outsourcing, but through education the American worker will acquire the necessary skills to procure these more lucrative occupations. Therefore, according to the dominant socioeconomic narrative, free-trade - as well as unfettered immigration; both legal and illegal – will benefit all members of American society. Despite the intransigency of the quasi-governmental spokesmen - who assume official capacities as corporate sponsored journalists - who reverberate in a relentless chorus the preemptive narration of inter- connected economic events, there are a number of empirically unsubstantiated functions glossed over in this over ly simplistic causal model. First and foremost, the skeptical student will find little in the way of empirical evidence for the proposition that the capital that is freed by virtue of elevated productiveness will, indeed, be reinvested in the American economy. As globalism continues to materialize, the flows of capital are no longer largely contained within national borders. As it currently stands, there is a scarcity of research in transnational financial f lows. This, taken in conjunction with the fact that America no longer possess a monopoly on the creative class of labor, indicates that the displacement of American labor might not necessarily be coupled with the domestic cultivation of new occupational opportunities. Furthermore, the wage stagnation that has affected American labor, stretching back nearly three decades, testifies to the inadequacy of the supply-side model when it comes to predicting economic pa terns in the new global order. The adages and maxims populating the taken-for-granted rendition of th American economy, its processes, as well as its prospects in the context of emerging conditions needs t be reevaluated in order to assess whether these explanations and predictions still hold sway; or, better if they ever provided us with valid understandings of economic affairs with which to begin.
In concurrence with the onset of a new American Gilded Age, we are witness to a new political condition that has been enacted by the very innovations that serve as catalysts, accelerating globalization to its present frenetic pace. The innovations in communications that are stacked upon foundational Inter- net infrastructures consist of transactional conduits provided by broadband and wireless technologies. Through the device of Web facilitated communications, an emergent form of social organization is taking shape that has been characterized as Networked. Or, the Network Society, as Castells would have it, generates relations among social counterparts who occupy positions as nodes in the matrices of relations constituting social networks. The associations between and among the agents positioned in social networks are plastic and adaptable, whereby new social configurations can take form when society finds itself faced with new environmental contingencies, such as when the economy experiences one of its frequent market disruptions due to the introduction of a new technology that undercuts previously preemptive technological stacks. This networked condition is often hailed by neoliberal economists, who perceive it as a prerequisite for a quickly advancing, technologically driven world economy. Although there is certainly a measure of truth to the assessments proffered by neoliberal economists and policy-makers, there is another aspect to the Network Society that I will treat, which – as I will at- tempt to demonstrate – marks political possibilities that have potentially radical consequences. The collapse of geography has certainly accelerated process, but not all of the patterns of social change are contained to the economy. The introduction of Web based communications possesses the possibility – due to the instantaneousness of messages that are transacted among counterparts disparately situated over spans of geography; spaces that have become essentially epiphenomena – of fusing together social nodes that have been, heretofore, prevented from interacting in a modality that reflects immediacy.
The virtual communities that can form – and, indeed, have already formed – can expand their networks in order to leverage resources more prolifically. It is also worthy of mention, that the quality instantiated by social networks, that we might cal l plasticity – which facilitates adaptation, according to accounts put forth by economists who relish the development of the casual labor market – also serves a positive function in the context of the emerging politicized networks that are being cultivated in civil society. Through the interplay of locality with the condensed condition engendered by virtualism – localized enclaves, in a state of isolation from physically distant counterparts who might qualify as peers, only qualify as dumb nodes – can transform into smart nodes by virtue of their extended contacts that have formed by within the expansions of collapsed geography.
These political networks are decentralized in nature with points of high concentrations formed around foci of convergence, such as localization. By this, I mean to point out that the immersion of a node in a network introduces the node to a system of relations where it can intercept vastly more streams of information; thus, in human terms, supplying it with additional knowledge, allowing it to better contextualize its actions. Therefore, in terms of oppositional politics, this process – what has been referred to as glocalism – manufactures an oppositional politic, which can adjust to the contingencies embedded in localities while continuing – via a decentralize modality of social organization – to loosely coordinate the actions among various concentrations in the overall network of resistance.
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