A nudge is as good as a wink to a poor man

At A Fistful of Euros, Alex Harrowell makes fun of poorly thought out social psychology and in the process manages to crystalise for me what I find wrong with “nudging”:

Similarly, fans of “nudge” tend to complain that poor people make bad decisions about money, typically by prizing cash up front above everything. To put it in econospeak, irrational discounting leads them to have extremely high liquidity preference. But liquidity is useful, and people tend to want it if they are facing a dangerously uncertain future. And typical reasons to need cash fast include things like “topping up the electricity meter”, “the kids are hungry”, “collection goons are threatening physical violence”. It’s not as if they don’t need cash on hand for very good reasons.

Nudge theory, for those not paying attention, is a theory of social conditioning currently in vogue with David Cameron’s ConDem government, vaguely leftish, cheap and supposedly offering a way to manipulate people into doing the right thing without forcing them to: libertarian paternalism. Yes, this is as condescending as it sounds and does feel vaguely uncomfortable as any theory of social control does, but Alex nailed the real wrongness there: it assumes that the people it tries to “nudge” into the right behaviour are in control of their lives and their “deviancy” is down to individual choice rather than external circumstance. It treats people as consumers choosing a lifestyle and ignores all outside forces acting on them.

Your Happening World (21)

The work experience programme set up by the ConDem government is a scam where large companies get free employees at the taxpayer’s expense it turns out, to the surprise of absolutely no-one. Meanwhile the people suckered into it get no experience, take the place of people who’d actually be paid to stack shelves and are threatened by the loss of their unemployment benefits if they back out. It’s like the apprentice only with the offer of a minimum wage job at the end.

Eurozone bond markets suffered a mass sell-off on Tuesday as investor fears spread beyond Italy and Spain to triple A-rated France, Austria, Finland and the Netherlands. Yeah, there’s a surprise. Oddly enoguh throwing first Greece, then Italy to the wolves has not meant the rest of the countries in the EU troika are now safe…

But at least Europe is made safe for Goldman Sachs. The ascension of Mario Monti to the Italian prime ministership is remarkable for more reasons than it is possible to count. By replacing the scandal-surfing Silvio Berlusconi, Italy has dislodged the undislodgeable. By imposing rule by unelected technocrats, it has suspended the normal rules of democracy, and maybe democracy itself. And by putting a senior adviser at Goldman Sachs in charge of a Western nation, it has taken to new heights the political power of an investment bank that you might have thought was prohibitively politically toxic.

Occupy Wall Street: Chaotic Good. We tried to play by the rules and got ignored. Occupy Wall Street has thrown out the rule book.

Serpents: a public service announcement by Jack Crow.

Student labourers lured under false pretences? Just Hershey

So you’re a foreign student wanting to come to the United States through a summer visa programme, to both work and travel, get a bit of cultural exchange going? Sounds perfect doesn’t it, until you realise it means you spent your summer packing chocolates in boxes, for less money than it cost you to get there. Well, some of the students fooled this way aren’t taking it anymore:

PALMYRA, Pa. — Hundreds of foreign students, waving their fists and shouting defiantly in many languages, walked off their jobs on Wednesday at a plant here that packs Hershey’s chocolates, saying a summer program that was supposed to be a cultural exchange had instead turned them into underpaid labor.

The students, from countries including China, Nigeria, Romania and Ukraine, came to the United States through a long-established State Department summer visa program that allows them to work for two months and then travel. They said they were expecting to practice their English, make some money and learn what life is like in the United States.

In a way, they did. About 400 foreign students were put to work lifting heavy boxes and packing Reese’s candies, Kit-Kats and Almond Joys on a fast-moving production line, many of them on a night shift. After paycheck deductions for fees associated with the program and for their rent, students said at a rally in front of the huge packing plant that many of them were not earning nearly enough to recover what they had spent in their home countries to obtain their visas.

[…]

Ms. Ozer and other students said they were paid $8.35 an hour. After fees are deducted from her paychecks as well as $400 a month for rent, she said, she often takes home less than $200 a week. “We are supposed to be here for cultural exchange and education, but we are just cheap laborers,” Ms. Ozer said.

Added exploitation bonus: the cheap labour Hershey (and I’m sure other companies too) get through this programme means they don’t need to hire expensive American workers whom you can’t nickel and dime with dodgy fees…

(Via Avedon.)

Manchester not quite mad for it

Jamie on what urban regeneration really meant for Manchester:

That really changed with the IRA bomb in 1996, when it was decided to build a new Manchester within the shell of the old and populate it with new people: not necessarily non Mancunians, but ate any rate people reborn to fit in with a municipal vision of half-baked world-classness; funky folk frolicking amid fancy architecture. Cultural industries. The Design Community. Things describable as cutting edge, and possibly somehow mixed up with the internet. The city centre would become the city as a whole, the subject of discussion when the word Manchester was mentioned. The rest of the city would tag along as, basically, a management problem.

Pat, let me tell you something. This nonsense has become incredibly fucking tiresome. I live halfway between Manchester and Bury, and despite the fact that there is little to buy in Bury that doesn’t consist of hot meat in a pastry case or congealed pig’s blood, when people talk about going to town it is Bury that they mean. People just feel more comfortable there.

Bankers steal, politicians cheat, the police is corrupt — why not loot?

Phil hits the nail on the head when looking for the reasons behind the London riots:

What people are saying (self included) is that politics doesn’t stop when crime starts. There are reasons why people steal and smash windows; more importantly, there are reasons why most people don’t steal and smash windows, most of the time. (Sunny was more or less on the right track here – but I don’t think the calculation that you wouldn’t get away with it is the only reason why people tend to obey the law, or the most important one.) One or two people whose behaviour isn’t governed by our usual reasons to obey the law is a problem for the police, the social services and politicians, in that order. The problem becomes political first and foremost when lots of people start acting differently – when all those reasons suddenly stop working in a particular place and time.

[…]

What’s it like to grow up in this world – a world where your only consistent role is to ‘consume’, because nobody, at any level, has any interest in you as a worker? What’s it like to be told that you’ve got to take whatever job you can get, on whatever pay you’re offered, and not to depend on the job still being there for you next year or next week? What’s it like to be told that you’ve got to prove you’re actively looking for work before you can sign on as unemployed – or that you’ve got to prove that you’re incapable of work before you can claim disability benefit – and you’ve got to prove these things to someone who won’t get paid if they believe you? And what’s it like to have grown up in a world like this, and then to be told by a government of unprepossessing Old Etonians that you’ve had it far too easy up to now? And then, what’s it like to read that those same politicians, and the people who write the papers you buy, and the police who keep everything under control, are all involved in a network of corruption and deceit?

The riots should not have come as a surprise. The proximate cause, the police murder of Mark Duggan under very dodgy circumstances was exactly the same sort of incident that set off the riots in France back in 2005 and like then you have a large group of marginalised, criminalised young people with no prospects and nothing to lose who have long felt the police to be their enemies, not unjustified. Frustration and anger kicked off the first night of riots once it became clear peaceful protest didn’t achieve anything, the unexpected success of that first night meant the riots would spread, as other frustrated groups took inspiration, while the heavyhanded police repression after the fact added new fuel for anger. Voila, nationwide riots.

The looting and rioting itself is not political, let alone revolutionary, but they had been made possible through the politics of both the current Tory government as well as the previous Labour governments. My coblogger Palau has been predicting them for years as she saw earlier than most how particular groups of young people (young Black men especially, but “chavs” too) had been written off, condemned to a life on the margins of neoliberal Britain. Take enough angry young men, stoke the flames long enough and they will riot.

Which of course is not an excuse for the riots and I feel for the people trapped in them, abandonded by police and under siege by neds; quite a few friends, both pretend internet and “real” ones are living in or near the affected areas and they must be shit scared and angry and I don’t wish this experience on anyone. This is not a game and because this is not a game we need to understand what drives these riots, even if many of the rioters themselves do not quite know why they’re doing it, or are just doing this for kicks. This is too important not to put it in a political and economical context.