Why no populist outrage? We are indentured.
Herbert opens with a the tragic story of Andrew Goodman- a young idealist who went to Mississippi in 1964 to fight on the front lines of the Civil Rights campaign, but was then murdered by the Ku Klux Klan. He contrasts this sad, but noble story with today's society.
Americans have tended to watch with a remarkable (I think frightening) degree of passivity as crises of all sorts have gripped the country and sent millions of lives into tailspins. Where people once might have deluged their elected representatives with complaints, joined unions, resisted mass firings, confronted their employers with serious demands, marched for social justice and created brand new civic organizations to fight for the things they believed in, the tendency now is to assume that there is little or nothing ordinary individuals can do about the conditions that plague them.
This is so wrong. It is the kind of thinking that would have stopped the civil rights movement in its tracks, that would have kept women in the kitchen or the steno pool, that would have prevented labor unions from forcing open the doors that led to the creation of a vast middle class.Bob then pivots to shift the blame where he thinks it lies:
This passivity and sense of helplessness most likely stems from the refusal of so many Americans over the past few decades to acknowledge any sense of personal responsibility for the policies and choices that have led the country into such a dismal state of affairs, and to turn their backs on any real obligation to help others who were struggling.I am not so sure that that is the correct diagnosis, in fact I think personal responsibility might be at the heart of our passivity. In 1964, the same year that Andy Goldman set out to fight for civil rights, Eric Berne wrote a bestselling book, Games People Play. In it he identified 5 life games, or patterns of behavior that are often destructive and can bedevil individuals throughout their lifetime but they have hidden psychological rewards. Berne's fifth game, Debtor:
"Debtor is more then a game. In America it tends to become a script, a plan for a a whole lifetime just as it does in some of the jungles of Africa and New Guinea. There the relatives of a young man buy him a bride at an enormous price putting him in their debt for years to come. In America the big debt is a mortgage: the role of relatives is taken by the bank. Paying off the mortgage gives the individual a purpose in life."Margaret Atwood (whose book Payback I lifted the above reference from) points out that Mortgage means "dead pledge" in French (How especially fitting today that 1 in 5 owe more then their houses are worth, and 1 in 9 is in foreclosure). Bob asks where is the sense of outrage and I think that part of it is that we are scared to lose what little we have. But I also think that there is a sense of shame that causes us to clam up. Not shame for the country, but shame that we did actually take advantage.
Occasionally we did refi that mortgage to buy that new car or max out the credit cards for that vacation. We didn't mean to, but everybody was doing it and prices of everything just kept rising, but wages just didn't seem to keep up. So we sometimes dipped into the house equity (after all we did it once in the 90's and everything seemed fine), or pulled out the credit cards- we started relying on it even though we knew it was wrong. I think this is a reason why a lot of Americans don't feel they can say anything, or are too scared to rock the boat. It is because we are deep in debt and just praying it will go away.
If we make a lot of noise then soon you will ask us our personal situation and yes, we know, we made mistakes. Not only do we have that house to pay for- but also that occasional luxury we couldn't quite afford and always knew that their would be a payback- and now it has come. So we shut our mouths.
But there is another aspect of our shift into an indebited society that is retarding the development of social movements. This is one where the victims didn't get to enjoy much of the 'party'. Times have advanced in the forty ought years since Berne published and today debt is much more widespread. And thanks to the miracles of financial innovation we also have debt instruments like 7 year auto loans, credit cards given to you for your 18th birthday, and most pernicious to democratic society: Student Loans.
In human society it is usually the youth that are the agents of change. With their invincibility complexes and zealous idealism kids like 20 year old Andrew Goodman are willing to go out and try to make a difference in the world. These are the ground soldiers who do the grunt work and provide the energy to social movements that Bob Herbert pines for. But today, like those New Guinea husbands strangled by the guilt strings of the dowry, we trap those kids in deep in debt, usually well before they are fully developed enough to rent a car.
The average undergraduate student graduates with nearly 23,000 in student loan debt, graduate students 45,000 (bonus debt: half of all undergrads have 4 or more credit cards!- with an average debt of $3,173). Don't even ask about our doctors or lawyers-suffice to say that they aren't going to be volunteering much. And taking that public service job is akin to the priesthood lifetime vow of poverty.
Jeffrey Willams recently put forth a provocative article in Dissent Magazine, Student Loan and the spirt of indenture. In it he examines student loans as a new form of indentured servitude. Both targeted the upward mobility desires of the working class, both had large middleman industries that developed that profited immensely for little risk (or in today's case- No Risk!!), both are for set lengths of term, and most significantly both are debt secured not by property but by personhood- with NO LEGAL RECOURSE (unlike all other debt- you can not bankrupt from student loans).
College student-loan debt has revived the spirit of indenture for a sizable proportion of contemporary Americans. It is not a minor threshold that young people entering adult society and work, or those returning to college seeking enhanced credentials, might pass through easily. Because of its unprecedented and escalating amounts, it is a major constraint that looms over the lives of those so contracted, binding individuals for a significant part of their future work lives. Although it has more varied application, less direct effects, and less severe conditions than colonial indenture did (some have less and some greater debt, some attain better incomes) and it does not bind one to a particular job, student debt permeates everyday experience with concern over the monthly chit and encumbers job and life choices.But that is the cost of getting ahead if you are middle class here in America, so shut your mouth. You signed on that line. Take responsibility for your actions, and whatever you do don't yell at your betters- you need them to give you a job.
And your parents- well they deserved it. They shouldn't have borrowed that money either. Sure they felt guilty that they wanted to provide you with more then they could afford but now its payback time. Maybe they started that business that couldn't make it, or god forbid tried to flip a house at the end of the bubble.
Here are some more Credit Card stats (there are lots more on this site).
At the end of 2008, Americans' credit card debt reached $972.73 billion. The average outstanding credit card debt for households was $10,679 at the end of 2008.
The average credit card indebted young adult household now spends nearly 24 percent of its income on debt payments.And small businesses (which comprise 70% of US jobs).
44 percent of small-business owners identified credit cards as a source of financing that their company had used in the previous 12 months --- more than any other source of financing, including business earningsSo America shuts up, because we know- its our fault.
(Update- I corrected the spelling of Andrew Goodman (not Goldman)




















