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Productivity as a Social Problem: The Uses and Misuses of Social Indicators

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The study of social indicators is valuable for understanding the role that the social sciences play in the political arena. One common pattern is for a particular social indicator to become frozen in place once it takes on political significance, and this can result in ironic consequences. This study traces out the case of indicators of aggregate productivity trends in the United States. These measures were initially developed as part of an underconsumptionist argument that was linked to the political left, but there was considerable debate over different measurement schemes. Over time, one particular measure of trends in aggregate productivity became central for wage negotiations and for government policy. This created a context in which the slower rates of growth of this measure of productivity in the 1970s helped to validate the views of those on the political right who saw the need for greater restrictions on wage gains and government civilian spending. The paper raises questions about the value of this particular measure and ends by emphasizing the problems of locking in place an "objective" social indicator when the reality being measured is in continual flux.

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... We think that Foucault's point about "specific intellectuals" was precisely about a movement that takes one from the problems and contestations encountered at the technical level to the "political effects" of these technicalities. It follows that intervention could be also in the form of a report, a technical document, expert testimony, even an experimental demonstration (properly publicized), or-as we shall emphasize here-in the form of a "politics of measurement," by modifying how matters of public concern are quantified, measured, and represented (Porter 1995;Breslau 1998;Alonso and Star 1987;Block and Burns 1986). The crucial point is that the format or mode of intervention can take many different forms besides the 2. In a play on the old Weberian distinction, we could say that intellectuals live "for opinion," while pundits (and think tanks) live "of opinion." 3. Philip Mirowski and Edward Nik-Khah (in this volume) demonstrate the extent to which actors within this buffer zone can completely block, distort, or disarm the interventions made by scientists and academics. ...
... A good example is the indicator of aggregate productivity trends. As Fred Block and Gene Burns (1986) show, it was compiled as part of an underconsumptionist explanation for the Great Depression. Productivity gains, it was argued, would lead to weakening demand if wages do not rise as fast, or prices decline accordingly. ...
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This essay argues that the term public intellectual is too narrow for historical research about the public influence of economists and economic expertise. We propose, instead, the concept of public interventions to inform a more comprehensive approach that broadens the analytical frame by multiplying the relevant actors, modes, and targets of intervention yet could still include within it research on public intellectuals narrowly construed. As an empirical example, we suggest that the design and diffusion of economic indicators—specifically, the GDP and the myriad indicators compiled in recent years as part of proposals to replace it with a better representation of human welfare—could be analyzed as a specific mode by which economists intervene in and shape the public sphere.
... Trois hypothèses de recherche permettent de représenter l'apport du texte à la réflexion sur les enjeux actuels de la productivité au Canada : H1 : La productivité peut être abordée sous la forme d'une question sociale (Lahire, 2006 ;Block et Burns, 1986) en se demandant quels sont les acteurs collectifs qui portent cette thématique dans l'espace public et quels sont les principaux axes qu'ils privilégient dans leur réflexion. La productivité est ainsi autant une mesure statistique qu'une construction sociale. ...
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... 9. In particular, see the discussion of the introduction of GNP as a social indicator advanced by Block and Burns (1986). Beyond conceptual problems, which are central to this article, it is also worth highlighting that there are likely to be serious reliability problems with measures of national income particularly outside of the advanced, industrialized countries. ...
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Cross-national research on taxation is a growth industry in political science. This article discusses key conceptual and measurement issues raised by such studies. First, it highlights the ways in which taxation has been studied as a rich and varied concept, including as a component of the state-building process, as a collective action problem, and/or as a problem of distributive justice. Second, the article identifies the central tradeoffs associated with the construction of taxation indicators used to measure such ideas. It discusses considerations such as which forms of revenue should be included and which should not, whether and how to standardize taxation measures, and how no fine-tune measures through a clear specification of units, universes, and measurement calibration. These choices have important implications for the “scoring” of countries, and for making valid inferences about the relationship between states and societies.
... This broad acceptance of headline indicators-figures for trade, unemployment, inflation, and so on-stands in contrast to frequent critical analyses of more obviously constructed metrics, such as the output gaps (Heimberger & Kapeller, 2017), financial risk (de Goede, 2004), credit ratings (Paudyn, 2013), or accounting standards (M€ ugge & Stellinga, 2015;Perry & N€ olke, 2006). 2. For inflation, see (Boskin et al., 1998;Johnson, 2015;Mackie & Schultze, 2002); for unemployment (author; Baxandall, 2004;Green, 2000); for public debt (Bloch & Fall, 2015); for economic growth (Shaikh & Tonak, 1994;Stiglitz et al., 2010;Fleurbaey & Blanchet, 2013); for the balance of payments (UNECE & Eurostat & OECD, 2011;Kerner, 2014;author); for productivity statistics (Block & Burns, 1986;Guvenen et al., 2017). 3. ...
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Macroeconomic statistics simultaneously shape and try to capture the political economy we study. Their biases mold social and political dynamics; they also infect academic and policy analysis. Political economy can both benefit from and advance an understanding of economic statistics as political artefacts. To help unlock that potential , this article builds on scholarship dispersed across disciplines and highlights three points. First, a binary debate that either acclaims or vilifies economic data is misdirected. Indispensable for public policy, quantification is neither good nor bad per se; the question is what its specific ramifications are. Second, macroeconomic statistics have been built around an ideal of white male factory work for wages. The further economic activity is removed from that image, the more statistics misrepresent or ignore it, with systematic biases as a result. Third, the real-world impact of statistics always depends on how they are understood, used, and subverted. It hinges on statistical practices, not just on abstract measurement approaches. As political economists we are political agents when we define, and reproduce, our object of study. We face both an analytical and a normative imperative to work with and towards statistics that do justice to the world and the people in it.
... For that reason, our understanding of the nature of information as an instrument of power must enable us to discount the assumption of a perfectly rational world. The dictum from Machiavelli's The Prince (quoted in the beginning of this article) serves as a reminder that knowledge and information is by no means impervious to manipulation and abuses (for example, on indicators see Block and Burns, 1986;Ribaudo et al., 2001). The failure of social indicators to shape policy action in the past has been attributed to 'an overly simplistic view' of the conditions and mechanisms of how knowledge influences policy (Innes, 1989: p. 430). ...
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The perception that better information on environment and development is the determinant of effective rational decision- and policy-making processes provide the impetus for global interest in the use of sustainable development indicators (SDIs). Accordingly, proposals for SDIs are framed either on organisational goals or on disciplinary and multidisciplinary theories—aiming to reduce uncertainties in choosing the best alternative among a set of options concerning sustainability. Despite the fact that many SDI initiatives are explicitly aimed at improving policy-making, it is not apparent that political settings and organisational realities are taken into consideration in designing the framework for sustainability assessment. Ignoring the realities of policy-making dynamics can result in poor institutionalisation of the SDI development process, and therefore reduced impact of indicators. Linkage of SDIs to policy processes must also take into account the complex role of information in policy processes. The importance of societal values, cultural contexts and behaviour of bureaucracies must be understood and used to assist the assessment of progress towards sustainability using SDIs. Essentially, objective knowledge must be tampered with pragmatism in governance. This paper highlights the case of SDI development in the state of Selangor where the notion of instrumental rationality is balanced with the ‘incrementalism’ of the policy process that provided the foundation for institutionalising the reporting and use of SDIs. The ideals and paradoxes of participatory decision-making, the principles of the rational model and decision-making processes within a state government are critically examined.
... Ultimately, however, this effort is indistinguishable from the much longer battle of defining the meaning of unemployment itself conceptually. As previous investigators pointed out in an insightful study of "productivity" metrics, it is crucial to investigate the social construction of a "social indicator" if one is to employ it effectively (Block and Burns 1986). When social indicators like productivity or unemployment become a central part of social and economic policy, historical analysis will inevitably reveal the contested nature of their construction. ...
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The following study is concerned with the problems posed by contemporary unemployment--especially the U.S. but also globally to some extent. The most immediate problem is the dominance of neoclassical models, which routinely neglect the deeper issues raised by contemporary mass unemployment. To go beyond these inadequacies, the study also assesses the performance of sociological interpretations. One key finding is that sociological analyses also largely fail to provide a compelling theory of unemployment and, moreover, that most perspectives implicitly adopt problematic assumptions from neoclassical economics. This highlights the dual nature of the problems posed by unemployment: on one hand, it is an urgent social issue; and, on the other hand, it exemplifies significant weakness within most sociological paradigms. In order to address the challenges posed by unemployment, the narrative centers on the resolution of three key anomalies of unemployment: 1) persistent unemployment; 2) so-called "jobless recoveries;" and 3) the rise of worker precariousness. The anomalies are taken as evidence of paradigmatic contradictions within neoclassical economics and, to some extent, sociology. The main theoretical contribution of the study is a careful reconstruction of Marx's classical theory of the reserve army of labor (part of "The General Law of Accumulation"), which has inspired all critical sociological perspectives on labor markets to date. The investigation highlights distinctive characteristics of "political-economic sociology," a term that refers to economic sociologists who draw heavily on notions of class and power reminiscent of classical political economy and classical sociology, forming an important bridge with heterodox economic approaches. The theory of the reserve army is in need of "renewal," however, because even political-economic sociologist have failed to carry the analysis forward and build upon the firm foundation provided by Marx. The study's conclusion is that the reserve army framework has enormous potential to strengthen existing work within political-economic sociology. http://search.proquest.com.proxy2.library.illinois.edu/docview/1430909106?accountid=14553
... Kelley and Simmons 2012, Merry 2012), or it can increase the autonomy of international organizations(Clegg 2014). Even if an indicator is developed for a particular end, it may end up serving rival political projects(Block and Burns 1986). ...
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... In this way, managerialism altered the balance of class forces because it inserted managers between capital and labor, reducing the classness of both. The new center of negotiations between owners and workers became 'productivity', and as wage gains became linked to productivity increases (Block and Burns, 1986), managers emerged as 'professionals of productivity' -measuring it, fostering it, organizing in order to attain it, motivating workers to attain it, and so forth. In the same process, the class struggle was decomposed into two component struggles: a struggle between owners and managers over issues of rational management and efficiency, on the one hand, and a struggle between managers and workers over discipline, motivation, and knowledge, on the other. ...
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This book is a genealogy of the idea of productivity, from early economic theory and the development of statistical measures of productivity to the uptake of productivity as an objective for government economic policy. It examines how the productivity concept was used and defined in three historical contexts: in the development of the National Accounts in the Dominion Bureau of Statistics (known today as Statistics Canada), in the short-lived and little-known National Productivity Council (1960-3), and in the establishment and evolution of the Atlantic Canada Opportunities Agency (1986-present). Drawing these cases together with sociological and political theory, Karen R. Foster argues that there is a productivist ideational regime guiding government policy in Canada and elsewhere that is based on several cultural assumptions, the foremost being that more productivity, regardless of its impact on employment or environment, is good in and of itself. Also dominant and closely related is the stubborn assumption that economic productivity fully or partly determines standards of living and prosperity. Systematically questioning and critiquing these two most fundamental assumptions, Productivity and Prosperity destabilizes the myth that economic growth has made us happier and richer and is indeed essential for our quality of life.
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Der Sammelband fragt nach den Konjunktionen von Finanzmarkt und den Krisen der modernen Gesellschaft, und zwar unter dem Aspekt von Öffentlichkeit beziehungsweise unterschiedlicher Finanzmarktpublika. Denn es sind insbesondere Öffentlichkeit und Publikumsstrukturen, in deren Wandel sich das Paradigmatische von Finanzmärkten für allgemeine Mechanismen der Integration, Kohäsion und Imagination moderner Gesellschaften zeigt. Finanzmarktpublika sind Szenerien der Konstitution der (Un-)Moralität der Finanzmärkte, Austragungsorte gesellschaftlicher und finanzökonomischer Krisen und zugleich Projektionsflächen nicht nur ökonomischer, sondern gesellschaftlicher Teilhabe. Solche Momente finanzmarktlicher Paradigmatizität werden auf der Grundlage konzeptioneller Überlegungen und empirischer Befunde zu Verhältnissen zwischen Operationsweisen von Finanzmärkten, der Konstitution von Öffentlichkeiten und der Strukturierung moderner Gesellschaften freigelegt und zur Diskussion gestellt. Der Inhalt • Finanzmarktpublika und Moralität • Finanzmarkt-, Gesellschafts- und Repräsentationskrisen • Finanzmarktpublika und imaginierte Teilhabe Die Zielgruppen Wirtschafts- und FinanzsoziologInnen Die Herausgeber Dr. Andreas Langenohl ist Professor für Soziologie mit Schwerpunkt Allgemeiner Gesellschaftsvergleich an der Justus-Liebig-Universität Gießen. Dr. Dietmar J. Wetzel ist Seniorfellow am DFG Forschungskolleg „Postwachstumsgesellschaften“ und Privatdozent an der Friedrich-Schiller-Universität in Jena.
Article
The U.S. federal government has played a growing role in setting nationwide education policy since the passage of the Elementary and Secondary Education Act (ESEA) in 1965. This Act, along with the ‘Equality of Educational Opportunity’ report commissioned by the 1964 Civil Rights Act, led the U.S. Office of Education to pursue a policy agenda focused on equalizing access and ameliorating poverty through the education system. Despite the promotion of equity serving as the officially stated goal of federal policy, expert evaluations of the government’s efforts incorporated technical assumptions from the field of economics that prioritized maximizing efficiency between inputs and outputs in the education system. When the ESEA was reauthorized in 2002 as No Child Left Behind, significant ‘policy drift’ had occurred such that the evaluation of teacher quality – which was the subject of a large literature in economics on the ‘education production function’ – was incorporated as a key component of the education system’s flagship anti-poverty initiative, Title I.
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The advent of mass schooling played a pivotal role in European societies of the later nineteenth century, transforming rural peasants into national citizens. The late-twentieth-century global expansion of higher education ushered in new transformations, propelling societal rationalization and organizing, and knitting the world into a more integrated society and economy. We address four key dynamics: (1) Higher education sustains the modern professions and contributes to the rationalization of society and state. (2) The supranational and universalistic orientation of higher education provides elites with shared global cultural frames and identities, facilitating globalization. (3) Consequently, tertiary education provides a foundation for major global movements and sociopolitical change around diverse issues, such as human rights and environmental protection as well as potentially contentious religious and cultural solidarities. (4) Higher education contributes to the reorganization of the economy, creating new monetarized activities and facilitating the reconceptualization of activities distant from material production as economic. In short, many features of the contemporary world arise from the growing legions of people steeped in common forms of higher education. Panel regression models of contemporary cross-national longitudinal data examine these relationships. We find higher-education enrollments are associated with key dimensions of rationalization, globalization, societal mobilization, and expansion of the service economy. Central features of modern society, often seen as natural, in fact hinge on the distinctive form of higher education that has become institutionalized worldwide.
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Social actors are drawn to ideological formulations that justify a defense or expansion of their own autonomy and power. Changes in distributions of power can close some avenues of ideological autonomy and open others; thus actors will have varying degrees of control over different issues within a given ideology. In response to the rise of liberal states in 19th-century Europe, the papacy was forced to avoid sociopolitical issues if it was to avoid persistent church-state conflict. Gradually reformulating Catholic ideology within the limited structural autonomy they had, popes subordinated sociopolitical issues to more purely religious and moral issues while constructing a new ideological opposition to liberalism.
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A central concern of political theorists has been the relationship between the state and the economy, or more specifically, how political power gets translated into economic power. Recent debates have been shaped around critiques of the corporate liberal thesis, which contends that class-conscious capitalists manipulate the polity so that government comes to pursue policies favorable to capitalism. Alternative theories suggest that the state is capable of transcending the demands or interests of any particular social group or class. The Social Security Act of 1935, which represented the beginning of the welfare state in the United States, was a conservative measure that tied social insurance benefits to labor force participation and left administration of its public assistance programs to the states. In this paper the Social Security Act is used as a case study to adjudicate between several competing theories of the state. The analysis demonstrates that the state functions as a mediating body, weighing the priorities of various interest groups with unequal access to power, negotiating compromises between class factions, and incorporating working-class demands into legislation on capitalist terms.
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Slowdown of productivity growth in developed countries during the 1970s is viewed as a combined effect of three forces: 1) a long- term deterioration in the efficiency and flexibility of basic mechanisms of the economic and political systems of these countries; 2) the fading away of a number of favourable circumstances for productivity growth during the '60s and '70s; and 3) the exposure of these economies to unusually severe macroeconomic disturbances in the '70s.-from Author