immiseration

From Neoliberalism to Nowhere

By Thomas McLamb

 

From 1932-1945, FDR responded to the Great Depression by way of the New Deal to temporarily put a bandage on the crises of capital. This creation of the American Welfare State served as the response to the occasional short-term downturns of capitalist expansion. From FDR’s term until the Oil Crisis in the early 70s, the United States capitalist system enjoyed a period of steady growth and a stable rate of profit, whose occasional declines were solved by way of a variety of government programs that sent one clear message; the government existed to serve the people.

When Nixon took office, the processes of persistent economic inflation became apparent, indicating that this long period of economic expansion and stability was changing. That said, Marxist analyses of economic patterns of expansion, contraction, and long-term growth should stray away from the use of inflation as an economic pattern. Inflation is merely the process by which bourgeois economists summarize the degeneration of working-class buying power and strengthening of capitalist class buying power. In one short phrase – the dollar is fundamentally worth less to the worker than it is to the capitalist. While the capitalist is able to purchase more money with less, an exponential process depending on how much capital has been accumulated, the worker is dependent on purchasing essential life commodities, healthcare, food, housing, etc. with their dollar; the worker does not enjoy the luxury of purchasing more money with less, a process that inevitably leads to the phenomenon neoclassical economists refer to as inflation. Regardless of the actual relationship of inflation and the working-class, the aforementioned cycle of profits and growth from the post-war periods came to an end with the ’73-75 recession. The long wave of capitalist expansion had begun to wane, signaling the forthcoming period of long-term stagnation of working-class wages still underway today.

The end of the doctrine of the Welfare State led directly into a new doctrine of economic policy. The dominant economists of the period suggested that government welfare was wasteful and inefficient, that the occasional patterns of economic recession could be solved by allowing the markets to regulate themselves. The general assumption of these economists, i.e. Friedman et. al., was that government welfare resulted in an exponential process of inflation that could be remedied by a revival of liberal economics. This renascent adoration of laissez-faire capitalism came to serve as the genesis and framework of neoliberalism – the doctrine of cutting government expenses by any means necessary. Following the birth of neoliberalism, austerity quickly set in. The government responded to crises by allowing the bottom to hit the bottom, and externalizing and outsourcing previously domestic forms of labor that had now suffered from a declining rate of profit.

Alongside the externalization and outsourcing of labor from the United States, a process that signaled the shift of the U.S. to a strictly service and information economy, came a renascent nationalism and patriotism within the United States. This renascent nationalism served as the popular justification for the endless oil wars in the middle east, the incessant and undemocratic CIA-backed military coups in Latin America, and the continuous starving acts of tariffs and embargoes against foreign governments who refused to kneel to the imperialist war cry of neoliberalism. In industries where the rate of profit waned in the United States, the government merely cut popular welfare programs to fund the imperialist war machine to appropriate resources, governments, and economies of foreign governments, continuing the accumulation of capital and comfortable seat of influence of America.

Away from the wars, coups, and starvation acts outside of American borders, American workers waded through an ever-changing industry of employment in the United States. The neoliberal response to the discovery of ‘inflation,’ better understood as another symptom of the declining rate of profit, resulted in the same outcome the neoliberal economists and politicians believed they would be avoiding – a period of long-term stagnation of working-class wages and the devaluation of the buying-power of the working-class by large-scale privatization and imperialist efforts to sustain the total economic growth of the U.S. economy. Of course, these solutions worked to create more wealth than ever and higher profitability that ever before in the United States, but the measure of the total economy and its exponential growth ignores the continuous struggle of the non-propertied class. Marx’s theories of surplus value provide us with the truth that all profit is derived solely from labor. With that understood, wherever labor costs can be reduced, they will be, and profits will increase. Additionally, the buying-power of those wages themselves have been structurally diminished long-term by the neoliberal doctrine. This process of the stagnation of working-class buying power can be observed in the history of wages since the beginning of the neoliberal period. Real per capita wealth in the U.S. has more than doubled since 1964 while average real wages have barely increased. From 1964 to 2018, the buying power of the average worker in the United States increased by only 11.7% while the actual average wages themselves have increased by 806%. This mass rate of inflation is not an aberration of capitalist market economies – it is precisely a function of the long and short waves of capitalist development; all of which is accelerated and exaggerated by neoliberal austerity.

Over the past 50 years, over 90% of all growth in income has gone directly to the top 5% of households in the United States. Just short of 3% of total economic growth went to the bottom 20% of households, while more than half went to the wealthiest 20%. Wealth inequality from the late sixties throughout the development of the neoliberal period can be described in one sentence – the rich got richer and the poor get poorer.

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The bottom 95% of families have experienced within themselves disproportionate rates of economic growth relative to productivity. While workers are producing more than ever for their bosses, hikes in productivity in the neoliberal period haven’t resulted in higher wages at all. Drew DeSilver has pointed out in his work through the Pew Research Center that while productivity amongst workers has increased by 80% over the past 30 years, the data will show that the buying power of the wages those workers earned has moved up barely a percent and a half.  Despite this near doubling in productivity, neoliberal austerity and market purism have made more money than ever for those at the top, and stolen more than ever from those at the bottom. The general tendency of money to move upwards on the capitalist market has resulted in exponential gains for the ultra-rich, which as mentioned before, creates an exponential increase in the buying-power of the rich and a stagnating or decreasing buying-power of the poor.

Alongside the hikes in productivity and slow growth of wages, nearly 80:1 from 1987-2017, there has been a drastic shift in employment by major industry sector amongst the total workforce. From 1948-1975, the total employees in the United States increased by 65.67%, around 2.43% annually. From 1975-2017, total employees increased by 79.23%, or 1.89% annually. Even though productivity and total wealth increased exponentially over the neoliberal period, employment decreased in growth year after year.

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Amongst the general change in total employment, specific industries saw drastic changes during the neoliberal period compared to the period of government intervention policy stemming from the FDR era. Manufacturing jobs have disappeared in mass numbers since the beginning of the neoliberal era. Manufacturing has been pushed abroad to keep up with the ‘cutting costs’ doctrine of neoliberalism, while more workers than ever are forced into low-paying service and information jobs, since these are the only jobs that exist anymore. Retail positions have increased proportionally with total employment, but many of these positions are occupied by formerly well-employed manufacturing jobs. The shift in employment by major industry sector can be observed as a primary vehicle for the slow-growth of working-class buying power, as well as an expression of ever-disappearing manufacturing jobs.

In terms of buying power of the working-class, the numbers represent a similar transformation of shares of economic expansion, though the buying-power can illuminate a more concrete examination that accounts for the bourgeois notion of inflation and market behaviors.

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From 1967 to 2017, the buying power of the lowest 80% of families grew at a similar rate to the actual dollar amount in the previous data set. From a sliding scale of the least to most wealthy in terms of economic expansion, the buying-power of the poor increased by around half compared to their dollar-amount wages while the buying-power of the wealthiest percentile classes increased by around 2.1 times. Though these numbers from the census do adjust buying power to examine the market behaviors and adjust the wages to paint a more accurate picture using consumer price indexes, these numbers are not adjusted to account for factors that only affect growth amongst the ultra-rich, i.e., debt, investments, property, etc. Furthermore, the tendency of capital upwards results in exponential increases in the buying-power of those at the top, but commodities can only grow so expensive before those at the bottom can no longer pay for them, thus the tendency of the rate of profit to fall despite exponential levels of expansion for the most-high spheres of capital.

Of course, the most wealth 5% of households in the United States have enjoyed economic expansion that dwarfs that of those at the bottom, a near 60-40 split. This is largely due to the existing ownership of the means of production and investment spheres by the ultra-rich maintaining their positions through one of the largest hikes in productivity in the history of capital itself.  The bureau of labor statistics provides us with a catalogued measure of productivity increases by major industry sector, though some catalogs only go back as far as 1987. Despite this, the numbers are still useful to examine the production and profitability levels of economic industry relative to real wage increases.

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There are data series on productivity in the manufacturing sector using the same measuring scale as the data set above, though the historical series only date back to 1987, presenting several problems, but the data itself is still very useful. The data is included in the above chart, though 1967-1986 are omitted for mentioned reasons.

Referring to the real average household incomes of the same time-set discussed above, we can build a relationship by percentile class of the wage-productivity increase from 1967-2017. Listed below are both the data from 1967-2017 as well as a smaller section from 1987-2017 to include manufacturing data relative to the other major industry sectors.

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Regardless of year and industry, there is a general tendency both within the latent capitalist mode of production as well as the neoliberal tendency for exponentially disproportionate ratios of growth to productivity depending on income class. Since 1987, there has been a harsh stagnation of wages especially amongst the poorest 20% of households in the United States that was not shared in years prior. Following the tendency of the income-productivity relationship upwards can illuminate the fact that the neoliberal period has resulted in the richest few in the United States have received the overwhelming majority of money and buying-power from the bottom. The philosophy of trickle-down economics combined with the furthering development of the capitalist tendency towards class-monopoly has resulted in both the longest period of wage stagnation in the history of American capitalism as well as the largest wealth inequality in the history of this country. Hikes in productivity are useful for examining the rate at which working-class wages are outpaced by economic growth, but these productivity measures also help illuminate the mass-level of accumulation and theft that the billionaire class has taken part in over the past 50 some-odd years.

In all industries, sans manufacturing, the highest 20% of household incomes have reaped the rewards of the increased productivity of the bottom 80%. The outsourcing and evisceration of American manufacturing deals primarily with the need for a higher profitability from labor by those who own the manufacturing means, as well as the systemic decline in union membership and labor solidarity from Reagan to present. Furthermore, the top 5% of families have almost exclusively reaped the rewards of hikes in productivity, being the only percentile class in the country that has achieved a level of economic growth that is even barely comparable to the growth of productivity. Again, this wage-productivity relationship only grows more dramatic and exponential as you examine those higher and higher up on the wealth ladder. For those at the very top, their economic growth makes that of those of the bottom 99% seem like raindrops in the vast open ocean.

In the period of FDR, there were three solutions to the crisis of capitalism across the world – Bolshevism, fascism, and social-democratic government policy. If the policy of FDRs social-democratic platform was to sustain the rate of profit through bailing out the worker through mass government programs, the policy of neoliberalism was to simply allow the economy to bottom out, so that the rate of profit could be restored organically in the market. The neoliberal period which proceeded from the welfare state allowed for mass accumulation of capital by the ultra-rich at exponential levels. In the early 20th century, bailing out the ultra-rich would not allow for an organic recovery of the rate of profit since the raw inequality between the rich and poor paled in comparison to that of the 21st century. However, in 2020, the capitalist system has been able to sustain its profits by doing precisely what couldn’t be done 100 years ago – bailing out the 1% of the 1% time after time. The capital that has been accumulated in disproportionate amounts over the past 100 years has facilitated this very process of the reintroduction of mass government programs that serve the market, only this time, they serve those at the top instead of those at the bottom. The program of neoliberalism is the death knell of capital, whose only defense is to consume its very mechanism of its own creation and sustenance.

The rate of profit is in decline. There are two paths forward from neoliberalism. The first path is the possibility that capital can save itself through the false-promises of several decades of social-democratic reform, recreating the conditions that led to the development of neoliberalism. The second path is the dissolution of capital by its own hand. Capitalism has dug its own grave through the doctrine of neoliberalism, resulting in the greatest wealth inequality in the history of capital and the ever-growing contradictions of labor and productivity. The path forward from the death knells of capital cannot be understood as some sort of communist eventuality. Capital will certainly die, but what takes is place is certainly indeterminate.

Neoliberalism has wreaked havoc on the worker for half a century now. Corporate tax cuts, the starvation of the worker, and the greatest wealth inequality the country has ever seen – these are the legacies of neoliberalism. Its doctrine has been nothing but the largest heist in the history of capitalism, with the ultra-rich stealing more every day from the pockets of the worker. The path forward must address these concerns, lest we allow the economy to bottom out, and leave authoritarianism and failed bourgeois economics to dominate the world as it has for the past century.

Thomas McLamb is a Lebanese-American Marxist writer, historian, and graduate student residing in the so-called United States. Thomas has spent the last few years researching historic wages, economic expansion, recession, and the currents of capitalism both in the so-called United States as well as internationally.

Capitalist Immiseration, the Trump/Biden Effect, and the Fascist Tide

By Colin Jenkins

Things under Trump were not good for most of us. Same can be said for Obama and the Bushs, Clinton and Reagan, and so on. Things under Biden will not be good for most of us. Why? Because capitalism is not designed to be good for most of us. We are its commodities. Our lives are bought, sold, used, abused, disregarded, and discarded when no longer needed. We are not only alienated “appendages” of productive machinery, as Marx once brilliantly noted, but we are all-encompassing conduits for the upward flow of profit. Our labor, our existence, our lives, our actions, every move we make are all geared in a way to direct money to a minority class that sits at the top – the capitalists. This has never been more evident than with the advent of social media, where even our basic social interactions with one another are now monetized for the benefit of tech industry executives and their shareholders.

In the current era of neoliberalism, globalization, financialization, and automation, our lives have only become more expendable. Our labor is not needed as much anymore. Machines are filling that void. A fully globalized labor pool has, once and for all, put the international proletariat on the same track. We are now all in a race to the bottom. This isn’t to say the global South no longer falls victim to colonialism and imperialism (because it still does), but rather that a fully globalized economy has now set the former industrialized working classes in the imperial core on the same path as the super-exploited working classes of the global South. It is only a matter of time before this total immersion is realized. The combination of a broadening labor pool and rapid increase in technology has made machines (Marx’s “constant capital”) more prevalent and, in turn, human labor (Marx’s “variable capital”) obsolete in many industries. In a humane system, this would be something to celebrate, as people would be increasingly liberated from tasks that can be done by machines, thus freeing us up to spend more time with our families, communities, and to explore our creative and productive capacities away from capitalist coercion. Unfortunately, in an inhumane system like capitalism, which recognizes us as nothing more than commodities, it leaves us in a state of desperation – as “appendages” desperately seeking productive machinery to attach ourselves to so that we can properly serve our capitalist overlords.

Many of us are aware of the Oxfam reports that have come out over the past decade, especially those which highlight global inequality. A glance at their yearly analyses shows us the disastrous effects of a global capitalist system that has run its course, and in doing so has gone from the “predatory phase of human development,” as Thorstein Veblen once referred to it, to a seemingly full-blown cannibalistic stage of human regression:

  • In 2010, the 388 richest individuals in the world owned more wealth than half of the entire human population on Earth.

  • By 2015, this number was reduced to only 62 individuals.[1]

  • In 2018, it was the 42 richest individuals.

  • In 2019, it was down to only 26 individuals who own more wealth than 3.8 billion people.[2]

These numbers paint a damning picture, but do not necessarily illustrate the most important point: that Marx’s theory of immiseration is being realized. In other words, at a closer look, we can see the claim that “capitalism has lifted people out of poverty” is simply not true. Rather, as inequality has risen due to unfathomable amounts of wealth being funneled to the top, the lives of billions of people worldwide have worsened. Proponents of capitalism would like us to believe this is not a zero-sum game, or even worse that “a rising tide lifts all boats,” but in an era dominated by fiat currency, where wealth is represented by mere numbers in a computer program, created arbitrarily by capitalist governments, it is the wealthiest individuals who determine the value of that currency. And when a handful of individual capitalists command wealth in the hundreds of billions, it is clear that the 4.2 billion members of the global proletariat who must survive on less than $7.40 a day exist in a state of extreme poverty. In true zero-sum fashion, as more wealth has concentrated at the top, more poverty has developed among the bottom. In fact, between 1980 and 2015, the number of people living in this state of poverty increased by one billion.[3] And this does not begin to assess the new realities of the working classes within the imperial core, such as the United States, which have been artificially buoyed by unsustainable credit and debt schemes for the past three decades, all while real wages have stagnated, living-wage jobs have plummeted, and costs of living have skyrocketed. It is only a matter of time before this entire house of cards, which has been constructed and maintained to keep capitalism and extreme wealth inequality in place, comes crumbling down. This fragile arrangement is being tested like never before, as 40 million Americans are facing eviction, food pantries are being strained, and anywhere from a third to a half of working people in the US cannot pay their bills. The capitalist class knows their system is on the brink — not because of the pandemic but more precisely due to its historical trajectory and limitations — and are now tasked with maintaining their cushy positions at the top in the aftermath. In other words, as capitalism comes to its inevitable conclusion, they prefer a controlled demolition.

Governments, politicians, and international agencies have been put in place during the post-WW II era to maintain the global capitalist system and force it on peoples everywhere, whether through resource extraction or by opening new markets. Since the collapse of the Soviet Union in the late 1980s, capital has run roughshod over the world. Now, as we move toward the middle of the 21st century, it has run its course.  In the US, Presidents, Senators, Congresspeople, Supreme Court justices, politicians, and technocrats have one primary purpose in the system: to maintain the status quo by serving capital. Or, as James Madison once said, “to protect the minority of the opulent from the majority.” In these times, this means stomping anticipated unrest. It means overseeing this process of immiseration and degradation, and ensuring it takes place in an orderly way. Tangible examples of this are the US government (via the Federal Reserve) giving capitalist institutions upwards of twenty trillion dollars under the guise of “quantitative easing” and “stimuli” over the past decade, while at the same time pushing austerity measures, militarizing domestic police forces, and brutalizing working-class folks in the streets. Joe Biden has spent his life serving capital with this blueprint. He is a known commodity to capitalists and has served them well. And, as expected, he has already begun stacking his administration with corporate lackeys who have dedicated their lives to serving power by making the rich richer and the poor poorer (because the latter is required for the former). 

As bad as Trump was, especially regarding his rhetoric that emboldened millions of white supremacists nationwide, he was a bit of a wildcard to the capitalist ruling class (despite being a member of it). He was driven primarily by ego and has spent his entire life on the other end of this relationship between capital and the state, feeding politicians from both parties to serve his interests. He was unpredictable. He got into pissing matches with anyone and everyone, bucked military advisers, challenged media, and kept people guessing. He has no ideology, no belief system, no substantial opinions on anything. He loves himself, his money, his power, and anyone who loves him back; and he has learned over the course of his uber-privileged life (which was literally handed to him on a silver platter) that manipulation is the key to all of this. If there's one skill that he has, it's the ability to persuade others without really saying much. So, he built up a loyal following, especially among the petty bourgeoisie, a sector of society that has historically served as the embryo for fascism. In the US, this demographic is dominated by middle-aged white men who similarly had privileged lives handed to them upon birth. Granted, many have used this privilege to actually work their ways to increased financial success (unlike Trump, who has never had to work), but also many who are feeling the increased pressures being brought down on them from the same era that has catalyzed Trump’s rise – the neoliberal, globalized, late stage of capitalism, which has created unprecedented instabilities throughout the socioeconomic spectrum, especially in regards to race and class inequities. Trump spoke to these people as a last line of defense for that “great white America” in their heads. However, he did not instill the same amount of trust in the bourgeoisie. So, while the transition from capitalism to fascism is already here in many respects, the capitalist class is still not fully prepared to cement the move. To them, Trump was both ahead of the game and too loose to oversee the final transition. That — with the help of Joe Biden, Kamala Harris, and the Democrats — will come in the relatively near future, as a more polished version of Trump waits in the wings to accept the torch in this perpetual, right-wing slide of lesser-evilism that has dominated bourgeois politics for the past four decades.

Thus, the focus on Trump as some sort of aberration has always been dangerous. Because he was not created in a vacuum. He was created through four decades of neoliberalism – which has been characterized most importantly by a fusion of corporate governance, the very ingredient that Mussolini once referred to as a prerequisite to fascism – corporatism. This is the final stage of capitalism, and it is upon us. Both political parties are facilitators of this transition, with Democrats serving as a center-right buffer to obstruct any significant formations of socialism from the left, and Republicans as the forerunners of this fascist realization. Like any process, it is happening gradually, with mistakes, mishaps, regenerations, improvements, and steadying mechanisms. Both parties interplay in this process, learning from one another (often unknowingly), giving and taking in a reciprocal unity that represents capital and their class interests, which must be guaranteed a place at the table when the transition is fully realized. This takes time. And unseating Trump, with all of his liabilities, was part of this process. A Biden-Harris administration will bring more stability to the transition, allowing the capitalist class time to regroup and steady the ship, and allowing the army of petty-bourgeois white supremacists time to foment in the shadows, patiently awaiting the new and improved Trump to follow. The next Trump will be more grounded in ideology, more strategic, more under the control of the capitalist class as it continues to perfect corporate governance. And with Biden and the Democrats running interference for their far-right counterparts, by obstructing and repressing socialist movements from below, the transition will continue. Because the only two possible outcomes from capitalism are socialism or fascism, and the capitalist class will do everything in its power to avoid the former, thus embracing the latter.

The fact that a record number of Americans turned out for this latest presidential election is concerning because it suggests that not enough people understand the path we are currently set upon is a one-way street. We can not and will not be steered in a safe direction, no matter which politicians or presidents we choose. And while a few credible arguments can still be made for participating in bourgeois elections, especially within certain localities, this collective delusion that places a premium on voting remains a formidable obstruction to systemic change. Quite simply, the change we need will not come from voting. If anything, our continued faith in a system that was designed to fail us only delays our collective liberation. The fact that wealthy people, billion-dollar corporations, entertainers, athletes, mass media, and politicians themselves go out of their way to push massive “get-out-and-vote” marketing campaigns on us should give pause to anyone. This delusion benefits them. And it harms us. It will take a critical mass of proletarians to take a stand and push for systemic change. This means confronting the capitalist power structure, its immense wealth, and formidable death squads head on. This will require a significant increase in class consciousness, which in turn will lead to wholesale divestment from bourgeois politics, elections, and all politicians from the two capitalist parties, even those described as “progressive.” Shedding this delusion is crucial. And we are running out of time.

 

 

Notes

[1] January 18th, 2016. An Economy for the 1%. Oxfam. Boston, Massachusetts: Oxfam America. (https://www.oxfam.org/sites/www.oxfam.org/files/fileattachments/bp210-economy-one-percent-tax-havens-180116-summ-en_0.pdf).

[2] Elliot, Larry. January 20th, 2019. World’s 26 richest people own as much as poorest 50%, says Oxfam.” The Guardian, March 5th.

[3] Hickel, Jason. 2015. “Could you live on $1.90 a day? That’s the international poverty line.” The Guardian, March 5th

The Immiseration of Labor: Capitalism, Poverty, and Inequality in Philadelphia

By Arturo Castillon

"...the more alien wealth they [the workers] produce, and… the more the productivity of their labor increases, the more does their very function as means for the valorization of capital become precarious."[1]

"...within the capitalist system all methods for raising the social productivity of labor are put into effect at the cost of the individual worker; …all means for the development of production undergo a dialectical inversion so that they become means of domination and exploitation of the producers..."[2]




The Theory of Immiseration

How are we to understand the contemporary economic situation of most people, who experience increasingly unstable conditions of employment and life?

This essay analyzes the growth of poverty and income inequality within the context of a developed capitalist [3] economy, using Philadelphia as a case study. Some might think that this city is an extreme example; for many years now Philadelphia has ranked the poorest of the 10 largest metropolitan areas in the United States.[4] However, the basic thesis of this essay is that immiseration is not an exception but instead a normal outgrowth of the capitalist economy.

The concept of immiseration is usually associated with Karl Marx, as he insisted that the nature of capitalist production resulted in the devaluation of labor, specifically the decline of wages relative to the total value created in the economy. For Marx, this meant that the proletarian class, [5] or working class, was fundamentally defined by precariousness, i.e. material instability, uncertainty, insecurity, and dependency. This theory stems from Marx's analysis of the changing organic composition of capitalist production and the reduced demand for labor that emerges as technology develops and labor becomes more productive. With increasingly productive machines, less labor produces more commodities at a faster rate, leading to the gradual replacement of labor by machines. Marx observed that the realities of capitalist competition necessitated this tendency towards mechanization and rising productivity. If a factory in the South restructures production to raise its productivity - allowing it to sell more commodities, at a faster rate, and at a cheaper price, while employing less labor-while a rival factory in Philadelphia does not, then after a while the factory in the South will run the factory in Philadelphia out of business. In order to protect their market from more productive competitors, therefore, capitalists must reinvest part of their capital into increasing productivity, or perish in the long run.

As capitalists competed and became more productive, Marx noted that labor became more impoverished: "The growing competition among the bourgeoisie, and the resulting commercial crises, make the wages of the workers ever more fluctuating. The unceasing improvement of machinery, ever more rapidly developing, makes their livelihood more and more precarious."[6] In other words, increases in capitalist productivity were uneven in their effects-they benefited the capitalists, not the workers. As capitalism became more productive and labor produced more capital in a given amount of time, economic output increased; but at the same time, real wages stabilized and even declined, because the input of human labor stayed the same or declined relative to the output of capital.

This constellation of ideas would later be referred to by Marxists as "the immiseration thesis." However, this term is somewhat misleading since throughout his life Marx developed several theses about the absolute and relative immiseration of labor under different phases of capitalist development. Nonetheless, Marx always theorized the devaluation of labor relative to the self-valorization of capital, and in this sense, he did posit a general theory of immiseration.


An Uneven Economy

Even accounting for periodic crises and recessions, it seems that the US economy is strong and growing, locally and nationally, from the standpoint of those who rule it- the capitalist class.[7] It is still the largest national economy in the world;[8] the world's largest producer of petroleum and gas [9]; the world's largest internal market for goods and services [10]; and the world's largest trading power, [11] with roughly a third of this trade based in the export and import of international commodities, while domestic trade between regions in the US generates even more capital, accounting for roughly two-thirds of US trade.[12]

The majority of this trade is concentrated in the 10 largest metropolitan areas of the US. Those ten metro areas, ordered by largest total trade volume, are: New York, Los Angeles, Chicago, Houston, Dallas, Philadelphia, Atlanta, Detroit, San Francisco, and Boston. All the commodities that move throughout the nation, in freight trains, trucks, and shipping containers, flow through a vast transportation infrastructure made up of rail lines, roads, and ports that link these ten metropolitan areas in an extensive network of "trade corridors." New York and Philadelphia, Los Angeles and Riverside, and San Francisco and San Jose are among the largest corridors within the national network.[13] These regional trading networks also provide access to distant markets that allows US capitalists to take part in global commodity chains. Still, the largest single part of capitalist value in the US comes from domestic trade.

Primarily as a result of their complementary industries in energy, chemicals, pharmaceuticals, and mixed freight, New York and Philadelphia are the largest trading partners in the national interstate network, [14] making the New York-Philadelphia trade corridor the most valuable in the nation.[15] Because it serves as a crucial node in the national trade network, Philadelphia is home to the 7th largest metropolitan economy in the nation, [16] generating the 4th highest gross domestic product in the nation, and the 9th highest among the cities of the world.[17]

The Philadelphia metropolitan economy, which includes Camden, Chester, Norristown, and other peripheral cities and towns, continues to generate massive profits for those who own it. Still, for most people-who are not capitalists, but workers-wages are low, jobs are increasingly insecure, and poverty continues to grow.[18] Despite regional economic growth, poverty has increased more rapidly in Philadelphia than any other major city since the 1970s. However, this trend is not isolated to Philadelphia; poverty has steadily increased throughout the nation since the 1970s.[19]

During this same period which people became poorer, the national economy has continued to grow and wealth has continued to concentrate in fewer hands than ever before. After two decades of relative stability following World War II, US income inequality once again began to grow starting in the early 1970s and continued to grow despite rising business cycles in the 1980s and 1990s.[20] By 2013, the top 1 percent of households received about 20 percent of all pre-tax income, in contrast to about 10 percent from 1950 to 1980.[21] By 2017, the income of the top 20% of households in Philadelphia was up by 13% since 2007, while the income of the bottom 60% of households was below 2007 levels.[22]

While a strong national economy in the late 1990s helped drive down the number of people living in poverty for the first time in decades, this trend was short-lived. Not long after the 2000s began, the bursting of the dot-com bubble sent the nation into a recession, a regular occurrence in capitalism. Millions of people lost their jobs and incomes during the early 2000s, and poverty continued to grow even as the economy recovered by the mid-2000s. The onset of the Great Recession of 2008-2009 only accelerated this trend, and the number of people living in poverty grew even faster. Even with the end of the Great Recession, poverty continued to grow throughout the nation, and Philadelphia registered declines in typical worker wages during the first five years of the recovery. By 2010-2014, 14 million people in Philadelphia lived in neighborhoods with poverty rates of 40 percent or more-5 million more than before the Great Recession and more than twice as many as in 2000.[23]

Although poverty increased among white Americans in the post-Recession period, for Black and Latino Americans poverty rose even more sharply, locally and nationally. [24] In particular, Black Philadelphians today continue to experience record high levels of poverty [25] and low teen employment.[26] This racial disparity is the result of a longstanding pattern in which white workers, allied with capitalists (who are almost entirely white), exclude Black and Brown workers from the better-paying, more-secure jobs.


The De-Industrialization of Labor

How do we explain this disconnect between growing wealth at the top and deepening poverty at the bottom?

It's obvious in retrospect that the rise of poverty in Philadelphia and other former industrial centers is the result of a shift in the capitalist mode of production-from manufacturing industries to service industries, and from city to suburbs. During most the 19th century Philadelphia was a center of craft-based industrial production, well known for its diverse array of small and medium-sized manufacturing industries-textiles, metal products, paper, glass, furniture, shoes, hardware, etc. By 1900, manufacturing workers made up about one-half of the city's entire labor force.[27] However, manufacturing jobs began to decline in Philadelphia in the 1920s, and by the 1970s, the service industries came to eclipse manufacturing entirely. Rather than manufacturing, most people now work in the service industries-food service, retail, health service, and logistics sub-industries such as warehousing, transportation, and delivery services. This "de-industrialization" of the economy and workforce resulted in a loss of income for most workers.[28]

The de-industrialization of Philadelphia, and the corresponding rise in poverty throughout the region, began earlier than most other cities in the North American Rust-Belt, shortly after the economic upturn that came with World War I (1914-1918), which resulted in growing mechanization, automation, and standardization of production on a national and global scale. In contrast, Philadelphia's manufacturing businesses for the most part continued employing the labor of highly-skilled craftsmen who worked in small and medium-sized firms, known as "workshops," which produced custom goods for niche markets. The "Workshop of the World," as Philadelphia was still known in the 1920s, could not compete with mass industrial production, for mass marketed consumption, by means of the unskilled and disposable mass assembly line workers of the factories in Northern cities like Detroit, Chicago, and New York. The new system of mass industrial production signaled the end of the highly specialized manufacturing processes which characterized most of industrial Philadelphia before World War II.[29]

With the national economic downturn of 1929, major sections of the city's craft-manufacturing base began to collapse. By the 1930s, the only manufacturing businesses that remained in Philadelphia were the few that developed mass production methods-factories along the peripheries of the city in Manayunk, Germantown, Kensington, etc. These were the only manufacturing businesses in the city that could compete on a national level.

Eventually, the demand for manufacturing in Philadelphia would pick up as a result of the revival of the national economy during World War II (1939-1945), when federally-funded factories hired over 27,000 new workers.[30] The wartime economy opened new possibilities for Black workers to join the industrial workforce; while only 15,000 African Americans worked in manufacturing jobs in the city in 1940, their representation rose to 55,000 by 1943. Although this represented an increase in wages and jobs for Black workers, more than half of these jobs were in unskilled positions that offered the lowest wages.[31]

Despite a boost in production during World War II, Philadelphia's manufacturing industries began a steep decline during the peacetime transition. Industrial capitalists continued to face the challenge of superior competition, and this time the competition was increasingly global. International trade grew in the decades after the war, as European and Japanese manufacturers began to compete with US manufacturers. In this context, most factories in Philadelphia either went out of business or left the city. By 1955, fewer than 1,000 workers were employed in the city's formerly expansive textile industries.[32]

Black industrial workers hired during World War II were particularly affected by the loss of manufacturing jobs. A big factor in this process was the seniority system embodied in most union contracts, which meant that when recession, closure, or layoffs happened, those with the least seniority were the first to go. Since Black workers were usually the last hired, they were also usually the first fired.

By the early 1970s, when other major cities throughout the North and Midwest were beginning to experience de-industrialization, most of the manufacturing businesses in Philadelphia had already shut down or relocated to the suburbs, as well as to cities in the South and West of the country. The few industrial firms that remained in Philadelphia were those that invested heavily in automation and raised their standard of productivity.[33]

In the 1980s and 1990s the pattern of de-industrialization became international, as it began to hit most nations in Europe, as well as Japan, Australia, New Zealand, and Canada. Since the beginning of the 21th century, the Southern and Western cities of the US that once drew manufacturers from the older cities have also struggled with the loss of manufacturing jobs. After the economic crisis of 2008, the effects of de-industrialization only intensified on a global scale, especially in underdeveloped nations in the global South.[34]

Hence, the de-industrialization of Philadelphia, and the concomitant rise in poverty, was mostly the result of capitalist market competition. Industrial Philadelphia was mostly composed of craft-based manufacturers that could not compete with highly-mechanized and increasingly-automated factories elsewhere. The manufacturers that kept up their profits in the face of competitors stayed in business by investing in technology that increased productivity. Some also relocated their businesses to cheaper, less-regulated labor markets. In the process, these transformations led to the devaluation and displacement of labor.

Besides the pressures of market competition, another important factor influencing de-industrialization was the militant resistance of the workers who carried out mass strikes and secured higher wages, pensions, health benefits, and better working conditions during the 1930s and 1940s. With the help of the leadership of the major industrial unions (the American Federation of Labor and the Congress of Industrial Organizations), the capitalist class responded to the workers movement by shutting down or relocating their facilities to the non-unionized South and West in the 1950s. In this way, de-industrialization undermined the power of the unionized working class, and took back the wages and benefits that the capitalists conceded to the workers in previous decades of struggle.


The Growth of Inequality

As capitalism reorganized itself, the service industries came to supersede manufacturing as the primary source of working-class employment. Today, the number of industrial jobs in Philadelphia represents only 5 percent of the total workforce of the city, while service jobs represent 40 percent of total employment, making the service industries the largest sector of the city's workforce.[35] Even within the few manufacturing businesses that remain in the region, they employ increasingly fewer workers, and those they do employ are increasingly part-time, part-year, and paid less.[36]

The social composition of the service industries is much more diverse than that of the manufacturing industries, which are highly unionized and still dominated by white men. Women make up over half of all service workers, while Black workers form a higher-than-average concentration in lower-paying service jobs. While service jobs have grown by 56 percent since the 1970s, the overwhelming majority of these jobs are part-time, part-year, require few skills, pay low wages, and offer few to no benefits. At the same time, the number of high-salary professional and managerial jobs has grown by 85 percent since the 1970s.[37] This means that de-industrialization has improved the earnings of those in the top-tier of the workforce, while most workers have seen their incomes shrink or stagnate since the 1970s.

Further exacerbating the livelihood of the urban proletariat, jobs have increasingly shifted towards the suburban peripheries of the city, after the pattern of large cities throughout the Northeast and Midwest. This transformation was facilitated by the massive construction of interstate highways in the 1950s, 1960s, and 1970s. While low-income populations in the region concentrate in Philadelphia, Camden, and a number of older urban centers, most jobs are now in the suburbs, often in areas accessible only by automobile, and distant from housing that is affordable to these workers. If city residents do manage to find a job in the suburbs, their wages are effectively lowered because of substantial traveling expenses; if they decide to move to the suburbs, wages are effectively lowered because of higher rent.[38]

The decline of manufacturing jobs was particularly devastating for Black workers, who concentrated in unskilled manufacturing jobs and in service jobs within the city, but were almost completely excluded from professional/managerial jobs and skilled trades. Due to the loss of manufacturing jobs, coupled with the suburbanization of the rapidly expanding service industries, Black workers have seen their incomes and jobs decline dramatically since the early 1970s. Although employment rates declined for both white and Black men since the 1970s, the black decline was twice that of whites. Furthermore, while there was an increase of employment for white women in Philadelphia since the 1970s, the employment rate for Black women hardly changed at all.[39] In this way, de-industrialization eroded the gains made by Black workers in the industrial sector in the decades after World War II.


The Immiseration of Labor

As I've shown, the transformation of the Philadelphia economy-from manufacturing to services, and from city to suburbs-has resulted in a deepening of poverty and inequality for most workers in this city. The question remains, why does capitalism develop itself in such a way that results in the immiseration of labor? This much is clear from the outset: nature does not produce, on the one hand, fewer and fewer rich people, and on the other hand, a growing army of workers who own nothing but their labor, which they must sell for an increasingly lower wage. The immiseration of labor results from the contradictions of what Marx called the "capitalist mode of production."

In brief, Marx argued that capitalism was distinct from all other modes of production in its unique aim: the creation of capital. Whereas other modes of production might find their purpose in producing useful things to satisfy human needs (communal production), or in producing a surplus of luxuries to satisfy a class of nobles (feudalism), capitalism, in contrast, produces the abstraction known as capital. Capital is not produced for the private consumption of its owner, the capitalist. If this were the case the aim of capitalist production wouldn't be the creation of capital but the consumption of things (or what Marx called "use-values"). Under capitalism, however, capital is not produced for use or consumption; capital functions as an end in itself-it is the starting and finishing point of production.[40]

Beginning with the industrial revolution in the late eighteenth century, capitalists made labor more productive by investing a greater part of capital into the instruments of production, introducing newer, more efficient, and more expensive machines. Such an accelerated development of the forces of production did not exist in any other mode of production before capitalism. Theoretically, this heightened level of productivity could raise people's standard of life while reducing the amount of time that they had labor for others. However, Marx was quick to point out that "[capitalist] production is only production for capital and not the reverse, i.e. the means of production are not simply means for a steadily expanding pattern of life for the society of the producers."[41] Under capitalism, labor is only an instrument for the valorization of capital, i.e. capital accumulation, and nothing else. Instead of serving the needs of society as a whole, capitalist production serves the specific needs of capital accumulation, which requires the devaluing of labor in order for capital to expand. The immiseration of labor, therefore, is not an aberration, but a fundamental feature of the capitalist mode of production.[42] Thus, Marx concluded: "On the basis of capitalism, a system in which the worker does not employ the means of production, but the means of production employ the worker, the law by which a constantly increasing quantity of means of production may be set in motion by a progressively diminishing expenditure of human power, thanks to the advance in the productivity of social labor, undergoes a complete inversion, and is expressed thus: the higher the productivity of labor, the greater is the pressure of the workers on the means of employment, the more precarious therefore becomes the condition for their existence, namely the sale of their own labor-power for the increase of alien wealth, or in other words the self-valorization of capital."[43] This is a fundamental contradiction of capitalist development: as capitalism becomes more productive, and the means of production become more extensive and technically more efficient, the labor that works up those means of production becomes increasingly devalued and unnecessary.

According to Marx, the drive to accumulate capital at the expense of labor is not based on greed or any other negative psychological trait on the part of the capitalist, but rather survival - in other words, it is in the system's nature to operate this way. If a capitalist does not accumulate capital, if profits are not continually transformed into a further increment of value, then that capitalist is unable to keep up with competitors and eventually goes out of business.[44] This is what Marx refers to as the coercive law of capitalist competition. Workers lose their jobs and their incomes not because of the ill will of particular capitalists, but because the sole aim of capitalism is the valorization of capital, which depends on the maximum extraction of value from labor. In the face of obstacles like market competition and (to a lesser degree) labor struggles, capitalists perpetuate the accumulation of capital by reducing jobs/wages/hours, mechanizing and automating production, and relocating to cheaper, less regulated labor markets.

Marx provided us with the analytical tools for thinking about this internal contradiction of capitalist development-the contradiction between the declining value of labor and rising surplus value, i.e. the basis of capital formation. As capitalist production becomes more productive, the working class can only become more precarious, since the increasing accumulation of capital requires an increasing devaluation of labor. This contradiction is inherent to capitalism-it arises independently of the level of class struggle, fluctuations in wages, state interventions in the economy, or economic crises. At the same time, the relative intensity of the immiseration of labor can rise or drop with the limits set by the accumulation process, depending on the degree of control that workers as a class exert over the economy and the state. At different times in history workers have asserted their interests over and against the drive for capital accumulation, and as a result, have been able to gain a larger share of the total value that their labor produces. Still, for Marx, even if wages and standards of living rise for a time, this does not end the immiseration of labor. That would require the end of capitalism.


Implications for the Future

The story of the immiseration of labor in Philadelphia is particular, but not exceptional; it can serve as the basis for general observations on the dynamics of labor-capital relations within a developed capitalist economy. Capitalists in Philadelphia adapted to the challenges of market competition and labor struggle in much the same way that capitalists did in most mid to large-sized manufacturing centers-by shutting down, relocating, and/or automating production. Over time, the bulk of jobs in most US cities shifted to the services sector and to the suburbs. In every city that these changes took place the results where the same: the decline of wages and regular employment for the urban poor.

After having analyzed the antagonistic nature of capitalist production, we can see that the immiseration of labor is the natural result of capitalist development. Therefore, there is no prospect for a return to a so-called "golden-age" of capitalism characterized by moderate wages, benefits, and full-time employment. The easing of income inequality in the developed nations immediately after World War II was an exception, not the rule, in the history of capitalism. Outside of this brief period in the 1950s and 1960s, capitalism has not delivered on its promise of upward class mobility for most workers, and this promise can only continue to fade as capitalism continues to develop.

Today, most people find themselves within the throes of a drawn-out process of immiseration that shows no signs of reversing itself. Incomes have declined since the 1970s to allow for a greater acceleration of capital formation and accumulation. Even as total economic output continues to increase, and even as the job market continues to grow, working class incomes continue to decline, since most jobs are now in the unskilled, unprotected, low-wage service industries. Under these circumstances, the instability that a developed capitalist system subjects the employment and working conditions of the workers becomes a normal state of affairs.[45] The production process reaches a point of no return, continually reproducing a permanently marginalized mass of low-paid laborers with no hope of a professional career.

Rather than functioning as a site for upward mobility and income growth, the late capitalist megalopolis increasingly functions as a warehouse for low-wage service workers. Over the past fifty years, these structural trends have steadily asserted themselves on global level, especially in the global South.[46] As Mike Davis painstakingly details in his devastating book, Planet of Slums, poverty and occupational marginality are especially prevalent in the cities of underdeveloped nations, where urban existence is increasingly disconnected from mass employment. With unprecedented barriers to large-scale emigration to developed nations, slum populations continue to grow at an unprecedented rate in the global South. For Davis, this is the real crisis of world capitalism: the crisis of the reproduction of labor and the inability of capitalism to stabilize (yet alone improve) the livelihood of the proletariat.

The growing division of the workforce into 1) a small, privileged core of professionals and managers that can expect continuous, high-paying employment, and 2) a large periphery of precarious "floaters," to which capitalists provide little more than a low wage, for as long or as short a time as capitalists require these workers-this division will only widen as capitalism continues to develop. To the extent that most workers have access to increasingly irregular employment and smaller wages, the trend toward racial and class inequalities will persist, globally and locally. Black workers will continue to be the "last hired, first fired." White workers will continue to act as labor aristocracy, allying themselves with capitalists to monopolize the professional and managerial jobs, while relegating workers of color-especially Black workers-to the worst paying, least secure, lowest status jobs.

The housing market will continue to reflect the uneven distribution of income and jobs. The white workers who hold the managerial and professional jobs will continue to predominate in the suburbs, or in some comfortable, tree-lined areas of the city like Chestnut Hill, and in the gentrifying neighborhoods close to center city. In contrast, low-income workers will remain in the vast stretches of row houses in Philadelphia and Camden and in the older suburbs like Chester or Norristown.


The Struggle for a Classless Society

Capital seeks to gain the greatest return on its investment in labor and means of production. In pursuing this end, capital has reorganized the production process and with it the realities of working-class existence. This raises strategic questions from the standpoint of class struggle: what forms of struggle are developing today that point to a different future? If industrial production created a particular conception of class struggle, what do the service industries mean for the future of class struggle? What does working class power look like in the context of a service economy?

These are complex questions that must be explored via further research of the class composition and dynamics of class struggle in specific regions. Unfortunately, this is beyond the scope of this essay, which at the most serves as the groundwork for such an investigation. Still, on a general level, this research makes this much clear: as long as capitalism continues as the dominant state of affairs, the contradiction between capital and labor can only become more pronounced. Therefore, it is not enough to reform capitalism or morally condemn capitalists-we must develop a plan to overthrow the structure of capitalism in its entirety.

Of course, the design and implementation of such a plan would take different forms depending on the conditions of working class existence in different regions. Nonetheless, at its core, this plan must entail the abolition of private property in the mode of production and the organization of a system of production that is no longer carried out with the goal of capital accumulation, but instead in a way that is systematically regulated by society-not the capitalists, not the market, not the state, but society as a whole. The members of such a society would have to reorganize the production process in such a way that frees their labor from the constraints of capital-an external, independent force standing above society.

However, given the contemporary circumstances of late capitalism, it is unclear whether workplace-centered struggle is the primary organizational form for building this social project. Even though capital continues to accumulate in industrial production, employment has shifted from the sphere of direct commodity production (agriculture, manufacturing) to the sphere of circulation (services). In such an economy, workplace struggles pose little to no threat to capitalism. Even if workers took over every McDonalds or Walmart, the economy would continue to operate in highly automated essential sectors like agriculture, construction, manufacturing, and logistics. If a proletarian revolution were to occur in such a context, the communization of production would not entail proletarian control of workplaces-as conceived by the traditional approach to labor struggle-so much as proletarian expropriation and elimination of workplaces, most of which are nonessential (i.e. most of the services industries) and serve no useful purpose outside of the context of capital accumulation.

The critical period in US mass industrial relations, which began about a century ago and saw a rapid growth in the power of industrial workers' unions in the 1930s and 1940s, was followed by capitalist counter-organization and restructuring. By the early 1980s it was clear that the New Deal order of relatively strong labor unions was over in the US. Today, the material basis for workplace oriented struggles has fallen apart, shattered by capitalist automation, deindustrialization, and decentralization.

Despite these difficulties, there is still no logical argument for why a classless society is impossible. Even when such a society can only be achieved with difficulty and struggle-in light of rising poverty and racial inequality; in light of constant imperialist wars; in light of the ecological destruction brought about by capitalism-in light of all that, there are still good reasons to fight for a world beyond capitalism, where production is carried out by an association of free people who collectively regulate their own labor. To be victorious, however, we must build organizations that correspond to the present circumstances, instead of simply inheriting the idealized and ready-made organizational forms of the past.


Notes

[1] Karl Marx, Capital: A Critique of Political Economy, Volume One, "The General Law of Capitalist Accumulation," 793.

[2] Marx, Capital, "The General Law of Capitalist Accumulation," 798.

[3] "Capitalism" is the dominant mode of production in the world. It is defined primarily by the production, circulation, and accumulation of capital. "Capitalists" own the means of producing capital.

[4] Alfred Lubrano, "Throughout the country, incomes are rising. In Philly, their falling," http://www2.philly.com/philly/news/census-data-poverty-income-philadelphia-suburbs-20180913.html

[5] The "proletariat," or "working class," is the largest class in capitalist society. "Proletariats" do not own any means of production ( of their own and therefore must sell their labor-power (their ability to create capital) to those who own means of production (capitalists), in exchange for a wage which is a only fraction of the capitalist value they produce.

[6] Engels, Marx, The Communist Manifesto, 89.

[7] U.S. Bureau of Economic Analysis, "U.S. Economy at a Glance," https://www.bea.gov/news/glance

[8] "Report for Selected Country Groups and Subjects (PPP valuation of country GDP)" . IMF. Retrieved 29 December 2017. Digital History; Steven Mintz. "Digital History" . Digitalhistory.uh.edu. Retrieved April 21, 2012.

[9] "United States remains the world's top producer of petroleum and natural gas hydrocarbons" EIA.

[10] "Trade recovery expected in 2017 and 2018, amid policy uncertainty" . Geneva, Switzerland: World Trade Organization. 12 April 2017. Retrieved 2017-06-22.

[11] Katsuhiko Hara and Issaku Harada (staff writers) (13 April 2017). "US overtook China as top trading nation in 2016" . Tokyo: Nikkei Asian Review. Retrieved 2017-06-22. Office of the United States Trade Representative, Executive Office of the President, "Trade and Economy," https://ustr.gov/issue-areas/economy-trade

[12] For overall trade patterns, see: Adie Tomer, Robert Puentes, and Joseph Kane, "Metro-to-Metro: Global and Domestic Goods Trade in Metropolitan America" (Washington: Brookings Institution, 2013). For export statistics, see: Brad McDearman, Ryan Donahue, and Nick Marchio, "Export Nation 2013: U.S. Growth Post Recession" (Washington: Brookings Institution, 2013).

[13] "Trade corridors" are streams of commodities that flow within and through spaces in regular geographic patterns.

[14] Source: Brookings analysis of EDR data.

[15] Adie Tomer and Joseph Kane, "Mapping Freight: The Highly Concentrated Nature of Goods Trade in the United States." Global Cities Initiative. A JOINT PROJECT OF BROOKINGS AND JPMORGAN CHASE. November, 2014. https://www.brookings.edu/wp-content/uploads/2016/06/Srvy_GCIFreightNetworks_Oct24.pdf

[16] "Gross Metropolitan Product" . U.S. Bureau of Economic Analysis. September 29, 2011. Retrieved November 20, 2011.

[17] "Global city GDP rankings 2008-2025" . Pricewaterhouse Coopers. Archived from the original on May 31, 2013. Retrieved November 20,2009.

[18] "State of Working Philadelphia: An Economy Growing Apart," October 25, 2018, https://www.keystoneresearch.org/media-center/press-releases/state-working-philadelphia-economy-growing-apart

[19] " Philadelphia's Poor: Who they are, where they live, and how that has changed," The PEW Charitable Trusts, November 2017, http://www.pewtrusts.org/en/research-and-analysis/reports/2017/11/philadelphias-poor

[20] "US Census Bureau. (2001). Historical Income Tables - Income Equality" . Archived from the original on February 8, 2007. Retrieved June 20, 2007. https://web.archive.org/web/20070208142023/http://www.census.gov/hhes/www/income/histinc/ie6.html

"Shaprio, E. (October 17, 2005). New IRS Data Show Income Inequality Is Again of The Rise. Center on Budget and Policy Priorities" . Retrieved June 20, 2007. https://www.cbpp.org/research/new-irs-data-show-income-inequality-is-again-on-the-rise

[21] Wiseman, Paul (September 10, 2013). "Richest 1 percent earn biggest share since '20s" AP News . Retrieved September 10, 2013. http://apnews.excite.com/article/20130910/DA8NN7U02.html

John Cassidy (November 18, 2013). "American Inequality in Six Charts" The New Yorkerhttps://www.newyorker.com/news/john-cassidy/american-inequality-in-six-charts

[22] "State of Working Philadelphia: An Economy Growing Apart," October 25, 2018, https://www.keystoneresearch.org/media-center/press-releases/state-working-philadelphia-economy-growing-apart

[23] "U.S. centrated poverty in the wake of the Great Recession," Elizabeth Kneebone and Natalie Holmes, March 2016 https://www.brookings.edu/research/u-s-concentrated-poverty-in-the-wake-of-the-great-recession/

[24] " Philadelphia's Poor: Who they are, where they live, and how that has changed," http://www.pewtrusts.org/en/research-and-analysis/reports/2017/11/philadelphias-poor

[25] "U.S. centrated poverty in the wake of the Great Recession," https://www.brookings.edu/research/u-s-concentrated-poverty-in-the-wake-of-the-great-recession/

[26] Brookings, "Employment and disconnection among teens and young adults: the role of place, race, and education." https://www.brookings.edu/research/employment-and-disconnection-among-teens-and-young-adults-the-role-of-place-race-and-education/#V0G0

[27] The Divided Metropolis: Social and Spatial Dimensions of Philadelphia, 1800-1975 (Westport, 1980), 141-168.

[28] Restructuring the Philadelphia Region: Metropolitan Divisions and Inequality, (Temple University Press, 2008) . The Deindustrialized World: Confronting Ruination in Postindustrial Places , (UBC Press, 2017).

[29] Workshop of the World, "Philadelphia's Industrial History: Context and Overview,"

http://www.workshopoftheworld.com/overview/overview.html

[30] John Bauman, Public Housing: The Dreadful Sage of a Durable Policy, 57.

[31] Wolfinger, Philadelphia Divided, 99-107, 121-122, 125-133.

[32] Gladys Palmer, Philadelphia's Workers in a Changing Economy (Philadelphia: University of Pennsylvania Press, 1956), page 37.

[33] Philadelphia: Neighborhoods, Division, and Conflict in a Postindustrial City, (Temple University Press, 1991).

[34] David Koistinen, Confronting Decline: The Political Economy of Deindustrialization in Twentieth-Century New England (University Press of Florida; 2013)

[35] Larry Eichel and Octavia Howell, "A Key Driver of Poverty in Philadelphia? The Changing Nature of Work," January 2018, http://www.pewtrusts.org/en/research-and-analysis/analysis/2018/01/08/a-key-driver-of-poverty-in-philadelphia-the-changing-nature-of-work

[36] Barry Bluestone and Bennet Harrison, The Deindustrialization of America (New York: Basic Books, 1982). http://philadelphiaencyclopedia.org/archive/workshop-of-the-world/#sthash.FIcRzwW3.dpuf

[37] Adams, Bartelt, Elesh, Goldstein,Restructuring the Philadelphia RegionMetropolitan Divisions and Inequality, 56.

[38] Restructuring the Philadelphia Region , 37.

[39] Philadelphia , "Economic Erosion," pages 55-56.

[40] Capital , 769.

[41] Capital , vol 3: 358.

[42] Capital , "The General Law of Capitalist Accumulation," 772-773.

[43] Capital , 798.

[44] Capital , "Machinery and Large-Scale Industry," 582.

[45] Capital , "Machinery and Large-Scale Industry," 580-82.

[46] "Inequality on the Rise?: An Assessment of Current Available Data on Income Inequality, at Global, International, and National Levels," Servio Vieira, December 2012, http://www.un.org/en/development/desa/policy/wess/wess_bg_papers/bp_wess2013_svieira1.pdf