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Do You Know Where Your Next Paycheck is Coming From?
by Thad Williamson
Tikkun, Jan/Feb'98

Page 3 of 3

What steps, then, can be taken to forward a fresh, far-reaching vision of economic security for each and all, beyond the usual liberal wish list?

  • We should further develop and drastically expand democratic economic alternatives that are committed to their communities, including municipal enterprise, community-rooted worker firms, and community development corporations. In the long term, if corporations cannot or will not provide stable jobs to communities over time, we must ensure that another institutional form capable of doing so evolves.
  • Bolster smaller scale efforts to start building a different sense of community here and now. These efforts should move beyond the current civil society discourse on the need to "bowl" together to create ways to start sharing together too. The burgeoning community supported agriculture movement, "Time Dollar" and local currency programs, day care cooperatives, cohousing experiments, and community land trusts are all examples of this form of community-building. While none of these initiatives alone can make a drastic impact on a particular community, they are important ways to begin rebuilding the different cultural sensibility needed if larger-scale solutions are to become possible.
  • Provide an income stream to all citizens, as a matter of right, regardless of whether one is lucky enough to have a good job or not. A discussion of ways to establish guaranteed minimum incomes?such as using profits from community-owned enterprises to fund a social dividend?is now a hot topic in Europe due to the work of the Basic Income European Network. A related possibility is to gradually shift to shorter work weeks and thereby spread the existing work around, as much of Europe is already doing, while supplementing workers' incomes with some form of "social dividend".
  • Another important, if less dramatic proposal is that of Business Week economist William Wolman, who advocates establishing public job "catastrophe insurance" policies. Such job insurance would be more generous than current unemployment benefits, and would lend public recognition to the fact that almost any worker, no matter how diligent or productive, can quickly lose their job, through no fault of their own, in today's roller-coaster economy.

Just as individuals should have some form of ongoing security and not be left to face the market unprotected, so should there be mechanisms to provide communities with ongoing economic security. Ultimately, this may mean not simply public assistance to community-based firms to help anchor communities, but establishing a full-blown planning agency which could provide funds to communities transitioning from one industry to another or recovering from a plant closing. An important precedent in this regard is how military base closures have been handled--the federal government, responding to very vocal political insistence, has set aside billions of dollars to help affected communities like Charleston, SC survive and even flourish after base closings.

Another important lever which points to the same goal is the Tikkun-sponsored Social Responsibility Initiative, which would make a firm's record in laying off workers and abandoning communities a key criteria in assessing a firm's total "ethical impact." A company with a poor record in this regard, unless the closings were absolutely necessary to ensure the firm's survival, could be denied access to government contracts and subsidies, and even, conceivably, lose its corporate charter. This plank of the Social Responsibility Initiative/Ethical Impact Report idea moves beyond much of the existing discourse on "socially responsible" business, which has not often challenged the prerogatives of corporations to shift capital and close plants at will.

These ideas are only suggestive of a larger range of specific, practical policies which might be implemented if progressive politicians and thinkers faced up to the full harshness of what the downsizing trends mean: that American capitalism does not value anyone's economic security or the need of human beings to grow, plan for the future, and not be consumed by anxiety; that all the career self-help books in the world cannot change that fact; and that a different economic system based on different priorities needs to be pieced together.

To be sure, serious progressive economists have been making similar arguments for a long time. But today the audience likely to be receptive to such an argument, honestly stated, is probably far larger than anyone suspects. Indeed, that audience is certain to grow in time, as conventional policy "solutions" continue to fall far short of addressing Americans' real economic pain, particularly the politically explosive pain of those who once felt entitled to economic security but now have learned the hard way that capitalism's promises cannot be trusted.

The logic of the choices before us remains unavoidably clear. If the notion of an economically secure nation of stable communities--the middle class ideal at its best--is to be saved from the chopping block of history, then the response of white-collar Americans cannot simply be to spice up their own resumes, nor to focus solely on the short-term, woefully inadequate political correctives offered by politicians in both parties. Ultimately, the wheel of history must be turned in an entirely different direction, or the very idea of a healthy, people-centered economy based on secure incomes will become but a historical curiosity in the new century.

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