One in four Americans is employed to guard the wealth of the rich

[tinrobot]

Santa Fe Institute economist: one in four Americans is employed to guard the wealth of the rich

By Cory Doctorow at 10:45 PM February 5, 2010

Here's a fascinating profile on radical Santa Fe Institute economist Samuel Bowles, an empiricist who says his research doesn't support the Chicago School efficient marketplace hypothesis. Instead, Bowles argues that the wealth inequality created by strict market economics creates inefficiencies because society has to devote so much effort to stopping the poor from expropriating the rich. He calls this "guard labor" and says that one in four Americans is employed to in the sector -- labor that could otherwise be used to increase the nation's wealth and progress.

The greater the inequalities in a society, the more guard labor it requires, Bowles finds. This holds true among US states, with relatively unequal states like New Mexico employing a greater share of guard labor than relatively egalitarian states like Wisconsin.

The problem, Bowles argues, is that too much guard labor sustains "illegitimate inequalities," creating a drag on the economy. All of the people in guard labor jobs could be doing something more productive with their time--perhaps starting their own businesses or helping to reduce the US trade deficit with China.

Guard labor supports what one might call the beat-down economy. Community Action's Porter sees it all the time.

"We have based almost everything we have done on the idea that we always need a part of our workforce that is marginalized--that we can call this group into action at any time, pay them nothing and they will do anything that needs to be done," she says.

More discouraging, perhaps, is the statistical fact that a person born into this workforce has little chance of rising beyond it.

http://www.boingboing.net/2010/02/05/santa-fe-institute-e.html

[anigbrowl]

1. This is an especially good article. I have been a fan of this guy for some time.

It's well worth seeking out his original papers, which are highly readable and very insightful - excellent economist.

[tinrobot]

2. Here's a link...

The original article on him in the Santa Fe Reporter is excellent

http://sfreporter.com/stories/born_poor/5339/all/

[Edweird]

3. I just realized who you are.

I downloaded some patches of yours for my Virus (that I haven't gotten around to loading...)

[Edweird]

4. Typically these jobs pay shit wages.

Kind of a double whammy - you are helping protect the wealthy from the fruits of their exploitation, while being exploited at the same time....

[Luminous Animal]

5. kick

[readmoreoften]

6. And the other 3/4ths are paid to produce that wealth?

:shrug:

[amborin]

7. k and r

[Toucano]

8. So THERE's where my revolution went!

I knew I misplaced it somewhere!

Fascinating.

K&R

[Quantess]

9. Interesting.

[KoKo]

10. K&R!