Hannah Arendt Center for Politics and Humanities
22Jan/141

The Unproductive Labor of Politics: Arendt’s reading of Adam Smith

Arendtiana

Richard Halpern, “Eclipse of Action: Hamlet and the Political Economy of Playing,” Shakespeare Quarterly, Volume 59, Number 4, Winter 2008, pp. 450-482

As he formulates an original response to the classic problem of Hamlet’s non-action, Halpern offers one of the few critical analyses of Arendt’s reading of Adam Smith in The Human Condition. He shows how Arendt draws on Smith’s concepts of productive and unproductive labor to articulate her key concepts of work and labor. Moreover, his close reading draws our attention to an intriguing paradox in the temporality of action that may indicate a corrective—albeit a difficult one—to the current demand for instant gratification that often leads to cynicism in the face of great political challenges.

Halpern reminds us that Aristotle separates action from labor; Smith replaces action with production; and Arendt seeks to restore action to a place of prominence in the political realm. Arendt explicitly says that “the distinction between productive and unproductive labor contains, albeit in a prejudicial manner, the more fundamental distinction between work and labor” (HC 87). She does not simply take over Smith’s idea, but wishes to transfer his distinction from his own economic system (the “prejudice” of his own thought) to her own thinking of labor and work.  Halpern’s analysis of Arendt’s move helps us start to think about her surprising appeal to 18th century economic theory. Moreover, it her discussion of Smith (and better known critique of Marx), I see her posing an even broader question: what does it mean to be productive and what are the appropriate spheres of different types of productivity?

workers

Within the realm of production, Halpern looks at how Smith offers a further distinction in Book 2, Chapter 3 of The Wealth of Nations, under the heading “Of the Accumulation of Capital, or of Productive and Unproductive Labor”:

There is one sort of labor which adds to the value of the subject upon which it is bestowed: there is another which has no such effect. The former, as it produces a value, may be called productive; the latter, unproductive labour. Thus the labour of a manufacturer adds, generally, to the value of the materials which he works upon, that of his own maintenance, and of his master’s profit. The labor of a menial servant, on the contrary, adds to the value of nothing. (Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, ed. Edwin Cannan (Chicago: U of Chicago P, 1976), 351.)

Smith draws a distinction between labor that holds or builds value (say the manufacture of a chair), and labor that evaporates the moment the worker completes it (such as cleaning the house or washing clothes). Classical political economists of the 18th and 19th century engaged in wide ranging debates over what should “count” as value before capitalist countries agreed on the ratio of labour to output or per capita GDP as the standard; socialist countries, following the USSR, adopted an alternative “material product system” that prioritized the amount of goods. In a time of environmental change, this glimpse into the history of economic theory may offer a helpful reminder that society can decide to change the standard of economic success.

According to Halpern, Arendt draws from Smith not to rehabilitate an outmoded aspect of economic theory, but to draw inspiration for her creation of distinct conceptual spaces for labor, work, and action. Specifically, she aligns Smith’s “unproductive labor” with her circular conception of labor and “productive labor” with her linear conception of work. This does not mean that labor is unproductive but it does require a clarification of different types of productivity. I see it as useful to keep the discussion on productivity since these spheres of private life and cultural and industrial economy then offer a contrast to the political sphere where action can happen. Action is neither circular like labor, nor linear like work, but has its own peculiar directionality and temporality. Halpern’s analysis helpfully zeroes in on the perplexing relation between the ephemerality of labor and action and action’s desire for permanence:

The temporal paradox of the political is that while it aims at immortality, action and speech are, in themselves, evanescent: “Left to themselves, they lack not only the tangibility of other things, but are even less durable and more futile than what we produce for consumption” (HC 95). Like Smith’s unproductive labor, action disappears in the moment of its occurrence because it leaves no material trace behind. (Halpern, 457)

Politics demands an extraordinary effort. It asks that one expend energy indefinitely for an uncertain reward. Discussion and debate goes on and on, only occasionally clicking with spectacular agreement or deflationary compromise. Arendt’s analysis can help us perceive the difficulty of contemporary politics that attempts to fit into consumer culture that preserves, and thus remembers, nothing.

Arendt’s attention to the aspects of debate and negotiation that might be seen as unproductive (a dimension that in other parts of the Human Condition she relates to menial work, again often in relation to Smith) offers a corrective to a misguided understanding of politics that leads to frustration and despair.Even if we are not at the extreme level of the menial functioning of a New England town hall meeting debating the budget for potholes or an Occupy Wall Street discussion that requires unanimous consensus for closure, politics works in a different temporality. Rather than the fever pitched accusations of crisis that in the U.S. actually covers up rather than encourage political risk, a more humble sense of public debate as requiring something like the patience of the menial task may be a corrective.

Political action in Arendt’s sense differs from work in being freed from a fixed goal. She links this freedom, which for her is based on self-referentiality, to drama:

Arendt’s discomfort with the economic dimension of theater reveals itself when she criticizes Adam Smith for grouping actors, along with churchmen, lawyers, musicians, and others, as unproductive laborers and hence as lowly cousins of the menial servant (HC 207). Arendt would distinguish all of these activities from labor in that they “do not pursue an end . . . and leave no work behind . . . , but exhaust their full meaning in the performance itself ” (206). Smith’s inclusion of these autotelic activities under the category of labor is for Arendt a sign of the degradation that human activity had already undergone by the early days of the modern era. By contrast, “It was precisely these occupations—healing, flute-playing, play-acting—which furnished ancient thinking with examples for the highest and greatest activities of man” (207–21). What Arendt overlooks is that—already in the ancient world—healing, flute playing, and playacting became remunerated professions and differed in this respect from politics, which was not the work of a professional class of politicians. (Halpern 458)

Arendt agrees that actors on the stage perform fleeting scenes, but wishes to link this to “the highest and greatest activities of man,” ie. those of politics. Halpern argues that in fact, actors in ancient times already worked for wages and were thus not independent like citizens in their roles as politicians. Nonetheless, Arendt shows us that in the modern period we can learn something about acting in politics from acting in the arts. The key point for Halpern is that drama, etc. are “autotelic activities.” They do not even keep up the house like menial work; they have their own end and really evaporate in reaching this end. Political action works along an undecidable edge: even less productive than labor but at any moment potentially the most lasting. Against the odds, politics holds open the space in which something new can begin and thus renew the human world against the circular forces of nature.

One could reasonably argue that in his focus on the connection between labor and action, Halpern fails to adequately emphasize the importance of work. In a world of labor and the victory of animal laborans, there is no work to preserve action and no polis/world to give action memorialization. Indeed, we face the danger of the collapse of the world into the “waste economy” (HC 134) and the seductions to action disappear. However, Halpern does not say that play is action for Arendt but rather, as I understand his argument, that it there is an aspect of action that is like play. Action requires debate that may seem to be going nowhere, or just be undertaken for its own sake up to the moment that it takes a risk. When it dares to venture into the public realm, action clearly very different from play as a hobby.

Labor is both constant and fleeting. On the one hand, the demands of the body never end, nor do the cycles of nature. On the other hand, labor is also fleeting in that its mode of production only temporarily maintains life. Action is also fleeting from the perspective that the risk it takes often evaporates but has the utmost political constancy when one considers those actions that succeed in forming the power of a new beginning.

shakes

In the remainder of the article, Halpern moves from The Human Condition to Hamlet, arguing that Shakespeare replaces action on the classical model of tragedy with the ceaseless activity of Hamlet’s thoughts. This activity runs in circles like unproductive labor in Smith and labor in Arendt rather than the action of Aristotle’s aesthetic and Arendt’s political ideal. From an Arendtian point of view, the modernity of the drama reveals a challenge to politics, the challenge of a time out of joint that action has to face again and again.

-Jeffrey Champlin

The Hannah Arendt Center
The Hannah Arendt Center at Bard is a unique institution, offering a marriage of non-partisan politics and the humanities. It serves as an intellectual incubator for engaged thinking and public discussion of the nation's most pressing political and ethical challenges.
22Jan/130

Reflections on an Inaugural Address

I watched President Obama’s second Inaugural Address with my seven-year-old daughter. She had just completed a letter to the President—something she had been composing all week. She was glued to the TV. I found myself tearing up at times, as I do and should do at all such events. “The Star Spangled Banner” by Beyonce was… well, my daughter stood up right there in the living room, so I followed suit. The Inaugural Poem by Richard Blanco began strong—I found the first two stanzas powerful and lyrical.

The invocation of “One sun rose on us today,” is Whitmanesque, as is: “My face, your face, millions of faces in morning’s mirrors.” That second verse really grabbed me:

My face, your face, millions of faces in morning’s mirrors,
each one yearning to life, crescendoing into our day,
pencil-yellow school buses, the rhythm of traffic lights,
fruit stands: apples, limes, and oranges arrayed like rainbows
begging our praise. Silver trucks heavy with oil or paper—
bricks or milk, teeming over highways alongside us,
on our way to clean tables, read ledgers, or save lives—
to teach geometry, or ring-up groceries as my mother did
for twenty years, so I could write this poem.

I was hooked here, with Blanco’s rendition of a motley American life guided by a rising sun. But the poem dragged for me. I lost the thread. Still, I am so grateful for the continued presence of poetry at inaugural events. They remind us that the Presidency and the country is more than policy and prose.

In the President’s speech itself, there was too much politics, some prose, and a bit of poetry. There were a few stirring lines affirming the grand dreams of the United States. His opening was pitch perfect:

 Each time we gather to inaugurate a President we bear witness to the enduring strength of our Constitution.  We affirm the promise of our democracy.  We recall that what binds this nation together is not the colors of our skin or the tenets of our faith or the origins of our names.  What makes us exceptional -- what makes us American -- is our allegiance to an idea articulated in a declaration made more than two centuries ago:

“We hold these truths to be self-evident, that all men are created equal; that they are endowed by their Creator with certain unalienable rights; that among these are life, liberty, and the pursuit of happiness.”

Storytelling, Hannah Arendt knew, was at the essence of politics. The President understands the importance and power of a story and the story of America is one of the dream of democracy and freedom. He tells it well. Some will balk at his full embrace of American exceptionalism. They are right to when such a stand leads to arrogance. But American exceptionalism is also, and more importantly, a tale of the dream of the Promised Land. It is an ever-receding dream, as all such dreams are. But that means only that the dream must be kept alive. That is one of the purposes of Presidential Inaugurations, and President Obama did that beautifully.

Another stirring section invoked the freedom struggles of the past struggles for equality.

We, the people, declare today that the most evident of truths –- that all of us are created equal –- is the star that guides us still; just as it guided our forebears through Seneca Falls, and Selma, and Stonewall; just as it guided all those men and women, sung and unsung, who left footprints along this great Mall, to hear a preacher say that we cannot walk alone; to hear a King proclaim that our individual freedom is inextricably bound to the freedom of every soul on Earth.

The President, our nation’s first black President now elected for a second term, sought to raise the aspiration for racial and sexual equality to the pantheon of our Constitutional truths. Including the struggles of gay Americans—he mentioned gay rights for the first time in an inaugural address—the President powerfully rooted the inclusivity of the American dream in the sacred words of the Declaration of Independence and set them in the hallowed grounds of constitutional ideals.

When later I saw the headlines and the blogs, it was as if I had watched a different speech. Supposedly the President offered an “aggressive” speech. And he came out as unabashedly liberal.  This is because he mentioned climate change (saying nothing about how he will approach it) and gay rights. Oh, and many saw it as unabashedly liberal when the President said:

For we, the people, understand that our country cannot succeed when a shrinking few do very well and a growing many barely make it. We believe that America’s prosperity must rest upon the broad shoulders of a rising middle class.  We know that America thrives when every person can find independence and pride in their work; when the wages of honest labor liberate families from the brink of hardship.  We are true to our creed when a little girl born into the bleakest poverty knows that she has the same chance to succeed as anybody else, because she is an American; she is free, and she is equal, not just in the eyes of God but also in our own.

How is it “liberal” to value the middle-class and pride in work? There was nearly nothing in this talk about the poor or welfare. It was about working Americans, the people whose labor builds the bridges and protects are people. And it was about the American dream of income and class mobility. How is that liberal? Is it liberal to insist on a progressive income tax? Granted, it is liberal to insist that we raise revenue without cutting expenses. But where was that said?

And then there are the swarm of comments and critiques about the President’s defense of entitlements.  Well here is what he said:

We understand that outworn programs are inadequate to the needs of our time.  So we must harness new ideas and technology to remake our government, revamp our tax code, reform our schools, and empower our citizens with the skills they need to work harder, learn more, reach higher.  But while the means will change, our purpose endures:  a nation that rewards the effort and determination of every single American.  That is what this moment requires.  That is what will give real meaning to our creed.   We, the people, still believe that every citizen deserves a basic measure of security and dignity.  We must make the hard choices to reduce the cost of health care and the size of our deficit.  But we reject the belief that America must choose between caring for the generation that built this country and investing in the generation that will build its future.  (Applause.)  For we remember the lessons of our past, when twilight years were spent in poverty and parents of a child with a disability had nowhere to turn.

If I read this correctly, the President is here saying: We spend too much on health care and we need to cut our deficit. Outworn programs must change and we need innovation and technology to improve our schools even as we reduce the cost of education. We must, he says, “make the hard choices to reduce the cost of health care and the size of our deficit.”  Yet we must do so without abandoning the nation’s creed: the every American has equal worth and dignity. This is a call for changing and rethinking entitlements while cutting their cost. It is pragmatic and yet sensible. How is it liberal? Is it now liberal to believe in social security and Medicare? Show me any nationally influential conservative who will do away with these programs? Reform them, yes. But abandon them?

More than a liberal, the President sounded like a constitutional law professor. He laid out broad principles. We must care for our fellow citizens. But he left open the way that we might do so.

Perhaps the most problematic section of the President’s speech is this one:

We do not believe that in this country freedom is reserved for the lucky, or happiness for the few.  We recognize that no matter how responsibly we live our lives, any one of us at any time may face a job loss, or a sudden illness, or a home swept away in a terrible storm.  The commitments we make to each other through Medicare and Medicaid and Social Security, these things do not sap our initiative, they strengthen us.  They do not make us a nation of takers; they free us to take the risks that make this country great.

Here the President might sound liberal. But what is he saying? He is raising the entitlement programs of the New Deal to Constitutional status, saying that these programs are part of the American way of life. He is not wrong. No Republican—not Reagan, not Romney, not Paul Ryan—proposes getting rid of these programs. They have become part of the American way of life.

That said, these programs are not unproblematic. The President might say that “these things do not sap our initiative, they strengthen us. They do not make us a nation of takers; they free us to take the risks that make this country great.” But saying it does not make it true. There are times when these programs care for the sick and unfortunate. And yet there are no doubt times and places where the social safety net leads to taking and weakness. It is also true that these programs are taking up ever more of our national budget, as this chart from the Government Accounting Office makes clear.

The President knows we need to cut entitlements. He has said so repeatedly. His greatest liability now is not that he can’t control opposition Republicans. It is that he doesn’t seem able or willing to exert leadership over the members of his own party in coming up with a meaningful approach to bring our entitlement spending—spending that is necessary and rightly part of our constitutional DNA—into the modern era. That is the President’s challenge.

The problem with President Obama’s speech was not that it was liberal. Rather, what the President failed to offer was a meaningful example of leadership in doing what he knows we must do: Rethinking, re-imagining, and re-forming our entitlement programs to bring them into the modern era.

-RB

The Hannah Arendt Center
The Hannah Arendt Center at Bard is a unique institution, offering a marriage of non-partisan politics and the humanities. It serves as an intellectual incubator for engaged thinking and public discussion of the nation's most pressing political and ethical challenges.
20Mar/1211

Pension Ponzis: Questions About the Public Interest

The public pension crisis is eroding the American social contract. While many are up in arms against Governor Scott Walker's heavy-handed attack on public unions, the fact is that Democratic governors in NY and California are also struggling with the inevitable need to reduce public pensions. Governor Jerry Brown in California admitted recently that public pensions were a Ponzi scheme. That is obvious. What is now sinking in as reality is that the Ponzi scheme is out of money and falling apart.

The Pew Center on the States published a study in 2011 called the Trillion Dollar Gap. The first sentence states the point:

$1 trillion. That’s the gap at the end of fiscal year 2008 between the $2.35 trillion states had set aside to pay for employees’ retirement benefits and the $3.35 trillion price tag of those promises.

A mere one year later, the gap had increased 26%!

The gap between the promises states have made for public employees’ retirement benefits and the money set aside to pay for them grew to at least $1.26 trillion in fiscal year 2009-a 26 percent increase in one year-according to a Pew report.

The gap is actually much bigger than the Pew Center numbers suggest, since the report is based on the official numbers that use way too optimistic expectations of returns.

The Pew Center Report continues, stating the reason this matters so much:

Why does it matter? Because every dollar spent to reduce the unfunded retirement liability cannot be used for education, public safety and other needs. Ultimately, taxpayers could face higher
 taxes or cuts in essential public services.

Municipal bankruptcies are mounting. Prichard, Alabama and Central Falls, Rhode Island both filed for bankruptcy, and they have had to vastly reduce the pensions promised to their public employees. The city of Stockton, California is in bankruptcy court now, and it must pay $30 million every year in pension costs, even as it only sets aside .70 cents for every dollar it must pay.

The crisis is spiraling. In essence, cities and states around the country will have to decide whether to honor their legal debts to public employees or pay for services like police, fire, and parks needed by their current residents. The only other option is a bailout from the federal government, but the size of the problem is enormous and such a bailout seems highly unlikely.

In the meantime, states continue to juggle money around to keep the Ponzi scheme going.  Just this month New York State decided to let municipalities and public entities borrow money from the state pension fund to make their payments back into the state pension fund. This is nonsense. Dangerous nonsense.

And while New York State did finally pass a version of pension reform last week, the reform falls far short of what Governor Cuomo wanted and what is needed. The Assembly raised the retirement age for public employees (not for policeman and firemen) to 63 from 62, whereas Cuomo sensibly asked it be raised to 65. As it stands now, the New York State pension plan is expected to consume 35 percent of the New York State's budget by 2015. This is up from a mere 3% in 2001.  More.

For anyone who cares about government and wants government to succeed, the pension problem must be addressed, for it threatens not only economic disaster, but political cynicism beyond even today's wildest dreams. Across the country, teachers, policemen and firemen, not to mention civil service employees and others, will see their promised pensions shrink precipitously. Not only will this devastate retirement nest eggs for millions of people, it will fray the social contract—pitting young against old and taxpayers against public employees.

It is bad enough that we will have to renege on pensions owed to public service employees (as municipalities in Rhode Island, Alabama, and California are already doing), but it is worse that we will do so after bailing out Wall St. bankers and allowing taxpayers to pay their contractually-obligated bloated bonuses. That these seven-figure bonuses were paid and yet we are unable and unwilling to pay contractually obligated pension costs is both a fact and an example of why the bailout of the bankers was so deeply wrong and misguided.

The issues around public pensions are complicated. They involve contractual promises made to workers that simply cannot be honored as well as pitting public servants against everyday taxpayers. There is also the fact that public employees are paid significantly more than similarly educated private employees at all but the highest levels of income and education. A recent Congressional Budget Office study concluded that:

  • Average benefits for federal workers with no more than a high school diploma were 72 percent higher than for their private-sector counterparts.
  • Average benefits for federal workers whose education ended in a bachelor's degree were 46 percent higher than for similar workers in the private sector.
  • Workers with a professional degree or doctorate received roughly the same level of average benefits in both sectors.

The CBO chart below shows clearly the relative overcompensation of public workers against their private-sector counterparts.  While one could turn this around and argue that private-sector workers are underpaid, the fact is that the current level of benefits for public-sector workers is bankrupting our municipalities and states. We can argue all we want about what is fair pay, but the current pay levels are clearly unsustainable. More, they are threatening to devastate public services as we continue to cut services in order to pay outsized benefits to retired public-sector workers.

Do public employees deserve to make more than private employees? Should we say that someone teaching in public schools deserves more than one teaching in private schools?  For some, the answer is yes and there is a sense that it is more noble and thus valuable to serve in the public interest. Some might even turn to Hannah Arendt to justify such a claim, that a public-service career is more public-spirited and thus more socially valuable than a private-service career.

As much as I value public-sector employees, it is a mistake to put them on a pedestal. It is unclear whether most public employees are more public-spirited than their private-sector counterparts. It is also unclear whether public school teachers and professors are better, more important, or more noble than their private school counterparts.

What is clear, however, is that public employees have a private interest in taking more and more of the taxpayer-generated revenue for themselves. In other words, public employees have a private interest in diverting public funds from public services to their wages and pensions. In this sense, the increasing numbers of public employees and their increasing wages and benefits threaten to hollow out public services in our country.

This is not to condemn public employees. Nor is it to deny that at the higher incomes, wealthy Americans should pay more in taxes to support governmental services. But we should be honest and contest the prejudice that public employees have the public interest at heart. And we need to have an adult debate about what to do about underfunded and ballooning public pensions.

-RB

 

The Hannah Arendt Center
The Hannah Arendt Center at Bard is a unique institution, offering a marriage of non-partisan politics and the humanities. It serves as an intellectual incubator for engaged thinking and public discussion of the nation's most pressing political and ethical challenges.