As you might expect, Barbara Ehrenreich didn’t like working at Wal-Mart. Why not? Low pay is a big part of the story, but it’s the demand for conformity that really rubs her the wrong way:
With competence comes a new impatience: Why does anybody put up with the wages we’re paid? True, most of my fellow workers are better cushioned than I am; they live with spouses or grown children or they have other jobs in addition to this one. I sit with Lynne in the break room one night and find out this is only a part-time job for her-six hours a day-with the other eight hours spent at a factory for $9 an hour. Doesn’t she get awfully tired? Nah, it’s what she’s always done. The cook at the Radio Grill has two other jobs. You might expect a bit of grumbling, some signs here and there of unrest- graffiti on the hortatory posters in the break room, muffled guffaws during our associate meetings but I can detect none of that. Maybe this is what you get when you weed out all the rebels with drug tests and personality “surveys”-a uniformly servile and denatured workforce, content to dream of the distant day when they’ll be vested in the company’s profit-sharing plan. They even join in the “Wal-Mart cheer” when required to do so at meetings, I’m told by the evening fitting room lady, though I am fortunate enough never to witness this final abasement.
But if it’s hard to think “out of the box,” it may be almost impossible to think out of the Big Box. Wal-Mart, when you’re in it, is total – a closed system, a world unto itself. I get a chill when I’m watching TV in the break room one afternoon and see … a commercial for Wal-Mart… Even the woods and the meadows have been stripped of disorderly life forms and forced into a uniform made of concrete… The only thing to do is ask: Why do you – why do we – work here? Why do you stay?
I’m sorely tempted to recite the First Law of Wing-Walking: Never let hold of what you’ve got until you’ve got hold of something else. Ignoring this Law is arguably the biggest flaw in Ehrenreich’s experiment, which requires her to keep quitting her jobs and finding others in distant cities. On further reflection, though, Nickel and Dimed doesn’t even leave time for a given job to improve:
So when Isabelle praises my work a second time (!), I take the opportunity to say I really appreciate her encouragement, but I can’t afford to live on $7 an hour, and how does she do it? The answer is that she lives with her grown daughter, who also works, plus the fact that she’s worked here two years, during which her pay has shot up to $7.75 an hour. She counsels patience: it could happen to me. Melissa, who has the advantage of a working husband, says, “Well, it’s a job.” Yes, she made twice as much when she was a waitress but that place closed down and at her age she’s never going to be hired at a high-tip place. I recognize the inertia, the unwillingness to start up with the apps and the interviews and the drug tests again. She thinks she should give it a year. A year? I tell her I’m wondering whether I should give it another week.
The sarcasm puzzles me. For perspective, imagine someone proposed cutting food stamps by 10%. How would Ehrenreich react? I’m confident that she’d consider this a major blow for low-income families. So why doesn’t a 10.5% raise after a year or two of steady employment count as a major improvement? Why?
READER COMMENTS
Steve
Oct 17 2019 at 11:25am
So why doesn’t a 10.5% raise after a year or two of steady employment count as a major improvement? Why?
Endowment effect? Loss aversion? Hedonic adaptation? That is to say, it’s not rational, but the mechanism(s) seem pretty clear to me.
John Alcorn
Oct 17 2019 at 11:27am
Re: “So why doesn’t a 10.5% raise after a year or two of steady employment count as a major improvement? Why?”
Because the “radical ethnographer” doesn’t stand in the shoes of her subjects. As I mentioned in a comment on your previous post about Nickel and Dimed, a radical ethnographer (a) knows that she will return to her own life after going native for a while and (b) can’t shed her human capital while temporarily native. For these two reasons, the radical ethnographer’s psychology will differ from the psychology of her subjects; in this case, the working poor.
Bryan Pick
Oct 18 2019 at 9:18am
In short, when reading a radical ethnography of poverty, keep in mind the song “Common People.”
John Alcorn
Oct 18 2019 at 12:54pm
Exactly.
RPLong
Oct 17 2019 at 11:35am
The most shocking quote from the Wal-Mart part of her book — indeed, the most shocking sentence in the entire book — is when Ehrenreich looks with misanthropy upon Wal-Mart’s customer base and thinks to herself, “Abortion is wasted on the unborn.” Not only did she think it, she decided to include the thought in her book about how hard it is to be poor in America.
The many times Ehrenreich quotes Mao Zedong throughout the book are off-putting enough, but when coupled with her all-consuming pessimism and unabashed misanthropy, I was left scratching my head when I finished that book, wondering what kind of person finds Ehrenreich persuasive.
Mark Z
Oct 17 2019 at 1:19pm
Unironically quoting Mao while criticizing working conditions and privation in America, characterizing employee drug tests as being for weeding out nonconformists. I’m not sure Ehrenreich passes the ideological Turing test for own ideology.
Art Carden
Oct 17 2019 at 12:00pm
This is one of the reasons I found her book unconvincing. I reviewed Bethany Moreton’s To Serve God and Wal-Mart a few years ago, and found it to be very similar. It’s a book from which economists can learn a lot, as I pointed out, but it is fundamentally and fatally flawed by the author’s failure to interpret her findings in light of the competitive model of the labor market.
This kind of breathless disdain for the false consciousness of hoi polloi seems to pervade this literature. No one who knows where to find a good poetry slam or farm-to-table jazz brunch could possibly be content working at Wal-Mart; therefore, anyone who isn’t secretly plotting a Revolution must be manipulated into false consciousness.
John Alcorn
Oct 17 2019 at 12:11pm
Does radical ethnographer Barbara Ehrenreich consider the possibility that her mentality might seem crazy to the working poor?
Alan Goldhammer
Oct 17 2019 at 12:54pm
The erudite Professor Caplan writes,
The answer is pretty obvious to this non-economist. It looks like a big increase but the starting pay is pretty much close to minimum wage. The take home pay is not 10% but a reduced amount because of various taxes including Medicare and Social Security. Inflation should also be factored in as well. One 10% pay raise is also no guarantee of a subsequent raise.
It might be nice for one of the Libertarian economists who frequent this blog to take a month off and work a minimum wage job just to see if they can make ends meet. I anxiously await the book that comes from that experience.
Mark Z
Oct 17 2019 at 1:29pm
A 10% pay increase would still probably increase one’s income by more than a 10% reduction in food stamps would decrease it. And I’m pretty sure plenty of libertarians have worked minimum wage jobs and do not find Ehrenreich’s arguments (using the term liberally) persuasive. In fact I see no reason why working a minimum wage job and hating it would have any bearing on a rational person’s assessment of the merits of her perspective.
Mark Brophy
Oct 17 2019 at 5:11pm
It doesn’t matter if a minimum wage job makes ends meet. You get paid based on what you’re worth rather than on what you need.
john hare
Oct 17 2019 at 6:27pm
That’s the way I see it as an employer. I see two ways to deal with a job that doesn’t pay enough, learn to live with it or find a way out.
Nick
Oct 17 2019 at 11:25pm
Exaggerate much about the living standards on min wage? I’m as libertarian (some call me ‘AnCap’) as they come and I’ve lived on 400-600 dollars per month just until 8 months ago. Yeah it’s not a big deal.
Perhaps you should reconsider your ideas on what actually constitutes prosperity, it’s when human consumables become less expensive. Amazing how this simple fact is lost on everyone, save a few libertarians.
Matthias Görgens
Oct 18 2019 at 7:20am
A 10% increase before taxes, is still a 10% increase after taxes.
(Unless your marginal tax rate changes.)
Simple example: assume a 50% tax. Before raise, you got 10 USD before tax, 5 USD after tax. After raise, you get 11 USD before tax, 5.50 USD after tax.
The after tax raise is smaller in absolute terms. But the same 10% in relative terms.
Mark Brophy
Oct 17 2019 at 5:09pm
A 10% raise when you’re earning $40K is a big deal but when you’re at the minimum, your raises should be bigger.
David Henderson
Oct 17 2019 at 7:27pm
And you know this how?
Matthias Görgens
Oct 18 2019 at 7:21am
Empirical it felt the other way round for me.
And that’s also (one of the) justifications for progressive taxation.
Biff Ditt
Oct 17 2019 at 8:04pm
This question is sincere: Imagine you’re CEO of Walmart and a fellow board member, who has recently had a come-to-Jesus, said, “You know, we really ought to be paying the line workers more. They cant live on what we pay them.” If you, as CEO, wanted to keep paying them low wages, what would you say in response? I have a hard time coming up with answer that isn’t fit for Mr.Burns.
P Burgos
Oct 17 2019 at 10:53pm
Well, the simply answer would be that the CEO doesn’t really have a choice. Wal-Mart’s business model was built for decades on minimizing labor costs. To attempt to suddenly change that without a good business rationale would spell the end of that CEO’s tenure, replaced by another CEO who would continue the policy of minimizing wage costs. Wal-Mart only recently changed course on wages because they realized that they were losing too much in sales because of a crappy store experience that resulted from not paying their workers enough and not hiring enough workers. They also came to this position as competitors like Target raised wages, and Aldi and Dollar Stores undercut them on prices for groceries. Unless you have some sort of experience that I don’t, my impression is that CEO’s in competitive industry’s actually are constrained in their choices (unlike CEO’s in industries that aren’t competitive, like a lot of IT).
Matthias Görgens
Oct 18 2019 at 7:23am
IT is competitive in other ways than retail.
Phil H
Oct 17 2019 at 8:47pm
I wonder if there’s something to do with class and personality in this. It reminds me again of why I live in China: an entrepreneurial spirit and optimism that the future will be much, much, much better are fairly universal here. And that’s very attractive to be around. I might not think much of my friends’ schemes to get rich, but the fact that they have these schemes is inspiring.
Within our family, I’m the less ambitious one, and I think my wife finds it frustrating when she realises in conversation that I’m quite satisfied with life. For me, our house is good enough; our pleasant lifestyle is good enough. For her, that kind of satisfaction is not accessible: she wants more, always.
So perhaps it’s class, and perhaps it’s just personal difference. Ehrenreich is clearly an ambitious person, who’s willing to go on long adventures to get ahead. She’s meeting people who have already picked their life, and are happy with it. For her, an extra 10% is too small a step on the journey to somewhere else; for her co-workers, it’s a nice reward at the destination they’ve stopped at.
Maybe! I dunno, I’m just thinking out loud…
Biff Ditt
Oct 17 2019 at 11:41pm
Good points. I know people who similarly do not have a lot of ambition, who work basic jobs (pharmacy technician, CNA) that allow them to not have a lot of stress and responsibility. Most importantly though, these folks do not find it necessary that their job be their source of meaning. The job is what they do so they can spend time with the family and engage in other interests. Granted, it’s hard to have time too that do when your making minimum wage. Also, I always think of that Louis C.K. bit on just doing your job (easily found on YouTube under “Louis C.K. Do Your Job”)
IronSig
Oct 18 2019 at 3:28pm
At first, it sounds like Louis is saying “shut up, no one deserves to hear you,” which isn’t particularly Randian … until you realize that sitting on your ass isn’t pursuing excellence at all.
IronSig
Oct 18 2019 at 3:29pm
Could the First Law of Wing-Walking be rephrased as “Only when you’ve got a bird in the hand can you get the two in the bush.”
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