Shooting Yourself in the Foot in the Middle of a Class War

I've decided to broaden the content of my blog to include thoughts in areas beyond human factors and user centered design. Politics, for example. Actually, you could make a case that politics are very closely related to the user experience of living in, and interfacing with, society at large.

I've noticed that most of the people I know who work in this area tend to be either liberal or moderate, and I wonder if it's because at the very heart of human factors is the recognition that people, in all their varieties, need to be accommodated by systems. It seems to me that liberalism and human factors both put people first, to borrow a phrase, the former in terms of societal priorities and the latter in terms of systems and product design.

So here's a first contribution to this area: an assertion that the subprime mortgage mess was based on a large bet that the upper classes put on the financial health of the lower and middle classes. And that the bet was essentially illogical because of all that's been done to weaken those latter classes over the past decade or so.

Here's a short list of ways the lower and middle classes have suffered in that time:

• falling real wages
• less access to health insurance
• bankruptcy "reform"
• welfare reform
• outsourcing
• the growing wealth gap
• rising education costs
• fewer social services
• the Iraq war, whose direct participants are disproportionately from these classes.
  

In all of these cases, the benefits of these changes have gone to the wealthy, but the lower and middle classes have bought into them. Why? I suggest that it's because the notion of trickle-down economics is basically designed to convince the lower classes that they have a stake in the health of the upper classes. The better off the latter are, the better off the former will be because of trickle-down effects.

So the lower and middle classes believe they have a stake in the health of the upper classes. What does this have to do with the subprime mortgage mess? Because, after reaping the benefits of a weakening lower- and middle-class, the upper classes placed a huge, unsecured bet that all the people in those classes could pay off any mortgage they signed up for, and bought billions of dollars' worth of securities derived from these mortgages. In essence, they placed a big bet on the health of those classes after doing whatever they could, in the preceding years, to weaken them.

I suspect that people in the financial industries won't recognize this tacit investment. I suspect that many of the conservatives in those classes will continue to advocate policies that continue to weaken the lower and middle classes. Ironically, though, this would further erode the value of their own investments in those classes.

If they did recognize this tacit investment, I think it would be a good thing. Just as, I believe, trickle-down economics has given the lower and middle classes an illusory stake in the health of the upper classes, mortgage-derived securities give the upper classes a real stake in the health of the lower and middle classes. I would love to see them recognize this stake, and start taking an interest in the real health of those classes. Perhaps then we would start to see better schools, better social safety nets, and other mechanisms that would benefit the lower and middle classes directly. Because they would also indirectly benefit the upper classes by protecting their investments.