Monday, August 18, 2014

Are we living in pre-revolutionary France?


Last week a good pal of mine sent me a copy of a TED talk  by Nick Hanauer about how the super-rich ought to be careful - the income divide between the rich and the poor is at perhaps its worst, and eventually people's frustration will get so great that it will bubble over.  He cites examples that are remarkably similar to France in the few years leading up to 1789.

This talk has apparently been quite controversial and no wonder - much of our definition  as to who we are as societies is built upon the concept of capitalism and growth, growth, growth.

I am not anti-capitalism.  Although I do admit for a good dollop of socialism especially as it relates to health care.

I do wonder, however, if our current way of living is in fact sustainable and if economic growth as we know it, can possible be sustained.  And I am mindful that first world economies are built in many ways on the backs of third world ones.

The internet certainly contributes to that.  We are invited to purchase things we might not have even known existed 40 years ago - luxury goods (which the rich would say now - and probably rightfully - are no longer truly luxury) are a click away.  The great maw that is the internet must be fed and many have the insatiable appetite to see where the rich and famous live, vacation, whatever.

What made me think of this this morning?

well the blog Political Style did a piece this morning on the closet of all closets.



I am not going to question whether or not the individual in questions, whose name I frankly have forgotten, should or should not have a closet that is 3000 square feet.

For all I know, the person is extremely hard-working, charity-driven and wonderful.  I am sure they are.

But I admit to discomfort about this "merchandising" of our lives.  The gap between these people and myself is the equivalent of the gap between myself and someone working for $2 a day in a factory making many of the things this person and I buy.

It doesn't seem so far-fetched to think of the people who can't pay their bills or are racking up debt to stay in their homes as being as being not unlike those in France who watched the court of Louis and Marie Antoinette and of the very rich with growing frustration.



I am reminded of the line in Howard's End "The poor are poor.  One is sorry for them, but there it is."

I don't aspire to a 3000 square foot closet.  Hell, my house isn't even 3000 square feet.  But I can't help but wonder how long this can all go on before it is corrected, though perhaps the next time it is corrected, it won't be by the stock market.

Interesting debate for sure.

Have a great Monday and stay safe out there!

xoxo wendy

26 comments:

  1. I haven't read the article and I'm going over there right now. Meanwhile in France nowadays, life isn't that bad and I still think that if you're motivated enough, you can live decently. Oh and I don't mind these people spending if they do it at Hermès, Chanel, Dior .. good for us !

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    1. Oh I think life in France is divine! You do have a nice corner on those luxury items!!!

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  2. It is true, as noted by "A Fresh Start" that some of the luxury brands (Hermes, Chanel, Louis Vuitton) pay middle class workers a living wage so I think supporting them is sound. Plus the goods are works of art!
    I guess there have always been rich-rich people. It's the erosion of the middle class that is really troubling, huge sections of society that have become have-not. It seems worse in North America somehow with the loss of our factories etc.
    We've been shopping for furniture which has been a real eye-opener, mammoth pieces made overseas that cost an absolute fortune. We can't afford to buy new furniture, so we've decided to pursue the antique option... which are quite frankly better made and better suited in scale to our 2000 square foot house.
    Okay I have to watch that Ted Talk!

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    1. I agree that some luxury brands do pay middle class workers, but not all and lots of companies are not paying their workers living wages and it appears to be getting worse, not better, as companies are under tremendous pressure from shareholders to post profits. I personally don't know if all luxury brands pay living wages so can't speak to that at all. There have always been rich-rich people but the divide is the greatest its been in the last century or two and the erosion of the middle class. Plus, people see how the very rich live. There does seem to be a general unease in the air these days. In the old days, the church (which was just as rich!) used to keep that in check amongst the huddles masses. Not so sure what exists to do that now...

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    2. It's true Wendy it's easy to see how the rich live now, good point, and the Church was such a valuable support back in the day, our church is barely surviving yet does so much good work for the poor in our community, who else is doing it? There is a small grant from the gov't that our social justice committee has to apply for every year... a nail-biting process and really it's for the work that should be done by gov't.
      It is frightening and I can get very anxious thinking about the future. Especially for our kids.

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    3. I feel like that too! And of course in the old days the church had a vested interest in keeping folks in check. These are interesting times we are living in!

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  3. This is heavy stuff for a Monday, Wendy! I've had a look at Political Style and left my comment (and it isn't flattering.) That woman may have money but it's doing her no favours!
    There have always been extremes in wealth and even more so in the past than today. Human nature being what it is, it will probably always be a problem. Today ordinary people feel that they have a voice, a luxury denied our working forebears, and we also have access to information. The information may make us mad/sad about injustice but I'm a great believer in the power of us ordinary folk to make our voices heard and change things, if only slightly, for the better.

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    1. It is rather a deep and potentially contentious issue, isn't it?

      I think that our having a voice is true, though some would argue we don't use it enough. Here is New Brunswick we have a huge multinational company that basically "run" the province in many ways - have a media monopoly, etc but people are afraid to complain. It is always a challenge to have people to speak out for those who are least able.

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  4. We are just back from 7 weeks in Paris because of hubby's job and Parisians are conflicted as well. Some feel it is the best of times (Peninsula just opened with its $33,000 suites and Ritz is being renovated to keep up) while some feel it is the worst of times as they are being forced out of Paris as the cost of living becomes too expensive. You have a number of chef/restaurateurs cashing out. So sad to see some stores have closed shop and replaced by chain store stuff. It will be interesting to know what proportion of Chanel and Dior's costs go to production workers versus advertising and promoting the image.

    It is a very personal choice as to what one values most in life. For us, it is a function of where we are in life and hubby and I are in the letting go phase. In a few years kids will be out of college and we want less stuff than more. Anything we buy now becomes a problem of disposal in the future. I went home with just two new things from our trip costing less than 200 euros. That was unthinkable ten years ago.

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    1. marie - I think you are right - where we are in life certainly impacts our consumption. Now I think I am all about maintaining!

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  5. A comment wouldn't suffice Wendy! This is thesis material alas...

    There will always always always be a rich poor divide. Even in countries like North Korean and Russia when it was USSR there were and are the "elite".

    But the true deep shift is that a century ago - no one truly aspired to be rich. It was more to be productive and have a happy healthy family but the aims are so different. That woman's closet is of course decadent and is the modern day version of marie antoinette but then again most people we know live "decadently" compared to most in 3rd world countries. She can afford it so in relative terms it isn't actually that decadent. What is decadent is many people just out of uni thinking they deserve a house and a holiday home and a car and a designer wardrobe and use credit recklessly to create a life they think they deserve. Never has life been so easy to fake and achieve albeit in a temporary and surefire way to bankruptcy. That is actually a lot more worrying IMHO.

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    1. Naomi - you are right. And I think we are also living through a transition in values. 100 years ago, church and community would have dictated things and people would not have the same expectations. With the church gone and people living in more urban places, there is a struggle going on internally and externally as to how that is replaced and by what. And I agree, I think constantly how a person from the 3rd world would think I love in the lap of luxury and I do it. As for the young people, I think we can't blame them - they are reeled in by the banks and the media and sent on their way. What I am seeing on some billionaire's parts is positive - Bill and Melinda Gates and Ted Turner and Warren Buffet are really giving back and spreading their wealth. What I see on other rich people's parts is disgusting - I am think of the owners of Walmart who don't pay employees living wages. In the end, when people cannot make a living wage, they will eventually get fed up. How that plays out in the 21st century will be different than the 18th but it will eventually play itself out. WHat I find disheartening is that I don't see any difference in the behaviours now than in 2008 after the economic collapse. We cannot go on with economic growth as it is currently playing out. But you are right on - this is indeed a thesis topic!

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  6. I believe this was the very closet that was robbed of $1 million worth of items a few weeks ago. Perhaps she's feeling the sting of this very divide. She does seem to give a lot to charity, but it still seems ridiculously excessive. The concept of enough is underrated I think.

    While I love the discussion they have created, I'm not a fan of Hanauer or his philosophical brother Thomas Piketty. There is a gap indeed but I believe it stems not from a problem in personal income tax rates, but rather this modern notion, like you pointed out, that shareholder value trumps actual increases in productivity. Rather than looking to create things that make the world better so many CEOs simply look at quarterly improvements to profit, which are most easily achieved by slashing costs. Thus, we have offshored or eliminated so many middle class jobs and have handsomely rewarded the finance types who can goose the bottom line no matter what the real cost. I think we have a lot of power - as consumers, voters, and stock holders - to find out how the companies we support pay their people, pay their taxes (are they using a double Irish tax strategy to swerve paying what they owe?), and use the planet's resources. I try to reward with my business those who increase the size of the pie, rather than just try to grab a big piece of pie for themselves. I try to reward the creative classes for their intellectual property and smart managers who are able to scale production to make good things accessible to all without selling our collective souls. It makes consumption very tiring which is, perhaps, not a bad thing!

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    1. Jen - I couldn't agree with you more. More and more I think it behooves people to do this spadework and share what they find out (since not everyone can or will do this but can benefit from knowing. We are living in very interesting times. On the one hand, we have people victimized by companies who have no interest in improving productivity and yet at times, the consumers themselves are the bad guys - stealing music or movies online, which hurts others. It really does come down to an issue of individual values and societal values in so many cases...

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  7. I just lost my response to this post and since I believe it was the best thing I have written in weeks I am not going to try and write it again. It is gone forever. I was looking for the quote from Robin Williams when I accidentally deleted it. So I will end with the quote: "Cocaine is God's way of saying you are making too much money."

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  8. MIND THE WIDENING GAP Thoughtful topic Wendy. Out of it all, what I find most disheartening is that the world appears not learned all that much since the economic turmoil of 2008. The bankers' and brokers' bonuses (said as one that comes from a family with a few) are still unreal regardless, it often seems, of actual results. The media trivializes, distracts and often fails to verify the facts (in part due to massive workforce cutbacks and the digital driven race to report.) We demand better information, yet patronize the worst. Politicians have ground many countries that used to show global leadership, and many key bodies built to represent the greater good, to a partisan standstill. You get my drift...

    I often think that the biggest challenge is that most of the world seems to be working harder, or at least longer, for less. On several levels, there is a vacuum of community and collective responsibility for sure, although many still do what they can.

    Global inequality is severely troubling. As are endemic issues like AIDS in Africa, which the big pharmas do not find "profitable." But on a daily basis what probably troubles me the most is whether the kids I babysit will enjoy the same basic assurances our parents did. That if you work hard you can own a home, take a holiday, take care of yourself in the hard times, or through an illness etc. and also put aside something to help those with less, whoever that is, because it is all relative. I don't have a lot of confidence. I've tried reading about Purchasing Power Parity, the Gini Coefficient and the many other models and theories, but between the inequality inside countries and among countries, it does seem a serious readjustment is likely.

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    1. Great points GF! I can't help but think that Ferguson and Idle No More is a direct result of leaving people out of what little bit of the pie is left due to racial inequality. I know that the federal government here in Canada for example funds first nations communities far less per pupil than provinces do - almost 50% less in some cases, and are surprised by the results!

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  9. I saw pictures of that ridiculous closet a month or so ago, and it made me feel ill, frankly. Yes, there is rich and poor through the ages, and it's no different now from 200 years ago, but the difference is that she is so happy to flaunt that wealth with no concept of how that might be viewed by others. She's probably lovely, gives loads to charity etc… but it's a sad indictment on her that she feels its appropriate or a good thing to show the pictures (let alone the ridiculous closet in the first place).
    There's a woman in Australia, in her late 20's early 30's who has a PR company and very popular instagram account. She posts pictures of her 20 Hermes bags with captions like "which one today?" and photos of her designer outfits while leaning on her shiny Bentley, or poolside at JK place in Capri, Italy on a family holiday. I don't doubt she has made a lot of money through her PR company, but her photographs of her lifestyle are grotesque when you take into account that her husband is up on insider trading charges as he is a stockbroker (and looks likely to go to jail). He was first charged aged 24. I think it shows how much the young are influenced by the buying into luxury in a way that older generations weren't, and will do anything to get it including things that are illegal, or run themselves into debt. However, here in Australia we have a different problem. We have a very high minimum wage - everyone deserves a chance at living the middle class dream (or so the thinking goes), so if you get someone to do the most menial and unskilled of jobs, you're paying a lot for it. As a consequence we can't afford to compete on manufacturing with Asia, and jobs are drying up... our construction costs are through the roof, so the dream of homeownership is out of reach for many, and the hospitality sector generally runs on a shoestring with their staff levels as bar/ cleaning/ waiters/ etc cost so much, so service is fairly non existent. No easy solution I think….

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    1. Heidi - that is so interesting! What is the minimum wage there? Here in Canada it varies from $10 to $14 an hour

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    2. It's $16.87/ hour for full time unskilled workers, but $23/ hour for a casual over the age of 21, and it's $37/ hour for Sundays and $50/ hour for a public holiday. Most places try to use casual staff to save on payroll taxes and to have flexibility, but a lot of business owners have to work Sundays and Public holidays due to the high cost of paying staff.

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  10. Very interesting topic Wendy. I can't think of anything that hasn't already been said. There's no easy solution.
    Please, please, please add a follow by email gadget to your blog so I don't keep missing your posts!!! I detest Bloglovin and Google friend connect is cumbersome. Please?!
    xoJennifer

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    1. I found it interesting that the woman with that enormous closet claimed that the most valuable things recently stolen from her closet was a lock of her deceased son's hair and sentimental family jewelry. What has the most value to me is priceless and has no monetary value. Off to watch the Ted talk.

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    2. Jennifer I thought the same thing re: the lock of hair...Today I fantasized about winning the millions and setting up kids charities - that would be fun (and more fun for me than for them!)

      Will figure out the follow thing!

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  11. Wendy,
    You are amazing. You always seem to hone in on a subject that I have been mulling. I know there have been rich/poor through out the ages, but I also like to think we have evolved. I don't remember (from the turn of the last century ) who said" I am sorry that we have entered an age when people would rather be admired for what they they have rather than respected for what they have done" or words to that effect. That quote has always resonated with me. Great workers are losing there jobs, and it is enormously stressful.
    Also, you point out that there are no luxuries. Everything is machine made with ever cheaper materials, regardless of the final cost and fancy label. Handmade items- including re-upholstered ones! -are not revered for their craftsmanship, and so we are discouraging a future generation of skilled and proud artisans. It is really sobering.

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    1. well it's funny you should say that as I was in Eastport Maine today where almost every shop was a craftsperson or artist selling their wares - it was amazing and inspiring! I was almost giddy at seeing things that every one else didn't have or want cause it was in a magazine (and I include myself in that, BTW). I was also looking at amazing architecture and finishes and wondering who would know how to do that thing...

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Kindness is a virtue...