Category Archives: Poverty

The Plan? Wealth, Housing Need and Austerity

I have never been quite sure where it is from but I have a copy of a cartoon in my office called ‘The Plan’. In six frames it shows the ebb and flow, back and forth, of affluent and poor-black households in US cities, first changing places in the inner city and then in the suburbs. Yet research on gentrification suggests otherwise – with tens and sometimes hundreds of thousands of urban households displaced via the attention of higher-income households and investors to areas in which poorer households congregated (these are major currents of the urban politics of cities like San Francisco with debate moving from a concern with yuppies to Silicon Valley employees and rocketing house prices, or London with its influx of super-rich and international investment capital in the new-buiold apartment market). The lack of investment in such neighbourhoods, by landlords and owners, meant that properties in these locations offered a bonus dividend – invest here and prices might align themselves with higher prices elsewhere. The search for ‘gentrifiable’ properties and ‘up-and-coming’ neighbourhoods has been a key strand in the story of property wealth in the US and UK over the past twenty years. To understand gentrification is to provide a window on the otherwise closed workings of the economy and the politics of homeownership that permeates our culture today, in short – who are the winning and losing groups in society today?

the plan cartoon

The image of the affluent upping sticks and landing wherever suits them best in my cartoon may seem an unproblematic story, indeed one that is emblematic of what we have become as a flexible, location-maximising constituency of worker-homeowners. But who is this ‘we’? Some years ago I attended a policymaker forum in Melbourne convened at the onset of the global financial crisis. Here Australian Federal bank officials rationalised the story of low interest rates, arguing that they had benefited the macro-economy and the needs of ‘us’ homeowners. Well, even in Australia homeownership (like the US and UK) remains at just over two-thirds of households so it is not the embracing form of ‘we’ that we might want to refer to (data analysis on our project on London’s supe-rich shows that owner occupation has declined from 56% of households to 50%, the big gains going to owner-investor landlords benefitting from a rise in private renting from 17 to 26%). In all of this the self-identified role of many politicians and public bankers has been legitimated through reference to keeping things rolling nicely for ‘us’. Indeed those who would like to join ‘us’, aspirational owners seeking to get on that ladder of wealth creation and relative personal security, are also critical to understanding a large part of the banking/housing crisis – asset values rose because the architectures of the state and private finance were fundamentally aligned to fulfil the desire of existing and prospective homeowners, even as this project generated the basis for the current catastrophe as low income owners and their debt poisoned the new products built upon them.

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‘Cherish Public Housing’ – Poster on HK train.

As David Harvey (1) has eloquently argued, the crisis was underpinned by the ‘fix’ needed by capitalism to expand after ‘local’ supplies of labour and opportunity diminished. As labour and commodities came to be supplied more cheaply by countries like China and India a further stage of expansion could only be effectively generated by allowing consumers, many of them not at all well-off, to become indebted over increasing timeframes and using new products in ‘sub-prime’ deals, offered to millions of low-income households in the US. With the house of cards that this situation created now very much collapsed the costs, we were told, should not be borne by these financial institutions and, under an increasingly transparent ideological project, continue to be tackled through cutting the cost of public services. Critically, one of the many manifest outcomes of these cuts will be the way that the state provision and particular geography of public and private rental housing in major cities like London. Three key issues can be identified that need to be understood to make sense of what now appears to be happening to public housing and, by extension, to poorer households in our cities:

  1. The sense that public housing is a tarnished state project that is so stigmatised in the public eye and its households so economically marginal that reducing its costs is deemed politically desirable (by making conditions so bad that others are not inclined to want to use such services) and fiscally commonsense;
  2. Public housing, in its ‘estate’ form, represents an opportunity to contain the mad, bad and sad in spaces that can be policed and monitored by a punitive welfare regime that sees benefit uptake as a kind of deviance (literally not that which ‘normal’ or included society does) – demolition and the thinning-out of such pockets is seen as desirable and will make way for new rounds of capital investment and opportunities for international capital and high income households, and;
  3. The concentration of economic losers and social stress in public housing generates risks to included society (such as through criminality and anti-social behaviour) that higher-income groups seek to avoid by using housing and schooling systems as a means of insulating themselves from the risk of contact with poorer households (the ‘dinner party test’ is useful in establishing such practises – good schools are identified not through academic merit so much as by the ‘kind’ of children that go there, academic performance can then be used as a proxy measure for the social composition of schools).

This social, political and economic context has helped soften-up public housing for the onslaught of the current political regime. Housing benefit in the private rental sector has been capped and rents in public housing have moved closer to (up to 80%) of market rents where possible. These plans bring us back to the low status of public housing assistance in the UK. However, these new interventions should not only be attacked because they will not work and will displace poorer households, rather they should also be understood as the products of ideas and values shaped by affluent interests and lifestyles. These values are generated by the sheltered personal biographies and daily spatial pathways of policymakers who have little experience of such conditions or the impact of their proposals. Indeed our political elite are active in a process of insulating themselves; both from the risks generated by the social exclusion derived from the cuts themselves, and from paying for the current predicament. The callousness of political priorities is generated by the social pathways and deeper class interests of the wider spectrum of political elites who, for them and the constituencies they represent, refuse to allow the prospect that recent decades of massive wealth generation should be clawed-back, taxed or otherwise captured to tackle the crisis and re-build municipal and civic facilities.

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A front page from The Observer (2) brings fifty years of research on gentrification and its impact on the urban poor to the forefront of debates about the changes that will result from government commitments to erode the security of public and private tenants. Many will be displaced from high-cost neighbourhoods and, as Saskia Sassen (3) has recently argued, provide golden opportunities for accumulation by a locked-out aspirational class of prospective homeowners who so want homes at affordable prices in places that will be seen as the investment and gentrification hotspots of the future. While some commentators were aggrieved at earlier government ‘plans’ to engender local social mix as a form of gentrification in fact this plan appears to be something much more emphatically ambitious – deploying a crisis of capitalism as an opportunity to displace the poorer and middle classes and benefit investors (in much the same way that Naomi Klein (4) has described as endemic feature of our economic system). What is even more remarkable about the socially constructed parameters of current debate is that many of us have ingested the logic of cuts and requirements of corporate capital and attacking each other as the illegitimate beneficiaries of bloated state expenditure. This discursive race to the bottom of social insecurities and labour-market flexibilities will simultaneously provision a spatial switch as low-paid workers and benefit recipients make way for higher income tenants (in public and private rental accommodation) and owners (taking advantage of sales of repossessed housing). Cities like London will be for the rich, its hinterlands for a subsistence poor desperate to take work on almost any conditions in lieu of the assurances of the state (the argument that the private sector will not be capable of substituting for public employment is logical, yet we can see how highly indebted and insecure households may yet make abundant, cheap and flexible labourers for it).

There is something almost awe-inspiring in the scale of subterfuge on offer. Unashamed by their inability to predict or counter the excesses and collapse of the system many economists continue to debate and determine the direction of cuts, rather than their need. Instead of building common assurances and securities through a state that is seen as the product of a leviathan built of ‘us’ there remains massive cultural investment in a discourse of self-interest and wealth accumulation as the vehicle to personal welfare and insecurity from economic risks. This bind between property wealth and politics perhaps helps to explain the more muted response to cuts so far in the UK when compared with other countries, yet it is unlikely that so extensive a roadmap will not radicalise a much broader range of social groups and interests.

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Those spaces likely to be more resilient to a possible second economic downturn are inhabited by the lifeblood of political authority and planning today. For these groups their daily spatial circuits and friendships rarely cross with those who will see the social catastrophe and toxicity that will be sewn into many such localities for years to come (often on already lengthy histories of economic marginality and community decline). Political life has, whether it is of the left or right, largely failed to prevent the excesses of corporate-political agendas seeking the bottoming-out of wages and social benefits – for many people it is not at all clear how to respond or articulate an effective response that might challenge such alienating projects. It has also palpably failed to reduce inequalities in ways that might bring fairness and safety from the harms generated by economic secondaryness. The horrorshow of child neglect, para-criminal ambition as substitutes for legitimate careers, anti-social behaviour, incivility and the death of personal fulfilment via secure modes of work and community life will be the inter-generational gift of the ongoing plans of our political establishment.

This is an extended and updated version of a piece that first appeared as ‘Cities for the Rich’ in Le Monde Diplomatique.

Sources

  1. Harvey, D. (2010) The Enigma of Capital and the Crises of Capitalism, Profile Books.
  2. http://www.guardian.co.uk/politics/2010/oct/24/exodus-poor-families-from-london
  3. Sassen, S. (2010) A Savage Sorting of Winners and Losers: Contemporary Versions of Primitive Accumulation, Globalizations, 7, ½, pp. 23-50.
  4. Klein, N. (2008) The Shock Doctrine: The Rise of Disaster Capitalism, London: Penguin.
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Exhausting places

In 1975 Georges Perec observed a public space and wrote his every observation in a very short book entitled An Attempt at Exhausting a Place in Paris. Like much of Perec’s work the engagement provides scope to rethink our relationship to place and to be more playful in our understanding of what space can offer us – does the space become more banal or exciting in its appearance as a result of trying so hard to observe its every occurrence and features? Of course places can be exhausting on a number of levels and debates about the quality of place, the lack of services, cuts to public provisions and the like generate continuing rounds of discussion about how best to allow neighbourhoods to be places that advantage and prop-up their residents in some way. The debates about area affects, the idea that it is worse to be poor in a poor place than a space that is more socially diverse, captures the idea that  neighbourhood life somehow might drain the vitality and opportunity of its residents. This can happen in numerous different ways – increased pressure on social, education and health services, the social fatalism generated by stigmatised social identities in such spaces as well as the potential isolation from work opportunities or transport connections.

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Those interested in this patchwork of disadvantage also well know that central mechanisms for reducing inequalities of wealth and income, and local, spatial programmes of intervention to off-set such effects are notable for their absence. We are doing little to nothing to challenge the regional and local inequalities generated by economic policies and structures, nor the deeper effects that massive cuts to social provisions are having. Yet the logic of these processes is much deeper than we might at first imagine, I have been struck at the usefulness of Saskia Sassen’s new book Expulsions which seems to me to provide a rather fresh and exciting perspective on how places and people are being transformed and denuded by the systemic architecture of the world economy. Notions of poverty and inequality don’t capture this fully. For Sassen we are seeing the tendentious emergence of forms that are leading to the literal evacuation of vulnerable populations – the theft of natural resources by international corporations, the massive displacement of populations and the removal of rights of citizenship for key groups living in poverty. More worryingly we can think of these forms of expulsion as being not fully intended – the systemic architecture of a globalised capitalism will produce forms of social and spatial organisation that feed this machine by destroying the livelihoods of millions while generating the positionality of corporate and state actors who unknowingly conspire to enable these forms of extraction to proceed. For some this might seem to let too many off the hook and yet I think there is a curious power to the notion that much of the social distress and dispossession is the emergent outcome of the system at work, rather than of careful planning or anti-social intent as such. This exhausting of places and people is the system at work, driven to the logical endpoint of its own unsustainability but no doubt also guided by the personal ambitions of key corporate actors able to take what they can from the commons before it is finally drained.

The barbarian manifestos

All of the major political parties operate with barbarian manifestos, all appear to represent (either through ideological fervour or the game of second-guessing what ‘we’, the electorate, apparently want) the needs of capital, private interests via the selling-off of public assets (the NHS, public spaces, security, hospitals, schools, the post office). This politically mediated theft has been pursued in lieu of a more progressive agenda that might begin to target the staggering wealth of the very few globally and nationally, and the protection of that wealth by seeking cuts to publicly funded projects and programmes instead of personal or corporate wealth. All of this arguably makes this it an easy time to be a housing or urban policy analyst since there isn’t much going on except for persistent thinking about what to do with very little or no money.

The great triumph of Big Society thinking is that deep down there are indeed many people who believe communities, rather than these kinds of government, can do a better job. So there is a real need for urban, housing and social studies to be premised more firmly on equitable forms of taxation and resourcing, instead of austerity. Despite the massive popularity of thinkers like David Harvey and Thomas Piketty we appear to have not produced either a key thought leader or mainstream set of principles capable of advancing such goals. Attempting to face-down the prospect of being portrayed as radical for stepping outside the narrow boundaries of political thinking set by government and conventional news media is a hard prospect indeed. We need to adopt an unblinking fearlessness to such views however; based on the raft of data and analysis globally that points to the condensation of wealth, the social disaster of austerity and the pursuit of short-term gains by various elites. The very moderate arguments for municipal, public and shared forms of provision and infrastructure also need to be part of such arguments. If we want to discuss problems like housing provision, health and our welfare we will need to start with prescriptions that do not start by tinkering with less resource, contracting-out or other substitutes – we need to state up-front that there is a cost and, indeed, that we as a community can bare such costs given our combined wealth. Unfortunately this position has been eschewed by many on the political left, while the media has ignored or viewed as risible those asking for tax justice. In this sense those who work to such principles are seen to be asking for the world, or as fantasists not facing-down the reality of budget deficits – even while we know that even a handful of billionaires could wipe-out poverty world-wide. Positions of corporate and individual wealth, so carefully and constructively attacked by Piketty’s detailed empirical analysis, need to be challenged or they are increasingly likely to be shamed to action by a more vocal public no longer willing to tolerate their disproportionate take, all the while aided by a subconsciously compliant political class. I doubt it is only me that feels these points are so glaringly obvious, just as they appear to be so clearly off the map of current political leadership and action.

Nothing space and nothing people

I was struck while reading Steve Hall and David Wilson’s piece about serial killing in a recent issue of the European Journal of Criminology. They make the argument that we need to develop deeper theories of motivation and the influence of social structural conditions that may shape such motivations. In a nutshell, is the inclination to do harm linked to predispositions that are hard-wired (some people are always born with violent propensities) or do the peculiarities and geographies of social and economic stress also play their role. I know where my money is, but this is a long-running argument and one which continues to need elucidation, not least because of the persistent denial of the role of social forces and increasing belief in genetic and personal factors. It is also important because, as they point out, the crime-drop has been much less marked in highly deprived areas – spaces that, as I’m sure you’ve noticed, have fared less than very well over the past six and many more years. Violence is concentrated, under-reported and internalised in the traumatised personal biographies of those living in these districts, and these stresses (pressured services, lack of employment, education and skills deficits, stigma and abuse) are pushed even harder because of the kinds of decisions about (non) investment and funding that government presides over in relation to the macro-economy.

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Packaged recycling, courtesy Daryl Martin (CURB, University of York).

Taking as their example serial killing and the kinds of subjectivity associated with such offenders they make the observation that most of these have, counter-intuitively, barely registered in the media circus because they have taken place in abandoned spaces, involving people who are valued little by society more broadly. They use a framework developed by Simon Parker and myself about the idea of autotomic space* that appears to capture the kind of spaces sought out by killers – perhaps strategically because they tend to away from any casual gaze of unwanted encounter, but also because the people we find in such spaces are capable of being treated differently. This combination of spatial and social neglect renders the inhabitants and users of these spaces available to differential treatment. It isn’t just governments and policing agencies that act to produce sch spaces by their avoidance of responsibility and the ceding of control over such areas. We can also see how people make judgment calls about avoiding certain places because they are seen as too risky or dangerous, sometimes because inhabitants also act to deter or intimidate those who don’t belong there (points made long ago by writers like Gerry Suttles in his work on slums and their reputations and social organisation as ‘defensive’). All of this perhaps renders an intensely complex phenomenon rather simple, but it does help us to say something that moves us beyond notions of citizenship/incorporation or the kind of privatisation of public space thesis that have been the polar points of discussion around urban space in recent years. If we can treat people differently, suspend ordinary rights of citizenship, because they live in a place that has seen public funding removed, policing reduced (not something that can ever be acknowledged) and services withdrawn we can then see a vicious circularity to these processes. Sites and people are stigmatised because they don’t belong, they don’t belong because they have been financially exiled and have seen services withdrawn and this reinforces a position of partial social exile (I’m reading Saskia Sassen’s book Expulsions right now which scales these concerns to a planetary level, thoughmore on this in another post).

The production of autotomic, abandoned space is connected by Hall and Wilson to the ways in which space influences the production of damaged people with ill intent, and the way in which spaces that are relegated to the status of hopeless, sink status appears to legitimate the creation of targets for predatory criminality. Meanwhile we have long-seen the kinds of discursive treatment and further relegation of estates and post-industrial areas in media treatments that try to understand why people live like this in ‘these’ areas. Something here is rather broken and such fractures are soon revealed when we look to the geography of predatory male criminality in the north of England, the Rotherham abuse revelations among many others can be linked to these ideas of autotomic spaces and exceptional conduct (click here for an earlier article on the social and economic conditions of the town that further helps to cement these points) . Clearly there is much to be said here about gender and culture (as well as deep problems in the operations of the criminal justice system) but there is also something to be said about how these spaces create patterns of trauma that stem from wider economic and policy cycles that have rendered many such towns and cities fatalistic, inwardly facing and dangerous for weaker and discriminated groups within those spaces.

The media’s persistent role in defaming and casting-out particular social groups remains important in all of this, in just last night’s evening news on the BBC prostitutes were shown in the red light area of Amsterdam using long lenses with barely post-pubescent girls looking bemusedly to the camera as though their rights to privacy can be suspended because of their occupation and, critically, the place they work where ordinary rights are suspended. Hall and Wilson seem to be onto something here and it seems worth pursuing the idea that there is a real kind of disintegration (a falling out of society and space) of the other that occurs in places of social degradation produced by the national and urban economic and political order. This helps us to understand more about the persistence of violence, its concentration in particular areas and, in part, the lack of concerted responses to victimisation. As Hall and Wilson sum it up:

In a nutshell, the autotomic process is a process of exfoliation, shedding and abandoning a former part of the urban social body that can no longer be commercially exploited or socially controlled…Perpetrators of serious violence, homicide and serial murder take advantage of the vulnerable individuals who can be found in the unprotected spaces created by capitalism’s periodic bouts of creative destruction p.649.

 * The fancy term, autotomic space, is used as a means of capturing something about particular spaces that suggests a kind of orchestrated ejection, a rejection of spaces and social groups that takes place where the cost of trying to continue to include them in mainstream society and the wider life of the city is seen to be too high. It stems from the term used to describe animals capable of shedding a part of their body in response to attack by a predator – thus a metaphor for the ejection of parts of the city in relation to the risks associated with the continued maintenance of those segments.

The poverty of urban research: London’s super-rich

The Shard

The Shard

Space matters, as geographers often like to say to sociologists – it also matters to the very wealthy who are overwhelmingly concentrated around the social asset-rich spaces of London’s super-prime property markets. Unless you have been living in a cave for the last few years this is an issue that is exercising rather a lot of people. What kind of a city has London become and who is it for? The project that I am co-leading with Roger Burrows (Goldsmiths) is focused on trying to understand the changes that the city has experienced alongside the massive increases in wealth, both from international and ‘local’ sources. Instead of looking down, as has often been criticised in sociological research, we are trying to look-up and understand the property markets, neighbourhoods, social circuits and wider impacts of these groups on the city.

For the super-rich and the merely very wealthy London works – it has relatively low levels of property taxation, unrivalled cultural and leisure circuits, sits astride the time line and is a relatively safe city, both to live and do business. But there is a much broader series of political questions that lurks in the background here – austerity, welfare cuts, stagnating housing supply, gentrification, estate demolitions and the general sense that London works for capital rather than its citizens. If anything we feel that this makes studying the rich a more urgent problematic – the displacement of low-income households in the city is by no means disconnected from the rising fortunes and investments of off-shore investors and to the insulated political lives of those making the decision to cut welfare and housing programmes. As we move into the research we are learning much more about how and why the wealthy are choosing London, as a place to live or as a place to park money for a time. Much of London’s gain has been generated by the chaos of other regions globally, or the relative intrusiveness of the state in other countries.

The social splitting-off of super-affluence represents one of the foremost challenges for applied social science. Fundamentally this relates to the lag between models of society, power and civic life and the growth, dynamics and effects of super-affluence that have not tended to be captured through these lenses. In a city like London it is clear that there are those investing in, but rarely living in, the city, but there are also many very wealthy people who seek to be in the city. What do these types of engagement and non/elective belonging imply for politics and fiscal policies?

Gaining contact and learning more is fraught with difficulty, one of the reasons ‘studying-up’ , though laudable, is so difficult in the first place. The very rich present us with difficulties precisely because they tend to challenge the ability of a public sociology to locate, understand and report on them.  In many cases the very possibility of connection with such groups has evaporated, and the state already acknowledges this. In the past the traditional imperatives of research meant that work on elite was difficult – secretaries, various defensive and other power relationships kept social investigators at bay.  But, more recently, services like the Australian Bureau of Statistics and US statistical authorities have expressed concern at what is effectively the growing myopia of the state to super rich citizens whose residential arrangements, such as gated communities, prevent their basic profiling. Instead of concern with unemployed and young males, the perennial problem group for survey researchers, we need to acknowledge the increasing opacity of affluent life – from the state and from public understandings of the full range of social life. The state sees unevenly, and appears to be predisposed to support most those it sees least.

London’s burgeoning high rise landscape appears to be driven by underground pipelines of capital flowing into the city from across the globe. London’s luck brings more luck, the longest run of a nationally-sanctioned pyramiding scheme in the form of its property market. Perhaps worst of all the city of Lanchester’s Capital is a heartless space, money talks and politicians listen. Hostility to migrants but not migrating money, to new homes but not to empty homes speak of a callous money-logic that trumps attempts at stating the case for the city as a place for communities, social life and nurturing spaces. How very old-fashioned and cringe-worthy even to suggest such things.

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One Hyde Park, ultra prime market residences.

Any basic commitment to an equitable social and economic agenda should feel obliged to encompass these changes and move beyond speculation to learn more about the extent, lifestyles, attitudes and daily life of the very wealthy. Debates about taxation, house-building, civic engagement and urban politics cannot proceed without such insights. This is not to suggest that with knowledge might come political action or condemnation, but that we cannot achieve commitments to social equity and more just cities without it.