Subscribe to Dollars & Sense magazine. Recent articles related to the financial crisis. Dollars & Sense talks about mediaTonight, Wed. Jan 31, 2007, 7pm at encuentro 5, 33 Harrison Ave, 5th Floor, Boston, MA 02111David Barsamian and Cynthia Peters: Who's Got Your Back? Alternative and Mainstream Media and the War without End Panel of questioners: Linda Pinkow of WMBR, John Grebe of WZBC, and Esther Cervantes of Dollars & Sense With this event, Mass Global Action & IndyMedia look at the antiwar movement and the media. Specifically, it considers the two media options open to the progressive movement: Extensive coverage in the alternative media, and marginal attention from the mainstream media Going beyond this dichotomy, however, we ask how activists can use both forms media to get bolster the antiwar movement and generate a pro-peace agenda. Our roundtable is composed of longtime organizers who are also media professionals so that we may consider how these media forms interact. The program is formulated to draw on the expertise of the panel and both the experiences and perspectives of the audience. This program is organized to ensure that speaker has a chance to provide their perspective while ensuring that a meaningful dialogue can take place between speakers and also with the audience. The program will conclude with an informal reception and light music. About David Barsamian: David Barsamian is founder and director of Alternative Radio, the independent award-winning weekly series based in Boulder, Colorado. He is a radio producer, journalist, author and lecturer. He has been working in radio since 1978. His interviews and articles appear regularly in The Progressive and Z Magazine. His latest books are Imperial Ambitions with Noam Chomsky and Speaking of Empire & Resistance with Tariq Ali and Original Zinn with Howard Zinn. His earlier books include Propaganda and the Public Mind: Conversations with Noam Chomsky; Eqbal Ahmad: Confronting Empire; and The Decline and Fall of Public Broadcasting. About Cynthia Peters: Cynthia Peters is a freelance writer and editor, a part-time worker at the Bromfield Street Educational Foundation, and a full-time mother of two. She writes about a wide range of topics including parenting, marketing, feminism, racism, and gender politics. For a sharp analysis delivered with humor and insight, check out what she has to say about advertising to teens, the pro-capitalist backdrop to "American Girl dolls," the institutions and cultural formulations that define "good" parenting, the trouble with day care, and much more. Tomorrow, Thu. Feb. 1, 2007, 4pm on WMBR 88.1 FM—Spherio Esther Cervantes and Liv Gold of the Dollars & Sense collective will discuss media issues and the National Conference for Media Reform with Sarah Olson and Spherio's hosts, Luis Melendez and Kendra Johnson. Spherio is a forum of exchange bringing together local communities and the academia around issues of cultures, societies, and politics important to our hemisphere. "The Profits of Escalation" and the Price of PrivatizationIn a recent (January 10th) article in Counterpunch, "The Profits of Escalation: Why the US is Not Leaving Iraq," Ismael Hossein-Zadeh exposes the economic interests, beyond oil, that are driving escalation in Iraq. Some highlights:... Read the full article in Counterpunch. Meanwhile, the New York Times has recently covered the other side of this profiteering: the shuttering of state-owned industries. Referring to Iraq as "a country that looters have ravaged since 2003"—a phrase that takes on a different meaning in light of Hossein-Zadeh's article—James Glanz of the Times recounts the "insistence by the initial American occupation authority that once [state-owned factories were] closed, vibrant free markets would spring into existence to fill the void," and Iraqis' recent efforts to re-open the factories. Click here (or see below) for the full text of the article. See also early coverage by Dollars & Sense on profiteering in Iraq and the role of oil. THE STRUGGLE FOR IRAQ; Aging and Shut, Iraq Factories May Reopen and Mitigate Ills Labels: Iraq, privatization, profiteering Governor Patrick Stumbles on Prison PolicyA letter to the editor by Dollars & Sense co-editor Chris Sturr ran in today's Boston Globe, criticizing Deval Patrick's regressive policy to charge people convicted of crimes a fee as a way to raise money to pay for more police:THE NEW GOVERNOR'S proposal is a shameful way for him to start out his term. This may play well to the law-and-order crowd that brought us the current prison crisis, but it targets a population that is largely indigent and whose families would bear the burden, as opponents pointed out in your article. To see the article Chris co-wrote with D&S collective member Liv Gold on the New York Campaign for Telephone Justice, click here; for an account of the recent activist victory for prisoners in New York, click here. See also the orignal Globe article on Patrick's proposal, and an excellent critique of the proposal by Globe columnist Eileen McNamara. Below are the other three letters the Globe ran on the issue--the two other "anti" letters are excellent; the one "pro" letter (the middle one) is pretty mindless ("creative thinking"? puh-leeze!). Thanks to Lois Ahrens of the Real Cost of Prisons Project for compiling these (and for all her excellent work!). Making criminals pay Labels: Deval Patrick, Eliot Sptizer, prison phone contract, prisons HUD Considers Allowing Public Housing Residents to Wait for Demolitions in Their Own HomesUS Representative Maxine Waters (D-CA) and New Orleans Mayor Ray Nagin recently met with the US Secretary of Housing and Urban Development (HUD), Alphonso Jackson, to negotiate the possible return of some New Orleans public housing residents to their homes .
Waters is the incoming chair of the subcommittee on Housing and Community Opportunity for the House Financial Services Committee, which Barney Frank chairs. Without a call for cessation of all demoliton plans and a Congressional investigation, Waters' advocacy may only amount to St. Bernard residents coming home now and getting evicted later, when the public housing demolitions begin. Elsewhere, Barney Frank was recently heard correctly referring to the New Orleans housing crisis as "ethnic cleansing through inaction." He has also recently been heard taking some clearly progressive economic positions :
But the question remains: will Barney Frank and Maxine waters stop the ultimate destruction of public housing in New Orleans? Barney Frank and Maxine Waters need to feel strongly supported by their constituents in taking uncompromising stands for the rights of public housing residents to return to—and keep—their homes. (Cross-posted on Gulf Coast Fair Housing Network.) Labels: alphonso jackson, barney frank, hud, katrina, maxine waters, nola, public housing, ray nagin, st. bernard Econamici: The Minimum Wage and the IRS January 16, 2007 On January 10, the House voted overwhelmingly to raise the federal minimum wage from $5.15 an hour to $7.25, the increase to be phased in over the next two years. The Senate has yet to vote on the issue. On January 12, the New York Times published a story by David Cay Johnston that begins, "Top officials at the Internal Revenue Service are pushing agents to prematurely close audits of big companies with agreements to have them pay only a fraction of the additional taxes that could be collected, according to dozens of I.R.S. employees who say that the policy is costing the government billions of dollars a year." Raise the minimum wage or subvert taxes for the rich. Question: which policy bears more on inequality? Proponents assert that the minimum wage increase will bring justice to "the people who empty the bedpans, change the bed linens, sweep the floors and do the hardest work of America." Opponents point out that small businesses employ most of the lowest wage workers. A wage increase, they say, will penalize small business owners and increase unemployment of young and low-skill workers. President Bush has made signing an increase conditional on tax breaks for small business. Opponents' logic is sound. They might even be right about consequences were the increase large enough to bring the minimum wage up to something like a "living wage" of $12 an hour. There's no evidence that the federal minimum wage has ever affected employment, even at its 1968 peak of $1.58--$7.71 in 2006 equivalent dollars, as computed by Economic Policy Institute economists. Opponents also might be right if the minimum wage were easily enforceable. In reality, small businesses often pay their workers off the books, or report fewer hours than actually worked. A minimum wage increase will indeed help some workers, especially in operations large enough to make enforcement feasible. It will set a norm for higher pay as small businesses grapple with the tradeoff between pay rates and employee turnover. But for all the hoopla, a minimum wage increase won't seriously dent inequality. The same folks who shed crocodile tears for small business in fact know that enforcement is half the game. It's not just crippled enforcement of corporate income tax. I recently chatted with a very frustrated IRS estate tax examiner: same story. And Treasury officials have admitted making "mistakes" in drafting offshore oil leases, letting oil companies escape billions in royalties. From the Environmental Protection Agency to the Food and Drug Administration, senior officials reinterpret or ignore laws to favor friends at the top. Unlike the minimum wage, gifts to the top tier do directly affect inequality. The costs--higher taxes, poorer services, and disincentives to hire or invest--must come at someone's expense--in fact at the expense of lower and middle income families, and small to medium businesses. Even the upper middle class increasingly faces the alternative minimum tax, which has become essential to plug the gaping tax gap at the top. Newly-empowered Democrats face a task more daunting and important than raising the minimum wage. Not only must they undo overt legislation favoring the elite, they must expose and address the thousand administrative subversions of laws protecting ordinary citizens. &&&&&&&&&&&&&&&&& More Econamici I send Econamici--occasional emails with interesting attachments or links--to friends who are economists or care about economic issues. If you can't follow a link, I can send you the actual article. Polly Cleveland Media literacy and gay marketingOn Jan 12, Andrea Quijada of the New Mexico Media Literacy Project hosted one of the best sessions I attended at the National Conference for Media Reform: Introductory Training in Media Literacy. I went in hoping to pick up techniques for the Up Against the Wall Street Journal activity I'm leading at the Dollars & Sense house party in Austin this week (F, Jan 19, 8pm, at 1500 Gregory Street)—and I got plenty. I also got some musings on the media's role in the commercialization of homosexuality.One of the videos Quijada used in her presentation was a clip from the Showtime series The L Word. Quijada's selection came from an episode in which, as The L Word's writer and executive producer Ilene Chaiken says, Dana, who in the pilot we've already established would love to have an endorsement deal, ...is closeted in large part because she fears that sponsors aren't exactly clamoring to have big ol' lezzie tennis players tote their product. I wanted to tell a story in which she gets a deal, and she thinks that she has to stay closeted, and she finds out after she's broken up with her girlfriend, that the sponsor knew all along that she was gay—and, in fact, intended to be open about it, and, in fact, even wanted to promote that and get props for sponsoring a gay athlete. In other words, I wanted to tell a story in which Dana loses the girl unnecessarily and then finds out that she didn't have to be closeted at all. In the clip Quijada chose, one problem remains: the ad is appearing in major magazines, but character hasn't come out to her parents yet. As one of the friend characters says, "Looks like Subaru's going to do it for you." Quijada opened the discussion by saying that she was uncomfortable with the way the show made Subaru, a corporation, the hero in what we usually think of as a very human story—the coming out story. Quijada also pointed us to a PlanetOut interview with Chaiken, in which she talks about how she came to cast Subaru as the story's hero. PlanetOut: We're also really interested in the Subaru story line involving Dana's character. We were wondering—who approached whom about developing that? Did it just come out of an organic process? When Quijada mentioned the Human Rights Campaign connection, I found myself thinking, "Of course it was HRC." In no way do I mean to be dismissive of the fight for gay rights, but I do have issues with the Human Rights campaign, not least because the organization appropriated for itself and its rather narrow agenda a much broader term—human rights—that is more generally understood to mean things like the rights, no matter where you live, to freedom from political repression, to the basic necessities of life, and to personal security and sovereignty over one's body, as well as the right to marry whomever one wants while living a relatively comfortable life in a consumerist society. Which brings me to the incident that had me muttering, "Of course it was HRC." It was the day that I turned over one of HRC's fundraising appeals and saw the organization imploring me to support them by buying things from their corporate sponsors: Nike, Shell, and Chase, among others. Nike may support gay rights, but it is also notorious for selling sweatshop-made products. Shell may support gay rights, but it sells a product that contributes to global warming—and it has a horrible human rights record to boot. Chase may support gay rights, but it also supports predatory lenders. At the same time that HRC was advertising these corporations to me, the organization was also asking me for a direct donation. All I could think about was all the other organizations that are addressing the problems that Nike, Shell, and Chase exacerbate, but lack corporate support and probably need my money more than HRC does: the anti-sweatshop organizations on No Sweat apparel's resources page, Climate Ark's global warming activism links, the organizations that work with the University of Minnesota's Human Rights Resource Center, and the anti-predatory lending organizations listed at the end of Dollars & Sense's recent article on the fringe economy. I threw the HRC appeal in the recycling bin, feeling rather insulted. In the May/June 2004 issue of Dollars & Sense, co-editor Amy Gluckman explored the de-radicalization of the gay culture. She is also the editor, with The Nation's Betsy Reed, of Homo Economics: Capitalism, Community, and Lesbian and Gay Life,
Technorati Tags: gay marketing, media analysis Notes from the road: musings on the nickels and dimes of travelI've been on the road for Dollars & Sense for a week and a half now, and it's made me realize a few things about the costs of travel. Not the grand environmental and social costs, which would be fodder for a Dollars & Sense article, but more nitty gritty, blog-worthy stuff.First: differential hotel pricing. High-end conference hotels have a captive audience, and they know it—and charge accordingly. While in Chicago for the Allied Social Sciences Associations conference, I stayed at the Chicago Hilton Towers. (The re-named Conrad Hilton, where the Chicago police made such a sorry spectacle of themselves by attacking protesters during the 1968 Democratic National Convention.) The Hilton: high prices, haute gauche décor, host to the Labor and Employment Research Association's meetings—and determined to nickel and dime their guests (or their guests' expense accounts) as much as possible. The guest rooms have wireless—available for $3.50 an hour. The package room can receive shipments—for $25 per package. Luggage carts are available—under the supervision of a bellman, who must be tipped. Cut to Memphis a week later, where I'm attending the National Conference for Media Reform and sharing a cut-rate Comfort Inn room with three other people. It lacks the history of the Chicago Hilton, certainly, but I can't say that the furnishings are any tackier. And its guest rooms offer high-speed internet—wired, but free. Luggage carts are available—for use without a bellman. And there's the free breakfast... Second: someone is profiting from airport security. I don't mean in a grand corruption sense—though I don't doubt that—but again, by nickels and dimes. The most obvious example: in-flight meals used to be free; now there's a charge. Or, one was once allowed to take drinks through security; now one must buy them in the terminal. And the one that prompted this post: Curbside baggage check used to be free; then it was too dangerous to be allowed; now, American Airlines charges $2 a bag for the service. Not to mention that not allowing coach passengers use the first class toilets is now considered a security issue, according to onboard announcements. I always did suspect that class was a matter of national security. And speaking of toilets, I've also had plenty of opportunity to ponder how much water, electricity, and paper public restrooms waste. Auto-flush toilets, push-start and motion-sensing sinks, motion-sensing paper towel dispensers, electric blow dryers... I suspect that the motion-sensing devices are supposed to protect us from germs by allowing us not to touch fixtures, but it just seems like such a waste of resources. (Okay, I guess that was one remark about the environmental costs of travel. Just don't get me started on how I've been eating out all the time.) Crankily yours, Esther Big Box Stores & the Future of Retail: Tales from the American Economic AssociationSo, we've had a highlight from the Allied Social Sciences Associations meetings; now here's a lowlight.On Jan 7, the American Economics Association hosted a panel called Big Box Stores and the Future of Retail. The presenters confirmed many of the things Dollars & Sense readers already know about Wal-Mart: retail stores come and go, but non-chain stores come and go much faster than big-chain stores; bigger chains build bigger stores that offer more products; big chains lead the retail industry in technology, prices, and (never mentioned) wages; big chains enjoy economies of scope (a more diverse inventory appeals to one-stop shoppers) as well as scale (they can make deals with—maybe even control the behavior of—product suppliers). The presenters related these facts as though they were revelations, and their tone of naive discovery led to some wonderful quotes. For instance, Justin Wolfers of the Wharton School mused on the issue of why non-chain stores fail at a much faster rate than big-chain stores, "Is it financing—that mega corporations can keep non-profitable stores open a little longer, whereas Mom & Pop are really constrained in a way we never thought of?" [emphasis added] Then there was Emek Basker, who made fun of the Chicago activists who this summer convinced their city council to pass an ordinance requiring "stores that occupy more than 90,000 square feet and are part of companies grossing more than $1 billion annually ... to pay a minimum wage of $10 an hour by 2010, according to Erik Eckholm of the NYT. Basker applauded Chicago Mayor Richard Daley's veto of the ordinance, saying, "The people who pushed for the ordinance were confused. Their logic was just 'big chains are bad, so let's go after big chains.' But their ordinance didn't do anything to the big stores that don't belong to big chains." Her audience met this with appreciative titters, likely thinking, "Those silly activists, confusing scale and scope." But is it so silly? If, as the panelists (including Basker) were right when they said that big chains build bigger stores that enjoy economies of scope, where is the confusion? Size of store and size of corporation are linked. (It would be interesting to research how many non-chain retailers in Chicago have stores of over 90,000 square feet, and how that compares to the number of big-chain stores that are that large.) And the Chicago living wage activists weren't "going after" big chains just for the sake of going after them—they targeted big-chain retailers because they know just as well as the panelists do that the big chains lead the retail industry, and getting them to improve their behavior can help smaller retailers improve theirs. The Chicago living wage activists even thought of a question that never crossed the AEA panelists' minds: who can better afford low wages: workers or Wal-Mart? Read more about the economic effects of minimum wage and living wage laws: Measuring the Full Impact of Minimum and Living Wage Laws; Economists' Statement Regarding the Need to Raise the Minimum Wage Technorati Tags: living wage, Chicago living wage, Wal-Mart, big box Dennis Kucinich at National Conference for Media ReformOn Friday night, Congressman and presidential candidate Dennis Kucinich (D-OH) visited the National Conference for Media Reform and issued an open call to citizens to educate him about issues that the new Domestic Policy Subcommittee, which Kucinich is likely to chair, should address in this session of Congress. The subcommittee, Kucinich says, "will be able to consider any domestic issue at all"—not only media reform but also predatory lending, job creation, labor law, work-life balance, health insurance, prison policy.... Visit the congressman's website for details on how to participate.Kucinich also answered attendees' questions about the plans of the 110th Congress, especially with regard to the occupation of Iraq. A January 11 CCN poll posted on pollingreport.com shows that 54% of Americans want the United States to withdraw all of our troops before January 2008 (another 31% want them out regardless of timeframe. And we have the power to make it happen, Kucinich says. How? "Call your representatives and tell them to vote against further funding for the war in Iraq." Kucinich would then ask Congress to appropriate separate money to fund troop withdrawal only. The Jan 11 CNN poll reports that 54% of Americans back Kucinich's recommendation. And it looks like a vigorous calling campaign might do the trick. Zachary Coile of the San Francisco Chronicle reports that the some other congressional Dems are taking the idea seriously. Kucinich urges our action with the warning that this is our only chance to force troop withdrawal before Bush leaves office. "If they appropriate those funds, there wil be no withdrawal until Bush is out of office." Kucinich knows whereof he speaks. In April 1999, he and sixteen other representatives filed suit against then-President Bill Clinton for unconstitutionally waging war in Yugoslavia without the permission of Congress. Although Congress had voted against deploying ground troops to supplement Clinton's bombing campaign and against declaring war, it later appropriated more than twice as much money as Clinton had requested to support the operation. As Jake Tapper reported on Salon.com, then-House Majority Leader Dick Armey (R-TX) "explained this as a way to support our troops, while not necessarily supporting the policy that put them there." Would-be patriotic Democratic representatives beware Armey's mistake. U.S. District Court Judge Harold H. Greene, who heard Kucinich et al's lawsuit, disagreed—he ruled in Clinton's favor, saying that Congress's approval of the funds implied its approval of the action. And, as always, it always bears pointing out, as the National Priorities Project does, that there are many better things we could spend Bush's war money on than the pointless destruction of another country. Kucinich also defended his ongoing opposition to impeaching Bush, saying that, despite the clear evidence of crime and despite the fact that Iraq contributed greatly to the Democrats' November victory, impeachment is not politically viable, but rather counterproductive to ending the war. Kucinich said, "If we move that to the front of the agenda, the whole effort to bring the troops home will be lost. Bush will react by accelerating deployments." Kucinich failed to answer additional questions as to why he has publicly opposed impeachment since 2002. Technorati Tags: Dennis Kucinich, Domestic Policy Subcommittee, Iraq appropriations, war appropriations, cost of war, impeachment The Long-Term Costs of Providing Veterans BenefitsIn Soldiers Returning from Iraq and Afghanistan: The Long-Term Costs of Providing Veterans Medical Care and Disability Benefits, Linda Bilmes of Harvard University's Kennedy School of Government asks, "President Bush is now asking for more money to spend on recruiting in order to boost the size of the Army and deploy more troops to Iraq. But what about taking care of those same soldiers when they return home as veterans?"Bilmes presented the paper January 5 at an Allied Social Sciences Associations panel hosted by Economists for Peace and Security, is a follow-up to her February 2006 paper with Joseph Stiglitz, The Economic Costs of the Iraq War: An Appraisal Three Years After the Beginning of the Conflict. That paper estimated that the United States' war in Iraq will eventually cost more than $2 trillion. Bilmes and Stiglitz believe that making the public more aware of the costs of the war can help end the war. And one way to do that is to make sure that long-term costs, like treating and supporting injured and disabled veterans, are included when the cost of the war is discussed. To leave them out is shady business, says Bilmes. "In this country, no enterprise larger than a corner grocery store is allowed to use cash accounting. But that's what the government is doing. It's not counting accrued costs." The Bilmes and Stiglitz paper estimated that lifetime benefits (both health care and disability benefits) to U.S. veterans of Iraq would cost between $77 billion and $179 billion. Bilmes says that immediately after she released her paper, leaders of veterans' grooups began calling her to thank her for writing the paper—and also to tell her that they thought her numbers were too low. That feedback prompted her new study. Bilmes' new research estimates the minimum cost at almost twice the previous study's maximum: $350 billion. This low-end estimate assumes no new deployments (which seems unlikely with the Bush regime in power until 2009), and it assumes that the average benefit will be similar to the average benefit resulting from the first Gulf War—although Department of Defense sources indicate that the rate of serious injury has been much higher. If those assumptions do not hold, Bilmes offers a high-end estimate of $663 billion. Congress and the Veterans Administration would do well to pay attention to Bilmes' estimates and the concerns of veterans' organizations: in fiscal year 2005, the VA had a budget shortfall of $1 billion, and in FY2006, $2 billion. The Government Accounting Office says that this is because the VA used 2002 (pre-Iraq) figures to estimate its costs for those years. But even budgeting for the veterans' care costs we know are accruing won't solve the many the problems that the Veterans Administration is experiencing right now—a backlog of between 400,000 and 600,000 claims, and claim processing times that "render care virtually inaccessible," according to VA Undersecretary for Health Frances Murphy. Bilmes suggests that these problems could be solved by changing the VA's claims system—which eventually approves 88% of all claims—so that all claims are automatically approved, with the possibility of a later audit (much the way the IRS works) and by placing the 1000 new employees that the VA has recently requested not in claims processing but in the direct care of veterans. She encourages Iraq veterans and their organizations to turn their activism and political access to these tasks. Unfortunately, although the Bush administration made war with Iraq seem inevitable, making sure that the government pays for the care of its veterans is certain to take work. FURTHER READING
Technorati Tags: cost of war, Iraq veterans, veterans benefits Econ-Atrocity: The 800-Pound Ronald McDonald in the RoomAn Econ-Atrocity, brought to you by the Center for Popular Economics.Econ-Atrocity: The 800-Pound Ronald McDonald in the Room By Helen Scharber, CPE Staff Economist Jan. 4, 2007 When your child’s doctor gives you advice, you’re probably inclined to take it. And if 60,000 doctors gave you advice, ignoring it would be even more difficult to justify. Last month, the American Academy of Pediatrics (AAP) issued a policy statement advising us to limit advertising to children, citing its adverse effects on health. Yes, banning toy commercials might result in fewer headaches for parents (“Please, please, pleeeeeeease, can I have this new video game I just saw 10 commercials for????”), but the AAP is more concerned with other health issues, such as childhood obesity. Advertising in general—and to children specifically—has reached astonishingly high levels, and as a country, we’d be wise to take the doctors’ orders. Advertising to kids is not a new phenomenon, but the intensity of it is. According to Juliet Schor, author of Born to Buy, companies spent around $100 million in 1983 on television advertising to kids. A little more than 20 years later, the amount earmarked for child-targeted ads in a variety of media has jumped to at least $12 billion annually. That’s over $150 per boy and girl in the U.S. And it’s not as though kids only see ads for action figures and sugary cereal; the other $240 billion spent on advertising each year ensures that they see ads for all kinds of products, everywhere they go. According to the AAP report, “the average young person views more than 3,000 ads per day on television, on the Internet, on billboards, and in magazines.” Ads are also creeping into schools, where marketers have cleverly placed them in “educational” posters, textbook covers, bathroom stalls, scoreboards, daily news programs, and bus radio programming. If advertising to children is becoming increasingly ubiquitous, it’s probably because it’s becoming increasingly profitable. Once upon a time, kids didn’t have as much market power as they do today. The AAP report estimates that kids under 12 now spend $25 billion of their own money annually, teenagers spend another $155 billion, and both groups probably influence around $200 billion in parental spending. Not too surprising, considering that 62 percent of parents say their children “actively participate” in car-buying decisions, according to a study by J.D. Power & Associates (see the “Car makers direct more ads at kids” link below.) Marketers are also becoming more aware of the long-term potential of advertising to children. While they may not be the primary market now, they will be someday. And since researchers have found that kids as young as two can express preferences for specific brands, it’s practically never too early to begin instilling brand loyalty. But while small children have an incredible memory for commercial messages, they may not have developed the cognitive skills necessary to be critical of them. In 2004, the American Psychological Association (APA) also called for setting limits on advertising to kids, citing research that “children under the age of eight are unable to critically comprehend televised advertising messages and are prone to accept advertiser messages as truthful, accurate and unbiased.” Many people take offense at the idea that we might be manipulated by marketing. Aren’t we, after all, intelligent enough to make up our own minds about what to buy? The research cited by the APA, however, shows that children are uniquely vulnerable to manipulation by advertising. Marketers therefore should not be allowed to prey on them in the name of free speech. Such invasive advertising to children is not only an ethical problem. The American Academy of Pediatrics cited advertising’s effects on health through the promotion of unhealthy eating, drinking and smoking as the main motivation for setting limits. Children’s health issues certainly merit attention. The Center for Disease Control, for example, has found that the prevalence of overweight children (ages 6 to 11) increased from 7 percent in 1980 to about 19 percent in 2004, while the rate among adolescents (ages 12 to 19) jumped from 5 percent to 17 percent. In addition to physical health problems, Schor argues that extensive marketing has negative effects on children’s emotional well being. In her research for Born to Buy, Schor found links between immersion in consumer culture and depression, anxiety, low self esteem and conflicts with parents. The big push to consume can also lead to financial health problems, as many Americans know all too well, with credit card debt among 18- to 24-year-olds doubling over the past decade. Not even the staunchest critics of marketing to children would argue that advertisements are completely at fault for these trends. Yet, the commercialization of nearly everything is negatively affecting children’s well being in rather profound ways. Why, then, is hardly anyone paying attention to the 800-pound Ronald McDonald in the room? Perhaps it’s because advertising appears to be a necessary evil or a fair tradeoff – maybe little Emma’s school couldn’t afford a soccer team without Coke on the scoreboard, for example. Or perhaps some would argue that parents who don’t approve of the commercial culture should limit their kids’ exposure to it. (See the Kids and Commercialism link below for tips on parenting kids in a commercial culture.) Increasingly invasive marketing techniques make it practically impossible to simply opt out of commercial culture, though. Thus, decisions to limit marketing to children must be made by the country as a whole. Sweden, Norway, Greece, Denmark, and Belgium have already passed laws curbing kid-targeted advertising, and according to 60,000 pediatricians, if we care about the health of our kids, we should too. Resources American Association of Pediatrics, Policy Statement on Children, Adolescents, and Advertising – December 2006. American Psychological Association, “Television Advertising Leads to Unhealthy Habits in Childen, says APA Task Force” – February 2004. Jennifer Saranow, “Car makers direct more ads at kids,” Wall Street Journal, November 9, 2006. David Burke, “Two-year olds branded by TV advertising”. Center for a New American Dream, Kids and Commercialism. Juliet Schor, Born to Buy: The Commercialized Child and the New Consumer Culture, (New York: Scribner, 2004). Center for Disease Control, Facts about Childhood Overweight. © 2007 Center for Popular Economics Econ-Atrocities are the work of their authors and reflect their author's opinions and analyses. CPE does not necessarily endorse any particular idea expressed in these articles. The Center for Popular Economics is a collective of political economists based in Amherst, Massachusetts. CPE works to demystify economics by providing workshops and educational materials to activists throughout the United States and around the world. If you would like more information about CPE please visit our website. If you would like to automatically receive CPE’s Econ-Atrocities by email, subscribe (or unsubscribe) by going here. TCCI’s North Gulfport - Turkey Creek Clean UpThe following report from the Mississippi Gulf Coast is by Derrick Evans (see "Ground Zero of Someone Else's Future," March/April 2006), founder and director of Turkey Creek Community Initiatives.
Turkey Creek Community Initiatives and its community partners are trying to get MLK Blvd and the rest of North Gulfport EXTREMELY clean in time for Dr. King’s Birthday on Jan 15, as well as for the Jan 27 ribbon-cutting of Turkey Creek-North Gulfport’s very first Unity (green modular) Home on the corner of MLK and Ohio Avenue. Over 80 volunteers headed out at 8 Monday and Tuesday morning with District 4 Supervisor William Martin’s Harrison County boom trucks and road crews right behind them. The volunteers are from Boston College, U Maryland, Johns Hopkins, Hands On USA, Americorps, and Youth Conservation Corps. Many very appreciative community members have been happily pitching in to do their part. When City of Gulfport “Beautification workers” suddenly appeared at mid-morning on Monday to try their best to keep up, we knew we had gotten something big rolling. In just two days, we thoroughly cleaned over 75% of the streets and ditches on the west side of Highway 49 in North Gulfport, or approximately 2 square miles. In unprecedented volume, old tires, unaddressed storm debris, and general roadside litter were neatly set alongside the streets to be picked up by county and city knuckle booms, and to be raked and bagged again if necessary. This level of intense cleaning will continue Wednesday, Thursday and Friday from 8am to 4pm, with targeted areas to include Forest Heights, Rippy Road, Villa del Rey and any other areas of the lower TC Watershed that our time and manpower will allow. Forty of the volunteers are guests of TCCI’s volunteer camp at Harrison County’s Hannah Knox and Amos Crouch ballfields (just west of the North Gulfport Middle Schoool). A post-clean-up Fish Fry and Community Celebration will occur on Friday the 12th from 6pm until, and don’t forget the Unity Home ribbon-cutting ceremony on Jan 27 - hosted by the North Gulfport Community Land Trust. Please join us. (Cross-posted on Hungry Blues and Gulf Coast Fair Housing Network) Dollars & Sense events in AustinDollars & Sense will be hosting two events in Austin in January.W Jan 17: UT Journalism's Robert Jensen reports back from the National Conference for Media Reform F Jan 19: house party and Up Against the Wall Street Journal media-bias workshop You can also find Dollars & Sense people and materials in Chicago Jan 4-7 for the Allied Social Sciences Associations conference (find us at the ICAPE table) and in Memphis Jan 12-14 for the National Conference for Media Reform. |