Dean Baker on the dismal science

Dean Baker | The Problem of “Stupid” in Economics

Monday, 17 November 2014 10:50 By Dean Baker, Truthout | Op-Ed

Empty headMIT Professor Jonathan Gruber has inadvertently become a YouTube celebrity as a result of a video of him referring to the public as “stupid.” The immediate point of reference was the complexity of the design of the Affordable Care Act (ACA), which Gruber was describing as being necessary politically in order to deceive the public. With the right-wing now in a state of near frenzy after the Republican election victories, the Gruber comment was fresh meat in their attack on the ACA.

Apart from merits of the ACA, there is something grating about seeing a prominent economist refer to the US public as “stupid.” After all, the country and the world have suffered enormously over the last seven years because the leading lights of the economic profession were almost completely oblivious to the largest asset bubble in the history of the world.

While it should have been easy to recognize an $8 trillion housing bubble in the United States, prices had diverged sharply from their long-term trend with no plausible basis in the fundamentals of the housing market. In particular, rents had only risen in step with inflation, indicating there had not been a sudden upturn in the demand for housing.

It also should not have been surprising that the loss of this wealth when the bubble burst would lead to a severe economic downturn and have a major impact on the financial sector. After all, it was easy to see that the bubble was driving the economy in the last business cycle. Residential construction had hit a record as a share of GDP and the ephemeral bubble wealth led to an unprecedented boom in consumption.

Since mortgages are a heavily leveraged asset even in normal times, and became considerably more leveraged during the bubble years, it should hardly have been a surprise that there were large numbers of defaults and foreclosures. And, given the leverage of the banking system, the fact that a large number of bad loans would put many banks in danger also should not have been a surprise.

In spite of the huge yellow warning lights flashing all over the sky, nearly all the world’s top economists were caught by surprise by the collapse of the housing bubble. People in my profession should be very cautious in the use of the word “stupid.”

There is some truth to Gruber’s comment in that most people are ill-informed about major public policy issues, including health insurance. This is in large part due to the fact that, unlike Gruber, most people have day jobs. They put in their shift at work and then often have child care and other family responsibilities. Most of them probably don’t have much time to read the Congressional Budget Office’s latest report on the health care system.

But even worse, when people do take the time to get informed, the media let them down badly. Stories even in the best of outlets, like the New York Times and National Public Radio, often present information in ways that are misleading and often meaningless to nearly all readers.

The New York Times gave us a great example of misleading reporting this weekend in an article headlined, “Cost of Coverage Under the Affordable Care Act to Increase in 2015.” The piece then highlighted a number of plans which are increasing premiums by large amounts in 2015.

Anyone reading this article would likely get the impression that most people are seeing big insurance price increases in 2015. This is 180 degrees at odds with reality. The Kaiser Family Foundation found that the average cost of benchmark plans in the ACA exchanges actually fell slightly in 2015. (The chart accompanying the NYT article would show a story of declining prices or modest increases.) This is remarkable given the fact that insurance costs have been rising sharply for the last half century. Rather than highlighting the fact that for most people in the exchanges premiums are rising little or actually falling, the NYT decided to highlight that some people will pay more, if they don’t change plans.

In the same vein, the media routinely report huge numbers without giving any context that would make these numbers meaningful to their audience. AP gave us a great example of this practice when it reported that the Social Security Disability program paid out $2 billion in benefits, to people who should have not been eligible, over the last seven years.

This article likely gave people the impression that abuse in the program is widespread. Since the program paid out close to $900 billion in benefits over this period, the improper payments came to just over 0.2 percent of payments over this period. While it would be nice if no money was improperly paid (and that no proper claims were denied), no program will be perfect. If only 0.2 percent of payments were improper, that it would be an exceptionally good track record.

The amazing aspect to this manner of reporting is that no one will defend it with a straight face. Every reporter and editor knows that next to no one can make any sense of these big numbers without some context. Yet the practice continues.

Given the quality of reporting on major issues, it is not surprising that the public is often poorly informed. It is not clear who is being stupid in this picture.

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Leslie Orear, 103, Helped Bring Together Black and White Packinghouse Workers in the 1930s

BY STEPHEN FRANKLIN

Leslie Orear started out in a packinghouse in 1932, tying string onto hunks of bacon. (Greg Boozell)

Leslie Orear, a lifelong labor activist, died in Chicago on May 30 at the age of 103. After entering the Chicago stockyards at a time when the idea of unions for blue-collar workers was spreading like wildfire, Orear quickly emerged as a voice for stockyard workers.

Leslie Orear started in the giant packing house’s sweet-pickle shipping department in 1932, tying string onto hunks of bacon. It was often hot and stunk, and the pay was a measly 32.5-cents an hour.

But Orear needed the job at the Armour & Co. plant in Chicago’s Union Stock Yards. The Great Depression had pulled him out of college, and he needed work to help his family.

The job turned out to be an eye-opening encounter with an industry that had changed little in the decades since Upton Sinclair exposed the stockyards’ cruelty in his turn-of-the century novel, The Jungle.

The experience also became a doorway for Orear into a lifetime of labor activism, and ultimately a place as a spokesman and guardian of labor history. A co-founder of Illinois Labor History Society, he fought to preserve the places, struggles and words that have marked workers’ march towards progress.

“He was the agent of change for some of the most important things in American and labor history but it was never about him. It was always about other peoples’ contributions. People don’t know his name,” says Larry Spivack, president of the Illinois Labor History Society and regional director for AFSCME Council 31.

When workers at the Armour & Co. plant began trying to unionize in the mid-1930s, one of Orear’s first tasks in the movement was to become an editor of the Armour Cleaver, a weekly handbill for the union drive. He was given the job, because he was one of the activists who could spell, he explained years later to me with a chuckle.

“It was a wonderful time for me because I was this young fella and radical ideas are coming nowadays, I feel like I’m on the cusp,” he said in a 2008 interview on WBEZ. “I’m one of those that is giving leadership to the working force that’s going into the union….And it’s going on all over the country. I’m not a lone warrior. I’m part of the vast machine.”

Orear’s passion about the dire workplace conditions packinghouse workers faced and the hopes that stirred them was captured in a 1968 pamphlet that he wrote with Stephen Diamond to mark the 25th anniversary of the founding convention of the United Packinghouse Food and Allied Workers Union. The pamphlet describes the role and purpose of the union:

The story of this union is visceral, written by the men and women of humid gut shanties and stinking tank rooms. Their hands slew the steers and linked sausages stretching to infinity. A union’s meaning lies in its capacity to turn around personal frustration beyond the individual to a larger commitment to the collective good. That response gives life to the automaton and gives purpose to the cog in the wheel.

Mindful of the packinghouse workers’ two prior failures to organize, Orear was a white union activist who focused on the need to bring together black and white workers. “That was why the packinghouse workers became one of the most progressive unions,” Spivack explains.

Indeed, a Chicago Defender story from 1939 talks about the way that black workers—from the union’s assistant national director down to shop stewards—were the “backbone” of the Packinghouse Workers Organizing Committee, the union’s forerunner. The PWOC was chartered by the CIO in 1937 and it became the United Packinghouse Workers of America in 1943.

Orear worked as an organizer for the union and later as editor of its newspaper, the Packinghouse Worker. After several mergers, the union became known as the United Food and Commercial Workers union. The Union Stock Yards closed in 1971 after 106 years, leaving small only small remnants of the industry in Chicago.

Concerned by workers’ lack of knowledge about labor history, Orear joined together with a group of labor leaders and advocates in May 1969 to mark the Haymarket Square incident in Chicago. That was the 1886 riot when workers, rallying for an eight-hour day, clashed with police. Seven police officers and at least one civilian were killed and eight labor leaders were convicted for inciting the riot. Four were eventually hanged and one committed suicide.

Workers worldwide celebrate the legacy of that event on May 1.

The gathering inspired Orear, who became a co-founder later in 1969 of the Illinois Labor History Society. After retiring from the union in 1977, he became a full-time volunteer at its downtown offices.

“This labor history society is sort of my child,” he said to me one day in 2005 as he waited patiently for visitors to the historical society. “I have to come down and hold its hand and keep it breathing.”

As part of his quest to preserve documents and memorabilia about labor’s legacy, Orear helped push for national landmark status for the gate at the Union Stock Yards, Mother Jones’ memorial in southern Illinois, and the Haymarket Martyrs monument at the Forest Home Cemetery in Forest Park.

Despite failing health, Orear was a frequent guest at labor union events. “To his very last days of his 103 years, he was coming up with ideas about what we should do to preserve labor history,” says Spivack.

While Orear mourned labor’s hard times, he also saw hope in its history.

“You have to swim in whatever pool there is and rebuild and rebuild,” he said in 2005. “This is the story of American labor—defeat, starvation and rebirth.”

He is survived by his three children, three grandchildren and his two half-brothers. His family has asked that donations be made to the Illinois Labor History Society.

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The Loss of Maya Angelou

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Campesino

Campesino from Luke McKinley on Vimeo.

 

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The Case for Reparations

Two hundred fifty years of slavery. Ninety years of Jim Crow. Sixty years of separate but equal. Thirty-five years of racist housing policy. Until we reckon with our compounding moral debts, America will never be whole.


May 21, 2014

And if thy brother, a Hebrew man, or a Hebrew woman, be sold unto thee, and serve thee six years; then in the seventh year thou shalt let him go free from thee. And when thou sendest him out free from thee, thou shalt not let him go away empty: thou shalt furnish him liberally out of thy flock, and out of thy floor, and out of thy winepress: of that wherewith the LORD thy God hath blessed thee thou shalt give unto him. And thou shalt remember that thou wast a bondman in the land of Egypt, and the LORD thy God redeemed thee: therefore I command thee this thing today.

— Deuteronomy 15: 12–15

Besides the crime which consists in violating the law, and varying from the right rule of reason, whereby a man so far becomes degenerate, and declares himself to quit the principles of human nature, and to be a noxious creature, there is commonly injury done to some person or other, and some other man receives damage by his transgression: in which case he who hath received any damage, has, besides the right of punishment common to him with other men, a particular right to seek reparation.

— John Locke, “Second Treatise”

By our unpaid labor and suffering, we have earned the right to the soil, many times over and over, and now we are determined to have it.

— Anonymous, 1861

I. “So That’s Just One Of My Losses”

Clyde Ross was born in 1923, the seventh of 13 children, near Clarksdale, Mississippi, the home of the blues. Ross’s parents owned and farmed a 40-acre tract of land, flush with cows, hogs, and mules. Ross’s mother would drive to Clarksdale to do her shopping in a horse and buggy, in which she invested all the pride one might place in a Cadillac. The family owned another horse, with a red coat, which they gave to Clyde. The Ross family wanted for little, save that which all black families in the Deep South then desperately desired—the protection of the law.

Clyde Ross, photographed in November 2013 in his home in the North Lawndale neighborhood of Chicago, where he has lived for more than 50 years. When he first tried to get a legitimate mortgage, he was denied; mortgages were effectively not available to black people. (Carlos Javier Ortiz)

In the 1920s, Jim Crow Mississippi was, in all facets of society, a kleptocracy. The majority of the people in the state were perpetually robbed of the vote—a hijacking engineered through the trickery of the poll tax and the muscle of the lynch mob. Between 1882 and 1968, more black people were lynched in Mississippi than in any other state. “You and I know what’s the best way to keep the nigger from voting,” blustered Theodore Bilbo, a Mississippi senator and a proud Klansman. “You do it the night before the election.”

The state’s regime partnered robbery of the franchise with robbery of the purse. Many of Mississippi’s black farmers lived in debt peonage, under the sway of cotton kings who were at once their landlords, their employers, and their primary merchants. Tools and necessities were advanced against the return on the crop, which was determined by the employer. When farmers were deemed to be in debt—and they often were—the negative balance was then carried over to the next season. A man or woman who protested this arrangement did so at the risk of grave injury or death. Refusing to work meant arrest under vagrancy laws and forced labor under the state’s penal system.

Well into the 20th century, black people spoke of their flight from Mississippi in much the same manner as their runagate ancestors had. In her 2010 book, The Warmth of Other Suns, Isabel Wilkerson tells the story of Eddie Earvin, a spinach picker who fled Mississippi in 1963, after being made to work at gunpoint. “You didn’t talk about it or tell nobody,” Earvin said. “You had to sneak away.”

When Clyde Ross was still a child, Mississippi authorities claimed his father owed $3,000 in back taxes. The elder Ross could not read. He did not have a lawyer. He did not know anyone at the local courthouse. He could not expect the police to be impartial. Effectively, the Ross family had no way to contest the claim and no protection under the law. The authorities seized the land. They seized the buggy. They took the cows, hogs, and mules. And so for the upkeep of separate but equal, the entire Ross family was reduced to sharecropping.

This was hardly unusual. In 2001, the Associated Press published a three-part investigation into the theft of black-owned land stretching back to the antebellum period. The series documented some 406 victims and 24,000 acres of land valued at tens of millions of dollars. The land was taken through means ranging from legal chicanery to terrorism. “Some of the land taken from black families has become a country club in Virginia,” the AP reported, as well as “oil fields in Mississippi” and “a baseball spring training facility in Florida.”

Clyde Ross was a smart child. His teacher thought he should attend a more challenging school. There was very little support for educating black people in Mississippi. But Julius Rosenwald, a part owner of Sears, Roebuck, had begun an ambitious effort to build schools for black children throughout the South. Ross’s teacher believed he should attend the local Rosenwald school. It was too far for Ross to walk and get back in time to work in the fields. Local white children had a school bus. Clyde Ross did not, and thus lost the chance to better his education.

Then, when Ross was 10 years old, a group of white men demanded his only childhood possession—the horse with the red coat. “You can’t have this horse. We want it,” one of the white men said. They gave Ross’s father $17.

“I did everything for that horse,” Ross told me. “Everything. And they took him. Put him on the racetrack. I never did know what happened to him after that, but I know they didn’t bring him back. So that’s just one of my losses.”

Sharecropper boys in 1936 (Carly Mydans/Library of Congress)

The losses mounted. As sharecroppers, the Ross family saw their wages treated as the landlord’s slush fund. Landowners were supposed to split the profits from the cotton fields with sharecroppers. But bales would often disappear during the count, or the split might be altered on a whim. If cotton was selling for 50 cents a pound, the Ross family might get 15 cents, or only five. One year Ross’s mother promised to buy him a $7 suit for a summer program at their church. She ordered the suit by mail. But that year Ross’s family was paid only five cents a pound for cotton. The mailman arrived with the suit. The Rosses could not pay. The suit was sent back. Clyde Ross did not go to the church program.

It was in these early years that Ross began to understand himself as an American—he did not live under the blind decree of justice, but under the heel of a regime that elevated armed robbery to a governing principle. He thought about fighting. “Just be quiet,” his father told him. “Because they’ll come and kill us all.”

Clyde Ross grew. He was drafted into the Army. The draft officials offered him an exemption if he stayed home and worked. He preferred to take his chances with war. He was stationed in California. He found that he could go into stores without being bothered. He could walk the streets without being harassed. He could go into a restaurant and receive service.

Ross was shipped off to Guam. He fought in World War II to save the world from tyranny. But when he returned to Clarksdale, he found that tyranny had followed him home. This was 1947, eight years before Mississippi lynched Emmett Till and tossed his broken body into the Tallahatchie River. The Great Migration, a mass exodus of 6 million African Americans that spanned most of the 20th century, was now in its second wave. The black pilgrims did not journey north simply seeking better wages and work, or bright lights and big adventures. They were fleeing the acquisitive warlords of the South. They were seeking the protection of the law.

Clyde Ross was among them. He came to Chicago in 1947 and took a job as a taster at Campbell’s Soup. He made a stable wage. He married. He had children. His paycheck was his own. No Klansmen stripped him of the vote. When he walked down the street, he did not have to move because a white man was walking past. He did not have to take off his hat or avert his gaze. His journey from peonage to full citizenship seemed near-complete. Only one item was missing—a home, that final badge of entry into the sacred order of the American middle class of the Eisenhower years.

In 1961, Ross and his wife bought a house in North Lawndale, a bustling community on Chicago’s West Side. North Lawndale had long been a predominantly Jewish neighborhood, but a handful of middle-class African Americans had lived there starting in the ’40s. The community was anchored by the sprawling Sears, Roebuck headquarters. North Lawndale’s Jewish People’s Institute actively encouraged blacks to move into the neighborhood, seeking to make it a “pilot community for interracial living.” In the battle for integration then being fought around the country, North Lawndale seemed to offer promising terrain. But out in the tall grass, highwaymen, nefarious as any Clarksdale kleptocrat, were lying in wait.

Three months after Clyde Ross moved into his house, the boiler blew out. This would normally be a homeowner’s responsibility, but in fact, Ross was not really a homeowner. His payments were made to the seller, not the bank. And Ross had not signed a normal mortgage. He’d bought “on contract”: a predatory agreement that combined all the responsibilities of homeownership with all the disadvantages of renting—while offering the benefits of neither. Ross had bought his house for $27,500. The seller, not the previous homeowner but a new kind of middleman, had bought it for only $12,000 six months before selling it to Ross. In a contract sale, the seller kept the deed until the contract was paid in full—and, unlike with a normal mortgage, Ross would acquire no equity in the meantime. If he missed a single payment, he would immediately forfeit his $1,000 down payment, all his monthly payments, and the property itself.

The men who peddled contracts in North Lawndale would sell homes at inflated prices and then evict families who could not pay—taking their down payment and their monthly installments as profit. Then they’d bring in another black family, rinse, and repeat. “He loads them up with payments they can’t meet,” an office secretary told The Chicago Daily News of her boss, the speculator Lou Fushanis, in 1963. “Then he takes the property away from them. He’s sold some of the buildings three or four times.”

Ross had tried to get a legitimate mortgage in another neighborhood, but was told by a loan officer that there was no financing available. The truth was that there was no financing for people like Clyde Ross. From the 1930s through the 1960s, black people across the country were largely cut out of the legitimate home-mortgage market through means both legal and extralegal. Chicago whites employed every measure, from “restrictive covenants” to bombings, to keep their neighborhoods segregated.

Their efforts were buttressed by the federal government. In 1934, Congress created the Federal Housing Administration. The FHA insured private mortgages, causing a drop in interest rates and a decline in the size of the down payment required to buy a house. But an insured mortgage was not a possibility for Clyde Ross. The FHA had adopted a system of maps that rated neighborhoods according to their perceived stability. On the maps, green areas, rated “A,” indicated “in demand” neighborhoods that, as one appraiser put it, lacked “a single foreigner or Negro.” These neighborhoods were considered excellent prospects for insurance. Neighborhoods where black people lived were rated “D” and were usually considered ineligible for FHA backing. They were colored in red. Neither the percentage of black people living there nor their social class mattered. Black people were viewed as a contagion. Redlining went beyond FHA-backed loans and spread to the entire mortgage industry, which was already rife with racism, excluding black people from most legitimate means of obtaining a mortgage.

Explore Redlining in Chicago

A 1939 Home Owners’ Loan Corporation “Residential Security Map” of Chicago shows discrimination against low-income and minority neighborhoods. The residents of the areas marked in red (representing “hazardous” real-estate markets) were denied FHA-backed mortgages. (Map development by Frankie Dintino)

“A government offering such bounty to builders and lenders could have required compliance with a nondiscrimination policy,” Charles Abrams, the urban-studies expert who helped create the New York City Housing Authority, wrote in 1955. “Instead, the FHA adopted a racial policy that could well have been culled from the Nuremberg laws.”

The devastating effects are cogently outlined by Melvin L. Oliver and Thomas M. Shapiro in their 1995 book, Black Wealth/White Wealth:

Locked out of the greatest mass-based opportunity for wealth accumulation in American history, African Americans who desired and were able to afford home ownership found themselves consigned to central-city communities where their investments were affected by the “self-fulfilling prophecies” of the FHA appraisers: cut off from sources of new investment[,] their homes and communities deteriorated and lost value in comparison to those homes and communities that FHA appraisers deemed desirable.

In Chicago and across the country, whites looking to achieve the American dream could rely on a legitimate credit system backed by the government. Blacks were herded into the sights of unscrupulous lenders who took them for money and for sport. “It was like people who like to go out and shoot lions in Africa. It was the same thrill,” a housing attorney told the historian Beryl Satter in her 2009 book, Family Properties. “The thrill of the chase and the kill.”

The kill was profitable. At the time of his death, Lou Fushanis owned more than 600 properties, many of them in North Lawndale, and his estate was estimated to be worth $3 million. He’d made much of this money by exploiting the frustrated hopes of black migrants like Clyde Ross. During this period, according to one estimate, 85 percent of all black home buyers who bought in Chicago bought on contract. “If anybody who is well established in this business in Chicago doesn’t earn $100,000 a year,” a contract seller told The Saturday Evening Post in 1962, “he is loafing.”

Contract sellers became rich. North Lawndale became a ghetto.

Clyde Ross still lives there. He still owns his home. He is 91, and the emblems of survival are all around him—awards for service in his community, pictures of his children in cap and gown. But when I asked him about his home in North Lawndale, I heard only anarchy.

“We were ashamed. We did not want anyone to know that we were that ignorant,” Ross told me. He was sitting at his dining-room table. His glasses were as thick as his Clarksdale drawl. “I’d come out of Mississippi where there was one mess, and come up here and got in another mess. So how dumb am I? I didn’t want anyone to know how dumb I was.

“When I found myself caught up in it, I said, ‘How? I just left this mess. I just left no laws. And no regard. And then I come here and get cheated wide open.’ I would probably want to do some harm to some people, you know, if I had been violent like some of us. I thought, ‘Man, I got caught up in this stuff. I can’t even take care of my kids.’ I didn’t have enough for my kids. You could fall through the cracks easy fighting these white people. And no law.”

But fight Clyde Ross did. In 1968 he joined the newly formed Contract Buyers League—a collection of black homeowners on Chicago’s South and West Sides, all of whom had been locked into the same system of predation. There was Howell Collins, whose contract called for him to pay $25,500 for a house that a speculator had bought for $14,500. There was Ruth Wells, who’d managed to pay out half her contract, expecting a mortgage, only to suddenly see an insurance bill materialize out of thin air—a requirement the seller had added without Wells’s knowledge. Contract sellers used every tool at their disposal to pilfer from their clients. They scared white residents into selling low. They lied about properties’ compliance with building codes, then left the buyer responsible when city inspectors arrived. They presented themselves as real-estate brokers, when in fact they were the owners. They guided their clients to lawyers who were in on the scheme.

The Contract Buyers League fought back. Members—who would eventually number more than 500—went out to the posh suburbs where the speculators lived and embarrassed them by knocking on their neighbors’ doors and informing them of the details of the contract-lending trade. They refused to pay their installments, instead holding monthly payments in an escrow account. Then they brought a suit against the contract sellers, accusing them of buying properties and reselling in such a manner “to reap from members of the Negro race large and unjust profits.”

The story of Clyde Ross and the Contract Buyers League

In return for the “deprivations of their rights and privileges under the Thirteenth and Fourteenth Amendments,” the league demanded “prayers for relief”—payback of all moneys paid on contracts and all moneys paid for structural improvement of properties, at 6 percent interest minus a “fair, non-discriminatory” rental price for time of occupation. Moreover, the league asked the court to adjudge that the defendants had “acted willfully and maliciously and that malice is the gist of this action.”

Ross and the Contract Buyers League were no longer appealing to the government simply for equality. They were no longer fleeing in hopes of a better deal elsewhere. They were charging society with a crime against their community. They wanted the crime publicly ruled as such. They wanted the crime’s executors declared to be offensive to society. And they wanted restitution for the great injury brought upon them by said offenders. In 1968, Clyde Ross and the Contract Buyers League were no longer simply seeking the protection of the law. They were seeking reparations.

II.  “A Difference of Kind, Not Degree”

According to the most-recent statistics, North Lawndale is now on the wrong end of virtually every socioeconomic indicator. In 1930 its population was 112,000. Today it is 36,000. The halcyon talk of “interracial living” is dead. The neighborhood is 92 percent black. Its homicide rate is 45 per 100,000—triple the rate of the city as a whole. The infant-mortality rate is 14 per 1,000—more than twice the national average. Forty-three percent of the people in North Lawndale live below the poverty line—double Chicago’s overall rate. Forty-five percent of all households are on food stamps—nearly three times the rate of the city at large. Sears, Roebuck left the neighborhood in 1987, taking 1,800 jobs with it. Kids in North Lawndale need not be confused about their prospects: Cook County’s Juvenile Temporary Detention Center sits directly adjacent to the neighborhood.

North Lawndale is an extreme portrait of the trends that ail black Chicago. Such is the magnitude of these ailments that it can be said that blacks and whites do not inhabit the same city. The average per capita income of Chicago’s white neighborhoods is almost three times that of its black neighborhoods. When the Harvard sociologist Robert J. Sampson examined incarceration rates in Chicago in his 2012 book, Great American City, he found that a black neighborhood with one of the highest incarceration rates (West Garfield Park) had a rate more than 40 times as high as the white neighborhood with the highest rate (Clearing). “This is a staggering differential, even for community-level comparisons,” Sampson writes. “A difference of kind, not degree.”

Interactive Census Map

Explore race, unemployment, and vacancy rates over seven decades in Chicago. (Map design and development by Frankie Dintino)

In other words, Chicago’s impoverished black neighborhoods—characterized by high unemployment and households headed by single parents—are not simply poor; they are “ecologically distinct.” This “is not simply the same thing as low economic status,” writes Sampson. “In this pattern Chicago is not alone.”

The lives of black Americans are better than they were half a century ago. The humiliation of Whites Only signs are gone. Rates of black poverty have decreased. Black teen-pregnancy rates are at record lows—and the gap between black and white teen-pregnancy rates has shrunk significantly. But such progress rests on a shaky foundation, and fault lines are everywhere. The income gap between black and white households is roughly the same today as it was in 1970. Patrick Sharkey, a sociologist at New York University, studied children born from 1955 through 1970 and found that 4 percent of whites and 62 percent of blacks across America had been raised in poor neighborhoods. A generation later, the same study showed, virtually nothing had changed. And whereas whites born into affluent neighborhoods tended to remain in affluent neighborhoods, blacks tended to fall out of them.

This is not surprising. Black families, regardless of income, are significantly less wealthy than white families. The Pew Research Center estimates that white households are worth roughly 20 times as much as black households, and that whereas only 15 percent of whites have zero or negative wealth, more than a third of blacks do. Effectively, the black family in America is working without a safety net. When financial calamity strikes—a medical emergency, divorce, job loss—the fall is precipitous.

And just as black families of all incomes remain handicapped by a lack of wealth, so too do they remain handicapped by their restricted choice of neighborhood. Black people with upper-middle-class incomes do not generally live in upper-middle-class neighborhoods. Sharkey’s research shows that black families making $100,000 typically live in the kinds of neighborhoods inhabited by white families making $30,000. “Blacks and whites inhabit such different neighborhoods,” Sharkey writes, “that it is not possible to compare the economic outcomes of black and white children.”

The implications are chilling. As a rule, poor black people do not work their way out of the ghetto—and those who do often face the horror of watching their children and grandchildren tumble back.

Even seeming evidence of progress withers under harsh light. In 2012, the Manhattan Institute cheerily noted that segregation had declined since the 1960s. And yet African Americans still remained—by far—the most segregated ethnic group in the country.

With segregation, with the isolation of the injured and the robbed, comes the concentration of disadvantage. An unsegregated America might see poverty, and all its effects, spread across the country with no particular bias toward skin color. Instead, the concentration of poverty has been paired with a concentration of melanin. The resulting conflagration has been devastating.

One thread of thinking in the African American community holds that these depressing numbers partially stem from cultural pathologies that can be altered through individual grit and exceptionally good behavior. (In 2011, Philadelphia Mayor Michael Nutter, responding to violence among young black males, put the blame on the family: “Too many men making too many babies they don’t want to take care of, and then we end up dealing with your children.” Nutter turned to those presumably fatherless babies: “Pull your pants up and buy a belt, because no one wants to see your underwear or the crack of your butt.”) The thread is as old as black politics itself. It is also wrong. The kind of trenchant racism to which black people have persistently been subjected can never be defeated by making its victims more respectable. The essence of American racism is disrespect. And in the wake of the grim numbers, we see the grim inheritance.

The Contract Buyers League’s suit brought by Clyde Ross and his allies took direct aim at this inheritance. The suit was rooted in Chicago’s long history of segregation, which had created two housing markets—one legitimate and backed by the government, the other lawless and patrolled by predators. The suit dragged on until 1976, when the league lost a jury trial. Securing the equal protection of the law proved hard; securing reparations proved impossible. If there were any doubts about the mood of the jury, the foreman removed them by saying, when asked about the verdict, that he hoped it would help end “the mess Earl Warren made with Brown v. Board of Education and all that nonsense.”

The Supreme Court seems to share that sentiment. The past two decades have witnessed a rollback of the progressive legislation of the 1960s. Liberals have found themselves on the defensive. In 2008, when Barack Obama was a candidate for president, he was asked whether his daughters—Malia and Sasha—should benefit from affirmative action. He answered in the negative.

The exchange rested upon an erroneous comparison of the average American white family and the exceptional first family. In the contest of upward mobility, Barack and Michelle Obama have won. But they’ve won by being twice as good—and enduring twice as much. Malia and Sasha Obama enjoy privileges beyond the average white child’s dreams. But that comparison is incomplete. The more telling question is how they compare with Jenna and Barbara Bush—the products of many generations of privilege, not just one. Whatever the Obama children achieve, it will be evidence of their family’s singular perseverance, not of broad equality.

III. “We Inherit Our Ample Patrimony”

In 1783, the freedwoman Belinda Royall petitioned the commonwealth of Massachusetts for reparations. Belinda had been born in modern-day Ghana. She was kidnapped as a child and sold into slavery. She endured the Middle Passage and 50 years of enslavement at the hands of Isaac Royall and his son. But the junior Royall, a British loyalist, fled the country during the Revolution. Belinda, now free after half a century of labor, beseeched the nascent Massachusetts legislature:

The face of your Petitioner, is now marked with the furrows of time, and her frame bending under the oppression of years, while she, by the Laws of the Land, is denied the employment of one morsel of that immense wealth, apart whereof hath been accumilated by her own industry, and the whole augmented by her servitude.

WHEREFORE, casting herself at your feet if your honours, as to a body of men, formed for the extirpation of vassalage, for the reward of Virtue, and the just return of honest industry—she prays, that such allowance may be made her out of the Estate of Colonel Royall, as will prevent her, and her more infirm daughter, from misery in the greatest extreme, and scatter comfort over the short and downward path of their lives.

Belinda Royall was granted a pension of 15 pounds and 12 shillings, to be paid out of the estate of Isaac Royall—one of the earliest successful attempts to petition for reparations. At the time, black people in America had endured more than 150 years of enslavement, and the idea that they might be owed something in return was, if not the national consensus, at least not outrageous.

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“A heavy account lies against us as a civil society for oppressions committed against people who did not injure us,” wrote the Quaker John Woolman in 1769, “and that if the particular case of many individuals were fairly stated, it would appear that there was considerable due to them.”

As the historian Roy E. Finkenbine has documented, at the dawn of this country, black reparations were actively considered and often effected. Quakers in New York, New England, and Baltimore went so far as to make “membership contingent upon compensating one’s former slaves.” In 1782, the Quaker Robert Pleasants emancipated his 78 slaves, granted them 350 acres, and later built a school on their property and provided for their education. “The doing of this justice to the injured Africans,” wrote Pleasants, “would be an acceptable offering to him who ‘Rules in the kingdom of men.’ ”

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Edward Coles, a protégé of Thomas Jefferson who became a slaveholder through inheritance, took many of his slaves north and granted them a plot of land in Illinois. John Randolph, a cousin of Jefferson’s, willed that all his slaves be emancipated upon his death, and that all those older than 40 be given 10 acres of land. “I give and bequeath to all my slaves their freedom,” Randolph wrote, “heartily regretting that I have been the owner of one.”

In his book Forever Free, Eric Foner recounts the story of a disgruntled planter reprimanding a freedman loafing on the job:

Planter: “You lazy nigger, I am losing a whole day’s labor by you.”

Freedman: “Massa, how many days’ labor have I lost by you?”

In the 20th century, the cause of reparations was taken up by a diverse cast that included the Confederate veteran Walter R. Vaughan, who believed that reparations would be a stimulus for the South; the black activist Callie House; black-nationalist leaders like “Queen Mother” Audley Moore; and the civil-rights activist James Forman. The movement coalesced in 1987 under an umbrella organization called the National Coalition of Blacks for Reparations in America (N’COBRA). The NAACP endorsed reparations in 1993. Charles J. Ogletree Jr., a professor at Harvard Law School, has pursued reparations claims in court.

But while the people advocating reparations have changed over time, the response from the country has remained virtually the same. “They have been taught to labor,” the Chicago Tribune editorialized in 1891. “They have been taught Christian civilization, and to speak the noble English language instead of some African gibberish. The account is square with the ex‑slaves.”

Not exactly. Having been enslaved for 250 years, black people were not left to their own devices. They were terrorized. In the Deep South, a second slavery ruled. In the North, legislatures, mayors, civic associations, banks, and citizens all colluded to pin black people into ghettos, where they were overcrowded, overcharged, and undereducated. Businesses discriminated against them, awarding them the worst jobs and the worst wages. Police brutalized them in the streets. And the notion that black lives, black bodies, and black wealth were rightful targets remained deeply rooted in the broader society. Now we have half-stepped away from our long centuries of despoilment, promising, “Never again.” But still we are haunted. It is as though we have run up a credit-card bill and, having pledged to charge no more, remain befuddled that the balance does not disappear. The effects of that balance, interest accruing daily, are all around us.

Broach the topic of reparations today and a barrage of questions inevitably follows: Who will be paid? How much will they be paid? Who will pay? But if the practicalities, not the justice, of reparations are the true sticking point, there has for some time been the beginnings of a solution. For the past 25 years, Congressman John Conyers Jr., who represents the Detroit area, has marked every session of Congress by introducing a bill calling for a congressional study of slavery and its lingering effects as well as recommendations for “appropriate remedies.”

A country curious about how reparations might actually work has an easy solution in Conyers’s bill, now called HR 40, the Commission to Study Reparation Proposals for African Americans Act. We would support this bill, submit the question to study, and then assess the possible solutions. But we are not interested.

“It’s because it’s black folks making the claim,” Nkechi Taifa, who helped found N’COBRA, says. “People who talk about reparations are considered left lunatics. But all we are talking about is studying [reparations]. As John Conyers has said, we study everything. We study the water, the air. We can’t even study the issue? This bill does not authorize one red cent to anyone.”

That HR 40 has never—under either Democrats or Republicans—made it to the House floor suggests our concerns are rooted not in the impracticality of reparations but in something more existential. If we conclude that the conditions in North Lawndale and black America are not inexplicable but are instead precisely what you’d expect of a community that for centuries has lived in America’s crosshairs, then what are we to make of the world’s oldest democracy?

One cannot escape the question by hand-waving at the past, disavowing the acts of one’s ancestors, nor by citing a recent date of ancestral immigration. The last slaveholder has been dead for a very long time. The last soldier to endure Valley Forge has been dead much longer. To proudly claim the veteran and disown the slaveholder is patriotism à la carte. A nation outlives its generations. We were not there when Washington crossed the Delaware, but Emanuel Gottlieb Leutze’s rendering has meaning to us. We were not there when Woodrow Wilson took us into World War I, but we are still paying out the pensions. If Thomas Jefferson’s genius matters, then so does his taking of Sally Hemings’s body. If George Washington crossing the Delaware matters, so must his ruthless pursuit of the runagate Oney Judge.

In 1909, President William Howard Taft told the country that “intelligent” white southerners were ready to see blacks as “useful members of the community.” A week later Joseph Gordon, a black man, was lynched outside Greenwood, Mississippi. The high point of the lynching era has passed. But the memories of those robbed of their lives still live on in the lingering effects. Indeed, in America there is a strange and powerful belief that if you stab a black person 10 times, the bleeding stops and the healing begins the moment the assailant drops the knife. We believe white dominance to be a fact of the inert past, a delinquent debt that can be made to disappear if only we don’t look.

There has always been another way. “It is in vain to alledge, that our ancestors brought them hither, and not we,” Yale President Timothy Dwight said in 1810.

We inherit our ample patrimony with all its incumbrances; and are bound to pay the debts of our ancestors. This debt, particularly, we are bound to discharge: and, when the righteous Judge of the Universe comes to reckon with his servants, he will rigidly exact the payment at our hands. To give them liberty, and stop here, is to entail upon them a curse.

IV. “The Ills That Slavery Frees Us From”

America begins in black plunder and white democracy, two features that are not contradictory but complementary. “The men who came together to found the independent United States, dedicated to freedom and equality, either held slaves or were willing to join hands with those who did,” the historian Edmund S. Morgan wrote. “None of them felt entirely comfortable about the fact, but neither did they feel responsible for it. Most of them had inherited both their slaves and their attachment to freedom from an earlier generation, and they knew the two were not unconnected.”

Slaves in South Carolina prepare cotton for the gin in 1862. (Timothy H. O’sullivan/Library of Congress)

When enslaved Africans, plundered of their bodies, plundered of their families, and plundered of their labor, were brought to the colony of Virginia in 1619, they did not initially endure the naked racism that would engulf their progeny. Some of them were freed. Some of them intermarried. Still others escaped with the white indentured servants who had suffered as they had. Some even rebelled together, allying under Nathaniel Bacon to torch Jamestown in 1676.

One hundred years later, the idea of slaves and poor whites joining forces would shock the senses, but in the early days of the English colonies, the two groups had much in common. English visitors to Virginia found that its masters “abuse their servantes with intollerable oppression and hard usage.” White servants were flogged, tricked into serving beyond their contracts, and traded in much the same manner as slaves.

This “hard usage” originated in a simple fact of the New World—land was boundless but cheap labor was limited. As life spans increased in the colony, the Virginia planters found in the enslaved Africans an even more efficient source of cheap labor. Whereas indentured servants were still legal subjects of the English crown and thus entitled to certain protections, African slaves entered the colonies as aliens. Exempted from the protections of the crown, they became early America’s indispensable working class—fit for maximum exploitation, capable of only minimal resistance.

For the next 250 years, American law worked to reduce black people to a class of untouchables and raise all white men to the level of citizens. In 1650, Virginia mandated that “all persons except Negroes” were to carry arms. In 1664, Maryland mandated that any Englishwoman who married a slave must live as a slave of her husband’s master. In 1705, the Virginia assembly passed a law allowing for the dismemberment of unruly slaves—but forbidding masters from whipping “a Christian white servant naked, without an order from a justice of the peace.” In that same law, the colony mandated that “all horses, cattle, and hogs, now belonging, or that hereafter shall belong to any slave” be seized and sold off by the local church, the profits used to support “the poor of the said parish.” At that time, there would have still been people alive who could remember blacks and whites joining to burn down Jamestown only 29 years before. But at the beginning of the 18th century, two primary classes were enshrined in America.

“The two great divisions of society are not the rich and poor, but white and black,” John C. Calhoun, South Carolina’s senior senator, declared on the Senate floor in 1848. “And all the former, the poor as well as the rich, belong to the upper class, and are respected and treated as equals.”

In 1860, the majority of people living in South Carolina and Mississippi, almost half of those living in Georgia, and about one-third of all Southerners were on the wrong side of Calhoun’s line. The state with the largest number of enslaved Americans was Virginia, where in certain counties some 70 percent of all people labored in chains. Nearly one-fourth of all white Southerners owned slaves, and upon their backs the economic basis of America—and much of the Atlantic world—was erected. In the seven cotton states, one-third of all white income was derived from slavery. By 1840, cotton produced by slave labor constituted 59 percent of the country’s exports. The web of this slave society extended north to the looms of New England, and across the Atlantic to Great Britain, where it powered a great economic transformation and altered the trajectory of world history. “Whoever says Industrial Revolution,” wrote the historian Eric J. Hobsbawm, “says cotton.”

In this artistic rendering by Henry Louis Stephens, a well-known illustrator of the era, a family is in the process of being separated at a slave auction. (Library of Congress)

The wealth accorded America by slavery was not just in what the slaves pulled from the land but in the slaves themselves. “In 1860, slaves as an asset were worth more than all of America’s manufacturing, all of the railroads, all of the productive capacity of the United States put together,” the Yale historian David W. Blight has noted. “Slaves were the single largest, by far, financial asset of property in the entire American economy.” The sale of these slaves—“in whose bodies that money congealed,” writes Walter Johnson, a Harvard historian—generated even more ancillary wealth. Loans were taken out for purchase, to be repaid with interest. Insurance policies were drafted against the untimely death of a slave and the loss of potential profits. Slave sales were taxed and notarized. The vending of the black body and the sundering of the black family became an economy unto themselves, estimated to have brought in tens of millions of dollars to antebellum America. In 1860 there were more millionaires per capita in the Mississippi Valley than anywhere else in the country.

Beneath the cold numbers lay lives divided. “I had a constant dread that Mrs. Moore, her mistress, would be in want of money and sell my dear wife,” a freedman wrote, reflecting on his time in slavery. “We constantly dreaded a final separation. Our affection for each was very strong, and this made us always apprehensive of a cruel parting.”

Forced partings were common in the antebellum South. A slave in some parts of the region stood a 30 percent chance of being sold in his or her lifetime. Twenty-five percent of interstate trades destroyed a first marriage and half of them destroyed a nuclear family.

When the wife and children of Henry Brown, a slave in Richmond, Virginia, were to be sold away, Brown searched for a white master who might buy his wife and children to keep the family together. He failed:

The next day, I stationed myself by the side of the road, along which the slaves, amounting to three hundred and fifty, were to pass. The purchaser of my wife was a Methodist minister, who was about starting for North Carolina. Pretty soon five waggon-loads of little children passed, and looking at the foremost one, what should I see but a little child, pointing its tiny hand towards me, exclaiming, “There’s my father; I knew he would come and bid me good-bye.” It was my eldest child! Soon the gang approached in which my wife was chained. I looked, and beheld her familiar face; but O, reader, that glance of agony! may God spare me ever again enduring the excruciating horror of that moment! She passed, and came near to where I stood. I seized hold of her hand, intending to bid her farewell; but words failed me; the gift of utterance had fled, and I remained speechless. I followed her for some distance, with her hand grasped in mine, as if to save her from her fate, but I could not speak, and I was obliged to turn away in silence.

In a time when telecommunications were primitive and blacks lacked freedom of movement, the parting of black families was a kind of murder. Here we find the roots of American wealth and democracy—in the for-profit destruction of the most important asset available to any people, the family. The destruction was not incidental to America’s rise; it facilitated that rise. By erecting a slave society, America created the economic foundation for its great experiment in democracy. The labor strife that seeded Bacon’s rebellion was suppressed. America’s indispensable working class existed as property beyond the realm of politics, leaving white Americans free to trumpet their love of freedom and democratic values. Assessing antebellum democracy in Virginia, a visitor from England observed that the state’s natives “can profess an unbounded love of liberty and of democracy in consequence of the mass of the people, who in other countries might become mobs, being there nearly altogether composed of their own Negro slaves.”

V. The Quiet Plunder

The consequences of 250 years of enslavement, of war upon black families and black people, were profound. Like homeownership today, slave ownership was aspirational, attracting not just those who owned slaves but those who wished to. Much as homeowners today might discuss the addition of a patio or the painting of a living room, slaveholders traded tips on the best methods for breeding workers, exacting labor, and doling out punishment. Just as a homeowner today might subscribe to a magazine like This Old House, slaveholders had journals such as De Bow’s Review, which recommended the best practices for wringing profits from slaves. By the dawn of the Civil War, the enslavement of black America was thought to be so foundational to the country that those who sought to end it were branded heretics worthy of death. Imagine what would happen if a president today came out in favor of taking all American homes from their owners: the reaction might well be violent.

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“This country was formed for the white, not for the black man,” John Wilkes Booth wrote, before killing Abraham Lincoln. “And looking upon African slavery from the same standpoint held by those noble framers of our Constitution, I for one have ever considered it one of the greatest blessings (both for themselves and us) that God ever bestowed upon a favored nation.”

In the aftermath of the Civil War, Radical Republicans attempted to reconstruct the country upon something resembling universal equality—but they were beaten back by a campaign of “Redemption,” led by White Liners, Red Shirts, and Klansmen bent on upholding a society “formed for the white, not for the black man.” A wave of terrorism roiled the South. In his massive history Reconstruction, Eric Foner recounts incidents of black people being attacked for not removing their hats; for refusing to hand over a whiskey flask; for disobeying church procedures; for “using insolent language”; for disputing labor contracts; for refusing to be “tied like a slave.” Sometimes the attacks were intended simply to “thin out the niggers a little.”

Terrorism carried the day. Federal troops withdrew from the South in 1877. The dream of Reconstruction died. For the next century, political violence was visited upon blacks wantonly, with special treatment meted out toward black people of ambition. Black schools and churches were burned to the ground. Black voters and the political candidates who attempted to rally them were intimidated, and some were murdered. At the end of World War I, black veterans returning to their homes were assaulted for daring to wear the American uniform. The demobilization of soldiers after the war, which put white and black veterans into competition for scarce jobs, produced the Red Summer of 1919: a succession of racist pogroms against dozens of cities ranging from Longview, Texas, to Chicago to Washington, D.C. Organized white violence against blacks continued into the 1920s—in 1921 a white mob leveled Tulsa’s “Black Wall Street,” and in 1923 another one razed the black town of Rosewood, Florida—and virtually no one was punished.

A postcard dated August 3, 1920, depicts the aftermath of a lynching in Center, Texas, near the Louisiana border. According to the text on the other side, the victim was a 16-year-old boy.

The work of mobs was a rabid and violent rendition of prejudices that extended even into the upper reaches of American government. The New Deal is today remembered as a model for what progressive government should do—cast a broad social safety net that protects the poor and the afflicted while building the middle class. When progressives wish to express their disappointment with Barack Obama, they point to the accomplishments of Franklin Roosevelt. But these progressives rarely note that Roosevelt’s New Deal, much like the democracy that produced it, rested on the foundation of Jim Crow.

“The Jim Crow South,” writes Ira Katznelson, a history and political-science professor at Columbia, “was the one collaborator America’s democracy could not do without.” The marks of that collaboration are all over the New Deal. The omnibus programs passed under the Social Security Act in 1935 were crafted in such a way as to protect the southern way of life. Old-age insurance (Social Security proper) and unemployment insurance excluded farmworkers and domestics—jobs heavily occupied by blacks. When President Roosevelt signed Social Security into law in 1935, 65 percent of African Americans nationally and between 70 and 80 percent in the South were ineligible. The NAACP protested, calling the new American safety net “a sieve with holes just big enough for the majority of Negroes to fall through.”

The oft-celebrated G.I. Bill similarly failed black Americans, by mirroring the broader country’s insistence on a racist housing policy. Though ostensibly color-blind, Title III of the bill, which aimed to give veterans access to low-interest home loans, left black veterans to tangle with white officials at their local Veterans Administration as well as with the same banks that had, for years, refused to grant mortgages to blacks. The historian Kathleen J. Frydl observes in her 2009 book, The GI Bill, that so many blacks were disqualified from receiving Title III benefits “that it is more accurate simply to say that blacks could not use this particular title.”

In Cold War America, homeownership was seen as a means of instilling patriotism, and as a civilizing and anti-radical force. “No man who owns his own house and lot can be a Communist,” claimed William Levitt, who pioneered the modern suburb with the development of the various Levittowns, his famous planned communities. “He has too much to do.”

But the Levittowns were, with Levitt’s willing acquiescence, segregated throughout their early years. Daisy and Bill Myers, the first black family to move into Levittown, Pennsylvania, were greeted with protests and a burning cross. A neighbor who opposed the family said that Bill Myers was “probably a nice guy, but every time I look at him I see $2,000 drop off the value of my house.”

The neighbor had good reason to be afraid. Bill and Daisy Myers were from the other side of John C. Calhoun’s dual society. If they moved next door, housing policy almost guaranteed that their neighbors’ property values would decline.

In August 1957, state police pull teenagers out of a car during a demonstration against Bill and Daisy Myers, the first African Americans to move into Levittown, Pennsyvlania. (AP Photo/Bill Ingraham)

Whereas shortly before the New Deal, a typical mortgage required a large down payment and full repayment within about 10 years, the creation of the Home Owners’ Loan Corporation in 1933 and then the Federal Housing Administration the following year allowed banks to offer loans requiring no more than 10 percent down, amortized over 20 to 30 years. “Without federal intervention in the housing market, massive suburbanization would have been impossible,” writes Thomas J. Sugrue, a historian at the University of Pennsylvania. “In 1930, only 30 percent of Americans owned their own homes; by 1960, more than 60 percent were home owners. Home ownership became an emblem of American citizenship.”

That emblem was not to be awarded to blacks. The American real-estate industry believed segregation to be a moral principle. As late as 1950, the National Association of Real Estate Boards’ code of ethics warned that “a Realtor should never be instrumental in introducing into a neighborhood … any race or nationality, or any individuals whose presence will clearly be detrimental to property values.” A 1943 brochure specified that such potential undesirables might include madams, bootleggers, gangsters—and “a colored man of means who was giving his children a college education and thought they were entitled to live among whites.”

The federal government concurred. It was the Home Owners’ Loan Corporation, not a private trade association, that pioneered the practice of redlining, selectively granting loans and insisting that any property it insured be covered by a restrictive covenant—a clause in the deed forbidding the sale of the property to anyone other than whites. Millions of dollars flowed from tax coffers into segregated white neighborhoods.

“For perhaps the first time, the federal government embraced the discriminatory attitudes of the marketplace,” the historian Kenneth T. Jackson wrote in his 1985 book, Crabgrass Frontier, a history of suburbanization. “Previously, prejudices were personalized and individualized; FHA exhorted segregation and enshrined it as public policy. Whole areas of cities were declared ineligible for loan guarantees.” Redlining was not officially outlawed until 1968, by the Fair Housing Act. By then the damage was done—and reports of redlining by banks have continued.

The federal government is premised on equal fealty from all its citizens, who in return are to receive equal treatment. But as late as the mid-20th century, this bargain was not granted to black people, who repeatedly paid a higher price for citizenship and received less in return. Plunder had been the essential feature of slavery, of the society described by Calhoun. But practically a full century after the end of the Civil War and the abolition of slavery, the plunder—quiet, systemic, submerged—continued even amidst the aims and achievements of New Deal liberals.

VI. Making The Second Ghetto

Today Chicago is one of the most segregated cities in the country, a fact that reflects assiduous planning. In the effort to uphold white supremacy at every level down to the neighborhood, Chicago—a city founded by the black fur trader Jean Baptiste Point du Sable—has long been a pioneer. The efforts began in earnest in 1917, when the Chicago Real Estate Board, horrified by the influx of southern blacks, lobbied to zone the entire city by race. But after the Supreme Court ruled against explicit racial zoning that year, the city was forced to pursue its agenda by more-discreet means.

Like the Home Owners’ Loan Corporation, the Federal Housing Administration initially insisted on restrictive covenants, which helped bar blacks and other ethnic undesirables from receiving federally backed home loans. By the 1940s, Chicago led the nation in the use of these restrictive covenants, and about half of all residential neighborhoods in the city were effectively off-limits to blacks.

It is common today to become misty-eyed about the old black ghetto, where doctors and lawyers lived next door to meatpackers and steelworkers, who themselves lived next door to prostitutes and the unemployed. This segregationist nostalgia ignores the actual conditions endured by the people living there—vermin and arson, for instance—and ignores the fact that the old ghetto was premised on denying black people privileges enjoyed by white Americans.

In 1948, when the Supreme Court ruled that restrictive covenants, while permissible, were not enforceable by judicial action, Chicago had other weapons at the ready. The Illinois state legislature had already given Chicago’s city council the right to approve—and thus to veto—any public housing in the city’s wards. This came in handy in 1949, when a new federal housing act sent millions of tax dollars into Chicago and other cities around the country. Beginning in 1950, site selection for public housing proceeded entirely on the grounds of segregation. By the 1960s, the city had created with its vast housing projects what the historian Arnold R. Hirsch calls a “second ghetto,” one larger than the old Black Belt but just as impermeable. More than 98 percent of all the family public-housing units built in Chicago between 1950 and the mid‑1960s were built in all-black neighborhoods.

Governmental embrace of segregation was driven by the virulent racism of Chicago’s white citizens. White neighborhoods vulnerable to black encroachment formed block associations for the sole purpose of enforcing segregation. They lobbied fellow whites not to sell. They lobbied those blacks who did manage to buy to sell back. In 1949, a group of Englewood Catholics formed block associations intended to “keep up the neighborhood.” Translation: keep black people out. And when civic engagement was not enough, when government failed, when private banks could no longer hold the line, Chicago turned to an old tool in the American repertoire—racial violence. “The pattern of terrorism is easily discernible,” concluded a Chicago civic group in the 1940s. “It is at the seams of the black ghetto in all directions.” On July 1 and 2 of 1946, a mob of thousands assembled in Chicago’s Park Manor neighborhood, hoping to eject a black doctor who’d recently moved in. The mob pelted the house with rocks and set the garage on fire. The doctor moved away.

In 1947, after a few black veterans moved into the Fernwood section of Chicago, three nights of rioting broke out; gangs of whites yanked blacks off streetcars and beat them. Two years later, when a union meeting attended by blacks in Englewood triggered rumors that a home was being “sold to niggers,” blacks (and whites thought to be sympathetic to them) were beaten in the streets. In 1951, thousands of whites in Cicero, 20 minutes or so west of downtown Chicago, attacked an apartment building that housed a single black family, throwing bricks and firebombs through the windows and setting the apartment on fire. A Cook County grand jury declined to charge the rioters—and instead indicted the family’s NAACP attorney, the apartment’s white owner, and the owner’s attorney and rental agent, charging them with conspiring to lower property values. Two years after that, whites picketed and planted explosives in South Deering, about 30 minutes from downtown Chicago, to force blacks out.

The September 1966 Cicero protest against housing discrimination was one of the first nonviolent civil-rights campaigns launched near a major city. (Associated Press)

When terrorism ultimately failed, white homeowners simply fled the neighborhood. The traditional terminology, white flight, implies a kind of natural expression of preference. In fact, white flight was a triumph of social engineering, orchestrated by the shared racist presumptions of America’s public and private sectors. For should any nonracist white families decide that integration might not be so bad as a matter of principle or practicality, they still had to contend with the hard facts of American housing policy: When the mid-20th-century white homeowner claimed that the presence of a Bill and Daisy Myers decreased his property value, he was not merely engaging in racist dogma—he was accurately observing the impact of federal policy on market prices. Redlining destroyed the possibility of investment wherever black people lived.

VII. “A Lot Of People Fell By The Way”

Speculators in North Lawndale, and at the edge of the black ghettos, knew there was money to be made off white panic. They resorted to “block-busting”—spooking whites into selling cheap before the neighborhood became black. They would hire a black woman to walk up and down the street with a stroller. Or they’d hire someone to call a number in the neighborhood looking for “Johnny Mae.” Then they’d cajole whites into selling at low prices, informing them that the more blacks who moved in, the more the value of their homes would decline, so better to sell now. With these white-fled homes in hand, speculators then turned to the masses of black people who had streamed northward as part of the Great Migration, or who were desperate to escape the ghettos: the speculators would take the houses they’d just bought cheap through block-busting and sell them to blacks on contract.

To keep up with his payments and keep his heat on, Clyde Ross took a second job at the post office and then a third job delivering pizza. His wife took a job working at Marshall Field. He had to take some of his children out of private school. He was not able to be at home to supervise his children or help them with their homework. Money and time that Ross wanted to give his children went instead to enrich white speculators.

“The problem was the money,” Ross told me. “Without the money, you can’t move. You can’t educate your kids. You can’t give them the right kind of food. Can’t make the house look good. They think this neighborhood is where they supposed to be. It changes their outlook. My kids were going to the best schools in this neighborhood, and I couldn’t keep them in there.”

Mattie Lewis came to Chicago from her native Alabama in the mid-’40s, when she was 21, persuaded by a friend who told her she could get a job as a hairdresser. Instead she was hired by Western Electric, where she worked for 41 years. I met Lewis in the home of her neighbor Ethel Weatherspoon. Both had owned homes in North Lawndale for more than 50 years. Both had bought their houses on contract. Both had been active with Clyde Ross in the Contract Buyers League’s effort to garner restitution from contract sellers who’d operated in North Lawndale, banks who’d backed the scheme, and even the Federal Housing Administration. We were joined by Jack Macnamara, who’d been an organizing force in the Contract Buyers League when it was founded, in 1968. Our gathering had the feel of a reunion, because the writer James Alan McPherson had profiled the Contract Buyers League for The Atlantic back in 1972.

Click the image above to download a PDF version of The Atlantic’s April 1972 profile of the Contract Buyers League.

Weatherspoon bought her home in 1957. “Most of the whites started moving out,” she told me. “‘The blacks are coming. The blacks are coming.’ They actually said that. They had signs up: Don’t sell to blacks.”

Before moving to North Lawndale, Lewis and her husband tried moving to Cicero after seeing a house advertised for sale there. “Sorry, I just sold it today,” the Realtor told Lewis’s husband. “I told him, ‘You know they don’t want you in Cicero,’ ” Lewis recalls. “ ‘They ain’t going to let nobody black in Cicero.’ ”

In 1958, the couple bought a home in North Lawndale on contract. They were not blind to the unfairness. But Lewis, born in the teeth of Jim Crow, considered American piracy—black people keep on making it, white people keep on taking it—a fact of nature. “All I wanted was a house. And that was the only way I could get it. They weren’t giving black people loans at that time,” she said. “We thought, ‘This is the way it is. We going to do it till we die, and they ain’t never going to accept us. That’s just the way it is.’

“The only way you were going to buy a home was to do it the way they wanted,” she continued. “And I was determined to get me a house. If everybody else can have one, I want one too. I had worked for white people in the South. And I saw how these white people were living in the North and I thought, ‘One day I’m going to live just like them.’ I wanted cabinets and all these things these other people have.”

Whenever she visited white co-workers at their homes, she saw the difference. “I could see we were just getting ripped off,” she said. “I would see things and I would say, ‘I’d like to do this at my house.’ And they would say, ‘Do it,’ but I would think, ‘I can’t, because it costs us so much more.’ ”

I asked Lewis and Weatherspoon how they kept up on payments.

“You paid it and kept working,” Lewis said of the contract. “When that payment came up, you knew you had to pay it.”

“You cut down on the light bill. Cut down on your food bill,” Weatherspoon interjected.

Ethel Weatherspoon at her home in North Lawndale. After she bought it in 1957, she says, “most of the whites started moving out.” (Carlos Javier Ortiz)

“You cut down on things for your child, that was the main thing,” said Lewis. “My oldest wanted to be an artist and my other wanted to be a dancer and my other wanted to take music.”

Lewis and Weatherspoon, like Ross, were able to keep their homes. The suit did not win them any remuneration. But it forced contract sellers to the table, where they allowed some members of the Contract Buyers League to move into regular mortgages or simply take over their houses outright. By then they’d been bilked for thousands. In talking with Lewis and Weatherspoon, I was seeing only part of the picture—the tiny minority who’d managed to hold on to their homes. But for all our exceptional ones, for every Barack and Michelle Obama, for every Ethel Weatherspoon or Clyde Ross, for every black survivor, there are so many thousands gone.

Deputy sheriffs patrol a Chicago street in 1970 after a dozen Contract Buyers League families were evicted. (Courtesy of Sun-Times Media)

“A lot of people fell by the way,” Lewis told me. “One woman asked me if I would keep all her china. She said, ‘They ain’t going to set you out.’ ”

VIII. “Negro Poverty is not White Poverty”

On a recent spring afternoon in North Lawndale, I visited Billy Lamar Brooks Sr. Brooks has been an activist since his youth in the Black Panther Party, when he aided the Contract Buyers League. I met him in his office at the Better Boys Foundation, a staple of North Lawndale whose mission is to direct local kids off the streets and into jobs and college. Brooks’s work is personal. On June 14, 1991, his 19-year-old son, Billy Jr., was shot and killed. “These guys tried to stick him up,” Brooks told me. “I suspect he could have been involved in some things … He’s always on my mind. Every day.”

Brooks was not raised in the streets, though in such a neighborhood it is impossible to avoid the influence. “I was in church three or four times a week. That’s where the girls were,” he said, laughing. “The stark reality is still there. There’s no shield from life. You got to go to school. I lived here. I went to Marshall High School. Over here were the Egyptian Cobras. Over there were the Vice Lords.”

Brooks has since moved away from Chicago’s West Side. But he is still working in North Lawndale. If “you got a nice house, you live in a nice neighborhood, then you are less prone to violence, because your space is not deprived,” Brooks said. “You got a security point. You don’t need no protection.” But if “you grow up in a place like this, housing sucks. When they tore down the projects here, they left the high-rises and came to the neighborhood with that gang mentality. You don’t have nothing, so you going to take something, even if it’s not real. You don’t have no street, but in your mind it’s yours.”

Visit North Lawndale today with Billy Brooks

We walked over to a window behind his desk. A group of young black men were hanging out in front of a giant mural memorializing two black men: In Lovin Memory Quentin aka “Q,” July 18, 1974 ❤ March 2, 2012. The name and face of the other man had been spray-painted over by a rival group. The men drank beer. Occasionally a car would cruise past, slow to a crawl, then stop. One of the men would approach the car and make an exchange, then the car would drive off. Brooks had known all of these young men as boys.

“That’s their corner,” he said.

We watched another car roll through, pause briefly, then drive off. “No respect, no shame,” Brooks said. “That’s what they do. From that alley to that corner. They don’t go no farther than that. See the big brother there? He almost died a couple of years ago. The one drinking the beer back there … I know all of them. And the reason they feel safe here is cause of this building, and because they too chickenshit to go anywhere. But that’s their mentality. That’s their block.”

Brooks showed me a picture of a Little League team he had coached. He went down the row of kids, pointing out which ones were in jail, which ones were dead, and which ones were doing all right. And then he pointed out his son—“That’s my boy, Billy,” Brooks said. Then he wondered aloud if keeping his son with him while working in North Lawndale had hastened his death. “It’s a definite connection, because he was part of what I did here. And I think maybe I shouldn’t have exposed him. But then, I had to,” he said, “because I wanted him with me.”

From the White House on down, the myth holds that fatherhood is the great antidote to all that ails black people. But Billy Brooks Jr. had a father. Trayvon Martin had a father. Jordan Davis had a father. Adhering to middle-class norms has never shielded black people from plunder. Adhering to middle-class norms is what made Ethel Weatherspoon a lucrative target for rapacious speculators. Contract sellers did not target the very poor. They targeted black people who had worked hard enough to save a down payment and dreamed of the emblem of American citizenship—homeownership. It was not a tangle of pathology that put a target on Clyde Ross’s back. It was not a culture of poverty that singled out Mattie Lewis for “the thrill of the chase and the kill.” Some black people always will be twice as good. But they generally find white predation to be thrice as fast.

Liberals today mostly view racism not as an active, distinct evil but as a relative of white poverty and inequality. They ignore the long tradition of this country actively punishing black success—and the elevation of that punishment, in the mid-20th century, to federal policy. President Lyndon Johnson may have noted in his historic civil-rights speech at Howard University in 1965 that “Negro poverty is not white poverty.” But his advisers and their successors were, and still are, loath to craft any policy that recognizes the difference.

After his speech, Johnson convened a group of civil-rights leaders, including the esteemed A. Philip Randolph and Bayard Rustin, to address the “ancient brutality.” In a strategy paper, they agreed with the president that “Negro poverty is a special, and particularly destructive, form of American poverty.” But when it came to specifically addressing the “particularly destructive,” Rustin’s group demurred, preferring to advance programs that addressed “all the poor, black and white.”

The urge to use the moral force of the black struggle to address broader inequalities originates in both compassion and pragmatism. But it makes for ambiguous policy. Affirmative action’s precise aims, for instance, have always proved elusive. Is it meant to make amends for the crimes heaped upon black people? Not according to the Supreme Court. In its 1978 ruling in Regents of the University of California v. Bakke, the Court rejected “societal discrimination” as “an amorphous concept of injury that may be ageless in its reach into the past.” Is affirmative action meant to increase “diversity”? If so, it only tangentially relates to the specific problems of black people—the problem of what America has taken from them over several centuries.

This confusion about affirmative action’s aims, along with our inability to face up to the particular history of white-imposed black disadvantage, dates back to the policy’s origins. “There is no fixed and firm definition of affirmative action,” an appointee in Johnson’s Department of Labor declared. “Affirmative action is anything that you have to do to get results. But this does not necessarily include preferential treatment.”

Yet America was built on the preferential treatment of white people—395 years of it. Vaguely endorsing a cuddly, feel-good diversity does very little to redress this.

Today, progressives are loath to invoke white supremacy as an explanation for anything. On a practical level, the hesitation comes from the dim view the Supreme Court has taken of the reforms of the 1960s. The Voting Rights Act has been gutted. The Fair Housing Act might well be next. Affirmative action is on its last legs. In substituting a broad class struggle for an anti-racist struggle, progressives hope to assemble a coalition by changing the subject.

The politics of racial evasion are seductive. But the record is mixed. Aid to Families With Dependent Children was originally written largely to exclude blacks—yet by the 1990s it was perceived as a giveaway to blacks. The Affordable Care Act makes no mention of race, but this did not keep Rush Limbaugh from denouncing it as reparations. Moreover, the act’s expansion of Medicaid was effectively made optional, meaning that many poor blacks in the former Confederate states do not benefit from it. The Affordable Care Act, like Social Security, will eventually expand its reach to those left out; in the meantime, black people will be injured.

Billy Brooks, who assisted the Contract Buyers League, still works in the neighborhood, helping kids escape poverty and violence. (Carlos Javier Ortiz)

“All that it would take to sink a new WPA program would be some skillfully packaged footage of black men leaning on shovels smoking cigarettes,” the sociologist Douglas S. Massey writes. “Papering over the issue of race makes for bad social theory, bad research, and bad public policy.” To ignore the fact that one of the oldest republics in the world was erected on a foundation of white supremacy, to pretend that the problems of a dual society are the same as the problems of unregulated capitalism, is to cover the sin of national plunder with the sin of national lying. The lie ignores the fact that reducing American poverty and ending white supremacy are not the same. The lie ignores the fact that closing the “achievement gap” will do nothing to close the “injury gap,” in which black college graduates still suffer higher unemployment rates than white college graduates, and black job applicants without criminal records enjoy roughly the same chance of getting hired as white applicants with criminal records.

Chicago, like the country at large, embraced policies that placed black America’s most energetic, ambitious, and thrifty countrymen beyond the pale of society and marked them as rightful targets for legal theft. The effects reverberate beyond the families who were robbed to the community that beholds the spectacle. Don’t just picture Clyde Ross working three jobs so he could hold on to his home. Think of his North Lawndale neighbors—their children, their nephews and nieces—and consider how watching this affects them. Imagine yourself as a young black child watching your elders play by all the rules only to have their possessions tossed out in the street and to have their most sacred possession—their home—taken from them.

The message the young black boy receives from his country, Billy Brooks says, is “ ‘You ain’t shit. You not no good. The only thing you are worth is working for us. You will never own anything. You not going to get an education. We are sending your ass to the penitentiary.’ They’re telling you no matter how hard you struggle, no matter what you put down, you ain’t shit. ‘We’re going to take what you got. You will never own anything, nigger.’ ”

IX. Toward A New Country

When Clyde Ross was a child, his older brother Winter had a seizure. He was picked up by the authorities and delivered to Parchman Farm, a 20,000-acre state prison in the Mississippi Delta region.

“He was a gentle person,” Clyde Ross says of his brother. “You know, he was good to everybody. And he started having spells, and he couldn’t control himself. And they had him picked up, because they thought he was dangerous.”

Built at the turn of the century, Parchman was supposed to be a progressive and reformist response to the problem of “Negro crime.” In fact it was the gulag of Mississippi, an object of terror to African Americans in the Delta. In the early years of the 20th century, Mississippi Governor James K. Vardaman used to amuse himself by releasing black convicts into the surrounding wilderness and hunting them down with bloodhounds. “Throughout the American South,” writes David M. Oshinsky in his book Worse Than Slavery, “Parchman Farm is synonymous with punishment and brutality, as well it should be … Parchman is the quintessential penal farm, the closest thing to slavery that survived the Civil War.”

When the Ross family went to retrieve Winter, the authorities told them that Winter had died. When the Ross family asked for his body, the authorities at Parchman said they had buried him. The family never saw Winter’s body.

And this was just one of their losses.

Scholars have long discussed methods by which America might make reparations to those on whose labor and exclusion the country was built. In the 1970s, the Yale Law professor Boris Bittker argued in The Case for Black Reparations that a rough price tag for reparations could be determined by multiplying the number of African Americans in the population by the difference in white and black per capita income. That number—$34 billion in 1973, when Bittker wrote his book—could be added to a reparations program each year for a decade or two. Today Charles Ogletree, the Harvard Law School professor, argues for something broader: a program of job training and public works that takes racial justice as its mission but includes the poor of all races.

To celebrate freedom and democracy while forgetting America’s origins in a slavery economy is patriotism à la carte.

Perhaps no statistic better illustrates the enduring legacy of our country’s shameful history of treating black people as sub-citizens, sub-Americans, and sub-humans than the wealth gap. Reparations would seek to close this chasm. But as surely as the creation of the wealth gap required the cooperation of every aspect of the society, bridging it will require the same.

Perhaps after a serious discussion and debate—the kind that HR 40 proposes—we may find that the country can never fully repay African Americans. But we stand to discover much about ourselves in such a discussion—and that is perhaps what scares us. The idea of reparations is frightening not simply because we might lack the ability to pay. The idea of reparations threatens something much deeper—America’s heritage, history, and standing in the world.

The early American economy was built on slave labor. The Capitol and the White House were built by slaves. President James K. Polk traded slaves from the Oval Office. The laments about “black pathology,” the criticism of black family structures by pundits and intellectuals, ring hollow in a country whose existence was predicated on the torture of black fathers, on the rape of black mothers, on the sale of black children. An honest assessment of America’s relationship to the black family reveals the country to be not its nurturer but its destroyer.

And this destruction did not end with slavery. Discriminatory laws joined the equal burden of citizenship to unequal distribution of its bounty. These laws reached their apex in the mid-20th century, when the federal government—through housing policies—engineered the wealth gap, which remains with us to this day. When we think of white supremacy, we picture Colored Only signs, but we should picture pirate flags.

On some level, we have always grasped this.

“Negro poverty is not white poverty,” President Johnson said in his historic civil-rights speech.

Many of its causes and many of its cures are the same. But there are differences—deep, corrosive, obstinate differences—radiating painful roots into the community and into the family, and the nature of the individual. These differences are not racial differences. They are solely and simply the consequence of ancient brutality, past injustice, and present prejudice.

We invoke the words of Jefferson and Lincoln because they say something about our legacy and our traditions. We do this because we recognize our links to the past—at least when they flatter us. But black history does not flatter American democracy; it chastens it. The popular mocking of reparations as a harebrained scheme authored by wild-eyed lefties and intellectually unserious black nationalists is fear masquerading as laughter. Black nationalists have always perceived something unmentionable about America that integrationists dare not acknowledge—that white supremacy is not merely the work of hotheaded demagogues, or a matter of false consciousness, but a force so fundamental to America that it is difficult to imagine the country without it.

And so we must imagine a new country. Reparations—by which I mean the full acceptance of our collective biography and its consequences—is the price we must pay to see ourselves squarely. The recovering alcoholic may well have to live with his illness for the rest of his life. But at least he is not living a drunken lie. Reparations beckons us to reject the intoxication of hubris and see America as it is—the work of fallible humans.

Won’t reparations divide us? Not any more than we are already divided. The wealth gap merely puts a number on something we feel but cannot say—that American prosperity was ill-gotten and selective in its distribution. What is needed is an airing of family secrets, a settling with old ghosts. What is needed is a healing of the American psyche and the banishment of white guilt.

What I’m talking about is more than recompense for past injustices—more than a handout, a payoff, hush money, or a reluctant bribe. What I’m talking about is a national reckoning that would lead to spiritual renewal. Reparations would mean the end of scarfing hot dogs on the Fourth of July while denying the facts of our heritage. Reparations would mean the end of yelling “patriotism” while waving a Confederate flag. Reparations would mean a revolution of the American consciousness, a reconciling of our self-image as the great democratizer with the facts of our history.

X. “There Will Be No ‘Reparations’ From Germany”

We are not the first to be summoned to such a challenge.

In 1952, when West Germany began the process of making amends for the Holocaust, it did so under conditions that should be instructive to us. Resistance was violent. Very few Germans believed that Jews were entitled to anything. Only 5 percent of West Germans surveyed reported feeling guilty about the Holocaust, and only 29 percent believed that Jews were owed restitution from the German people.

“The rest,” the historian Tony Judt wrote in his 2005 book, Postwar, “were divided between those (some two-fifths of respondents) who thought that only people ‘who really committed something’ were responsible and should pay, and those (21 percent) who thought ‘that the Jews themselves were partly responsible for what happened to them during the Third Reich.’ ”

Germany’s unwillingness to squarely face its history went beyond polls. Movies that suggested a societal responsibility for the Holocaust beyond Hitler were banned. “The German soldier fought bravely and honorably for his homeland,” claimed President Eisenhower, endorsing the Teutonic national myth. Judt wrote, “Throughout the fifties West German officialdom encouraged a comfortable view of the German past in which the Wehrmacht was heroic, while Nazis were in a minority and properly punished.”

Konrad Adenauer, the postwar German chancellor, was in favor of reparations, but his own party was divided, and he was able to get an agreement passed only with the votes of the Social Democratic opposition.

Among the Jews of Israel, reparations provoked violent and venomous reactions ranging from denunciation to assassination plots. On January 7, 1952, as the Knesset—the Israeli parliament—convened to discuss the prospect of a reparations agreement with West Germany, Menachem Begin, the future prime minister of Israel, stood in front of a large crowd, inveighing against the country that had plundered the lives, labor, and property of his people. Begin claimed that all Germans were Nazis and guilty of murder. His condemnations then spread to his own young state. He urged the crowd to stop paying taxes and claimed that the nascent Israeli nation characterized the fight over whether or not to accept reparations as a “war to the death.” When alerted that the police watching the gathering were carrying tear gas, allegedly of German manufacture, Begin yelled, “The same gases that asphyxiated our parents!”

Begin then led the crowd in an oath to never forget the victims of the Shoah, lest “my right hand lose its cunning” and “my tongue cleave to the roof of my mouth.” He took the crowd through the streets toward the Knesset. From the rooftops, police repelled the crowd with tear gas and smoke bombs. But the wind shifted, and the gas blew back toward the Knesset, billowing through windows shattered by rocks. In the chaos, Begin and Prime Minister David Ben-Gurion exchanged insults. Two hundred civilians and 140 police officers were wounded. Nearly 400 people were arrested. Knesset business was halted.

Begin then addressed the chamber with a fiery speech condemning the actions the legislature was about to take. “Today you arrested hundreds,” he said. “Tomorrow you may arrest thousands. No matter, they will go, they will sit in prison. We will sit there with them. If necessary, we will be killed with them. But there will be no ‘reparations’ from Germany.”

Nahum Goldman, the president of the Jewish Claims Commission (center), signs 1952 reparations agreements between Germany and Israel. The two delegations entered the room by different doors, and the ceremony was carried out in silence. (Associated Press)

Survivors of the Holocaust feared laundering the reputation of Germany with money, and mortgaging the memory of their dead. Beyond that, there was a taste for revenge. “My soul would be at rest if I knew there would be 6 million German dead to match the 6 million Jews,” said Meir Dworzecki, who’d survived the concentration camps of Estonia.

Ben-Gurion countered this sentiment, not by repudiating vengeance but with cold calculation: “If I could take German property without sitting down with them for even a minute but go in with jeeps and machine guns to the warehouses and take it, I would do that—if, for instance, we had the ability to send a hundred divisions and tell them, ‘Take it.’ But we can’t do that.”

The reparations conversation set off a wave of bomb attempts by Israeli militants. One was aimed at the foreign ministry in Tel Aviv. Another was aimed at Chancellor Adenauer himself. And one was aimed at the port of Haifa, where the goods bought with reparations money were arriving. West Germany ultimately agreed to pay Israel 3.45 billion deutsche marks, or more than $7 billion in today’s dollars. Individual reparations claims followed—for psychological trauma, for offense to Jewish honor, for halting law careers, for life insurance, for time spent in concentration camps. Seventeen percent of funds went toward purchasing ships. “By the end of 1961, these reparations vessels constituted two-thirds of the Israeli merchant fleet,” writes the Israeli historian Tom Segev in his book The Seventh Million. “From 1953 to 1963, the reparations money funded about a third of the total investment in Israel’s electrical system, which tripled its capacity, and nearly half the total investment in the railways.”

Israel’s GNP tripled during the 12 years of the agreement. The Bank of Israel attributed 15 percent of this growth, along with 45,000 jobs, to investments made with reparations money. But Segev argues that the impact went far beyond that. Reparations “had indisputable psychological and political importance,” he writes.

Reparations could not make up for the murder perpetrated by the Nazis. But they did launch Germany’s reckoning with itself, and perhaps provided a road map for how a great civilization might make itself worthy of the name.

Assessing the reparations agreement, David Ben-Gurion said:

For the first time in the history of relations between people, a precedent has been created by which a great State, as a result of moral pressure alone, takes it upon itself to pay compensation to the victims of the government that preceded it. For the first time in the history of a people that has been persecuted, oppressed, plundered and despoiled for hundreds of years in the countries of Europe, a persecutor and despoiler has been obliged to return part of his spoils and has even undertaken to make collective reparation as partial compensation for material losses.

Something more than moral pressure calls America to reparations. We cannot escape our history. All of our solutions to the great problems of health care, education, housing, and economic inequality are troubled by what must go unspoken. “The reason black people are so far behind now is not because of now,” Clyde Ross told me. “It’s because of then.” In the early 2000s, Charles Ogletree went to Tulsa, Oklahoma, to meet with the survivors of the 1921 race riot that had devastated “Black Wall Street.” The past was not the past to them. “It was amazing seeing these black women and men who were crippled, blind, in wheelchairs,” Ogletree told me. “I had no idea who they were and why they wanted to see me. They said, ‘We want you to represent us in this lawsuit.’ ”

In the spring of 1921, a white mob leveled “Black Wall Street” in Tulsa, Oklahoma. Here, wounded prisoners ride in an Army truck during the martial law imposed by the Oklahoma governor in response to the race riot. (Hulton-Deutsch Collection/Corbis)

A commission authorized by the Oklahoma legislature produced a report affirming that the riot, the knowledge of which had been suppressed for years, had happened. But the lawsuit ultimately failed, in 2004. Similar suits pushed against corporations such as Aetna (which insured slaves) and Lehman Brothers (whose co-founding partner owned them) also have thus far failed. These results are dispiriting, but the crime with which reparations activists charge the country implicates more than just a few towns or corporations. The crime indicts the American people themselves, at every level, and in nearly every configuration. A crime that implicates the entire American people deserves its hearing in the legislative body that represents them.

John Conyers’s HR 40 is the vehicle for that hearing. No one can know what would come out of such a debate. Perhaps no number can fully capture the multi-century plunder of black people in America. Perhaps the number is so large that it can’t be imagined, let alone calculated and dispensed. But I believe that wrestling publicly with these questions matters as much as—if not more than—the specific answers that might be produced. An America that asks what it owes its most vulnerable citizens is improved and humane. An America that looks away is ignoring not just the sins of the past but the sins of the present and the certain sins of the future. More important than any single check cut to any African American, the payment of reparations would represent America’s maturation out of the childhood myth of its innocence into a wisdom worthy of its founders.

In 2010, Jacob S. Rugh, then a doctoral candidate at Princeton, and the sociologist Douglas S. Massey published a study of the recent foreclosure crisis. Among its drivers, they found an old foe: segregation. Black home buyers—even after controlling for factors like creditworthiness—were still more likely than white home buyers to be steered toward subprime loans. Decades of racist housing policies by the American government, along with decades of racist housing practices by American businesses, had conspired to concentrate African Americans in the same neighborhoods. As in North Lawndale half a century earlier, these neighborhoods were filled with people who had been cut off from mainstream financial institutions. When subprime lenders went looking for prey, they found black people waiting like ducks in a pen.

“High levels of segregation create a natural market for subprime lending,” Rugh and Massey write, “and cause riskier mortgages, and thus foreclosures, to accumulate disproportionately in racially segregated cities’ minority neighborhoods.”

Plunder in the past made plunder in the present efficient. The banks of America understood this. In 2005, Wells Fargo promoted a series of Wealth Building Strategies seminars. Dubbing itself “the nation’s leading originator of home loans to ethnic minority customers,” the bank enrolled black public figures in an ostensible effort to educate blacks on building “generational wealth.” But the “wealth building” seminars were a front for wealth theft. In 2010, the Justice Department filed a discrimination suit against Wells Fargo alleging that the bank had shunted blacks into predatory loans regardless of their creditworthiness. This was not magic or coincidence or misfortune. It was racism reifying itself. According to The New York Times, affidavits found loan officers referring to their black customers as “mud people” and to their subprime products as “ghetto loans.”

“We just went right after them,” Beth Jacobson, a former Wells Fargo loan officer, told The Times. “Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans.”

In 2011, Bank of America agreed to pay $355 million to settle charges of discrimination against its Countrywide unit. The following year, Wells Fargo settled its discrimination suit for more than $175 million. But the damage had been done. In 2009, half the properties in Baltimore whose owners had been granted loans by Wells Fargo between 2005 and 2008 were vacant; 71 percent of these properties were in predominantly black neighborhoods.

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DemocracyNow on Fast Food Organizing

This is a rush transcript. Copy may not be in its final form.

AMY GOODMAN: For more, we’re joined by two guests. Here in New York, Catherine Ruetschlin is a policy analyst at Demos and author of the report, “Fast Food Failure: How CEO-to-Worker Pay Disparity Undermines the Industry and the Overall Economy.” And Terrance Wise joins us from KCPT, Kansas City Public Television. He’s worked for Burger King for nine years, plans to go on strike today as part of the international push by fast-food and retail workers to demand a living wage. He’s a member of the Stand Up Kansas City campaign. We last spoke with Terrance in August as the strikes were just beginning here in the U.S.

We welcome you both to Democracy Now! Terrance, let’s go to you. You have worked at Burger King for nine years. How much do you make an hour, if you don’t mind me asking?

TERRANCE WISE: Well, I’ve worked in fast food for 17 years and at Burger King for nine years, and I make $9.40 an hour at Burger King.

AMY GOODMAN: I’m sorry, I didn’t catch what you said. Can you say that again?

TERRANCE WISE: I’m sorry. I’ve been working fast food for 17 years, and Burger King I’ve worked for the past nine years, and I make $9.40 an hour working there.

AMY GOODMAN: And why are you going on strike today?

TERRANCE WISE: Well, I’m going on strike for my family. I raise three little girls here in Kansas City, and I need their future not to look anything like the past. We’ve struggled with homelessness, paying basic utilities—gas, rent, the lights. And that’s while working every day. The working poor is what we are.

AMY GOODMAN: Are you concerned about retaliation if you go out today? What has Burger King said? Presumably, since this is being organized all over the country, Burger King and McDonald’s know that workers are going to be walking out.

TERRANCE WISE: Well, me, I first spoke to you, Amy, in August. That was my first strike. And this is number four for me. So, we know that the federal laws provide us protection when we come together as workers and demand the corporations we work for to pay us a living wage and to give us the right to form a union. So with that knowledge of knowing that the federal government protects our rights to organize and go on strike, it’s a huge relief for fast-food workers.

AMY GOODMAN: Terrance, how many hours a week do you work at Burger King?

TERRANCE WISE: Between 35, 40 hours a week.

AMY GOODMAN: And your take-home pay?

TERRANCE WISE: Well, it’s—I make $9.40 an hour, so it’s like 35, 40 hours a week. It’s, after taxes, maybe $400 every two weeks. And that’s working double sometimes, going in in the morning and working at night, just not bringing in enough. And we know that these companies make billions in profit. They can afford to pay us better and do better by us and give us a voice on the job. That’s what we’re demanding.

AMY GOODMAN: Well, Catherine Ruetschlin, you’ve been studying this, the issue of what these fast-food companies can afford. Your report, “Fast Food Failure: How CEO-to-Worker Pay Disparity Undermines the Industry and the Overall Economy.” What is the disparity between the CEO, say, of Burger King and the workers, or McDonald’s?

CATHERINE RUETSCHLIN: Well, you know, when I started the study, I didn’t know that fast food was going to be such an extreme outlier in terms of pay disparity. The study arose kind of in this context that Terrance and other workers like him have created, where there’s a growing awareness that inequality is undermining the economy at several levels. But when I dug into the data, what I found was that fast food is a catalyst, with inequality that outstrips all the sectors of the economy. The CEO of a fast-food company in 2012 earned 1,200 times what the typical worker earned that year.

AMY GOODMAN: Twelve hundred times.

CATHERINE RUETSCHLIN: Twelve hundred times. And that’s with a fairly generous assumption that workers in fast food are receiving benefits and work a full-time schedule, which in many cases, you know, isn’t true.

AMY GOODMAN: How does that affect the industry and the economy as a whole? You say it hurts it.

CATHERINE RUETSCHLIN: That’s right. You know, there’s a macro-level story that’s just become a part of the conversation with organizations like the IMF and the World Economic Forum in Davos, pointing to inequality as a threat at the macro level because it generates instability in the economy and undermines growth. But then, at the micro level, firms are starting to wake up to the fact that it undermines their bottom lines, as well. In March, McDonald’s filed with the SEC and listed income inequality as one of the primary risks facing their own returns over the coming years, not just because workers are striking, but because they’re having a hard time satisfying their customers because they’ve underinvested in the front-line services that really build the brand and provide revenues to the firm.

AMY GOODMAN: How do you respond to the companies saying, “All right, if they increase the workers’ wages, but then consumers have to be willing to pay more for the burgers”?

CATHERINE RUETSCHLIN: Well, firms have a lot of ways that they could pay for a raise. They don’t necessarily have to pass the cost on to customers. They could do that, but they could also use some of the ways that they’re redirecting their profits right now. Firms like McDonald’s spend billions of dollars a year buying back their own shares of company stock on the market in order to consolidate ownership and bump up earnings per share and meet these short-term benchmarks. But that’s really a short-term understanding of the interest of the firm, right? If they had a longer-term perspective, they would see that rather than investing in their share price, if they were investing in their labor force, they would generate returns—higher productivity, loyal workers with better knowledge of the company processes, you know, lower turnover rates, so lower costs associated with job search—and it would actually receive benefits through that investment that would pay off in the long run.

AMY GOODMAN: And the issue of how these companies are subsidized, government-subsidized?

CATHERINE RUETSCHLIN: That’s right. A study came out recently that shows that fast-food employers, like McDonald’s, Subway, you know, Yum! Brands, which owns Taco Bell and KFC and Pizza Hut, Domino’s Pizza, these are some of the highest-ranking employers in terms of working poor. So, if you can—if you look into who’s receiving healthcare benefits for their families and wage subsidies from the state agencies, from poverty alleviation programs, the highest-ranking firms are Wal-Mart and fast food. So, it’s the taxpayers who are actually paying the—for the ability for these firms to maintain a labor force at all.

AMY GOODMAN: Terrance, how does it feel to learn that the CEO makes something like 1,200 times more than what you make?

TERRANCE WISE: Well, I know that workers like myself and my co-workers across the city, we go to work every day, and we’re the driving force behind his billions in profit he brings in. He’s buying new yachts and new boats and new cars, and I just want to put my kids through college. So, just to see the disparity that I’m making $9.50 an hour and he makes over $9,000, and just to get that out to the public and that information to be known, it’s eye-opening. And it calls for change.

AMY GOODMAN: And, Terrance, the action you’re going to engage in today in Kansas City, what exactly are you going to do?

TERRANCE WISE: Well, like I said earlier, this is my fourth time. And I’ll band together with the majority of the co-workers at my store and hundreds of workers from around the city, and we’ll go different parts of the city. We’ll do chants. We’ll hold signs. We’ll give speak-outs. We’ll try to enter some stores, like I heard them say on New York earlier. In New York City, they’ve been doing this, and we’ll be doing this here in Kansas City. It’s just to get the message out to the public and to our bosses in the companies, that we’re not afraid. We’re going to stand together in solidarity, and we demand better. We’re not asking for a minimum wage increase. It’s not a minimum wage drive. It’s for billion-dollar corporations that have the money to pay us better and give us the right to have a union in this industry.

AMY GOODMAN: Well, Terrance Wise, I want to thank you very much for being with us, Burger King worker on strike today, part of Stand Up Kansas City, speaking to us from Kansas City Public Television. And, Catherine Ruetschlin, one more thing, not only the issue of the pay ratio of worker to CEO, 1,200 to one, CEO of course being the 1,200, but the fast-food CEOs earnings quadrupling.

CATHERINE RUETSCHLIN: That’s right.

AMY GOODMAN: Compared to what, with the workers?

CATHERINE RUETSCHLIN: That’s right. What we’ve seen is that at these firms that have benefited from economic growth, overall, the CEOs and top executives have been able to capture all of those gains. So, while the fast-food CEO pay grew by 470 percent since 2000, worker earnings only grew by 0.3 percent. Now, that means that their earnings aren’t even keeping up with the basic cost of living, so they’re actually losing ground in terms of standard of living year after year.

AMY GOODMAN: Catherine Ruetschlin, I’d like you to stay with us, because next up after break we’re going to talk about Wal-Mart. President Obama spoke at a Wal-Mart recently. Right afterwards, 1,800 warehouse workers in California settled a major wage theft lawsuit against Wal-Mart and one of its largest contractors. This is Democracy Now! We’ll be back in a moment.

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Chomsky on Higher Education

The Death of American Universities

As universities move towards a corporate business model, precarity is being imposed by force.

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The following is an edited transcript (prepared by Robin J. Sowards) of remarks given by Noam Chomsky last month to a gathering of members and allies of the Adjunct Faculty Association of the United Steelworkers in Pittsburgh, Penn.

On hiring faculty off the tenure track

That’s part of the business model. It’s the same as hiring temps in industry or what they call “associates” at Walmart, employees that aren’t owed benefits. It’s a part of a corporate business model designed to reduce labor costs and to increase labor servility. When universities become corporatized, as has been happening quite systematically over the last generation as part of the general neoliberal assault on the population, their business model means that what matters is the bottom line.

The effective owners are the trustees (or the legislature, in the case of state universities), and they want to keep costs down and make sure that labor is docile and obedient. The way to do that is, essentially, temps. Just as the hiring of temps has gone way up in the neoliberal period, you’re getting the same phenomenon in the universities.

The idea is to divide society into two groups. One group is sometimes called the “plutonomy” (a term used by Citibank when they were advising their investors on where to invest their funds), the top sector of wealth, globally but concentrated mostly in places like the United States. The other group, the rest of the population, is a “precariat,” living a precarious existence.

This idea is sometimes made quite overt. So when Alan Greenspan was testifying before Congress in 1997 on the marvels of the economy he was running, he said straight out that one of the bases for its economic success was imposing what he called “greater worker insecurity.” If workers are more insecure, that’s very “healthy” for the society, because if workers are insecure they won’t ask for wages, they won’t go on strike, they won’t call for benefits; they’ll serve the masters gladly and passively. And that’s optimal for corporations’ economic health.

At the time, everyone regarded Greenspan’s comment as very reasonable, judging by the lack of reaction and the great acclaim he enjoyed. Well, transfer that to the universities: how do you ensure “greater worker insecurity”? Crucially, by not guaranteeing employment, by keeping people hanging on a limb than can be sawed off at any time, so that they’d better shut up, take tiny salaries, and do their work; and if they get the gift of being allowed to serve under miserable conditions for another year, they should welcome it and not ask for any more.

That’s the way you keep societies efficient and healthy from the point of view of the corporations. And as universities move towards a corporate business model, precarity is exactly what is being imposed. And we’ll see more and more of it.

That’s one aspect, but there are other aspects which are also quite familiar from private industry, namely a large increase in layers of administration and bureaucracy. If you have to control people, you have to have an administrative force that does it. So in US industry even more than elsewhere, there’s layer after layer of management — a kind of economic waste, but useful for control and domination.

And the same is true in universities. In the past thirty or forty years, there’s been a very sharp increase in the proportion of administrators to faculty and students; faculty and students levels have stayed fairly level relative to one another, but the proportion of administrators have gone way up.

There’s a very good book on it by a well-known sociologist, Benjamin Ginsberg, called The Fall of the Faculty: The Rise of the All-Administrative University and Why It Matters, which describes in detail the business style of massive administration and levels of administration — and of course, very highly-paid administrators. This includes professional administrators like deans, for example, who used to be faculty members who took off for a couple of years to serve in an administrative capacity and then go back to the faculty; now they’re mostly professionals, who then have to hire sub-deans, and secretaries, and so on and so forth, a whole proliferation of structure that goes along with administrators. All of that is another aspect of the business model.

But using cheap and vulnerable labor is a business practice that goes as far back as you can trace private enterprise, and unions emerged in response. In the universities, cheap, vulnerable labor means adjuncts and graduate students. Graduate students are even more vulnerable, for obvious reasons. The idea is to transfer instruction to precarious workers, which improves discipline and control but also enables the transfer of funds to other purposes apart from education.

The costs, of course, are borne by the students and by the people who are being drawn into these vulnerable occupations. But it’s a standard feature of a business-run society to transfer costs to the people. In fact, economists tacitly cooperate in this. So, for example, suppose you find a mistake in your checking account and you call the bank to try to fix it. Well, you know what happens. You call them up, and you get a recorded message saying “We love you, here’s a menu.” Maybe the menu has what you’re looking for, maybe it doesn’t. If you happen to find the right option, you listen to some music, and every once and a while a voice comes in and says “Please stand by, we really appreciate your business,” and so on.

Finally, after some period of time, you may get a human being, who you can ask a short question to. That’s what economists call “efficiency.” By economic measures, that system reduces labor costs to the bank; of course, it imposes costs on you, and those costs are multiplied by the number of users, which can be enormous — but that’s not counted as a cost in economic calculation. And if you look over the way the society works, you find this everywhere.

So the university imposes costs on students and on faculty who are not only untenured but are maintained on a path that guarantees that they will have no security. All of this is perfectly natural within corporate business models. It’s harmful to education, but education is not their goal.

In fact, if you look back farther, it goes even deeper than that. If you go back to the early 1970s when a lot of this began, there was a lot of concern pretty much across the political spectrum over the activism of the 1960s; it’s commonly called “the time of troubles.” It was a “time of troubles” because the country was getting civilized, and that’s dangerous. People were becoming politically engaged and were trying to gain rights for groups that are called “special interests,” like women, working people, farmers, the young, the old, and so on. That led to a serious backlash, which was pretty overt.

At the liberal end of the spectrum, there’s a book called The Crisis of Democracy: Report on the Governability of Democracies to the Trilateral Commission, Michel Crozier, Samuel P. Huntington, Joji Watanuki , produced by the Trilateral Commission, an organization of liberal internationalists. The Carter administration was drawn almost entirely from their ranks. They were concerned with what they called “the crisis of democracy” — namely, that there’s too much democracy.

In the 1960s, there were pressures from the population, these “special interests,” to try to gain rights within the political arena, and that put too much pressure on the state. You can’t do that. There was one “special interest” that they left out, namely the corporate sector, because its interests are the “national interest”; the corporate sector is supposed to control the state, so we don’t talk about them. But the “special interests” were causing problems and they said “we have to have more moderation in democracy,” the public has to go back to being passive and apathetic.

And they were particularly concerned with schools and universities, which they said were not properly doing their job of “indoctrinating the young.” You can see from student activism (the civil rights movement, the anti-war movement, the feminist movement, the environmental movements) that the young are just not being indoctrinated properly.

Well, how do you indoctrinate the young? There are a number of ways. One way is to burden them with hopelessly heavy tuition debt. Debt is a trap, especially student debt, which is enormous, far larger than credit card debt. It’s a trap for the rest of your life because the laws are designed so that you can’t get out of it. If a business, say, gets in too much debt it can declare bankruptcy, but individuals can almost never be relieved of student debt through bankruptcy. They can even garnish social security if you default. That’s a disciplinary technique.

I don’t say that it was consciously introduced for the purpose, but it certainly has that effect. And it’s hard to argue that there’s any economic basis for it. Just take a look around the world: higher education is mostly free. In the countries with the highest education standards, let’s say Finland, which is at the top all the time, higher education is free. And in a rich, successful capitalist country like Germany, it’s free. In Mexico, a poor country, which has pretty decent education standards, considering the economic difficulties they face, it’s free.

In fact, look at the United States: if you go back to the 1940s and 1950s, higher education was pretty close to free. The GI Bill gave free education to vast numbers of people who would never have been able to go to college. It was very good for them and it was very good for the economy and the society; it was part of the reason for the high economic growth rate. Even in private colleges, education was pretty close to free.

Take me: I went to college in 1945 at an Ivy League university, University of Pennsylvania, and tuition was $100. That would be maybe $800 in today’s dollars. And it was very easy to get a scholarship, so you could live at home, work, and go to school and it didn’t cost you anything. Now it’s outrageous. I have grandchildren in college, who have to pay for their tuition and work and it’s almost impossible. For the students. that is a disciplinary technique.

And another technique of indoctrination is to cut back faculty-student contact: large classes, temporary teachers who are overburdened, who can barely survive on an adjunct salary. And since you don’t have any job security, you can’t build up a career, you can’t move on and get more. These are all techniques of discipline, indoctrination, and control.

And it’s very similar to what you’d expect in a factory, where factory workers have to be disciplined, to be obedient; they’re not supposed to play a role in, say, organizing production or determining how the workplace functions-that’s the job of management. This is now carried over to the universities. And I think it shouldn’t surprise anyone who has any experience in private enterprise, in industry; that’s the way they work.

On how higher education ought to be

First of all, we should put aside any idea that there was once a “golden age.” Things were different and in some ways better in the past, but far from perfect. The traditional universities were, for example, extremely hierarchical, with very little democratic participation in decision-making. One part of the activism of the 1960s was to try to democratize the universities, to bring in, say, student representatives to faculty committees, to bring in staff to participate.

These efforts were carried forward under student initiatives, with some degree of success. Most universities now have some degree of student participation in faculty decisions. And I think those are the kinds of things we should be moving towards: a democratic institution, in which the people involved in the institution, whoever they may be (faculty, students, staff), participate in determining the nature of the institution and how it runs; and the same should go for a factory.

These are not radical ideas, I should say. They come straight out of classical liberalism. So if you read, for example, John Stuart Mill, a major figure in the classical liberal tradition, he took it for granted that workplaces ought to be managed and controlled by the people who work in them — that’s freedom and democracy. We see the same ideas in the United States. Let’s say you go back to the Knights of Labor; one of their stated aims was “To establish co-operative institutions such as will tend to supersede the wage-system, by the introduction of a co-operative industrial system.”

Or take someone like John Dewey, a mainstream twentieth-century social philosopher, who called not only for education directed at creative independence in schools, but also worker control in industry, what he called “industrial democracy.” He says that as long as the crucial institutions of the society (like production, commerce, transportation, media) are not under democratic control, then “politics [will be] the shadow cast on society by big business.”

This idea is almost elementary, it has deep roots in American history and in classical liberalism. It should be second nature to working people, and it should apply the same way to universities. There are some decisions in a university where you don’t want to have [democratic transparency because] you have to preserve student privacy, say, and there are various kinds of sensitive issues, but on much of the normal activity of the university, there is no reason why direct participation can’t be not only legitimate but helpful. In my department, for example, for forty years we’ve had student representatives helpfully participating in department meetings.

On “shared governance” and worker control

The university is probably the social institution in our society that comes closest to democratic worker control. Within a department, for example, it’s pretty normal for at least the tenured faculty to be able to determine a substantial amount of what their work is like: what they’re going to teach, when they’re going to teach, what the curriculum will be. And most of the decisions about the actual work that the faculty is doing are pretty much under tenured faculty control.

Now, of course, there is a higher level of administrators that you can’t overrule or control. The faculty can recommend somebody for tenure, let’s say, and be turned down by the deans, or the president, or even the trustees or legislators. It doesn’t happen all that often, but it can happen and it does. And that’s always a part of the background structure, which, although it always existed, was much less of a problem in the days when the administration was drawn from the faculty and in principle recallable.

Under representative systems, you have to have someone doing administrative work, but they should be recallable at some point under the authority of the people they administer. That’s less and less true. There are more and more professional administrators, layer after layer of them, with more and more positions being taken remote from the faculty controls. I mentioned before The Fall of the Faculty by Benjamin Ginsberg, which goes into a lot of detail as to how this works in the several universities he looks at closely: Johns Hopkins, Cornell, and a couple of others.

Meanwhile, the faculty are increasingly reduced to a category of temporary workers who are assured a precarious existence with no path to the tenure track. I have personal acquaintances who are effectively permanent lecturers; they’re not given real faculty status; they have to apply every year so that they can get appointed again. These things shouldn’t be allowed to happen.

And in the case of adjuncts, it’s been institutionalized: they’re not permitted to be a part of the decision-making apparatus, and they’re excluded from job security, which merely amplifies the problem. I think staff ought to also be integrated into decision-making, since they’re also a part of the university.

So there’s plenty to do, but I think we can easily understand why these tendencies are developing. They are all part of imposing a business model on just about every aspect of life. That’s the neoliberal ideology that most of the world has been living under for forty years. It’s very harmful to people, and there has been resistance to it. And it’s worth noticing that two parts of the world, at least, have pretty much escaped from it, namely East Asia, where they never really accepted it, and South America in the past fifteen years.

On the alleged need for “flexibility”

“Flexibility” is a term that’s very familiar to workers in industry. Part of what’s called “labor reform” is to make labor more “flexible,” make it easier to hire and fire people. That’s, again, a way to ensure maximization of profit and control. “Flexibility” is supposed to be a good thing, like “greater worker insecurity.” Putting aside industry where the same is true, in universities there’s no justification.

So take a case where there’s under-enrollment somewhere. That’s not a big problem. One of my daughters teaches at a university; she just called me the other night and told me that her teaching load is being shifted because one of the courses that was being offered was under-enrolled. Okay, the world didn’t come to an end, they just shifted around the teaching arrangements-you teach a different course, or an extra section, or something like that. People don’t have to be thrown out or be insecure because of the variation in the number of students enrolling in courses. There are all sorts of ways of adjusting for that variation.

The idea that labor should meet the conditions of “flexibility” is just another standard technique of control and domination. Why not say that administrators should be thrown out if there’s nothing for them to do that semester, or trustees-what do they have to be there for? The situation is the same with top management in industry: if labor has to be flexible, how about management? Most of them are pretty useless or even harmful anyway, so let’s get rid of them.

And you can go on like this. Just to take the news from the last couple of days, take, say, Jamie Dimon, the CEO of JP Morgan Chase bank: he just got a pretty substantial raise, almost double his salary, out of gratitude because he had saved the bank from criminal charges that would have sent the management to jail; he got away with only $20 billion in fines for criminal activities. Well, I can imagine that getting rid of somebody like that might be helpful to the economy. But that’s not what people are talking about when they talk about “labor reform.” It’s the working people who have to suffer, and they have to suffer by insecurity, by not knowing where tomorrow’s piece of bread is going to come from, and therefore be disciplined and obedient and not raise questions or ask for their rights.

That’s the way that tyrannical systems operate. And the business world is a tyrannical system. When it’s imposed on the universities, you find it reflects the same ideas. This shouldn’t be any secret.

On the purpose of education

These are debates that go back to the Enlightenment, when issues of higher education and mass education were really being raised, not just education for the clergy and aristocracy. And there were basically two models discussed in the eighteenth and nineteenth centuries.

They were discussed with pretty evocative imagery. One image of education was that it should be like a vessel that is filled with, say, water. That’s what we call these days “teaching to test”: you pour water into the vessel and then the vessel returns the water. But it’s a pretty leaky vessel, as all of us who went through school experienced, since you could memorize something for an exam that you had no interest in to pass an exam and a week later you forgot what the course was about. The vessel model these days is called “no child left behind,” “teaching to test,” “race to top,” whatever the name may be, and similar things in universities. Enlightenment thinkers opposed that model.

The other model was described as laying out a string along which the student progresses in his or her own way under his or her own initiative, maybe moving the string, maybe deciding to go somewhere else, maybe raising questions. Laying out the string means imposing some degree of structure. So an educational program, whatever it may be, a course on physics or something, isn’t going to be just anything goes; it has a certain structure.

But the goal of it is for the student to acquire the capacity to inquire, to create, to innovate, to challenge-that’s education. One world-famous physicist, in his freshman courses if he was asked “what are we going to cover this semester?” his answer was “it doesn’t matter what we cover, it matters what you discover.” You have gain the capacity and the self-confidence for that matter to challenge and create and innovate, and that way you learn; that way you’ve internalized the material and you can go on. It’s not a matter of accumulating some fixed array of facts which then you can write down on a test and forget about tomorrow.

These are two quite distinct models of education. The Enlightenment ideal was the second one, and I think that’s the one that we ought to be striving towards. That’s what real education is, from kindergarten to graduate school. In fact there are programs of that kind for kindergarten, pretty good ones.

On the love of teaching

We certainly want people, both faculty and students, to be engaged in activity that’s satisfying, enjoyable, challenging, exciting-and I don’t really think that’s hard. Even young children are creative, inquisitive, they want to know things, they want to understand things, and unless that’s beaten out of your head it stays with you the rest of your life. If you have opportunities to pursue those commitments and concerns, it’s one of the most satisfying things in life.

That’s true if you’re a research physicist, it’s true if you’re a carpenter; you’re trying to create something of value and deal with a difficult problem and solve it. I think that’s what makes work the kind of thing you want to do; you do it even if you don’t have to do it. In a reasonably functioning university, you find people working all the time because they love it; that’s what they want to do; they’re given the opportunity, they have the resources, they’re encouraged to be free and independent and creative-what’s better? That’s what they love to do. And that, again, can be done at any level.

It’s worth thinking about some of the imaginative and creative educational programs that are being developed at different levels. So, for example, somebody just described to me the other day a program they’re using in high schools, a science program where the students are asked an interesting question: “How can a mosquito fly in the rain?”

That’s a hard question when you think about it. If something hit a human being with the force of a raindrop hitting a mosquito it would absolutely flatten them immediately. So how come the mosquito isn’t crushed instantly? And how can the mosquito keep flying? If you pursue that question — and it’s a pretty hard question — you get into questions of mathematics, physics, and biology, questions that are challenging enough that you want to find an answer to them.

That’s what education should be like at every level, all the way down to kindergarten, literally. There are kindergarten programs in which, say, each child is given a collection of little items: pebbles, shells, seeds, and things like that. Then the class is given the task of finding out which ones are the seeds. It begins with what they call a “scientific conference”: the kids talk to each other and they try to figure out which ones are seeds. And of course, there’s some teacher guidance, but the idea is to have the children think it through.

After a while, they try various experiments and they figure out which ones are the seeds. At that point, each child is given a magnifying glass and, with the teacher’s help, cracks a seed and looks inside and finds the embryo that makes the seed grow. These children learn something-really, not only something about seeds and what makes things grow; but also about how to discover. They’re learning the joy of discovery and creation, and that’s what carries you on independently, outside the classroom, outside the course.

The same goes for all education up through graduate school. In a reasonable graduate seminar, you don’t expect students to copy it down and repeat whatever you say; you expect them to tell you when you’re wrong or to come up with new ideas, to challenge, to pursue some direction that hadn’t been thought of before. That’s what real education is at every level, and that’s what ought to be encouraged. That ought to be the purpose of education. It’s not to pour information into somebody’s head which will then leak out but to enable them to become creative, independent people who can find excitement in discovery and creation and creativity at whatever level or in whatever domain their interests carry them.

Advice for adjunct faculty organizing unions

You know better than I do what has to be done, the kind of problems you face. Just got ahead and do what has to be done. Don’t be intimidated, don’t be frightened, and recognize that the future can be in our hands if we’re willing to grasp it.

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