One More Thought About Elitism

If Anne Applebaum wants to know why Americans hate elites, well, here's why:

About three dozen of the top publicly held securities and investment-services firms—which include banks, investment banks, hedge funds, money-management firms and securities exchanges—are set to pay $144 billion in compensation and benefits this year, a 4% increase from the $139 billion paid out in 2009, according to the survey. Compensation was expected to rise at 26 of the 35 firms.

The data showed that revenue was expected to rise at 29 of the 35 firms surveyed, but at a slower pace than pay. Wall Street revenue is expected to rise 3%, to $448 billion from $433 billion, despite a slowdown in some high-profile activities like stock and bond trading.

Where revenue falls short, analysts and experts expect that Wall Street will lay off employees in order to keep bonus pools high. U.K.-based Barclays Capital and Credit Suisse have cut some staff, while Morgan Stanley has a hiring freeze in place.

Read the story and the pattern becomes clear: If a company's revenue goes down, pay for top executives goes up. If a company's revenue goes up, pay for top executives goes up even faster. And some companies are willing to lay off people to make sure the the "top" people get their money.

There is no "down" button on the meritocratic elevator, in other words. No matter how well or bad their businesses do, the elites do better -- sometimes at the expense of the not-so-elite. If Americans think that "success" is disconnected from actual success, well, who can blame them?

Anne Applebaum on Elitism

I always like it when somebody smart says the same things I do. In this case, a couple of weeks ago I reflected on the dingy attitudes of today's American elites:

It seems to me that the prevailing ideology among the upper crust discourages gratitude more specific than generalized "proud to be an American" thinking. We're a nation of rugged individualists, the thinking goes, and people who end up with the successful Harvard applications and good jobs and well-appointed friends have come to believe that they have entirely earned their success. They don't consider how the institutions and foundations created by government -- and in the culture -- have made their success possible. What they're told, instead, is that they've been "free" to pursue that success. That's right, of course, but only partly.

Anne Applebaum takes a different tack, wondering why Americans hate today's elites so. But she ends up in roughly the same place:

The old Establishment types were resented, but only because their wealth and power were perceived as "undeserved." Those outside could at least feel they were cleverer and savvier, and they could blame their failures on "the system." Nowadays, successful Americans, however ridiculously lucky they have been, often smugly see themselves as "deserving." Meanwhile, the less successful are more likely to feel it's their own fault—or to feel that others feel it's their fault—even if they have simply been unlucky.

Then again, I'm not sure she's entirelyright on this; I agree there's an element of luck to all of this that falls outside the acknowledgement of today's Randian-flavored capitalist thinking. But maybe Americans also sense that what we today call "meritocracy" actually rewards a very, very narrow kind of merit: one in which 14-year-old freshmen -- and their parents -- decide the object of high school is to get great grades, participate and perform spectacularly in extracurricular activities and (generally) have their sites set on the person they want to be at 50 ... all at an age when most young people are still trying to decide who they are this week. Nail that down, be admitted to Harvard or Yale or Stanford, and your path in life can pretty much be set -- provided you don't go out of your way to fuck it up.

And if you do fuck it up -- if, say, you run the economy into the ground because you ran up billions of dollars in debt buying worthless mortgages, or if you oversaw and planned a disastrous war abroad that cost American lives and compromised American values -- well, you're rewarded ... so long as your fuck-up wasn't criminal in nature. Douglas Feith gets a stint at Georgetown; John Yoo at Berkeley. AIG executives get taxpayer-subsidized bonuses amounting to more in a year than most Americans earn over the course of a decade. There's no down button on the meritocracy elevator, in other words, which makes the whole thing seem less authentically meritocratic.

There are reasons for anti-elitism, in other words, even if the expression of it is sometimes misplaced. (Insert everybody's current favorite example, Ginni Thomas, who rails against the establishment from her sinecure at billionaire-funded rabble-rousing "think tank.") And Applebaum is right about one thing: Americans will probably always have an anti-elitist streak, no matter how the elites obtained their ranks. They're the elites, after all. They have the power and the money. We don't. That's enough reason to hate the bastards.

Our Ungrateful Elites

Kevin Drum doesn't think much of America's modern elites:

To a dispiriting extent, the top stratum in America no longer really seems to care about America. They care about themselves, and their money, and keeping themselves safe from the huddled masses, but for all too many of them that's about it. I'm not sure I have quite the rose-colored view of the ancien regime that Mike does, but he's certainly right about today's millionaires. No class, no gratefulness for their success, and no sense of bond to the broader society they live in. This is not a winning combination for a country that aims to lead the world.

There's been some talk lately, on the right, about how the rise of American meritocracy -- the best students get into Harvard these days, for example, instead of just the sons of the richest families -- has created a "ruling class" enamored of its own expertise and disconnected from American values. I'm not sure I buy the critique, entirely, but there's something about the word "gratitude" here that strikes a chord with me.

It seems to me that the prevailing ideology among the upper crust discourages gratitude more specific than generalized "proud to be an American" thinking. We're a nation of rugged individualists, the thinking goes, and people who end up with the successful Harvard applications and good jobs and well-appointed friends have come to believe that they have entirely earned their success. They don't consider how the institutions and foundations created by government -- and in the culture -- have made their success possible. What they're told, instead, is that they've been "free" to pursue that success. That's right, of course, but only partly.

I don't pine for aristocracy, but I can see how noblesse oblige might've developed. If you're the third- or fourth-generation of a wealthy or influential family, you might naturally believe that you're in your rightful place in life -- but it would probably be difficult for you to believe you had created your "success." Gratitude might be a more easily accessible emotion in such circumstances. Today's elites believe they're entirely self-made; they're not entirely right, but such attitudes create arrogance and a distance from the broader citizenry.