Remoralization of the Market (David Brooks)

David Brooks is an op-ed columnist for the New York Times. This op-ed appeared January 11, 2019.

In many of the posts over the past nine years I have pointed out how schools reflect the larger society especially when policy elites press upon the schools reforms that are solutions to larger political, economic, and social issues in the U.S. For nearly four decades the drumbeat of reform has been for schools to be harnessed to the larger economy by producing “human capital,” i.e., high school and college graduates ready for a post-industrial, information-based market economy. Other purposes for tax-supported public schools have been subordinated to this economic imperative. 

David Brooks’s piece which does not mention schools once describes accurately the extreme (and amoral) focus since the 1970s on economic gains with inequality seen as just desserts for those who are not the best and the brightest. This ascendancy of judging everything through an economic lens, he argues, is bad for democracy and, I would add, for the nation’s public schools.

For those policymakers, politicians, practitioners, and parents who applaud for or rail against schools becoming strictly vocational in cranking out graduates who enter the workplace prepared for the New Economy, the context Brooks describes for this profound shift in schooling explains the power of policy elites to use tax-supported education to solve larger national problems.

 

Suddenly economic populism is all the rage. In his now famous monologue on Fox News, Tucker Carlson argued that American elites are using ruthless market forces to enrich themselves and immiserate everyone else. On the campaign trail, Bernie Sanders and Elizabeth Warren are telling left-wing versions of the same story.

In an era of tribal emotionalism, you’re always going to be able to make a splash reducing a complex problem to a simple narrative that separates the world into the virtuous us, and the evil them (the bankers). But I’d tell a third story about our current plight, which is neither economic populism nor free-market fundamentalism.

My story begins in the 1970s. The economy was sick. Corporations were bloated. Unions got greedy. Tax rates were too high and regulations were too tight. We needed to restore economic dynamism.

So in 1978, Jimmy Carter signed a tax bill that reduced individual and corporate tax rates. Senator Ted Kennedy led the effort to deregulate the airline and trucking industries. When he came into office, Ronald Reagan took it up another notch.

It basically worked. We’ve had four long economic booms since then. But there was an interesting cultural shift that happened along the way. In a healthy society, people try to balance a whole bunch of different priorities: economic, social, moral, familial. Somehow over the past 40 years economic priorities took the top spot and obliterated everything else. As a matter of policy, we privileged economics and then eventually no longer could even see that there could be other priorities.

For example, there’s been a striking shift in how corporations see themselves. In normal times, corporations serve a lot of stakeholders — customers, employees, the towns in which they are located. But these days corporations see themselves as serving one purpose and one stakeholder — maximizing shareholder value. Activist investors demand that every company ruthlessly cut the cost of its employees and ruthlessly screw its hometown if it will raise the short-term stock price.

We turned off the moral lens. You probably know the example of the Israeli day care centers. Parents kept showing up late to pick up their kids. To address the problem, the centers experimented with fining the late parents. But the number of late pickups doubled. Before, coming to pick up your kid on time was a moral obligation — to be fair to the day care workers. After, it was seen as an economic transaction. Parents were happy to pay to be late. We more or less did this as an entire society — we switched to a purely economic lens.

A deadly combination of right-wing free-market fundamentalism and left-wing moral relativism led to a withering away of moral norms and shared codes of decent conduct. We ripped the market out of its moral and social context and let it operate purely by its own rules. We made the market its own priest and confessor.

Society came to be seen as an atomized collection of individual economic units pursuing self-interest. Selfishness was normalized. As Steven Pearlstein puts it in his outstanding book, “Can American Capitalism Survive?” “Old-fashioned norms around loyalty, cooperation, honesty, equality, fairness and compassion no longer seem to apply in the economic sphere.”

Anything you could legally do to make money was deemed O.K. A billion-dollar salary for a hedge fund manager? Perfectly acceptable. The Apple corporation exists because of American institutions. But, as Pearlstein notes, Apple parked its intellectual property in an Irish subsidiary so it could avoid paying taxes in America and support those institutions. It saved $9 billion in 2012 alone. This is clearly sleazy behavior. Apple employees should be humiliated and ashamed.

But today the amoralism of the trading floor governs corporate decision-making. Pearlstein quotes Carl Icahn: “I don’t believe in the word ‘fair.’” So Apple paid no reputational price when it stiffed its own country.

Social trust arises from a covenant: I give to my company, my town and my government, and they give back to me. But that covenant was ripped. Now the general perception is: When I give, they take. As we disembedded individuals from traditional moral norms we disembedded companies from social ones. Human beings are moral animals, and suddenly American moral animals found themselves in an amoral economic system, which felt increasingly alienating and gross.

We wound up with the secession of the successful, and in many parts of the country we wound up decimating the social trust that is actually a prerequisite for economic prosperity.

Capitalism is a wonderful system. The populists are perpetually living in 2008, when the financial crisis vindicated all their prejudices. They ignore everything since — the 19 million jobs that have been created, the way wages are now rising at 3.2 percent.

But capitalism needs to be embedded in moral norms and it needs to serve a larger social good. Remoralizing and resocializing the market is the great project of the moment. The crucial question is not: How can we have a good economy? It’s: How can we have a good society? How can we have a society in which it’s easier to be a good person?

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4 Comments

Filed under leadership, Reforming schools

4 responses to “Remoralization of the Market (David Brooks)

  1. Laura H.Chapman

    I became really aware of the “econometric turn” in education in the late 1990s. Now we have multiple reports like those in the links below, issued as if the counting and ranking process should be equated with “quality.” This scheme is also designed to equale “life chances and success” with specific metrics, as if our students are not much more than investments in a portfolio.
    That economic mindset explains the rapid expansion of “pay for success” contracts as a financial product, sold to investors for pre-school programs and much else.

    I may have referred you to Robinhood.org, a website that shows some of the “metrics” that can be used to calculate the value of a preschool program in NYC. The basis for each calculation is given in detail. The overall result is an estimate of $50,650 per child…in 2014.
    You can bet your whatever that these programs do NOT invest $50,650 per child in preschool. The calculation is designed to market the program to government officials who have a short term goal of cutting budgets for social services, including pre-school. The marketers, including government officials tell citizens that the “deal” will save taxpayers $50,650 per child in the long run. In fact, if the program succeeds in producing the carefully selected targets, taxpayers pay the investors back with an estimated 7% profit part of the payback.

    This kind of financial product is being marketed internationally. One effect is that governmental responsibilities for the public welfare and the common good, especially social services, are transformed into opportunities for government-endorsed private control and profiteering. Notice that Robinhood even has a metric for “quality of life.” It is appropriated from finance in medicine.

    https://robinhoodorg-production.s3.amazonaws.com/uploads/2017/04/Metrics-Equations-for-Website_Sept-2014.pdf

    Here is another example of the econometric turn in education. “Quality” exists if you can count it, measure it, and then do multple rankings.

    https://www.edweek.org/ew/collections/quality-counts-2019-state-grades/index.html?cmp=eml-eb-sr-qultycnts19-01162019&M=58722947&U=1003774&UUID=1979c1baa26b57866b98b762641ad3a5

    • larrycuban

      Many thanks for links you provided, Laura. You had introduced me to the Robin Hood site but I had forgotten about Ed Week’s annual ratings of quality. Both are helpful in my current project. Appreciate your taking time to comment.

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