File: c:/ddc/Angel/BestIntentions/Fishtown.html
Date: Fri Apr 20 13:13:02 2012
      Wed Sep 24 21:09:39 2014
(C) OntoOO/ Dennis de Champeaux

Fishtown

Never underestimate the power of human stupidity.
(Robert A. Heinlein)

If you make it foolproof, they will make a better fool.
(Anonymous)

Fishtown stats

Charles Murray argues in Coming Apart, [Murray], that the top and and bottom segments in the US are since 1960 on diverging trajectories. To make his case he constructs two fictional towns, Belmont and Fishtown, and shows how they grew apart between 1960 and 2010 on numerous sociological dimensions. Belmont residents are high status professionals and/or managers; Fishtown residents are blue collar professions and those having low level white collar occupations and everything further down. The definitions used by Murray for Belmont and Fishtown in terms of the occupations of the residents has as consequence that their fractions of the US population changed:

  BelmontFishtown
Topic: 196020101960 2010
Fraction of the US population 6%21%64%30%

What Murray calls the "college sorting machine" was the driving force to produce the talent for the larger segment of Belmont with, however, the unfortunate side effect of filtering out hidden smarts and lifting them up out of Fishtown. The increased concentration of smarts at the top was amplified by intermarriage of the most smart: the physician did not marry the nurse anymore but another physician. Instead of marrying their high school sweetheart way more kids went to college where they found their mates. Thus, the primary difference between the top and bottom segments is not (taxable) earning power, but (non taxable) inheritable brain power.

The data presented below is for whites only to avoid the usual discussions about race differences. Murray gives in a later chapter the corresponding data for the population as a whole and shows that the same observations and conclusions apply.

Here the summary of his findings for those aged 30-49 in these towns/ segments of the population on most of his dimensions:

 BelmontFishtown
Topic:196020101960 2010
Marriage 94%84%84%50%
Remaining single5%10% 8%25%
Divorce 1%7% 4%35%
Single parent children 0%3%2%22%
Happy marriage(*) 68%63%55%25%
Children living with biological parents97%87%95%35%
Males not in the labor force
Belmont at least BA
Fishtown at most high school
2%3%5%12%
Head of house hold working at least 40 hours 90%89%81%60%
Inmates come from(**) 0%0%80%80%
Violent crime arrests per 100,000 55100600
Property crime arrests per 100,000 50409002000
Religious core(*) 30%23%22%12%
(*) Date range: 1975-2010
(**) Date range: 1975-2005

These statistics are compatible with what we found in preceding chapters on the financial dimension: the bottom 50% has shrinking shares of the national income and national assets. Still there is a difference. The financial data describes a change for the best in Belmont due to more demand in the market for exceptional cognitive skills. Murray's sociological data emphasizes instead a decline in Fishtown due to social deterioration on multiple frontiers.

Murray constructs a synthetic metric for "white new lower class" with the sum of:
- prime age males not making a living,
- single mothers raising minor children, and
- a quarter of the isolates.
This yields the trend:

 BelmontFishtown
Topic:196020101960 2010
New lower class 3%3%10%36%

Murray claims that the "American project" when the US was founded, is based on industriousness, honesty, marriage and religiosity. The trend he describes in the bottom segment of the society is clearly incompatible with these alleged core features.

Why?

Murray is quite upset about these developments:
The trends of the last century matter a lot. Many of the best and most exceptional qualities of American culture cannot survive unless they are reversed.
A root cause analysis is called for, to judge steps to pursue a reversal. But before diving in, we need to to demarcate Murray's topic. He is not addressing the trend in the world or of what happens in all welfare states. Instead, he worries 'only' about the growing divergence in the US since 1960 between the top and bottom segments.

Remarkably enough Murray warns that the US runs the risk to catch the "Europe Syndrome", which he characterizes with:

The purpose of life is to while away the time between birth and death as pleasantly as possible, and the purpose of government is to make it as easy as possible ...
Murray claims that the European welfare states take away the satisfaction to solve one's problems by providing an extensive set of entitlements and safety nets. He adds to the "Europe Syndrome" with:
As publicly financed benefits grow, so do the populations who find that they need them. The more people who needs benefits, the more government bureaucracy is required. The more people who rely on support from the government and the larger the government, the fewer the people in the private sector who pay for the benefits and the apparatus of the state. The larger the number of people who depend on government either for benefits or for their jobs, the larger the constituency for voting for ever-larger government.
With the out of control US healthcare segment pumped up through Medicare and Medicaid and with the food-stamps, school-lunches, affordable housing, rent control, employer subsidized retirement savings, etc. programs this is a fine characterization for the US as well. Hence, we can question whether Murray's concern regarding the "American project" is actually specific for the US. Is the social decline in the bottom segment of the US also happening in the EU societies? Is a chasm between the bottom and top also emerging in Europe? Our financial data (see the Finale chapter for the Netherlands) suggests that the bottom segment is declining in the EU similarly to what occurs in the US.

Murray provides examples where the social capital has declined in the US:

 BelmontFishtown
Topic:196820081968 2008
Voting 96%92%70%51%
Estimation trusting of others 75%60%45%20%
Estimation fairness of others 80%78%62%40%
Estimation helpfulness of others 72%62%48%33%

If this is not enough, Murray quotes [Putnam] to report that social capital decreased due to the following declines:
- Attending meetings: -35%
- Serve as officer: -42%
- Work for a political party: -42%
- Serve on a committee: -39%
- PTA membership: -61%
- Membership of an association: -50%
- Entertain friends: -45%
- Having dinner together: -69%
- Contribution to United Way: -55%
- Bowling membership: -73%

Murray goes back to Toynbee [Toynbee] to attempt an explanation for these developments with the repeating pattern of: a good creative minority that leads a new society becomes complacent, and slowly retreats from imposing its norms downwards and even adopts lower class behaviors.

Well, this abstraction ignores (or avoids) the concrete topics of the out of control population explosion and the society's sympathetic generosity causing the inability to constrain fertility by the 'wrong' population segment. The latter is the 'simple' cause for all the ills Murray describes.

We can explain the problems in Fishtown more specific with:
- Good employment does not scale from 180M in 1960 to 310M in 2010,
- The economy was driven by demand for academic skills to increase overall efficiencies,
- Automation reduced the need for mid-level and unskilled labor,
- Generous social service support programs eliminated the need for finding work by marginal male providers, which in turn made them ineligible as marriage partners,
- Low IQ females had more offspring than their fair share, contributing to the new lower class members with marginal economic skills,
- Dysgenic fertility during the 20th century caused a decline of genotypic IQ, producing a larger segment of low IQ males, which are crime prone,
- Exports to pay for energy imports reduced goods available to the own population, yielding price increases only partially compensated for by wage increases, which was felt disproportionally by those in the Fishtown segment.

Fixes?

Murray explains that the US founders created a society with ample freedom assuming that the population had virtue. That may have been enough for a long time. But did it remain enough? Apparently not. Different approaches are:
A social democrat may see ... a compelling case for the redistribution of wealth. A social conservative may see a compelling case for government policies that support marriage, religion and traditional values. I (= Murray) am a libertarian, and see a compelling case for returning to the founders' concept of limited government.
Really?

Murray's solution is a call for the Belmont folks to wake up and preach what they practice themselves. This seems quite insufficient.

Again: the US population was in 1900 76M, in 1960 179M, in 2010 308M. The majority does not pay enough taxes for the social services they consume. Nobody can even suggest that the freedom to procreate (at the expense of the society) has produced too many people (unsustainable) and has produced an abundance of 'wrong' people (dependent on society's charity).

A way stronger intervention is required to avoid the collapse of Murray's "American project".

References

[Murray] Murray, C., Coming Apart, Crown Forum, NY, 2012.

[Putnam] Putnam, R.D, Bowling Alone: The Collapse and Revival of American Community, Simon & Schuster, NY, 2000.

[Toynbee] Toynbee, A.J. & D.C. Somervell, A Study of History: Abridgement of Volumes I-VI, Oxford University Press, Oxford, 1946.

Appendix Unseemliness

Murray agrees with a dictionary that "unseemliness" can be described with: unbecoming, unfitting, indecent. He uses this polite term to lambast the trend of CEO compensations during 1970-2006 from $1M to $16M. He uses a quote by an anonymous "... successful entrepreneur, an ardent proponent of free markets ..." who had agreed: "It's obscene" to express his own position on this matter.

Quite amazingly Murray suggests - using a question - something beyond unseemliness with:

Or to what extent have the boards of directors of corporate America - and nonprofit America, and foundation America - become cozy extended families, scratching one another's backs, happily going along with a market that has become lucrative for all of them, taking advantage of their privileged positions - rigging the game, but within the law?
Others have often taken this stance already using the growing ratio between the incomes of top and bottom employees. We certainly agree that this development is very unfortunate, however, we are not willing to use the term unseemliness and certainly not the nefariousness in Murray's quote.

It is easy enough to exploit resentment in a great majority of the population when learning about compensation packages of CEOs who may even get booted out by their boards. Missing by the public - we believe - is an appreciation of the complexity of the task to run a large - these days typically global - corporation, whose revenues are often larger than the economies of sovereign nations. There are very few people on the planet who can assemble and manage a top team that runs the different corporate functions in a very hostile environment. Market requirements for offered products and/or services change on a daily basis. Government regulations are changing continuously. Customer expectations change. Innovations by competitors can wipe-out own revenue streams. Creation of new products and/or services for which there is market demand is very, very tough. Internal entropy requires yearly reorganizations.

A reader who is not convinced by the reasons for high compensations of CEOs doing impossibly hard tasks is invited to ponder the scope of these 'unfair' practices: a few thousand 'very fat cats'. Always focusing on what is happening in this tiny, tiny top by the public, by the press, and now also by Murray deflects attention away from - what we believe, and which we must repeat again and again is way more significant: the increasing 150+M bottom majority being economic dysfunctional and 'superfluous', which is horrible indeed.

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