Hannah Arendt Center for Politics and Humanities
21Feb/146

The Irony of the Elite

ArendtWeekendReading

Peggy Noonan is worried about the decadence of elite American culture. While the folks over at DailyKos are foaming about the irony of Ronald Reagan’s speechwriter complaining about the excesses of the power elites, Noonan makes an important point about the corrosive effects that irony has on elites and on culture more generally.

The two targets of Noonan’s scorn are a “Now This News” video compilation of real congressmen quoting their favorite lines from the Netflix series “House of Cards,” and the recent publication of an excerpt from Kevin Roose’s new book Young Money. The “House of Cards” is about the scheming, power hungry, and luxurious life of our political elite in Washington. Roose’s excerpt provides audios, videos, and a description of a recent Kappa Beta Phi meeting, in which Wall Street titans binge on alcohol and engage in skits and speeches making fun of anyone who would question their inalienable right to easy money at the expense of rubes in government and on main street.

Noonan’s response to these sets of recordings is bafflement and disappointment. Why is it, she asks, that elites would join in on the jokes made at their expense?

“I don’t understand why members of Congress, the White House and the media become cooperators in videos that sort of show that deep down they all see themselves as ... actors. And good ones! In a phony drama. Meant I suppose to fool the rubes. It’s all supposed to be amusing, supposed to show you’re an insider who sees right through this town.”

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Why do elites join in the laughter of a popular TV serial that grills them and shows them to be callow, avaricious, and without public spirit? Why do they delight in demonstrating their ability to view their failings with irony?

““House of Cards” very famously does nothing to enhance Washington’s reputation. It reinforces the idea that the capital has no room for clean people. The earnest, the diligent, the idealistic, they have no place there. Why would powerful members of Congress align themselves with this message? Why do they become part of it? I guess they think they’re showing they’re in on the joke and hip to the culture. I guess they think they’re impressing people with their surprising groovelocity.”

Noonan is right to see this elite reaction of wanting to be in on the joke as meaningful and worrisome. She finds it decadent:

“They are America’s putative great business leaders. They are laughing, singing, drinking, posing in drag and acting out skits. The skits make fun of their greed and cynicism. In doing this they declare and make clear, just in case you had any doubts, that they are greedy and cynical. All of this is supposed to be merry, high-jinksy, unpretentious, wickedly self-spoofing. But it seems more self-exposing, doesn’t it? And all of it feels so decadent.”

It is insufficient, however, to watch the videos on both these sites and conclude the obvious that they offer damning evidence of corruption and decadence.

What is more important than the decadence on display is the self-satisfied irony.  The elites in Washington and Wall Street seem not to care about their decadence and even take joy in the revealing of their decadence. It is as if a burden has been lifted, that we all in the outside world can now know what they have borne in secret. With the secret out, they can enjoy themselves without guilt.

This embrace of the revelation of decadence recalls the cultural milieu of Weimar Germany, and especially the reception of Berthold Brecht’s classic satire the “Threepenny Opera.” Here is how Hannah Arendt describes the arrival and reception of Brecht’s play:

“The play presented gangsters as respectable businessmen and respectable businessmen as gangsters. The irony was somewhat lost when respectable businessmen in the audience considered this a deep insight into the ways of the world and when the mob welcomed it as an artistic sanction of gangsterism. The theme song in the play, “Erst kommt das Fressen, dann kommt die Moral” [First comes the animal-like satisfaction of one’s hungers, then comes morality], was greeted with frantic applause by exactly everybody, though for different reasons. The mob applauded because it took the statement literally; the bourgeoisie applauded because it had been fooled by its own hypocrisy for so long that it had grown tired of the tension and found deep wisdom in the expression of the banality by which it lived; the elite applauded because the unveiling of hypocrisy was such superior, wonderful fun.”

Brecht hoped to shock not only with his portrayal of corruption and the breakdown of morality, but by his gleeful presentation of Weimar decadence; but the effect of “Threepenny Opera” was exactly the opposite, since all groups in society reacted to Brecht’s satire with joy instead of repulsion.

Arendt has little hope for the mob or the bourgeoisie, but she is clearly cut to the quick by the ease with which the elite felt “genuine delight” in watching the bourgeoisie and the mob “destroy respectability.” As Arendt explained, the “members of the elite did not object at all to paying a price, the destruction of civilization, for the fun of seeing how those who had been excluded unjustly in the past forced their way into it.” Because the elite had largely rejected their belief in the justice and meaningfulness of the moral and common values that had supported the edifice of civilization, they found more joy in the ironic skewering of those values than they felt fear at what the loss of common values might come to mean.

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There is no greater thinker of decadence than Friedrich Nietzsche. This is how Nietzsche defines decadence in The Case of Wagner as a “question of style”:

“I dwell this time only on the question of style–What is the sign of every literary decadence? That life no longer dwells in the whole. Word becomes sovereign and leaps out of the sentence, the sentence reaches out and obscures the meaning of the page, the page gains life at the expense of the whole–the whole is no longer a whole. But this is the simile of every style of decadence: every time, the anarchy of atoms, the disgregation of the will, “freedom of the individual,” to use moral terms–expanded into a political theory, “equal rights for all.” Life, equal vitality, the vibration and exuberance of life pushed back into the smallest forms; the rest, poor in life. Everywhere paralysis, hardship, torpidity, or hostility, and chaos: both more and more obvious the higher one ascends in forms of organization. The whole no longer lives at all: it is composite, calculated, artificial, and artifact.”

As Andrew Huddleston has recently written, Nietzsche understands that “decadence is literally a kind of disorder – that is, a lack of cohesive order – within the individual or the culture.” It is a sickness by which individuals and groups think only of themselves and lose sight of their belonging to a common world or a meaningful order.

The disordering forces of decadence are not always disadvantageous. Throughout American history centripetal forces have allowed an understanding of power that permits different states and plural groups that pursue their own interests to, nevertheless, hold fast to the common idea of constitutional republican democracy and government by the people. What we see in the irony of the elites—let alone the decadence of the bourgeoisie and the power brokers—is the superior feeling of freedom that proceeds from the belief in the comic dissolution of the moral, political and economic values that have for two centuries animated the American imagination of itself as a exceptional experiment in free and democratic self-government.

Noonan is right to call out this ironic pose of the elite. She is right to worry that “No one wants to be the earnest outsider now, no one wants to play the sober steward, no one wants to be the grind, the guy carrying around a cross of dignity. No one wants to be accused of being staid. No one wants to say, “This isn’t good for the country, and it isn’t good for our profession.”” Her essay is your weekend read. Don’t forget to watch the videos. See if you catch yourself smiling.

-RB

15Feb/130

Borrowing from Peter to Pay Paul

Stephanie A. Miner, the Mayor of Syracuse NY, has an important op-ed essay in The NY Times Thursday. Syracuse is one of hundreds of cities around the state and tens of thousands around the country that are struggling with the potentially disastrous effects of out-of-control pension costs. Where this crisis is heading can be seen in California, where San Bernadino has become the third California city to declare bankruptcy. These cities are dying. They are caught in a bind. Either they decide not to pay their promised debts to pensioners; or, in honoring those debts, they so fully raise taxes and cut services as to ruin the lives of their citizens.

In Syracuse, Mayor Miner understands well the depth of the problem. First, public employee labor costs are too high not because salaries are high, but because pension costs and medical benefits are rising without limit. Second, revenues are being slashed, both from the recession and from cutbacks from the state and federal governments. Finally, the middle and upper class flight from cities to suburbs have left the tax base in cities low at the moment when poorer city dwellers are disproportionately in need of public services.

The result is that cities are faced with a stark choice: Do they pay older citizens what has been promised to them? Or do they cut those promised pensions in order to provide services for the young? This is a generational conflict that is playing out across the country.

Miner is worried that the response by NY State is making the problem worse. In short, Governor Cuomo and the legislature have decided to let cities that cannot afford to fund their burgeoning pension obligations borrow money to pay those pensions. The kicker is, that the cities are being told to borrow money from the very same pension plan to which they owe money.

If this sounds suspicious, it is. As Danny Hakim—one of the best financial reporters around—wrote almost exactly one year ago in the NY Times, this is a desperate and dangerous move:

When New York State officials agreed to allow local governments to use an unusual borrowing plan to put off a portion of their pension obligations, fiscal watchdogs scoffed at the arrangement, calling it irresponsible and unwise.

And now, their fears are being realized: cities throughout the state, wealthy towns such as Southampton and East Hampton, counties like Nassau and Suffolk, and other public employers like the Westchester Medical Center and the New York Public Library are all managing their rising pension bills by borrowing from the very same $140 billion pension fund to which they owe money.

The state’s borrowing plan allows public employers to reduce their pension contributions in the short term in exchange for higher payments over the long term. Public pension funds around the country assume a certain rate of return every year and, despite the market gains over the last few years, are still straining to make up for steep investment losses incurred in the 2008 financial crisis, requiring governments to contribute more to keep pension systems afloat.

Supporters argue that the borrowing plan makes it possible for governments in New York to “smooth” their annual pension contributions to get through this prolonged period of market volatility.

Critics say it is a budgetary sleight-of-hand that simply kicks pension costs down the road.

Borrowing from the state pension plan to pay municipal pension costs is simply failing to pay the pensions this year and thus having to pay more next year.

Hakim, as good as he is, allows Thomas P. DiNapoli—the state’s comptroller—to get away with calling the scheme “amortization.”

The state’s comptroller, Thomas P. DiNapoli, said in a statement, “While the state’s pension fund is one of the strongest performers in the country, costs have increased due to the Wall Street meltdown.” He added that “amortizing pension costs is an option for some local governments to manage cash flow and to budget for long-term pension costs in good and bad times.”

But how is this amortization? The assumption or hope is that the market will rise, the pension fund will go up, and then the municipalities will owe less.  That is hardly amortization. No, it is desperate speculation with public monies.

The crisis in our cities afflicts the whole country, according to a study by the Pew Center on the States.

Cities employing nearly half of U.S. municipal workers saw their pension and retiree health-care funding levels fall from 79% in fiscal year 2007 to 74% in fiscal year 2009, using the latest available data, according to the Pew Center on the States. Pension systems are considered healthy if they are 80% funded.

The reason to pay attention to the problems in cities is that cities have even less ability to solve their pension shortfalls than states. The smaller the population, the more a city would have to tax each citizen in order to help pay for the pensions of its retired public workers. The result is that either cities get bailed out by states and lose their independence (as is happening in Michigan) or the cities file for bankruptcy (as is happening in California).

Mayor Miner, a Democrat, takes a huge risk in standing up to the Governor and the legislature. She is rightly insisting that they stop hiding from our national addiction to the crack-cocaine of unaffordable guaranteed lifetime pensions. Piling unpayable debts upon our cities will, in the end, bankrupt these cities. And it will continue the flight to the suburbs and the hollowing out of the urban core of America. Above all, it will sacrifice our future in order to allow the baby boomers to retire in luxury. Let’s hope Miner’s call doesn’t go unheeded.

-RB

14Dec/120

The Dorm Wars

The Dorm Wars have not yet caused the numerous bankruptcies amongst minor and maybe even some more established colleges that seem inevitable. What they have done is change the nature of college education. Whether at Harvard or Ramapo, students want luxury dorms with private bathrooms and glitzy campus centers. And since students—fueled with cheap student debt are the all-powerful consumers—campus administrators have followed the money. Unfortunately, they also too often followed their students into debt. As the NY Times reports today,

A decade-long spending binge to build academic buildings, dormitories and recreational facilities — some of them inordinately lavish to attract students — has left colleges and universities saddled with large amounts of debt. Oftentimes, students are stuck picking up the bill.

I recently visited my alma mater for a reunion and was housed in the building where decades ago I labored long into the night as an editor for my beloved Prism magazine. It is the dorm in which I once put my hand through a glass door in the midst of a late-night editing and layout session.  I barely recognized the Pratt Dormitory, which resembled more a Tablet style hotel than a college dormitory.

Such lavish quarters are now seen as necessary to attract the best students—something that is sad if it is true. And this perception, true or false, has unleashed the dorm wars. Some colleges, like the one I attended, don’t need to borrow to build. But many others think that they do.

“If Ramapo College was going to respond to what students wanted, which was larger, more comprehensive programs and residential housing, then we were going to have to go out and borrow,” Peter P. Mercer, President of the public liberal arts college in New Jersey told the Times

How wrong is that. Borrowing can of course be justified. But if you want to build something, there are other options. You can, for example, go out and raise the money. That requires work, convincing people, many of whom have no personal connection to your college, that what you are doing is important and worthy of support. Excessive borrowing is, too often, the resort of those unwilling to take the longer and yet more responsible path of building an institution that people are willing to invest in and support.

More importantly, the enormous borrowing of colleges reported by the Times is evidence of an educational system that has simply lost its way.  The fastest growing costs at colleges across the country are for administrators and for capital projects. Much of the borrowing is financing new luxury buildings and a bloated services staff. The priorities are wrong and real focus on teaching and learning seems to have been largely ignored. As students and parents confront extraordinary costs that go increasingly to pay interest on debt and support lavish undergraduate living, many are increasingly rebelling.

And for the first time in generations, students have other options. The rise of Internet learning is going to disrupt college education in this country as the Internet has transformed nearly every other area of life. And it will do so at the very moment when the finances of colleges and universities around the country are shakier than they have been in generations. The shake out will be painful.

What needs to be thought here is what is it that allowed debt to become so infectious within and amongst our educational institutions. With $1 trillion in student debt and $200 billion in institutional debt, education more and more resembles the housing and financial sectors of our economy.

Education is supposed to be a conservative enterprise, a bastion of learning and teaching the accumulated history and knowledge of the past. Somewhere along the line, education changed from being an experience of teaching and forming young individuals and citizens and became something very different. Higher education is now a progressive launching pad for careers. It is job security for tenured professors. It is the center of research and the producer of valuable sports franchises. Lost in the mix, I fear, is original mission itself.  Just as banks and financial institutions abandoned their old job of lending and saving money and sought to become investment banks, so too have colleges changed from being educational institutions to being consumer brands selling luxury and success instead of the life of the mind. Some can do both. But many more will go the way of Pan Am and Hostess.

-RB