It is a very bad career, but only a bad career gives the
world the light that a not perfect, but still good writer wishes to produce,
although unfortunately at any cost. Naturally, too, such people, observed from
the outside, seem to wander everywhere, I could tell you about some of them, me
of course included, but they are not in the least remarkable than through the
work of illumination in rather good novels. One could say, that these are
people that emerged a bit slowly from out of the previous generation, one can’t
demand that everybody should follow the regular leaps of the times with the
same regular leaps. But if one once gets behind in one’s march, one will never catch up with the march of
the crowd, obviously, yet even if the step left behind soon begins to look like
one could bet that it was not a human step, one would lose. Imagine the view
from a running horse in a track, if one could keep your eyes on it, the look of
a horse springing over the hurdles, which surely shows one the most external,
actual, wholly true nature of the race. The unity of the stands, the unity of
the living public, the unity of the surrounding region in a specific time,
etc., but even the last waltz of the orchestra and how one loves to play it
nowadays. But if my horse turns around and doesn’t want to jump and goes around
the hurdles or even breaks out and becomes spirited inside the arena or throws
me off, naturally in appearance the collective view has won. There are gaps in
the public that some fly over, and some fall in, hands wave here and there as
by every possible wind, a rain of fleeting relations falls on me and it is
easily possible, that some onlooker feels
it and is sympathetic to me, while I lie on the grass like a worm.
- Kafka, letter to Director Eisner, 1909
On
June 6, 1885, F.R., a railroad conductor, was involved in a train accident in
which the train derailed. The walls of the baggage car that he was in at the
time caved in, and he was barely able to escape, after which he lost
consciousness. However, when he regained consciousness he discovered that not
much time had elapsed, and he was able to help drive the train to the next
station. After that incident, however, he suffered “pains in the left thorax
and back, flickering and colors in his vision. Also intervals of weakness of
memory, fear and a racing heart.” These effects occurred when he was working,
and he even once lost consciousness. He went to an eye clinic, but there was
found no pathological damage to the eye.
J.R.,
a clothcutter in a factory, was involved in an accident in March, 1885, when he
accidentally grasped a driver belt (which turned 80 times per minute and was
carried by it up to the area between the belt and the ceiling, where he pressed
his hands and head firmly against the ceiling to resist being sucked in by the
belt and crushed. A worker held onto his legs while another worker rushed to
turn off the machine. J.R.’s clothing was torn off, he suffered burns all over
his body, and he experienced immediate shock. After a week he began to feel a
hammering in his temples, his eyes would film up, and he had dizzy spells. He
also began to forget things and to say “nonsensical things’.
R.V.
was working in a wood finishing factory. On
June 18, 1886, his sleeve was caught by a bladed rotating machine used
for planing wood. The rotating maching went at a speed of 2000 to 3000
rotations a minute. His right arm was twisted around it, but he was balk to use
his free left arm to grasp an iron cart. The rotating machine ripped the shirt
from his chest and shoulders, but this allowed him to free his arm. He saw that
he was uninjured, but he felt fear to the extent that his entire body shook.
Two days later his arm showed marks of being severely scraped up and swollen,
with blood red, painful bruises. He worked six more months, essentially using
only his left arm, while he took to medicating himself for the pain he felt in
the right through alcohol.
All
of these cases – and some thirty nine more – appeared in Hermann Oppenheim’s
book, Traumatic Neuroses, which was a salvo in the long battle concerning
medicine and politics that was the result of the accident insurance legislation
that had been passed by the German parliament. Bismark publicly expressed his
fear of the gains being made by the socialists, and to counter them, he began a
process of reforming industrial relations, a key piece of which was workman’s
compensation insurance.
Germany
was soon followed by Austria. In the meantime, these matters were being debated
in the United States and Britain. Wherever they were debated, the question of
what to do about injurious effects that seem disproportionate to their causes.
And thus, nosology was pulled by the nose into the class war.
In
the United States, this war was fought, firstly, around the railroads. Eric
Michael Caplan’s article about ‘Railroad sprain” – the symptoms that arose from
the trauma of railroad accidents – follows the trajectory of the report of
these injuries from their first description in John Eric Erichsen’s On Railway
and other injuries, in 1866. The politics of the industrial accident in the U.S. followed a
typically bifurcated path: while the courts generally found against claims made
by workmen for injuries, they were much more sympathetic to passengers – for of
course passengers were more likely to belong to the respectable class. They
could even be judges. Thus, a diagnostic war was waged over whether ‘railroad
spine” – whiplash – and other seemingly psychogenic illnesses were real or not.
Real diseases are those with physiological causes, while those traumas that
were psychogenic – well, courts and doctors tended to put them to the margins,
close to overt fakes and malingerings.
Herbert
Page, a surgeon who worked for the
London and Northwest Railroad, produced the most interesting theory. Page took
up the idea of neuromimesis, first articulated by the French psychologist,
Paget, to suggest that “fright itself… was capable of eliciting neuromimetic
symptoms by way of some willful hypnotic state.” [396] And, slyly, Page suggested that there was
evidence for the neuromimetic hypothesis:
“The existence of a certain amount of control is shown moreover by the
disappearance of the mimicries, when all cause for their representation is
removed. The matter of compensation as we have seen, exerts in many cases a
very favorable influence on the symptoms of nervous shock.”
This
is an argument that continues to break out on various fronts to this day.
Certainly the railroad companies, at the time, were losing in courts – juries
tended to believe accounts of injuries from people like themselves, so that
surveys showed plaintiffs winning 70 percent of the time. This became a chronic
source of irritation to the stockholders of railroad companies.
Railroad
spine and other “traumatic neuroses” were caught in a set of rather confusing
forces. For one thing, while it might
be very well to say that the injured were actually under hynpnotic suggestion,
what this meant, in effect, was extending hysteria from women to men. At the same time, there was a general
suspicion of any explanation that relied on psychological factors – it went
against the materialism of the times. The pressure from the population through
the courts was one of the pressures that made industries reluctantly adopt
state regulations for injury, in fact, as the costs could be controlled and
predicted, then.
Because
the way the sides are marked does not correspond to a clear battle between the
‘progressive” and the “regressive”, it is easy to misunderstand the context
here. Hermann Oppenheim’s career is a good example of the casualties to which a
‘regressive’ materialism is heir.
Oppenheim
is now a semi-forgotten figure. Although he was one of the founders of
neurology as an independent discipline in Germany, he ran into a solid wall of
hostility in World War I from neurologists, many of whom had been his students,
when he maintained that that soldiers traumatized at the front were suffering a
real material injury that was signaled in post-traumatic symptoms. The
neurologists, seeking ways of sending traumatized soldiers back to the front as
quickly as possible, were invested in the psychogenic explanation. Like the
Railroad surgeons, these neurologists represented, from one point of view, the
progressive side of according reality to psychological factors – but they came
to that point of view for the most regressive of reasons: money in the one
case, nationalism in the other.
Andreas
Killen has pointed out that Oppenheim’s career as a neurologist, which began in
the 1880s, coincided with the new importance of interpreting seemingly
unaccountable pains and symptoms: ‘Arguably the most important factor in this
disease picture was the accident insurance law itself. The law compensated work
related neuroses within strictly defined limits. Entitlement to benefits was
made contingent upon proof of direct causal connection to an accident.”
Oppenheim
re-asserted the importance of material cause – that is, the material
displacement of neurons – against the French school of suggestion, led by
Charcot. The shaking experienced by
truck drivers, firemen, steelworkers, textile mill roller operators and the
like had unexpected effects not because there was variances in the degree of
suggestibility of different people, but because there were different degrees of
material stress that were put upon the neural system. That system was hooked into the emotions felt.
On the basis of the
comparative analysis of his “observations”, Oppenheim presented as their common
symptom the fact that the initiatory accident or injury always “had to produce
a strong psychic emotiom or lead to them.” Oppenheim expressly refered to the
fact that the symptoms of the traumatic neurosis occurred independently after
the event, even though the patient laid claim to compensation, grounding this forensically important
affirmation with his unilorm clinical experience. Oppenheim described a central problem of all the victims as
‘disquiet, excitement, fear and terror”, and more, a
“hypochrondrial-melancholic mood, anxiety and finally an “abnormal
sensitiveness” (Oppenheim, 1889) The anxieties mostly manifested themselves as
panic attacks with agoraphobia, through which obsessive petty fears and
compulsions can manifest. On the basis of their ‘intensified sensibitivity” the
patience are extremely inclined to “pull back from society into solitude.”
Oppenheim
was never clear about how, if the basis of these neuroses was changes in the
microscopic configuration of the cerebellum – his guess – they could, as
symptoms, feed back into the disease. This is an ontological paradox that
didn’t worry Oppenheim, but in the end, it left him behind – having no place in
his etiology for the psyche, he, in a sense, failed to explain the evolution of
these disorders.
The
industrialized experience of accident is one of the great social symptoms of
the felt divide between organic time and vehicular time. Heidegger, in the 20s,
speaks of how a background comes into view when there is a break in the routine
– he uses the example of a missing or misplaced tool. The example that comes
into view in the late nineteenth century when the tools were the toolusers –
and what is embodied is something missing, filled in by pain. If in fact
neuromimesis was happening, what was being imitated? For Page, fear was
imitating real organic diseases, diseases that occurred in organic time. The
accidents, however, shook the unconscious frame of the users of the industrial
system – their assimilation of the eternal return of the same. That eternal
return of the same is the metaphysical heart of the simultaneous, considered as
a form of social time. Its poet is Kafka, an industrial accident insurance man.
Rather, I want us to go back and understand what contemporary inequality in the developed countries, and particularly in the U.S., is about. The place to start, of course, is the seventies. After thirty years, we are starting to recognize the form of the shift that began to occur then. And let me be the harpooner that points out the shape of that beast, the main points of which are 1., the crushing of the bargaining power of labor; 2., the de-manufacturing of America – which was partly connected to the fact that manufacturing workers were the most militant, and partly the inevitable effect of the ability of capital to find other, cheaper regions in which to place factories; and 3, the dissolving of traditional constraints on credit.
These events occurred in response to the most serious crisis in capitalism since 1945. Galbraith’s New Industrial state, the liberal Keynesian economy, had created structures that were supposed to resolve such crises. These included the management of aggregate demand by the state, the moderation of labors’ older, utopian demands for a slice of the power in return for a steadily rising paycheck, and management’s movement away from optimizing profits in exchange for lessened volatility. The Keynesian moment unwound for a number of reasons – labour, with increasingly less interest in the political dimension that originally animated unions, became much more vulnerable; the government management of aggregate demand, combined with the government dependence on War, had finally unleashed inflation; and the ROI of the Fortune 500 corporations was finally causing an investor revolt. However, of the three factors I am listing in the shift to the new, Reagonomic paradigm, one and three seem oddly disjoint. How is it possible to diminish the bargaining power of labor – which results in the stagnation of wages – and at the same time dissolve traditional constraints on consumer and other credit?
Of course, from the neo-classical point of view, that makes a lot of sense. Instead of the government actively managing aggregate demand, the private sector, with a freer credit market, can take over. And in fact, even if wages stagnate, household incomes rise. The house itself as an asset appreciates, for one thing; more investment vehicles are made available to the public, for another thing; and finally, there is the great entry of women into the labor market.
Credit, then, is the keystone. It is from this moment on that the financial services sector, which had been relatively unimportant in the Keynesian regime, returns in force. It is what I would call the mangle of inequality – playing on Andrew Pickering’s term, mangle of practice. Contemporary capitalism in America has to effect a straddle – the economy depends on consumption, and yet, the majority of the consumers engross less and less of the productivity gains accrued by the system. Freeing the financial markets had two effects – one was to re-vamp the consumer’s financial horizon. Instead of worrying about making a wage sufficient to live the good life, the consumer worries about making a wage sufficient to have a good credit history – which is the magical key to the world of cars, plasma screen tvs, houses, and all the rest. The other was to make the consumer a shareholder in the system. For simplicity’s sake, call this the 401k world – that stands at the symbolic center of a system by which the ordinary person was hooked into the market. And the market could, consequently, use vast flows of capital to keep easing credit. A virtuous feedback, so to speak.
It had another, symbolically resonant significance. The triumph of the state in the 20th century was in providing for retirement. The state successfully created, within a capitalist economy, a mass ability to finish one’s life without poverty or utter family dependence. It was the template for the structural goods that the state, in a mixed economy, could provide – when the demands of distributive justice could not be aligned with the price creating market in a good or service. Consequently, social security has earned a special hatred from the right. The American system of encouraging private investment was meant, on the surface, to complement social security, but the ultimate aim was always to replace it.
The mangle of inequality, then, was not – as in Marx’s time – a head to head confrontation between classes. It is a more complex machine, in which class interests are blent so that head to head confrontation is systematically differed. The political triumph of the system is that the blending disenfranchised populism, since it became unclear who would really benefit from populist practice.
Given this context, we should be posing different questions about the housing bubble - not the question, what caused it, but the question, why was it necessary? It is not as if the policymakers consciously intended a housing bubble. But they did consciously intend returning the Clintonian surpluses to the investor class. And when the 2000-2001 recession happened, they consciously intended to find a way to respond to it that did not involve the government "interfering" in the economy. Luckily for the policy makers, by this time the neo-liberal program of guiding money from the wage class into financial assets was nearly complete - whether on the individual level of the 401k or on the aggregate level of pensions - and thus the neo-liberal machine could be played like a slot machine - there was plenty of money, the market in secondary mortgages as well as the housing market (two things which intersect, but which are not the same) could now provide a collective speedball, and everybody was happy. Otherwise, policymakers would have to face unpleasant alternatives to the neo-liberal version of capitalism. As we have seen in the O. era, they simply can't do that. The conceptual set seals off all solutions that might put in question the neo-liberal mindset. Hence, the mangle of inequality is both a cause and an effect of the neo-liberal economic paradigm.