By Peter Fousek
The situation currently facing millions of people across the South Central United States is surreal. Caught in an unexpected onslaught of vehemently wintery weather, many have found themselves without power, and as a result without heat, while temperatures continue to plummet. Even more shocking than these circumstances themselves is the fact that a significant number of the power outages were caused not by the storm, but were instead implemented by utility managers in response to fluctuating natural gas prices. In Texas, when power was restored, it was accompanied by exorbitant surge pricing. This situation represents the latest in a long and devastating history of the free market failing to protect working class people from the effects of disaster while at the same time allowing those with financial means to turn a profit off of catastrophic circumstance. Both of those outcomes are necessary products of our socioeconomic system, the suffering of the many demanded to ensure the satisfaction of the few.
The basic premise of market fundamentalism, as a system of belief, is that greed is good. The official, normative morality of market-based society exists to rationalize that singularly hypocritical notion. In the same way that Joel Osteen and his fellow grifters preach that their ill-begotten wealth is a reward for their righteousness, that official morality strives to justify excessive affluence. It works to convince us that both the billionaire and the homeless person have somehow earned their lot in life; that they deserve their respective state of decadence or deprivation. If not for a moral system that considers gluttony a virtue, the two could not coexist. How could we endure a social structure in which the wealthiest 1% of our nation hoards 30.4% ($34.2 trillion) of all private wealth ($10,426,829 per person, on average) while the bottom 50% collectively have only 1.9% ($2.1 trillion, or $12,805 per person)? How could we sleep at night knowing that nearly 1 in 4 households have experienced food insecurity this year, that 40 million face potential eviction, that unemployment and poverty rates have skyrocketed, all while the wealth of U.S. billionaires has increased more than 40% ($1.1 trillion) since March? In short, how could we manage to utterly debase the very essence of human life while viewing wealth itself as sacred, with the power to sanctify its possessors? Examples of opulence juxtaposed against a backdrop of despair are all too common in the United States today, and provide copious evidence of the tragically influential power possessed by the secular prosperity gospel.
Two articles published in the past week illustrate the consequences inflicted by that corrupt morality. On the 11th, CNBC contributor Sam Dogen wrote a piece entitled “Millionaire who bought a home at 26 regrets paying off his mortgage early”. This article recounts, with a shocking lack of self-awareness, the author’s experience of life as a young freelance consultant with a multi-million-dollar net worth, six-figure passive income, and fully paid-off home. Most strikingly out of touch in this humble brag of an editorial is the author’s assertion that, in retrospect, he deeply regrets not only having paid off his mortgage, but also his subsequent trip to Yosemite and Angkor Wat with his wife. His regret has absolutely nothing to do with the fact that he spent his “hard-earned” wealth on self-serving pursuits instead of using it to assist the countless people suffering around the world—people, for instance, with entirely curable diseases that will nonetheless kill them since they cannot afford treatment. No, our friend Mr. Dogen is unwilling to engage in such humanitarian remorse, incapable of repenting for actions that he does not perceive as wrong. Rather, he regrets only the fact that his spending was not self-serving enough!
The author laments the fact that, by securing the freedom of home ownership, he lost the motivation to continue improving his finances as aggressively as before. He started working 20-hour weeks rather than 60, thereby “loosing out on $20,000 of monthly income”. That he considers it a loss to spend time with his wife while they can still enjoy their youth; that the experience of culture and natural beauty is, to him, something wasteful and burdensome, is emblematic of the secular prosperity gospel’s most insidious effects. In the author’s psychology we witness the conceptual commodification of human life itself. In his view, people, not the least of them himself, are no more than instruments of production. By his logic, that is good which compels the individual to a greater degree of productivity. In producing more, the individual benefits by elevating her moral standing, understood to correlate directly with her productive output. Her moral standing is elevated because her increased productive output is seen as beneficial to society, in a conceptual framework where social good is defined as capital accumulation. Moreover, the capitalist market system provides a quantitative measure of the individual’s productivity (and thus, of her moral worth). That metric, of course, is the dollar.
In this manner, injustice and inequity find excuse and validation. Fear of the suffering that accompanies poverty under a capitalist mode of production provides an important social “good” in the same way that fear of eternal hellfire did in eras past: it coerces the individual to embrace their role within an unjust social order, that they might tread its exploitative waters and keep their head above its deadly waves. However, capitalism and divine right are fundamentally different ideologies; the former evolved to hold a far more tangible grasp over its subjects than the latter ever did. The power of the “divinely endowed” ruling order stemmed from its subjects’ belief in the official morality and the otherworldly consequences thereof, and so the subjects had to be cajoled into that belief to imbue the ruling order with authority. Under the rule of capital, material conditions force the individual to subscribe to the official morality under threat of homelessness and starvation, whether they believe in its righteousness or not. Viewed as nothing more than a productive commodity, the individual must produce for the sake of the “social good”. If she does so with sufficient vigor and skill, her moral righteousness will be rewarded with wealth and correspondingly with freedom. Conversely, if she lacks the freedom to enjoy even the basic necessities of life, her failure to produce enough is at fault.
This leads us to the second illustrative headline: “Record cold brings a windfall for small U.S. natural gas producers”. This article, published on the 14th, describes how natural gas prices “have surged more than 4,000% in two days,” a trend which has provided suppliers “$600,000 to $700,000 a day” in revenue, “up from just a few thousand dollars a day normally”. The author, Rachel Adams-Heard, describes this surge as a positive, a well-deserved return on investment for the industrious businesspeople who, having taken the risk of acquiring an asset, secured both legal and moral right to reap its gains. She makes no mention of the appalling extortion required to make those profits possible. But we understand that the firms in question make their money, whether $5,000 or $500,000 per day, by providing a commodity (natural gas) to their customers in exchange for a fee. The most significant of these customers are the utility companies, who pay for the privilege to make use of that commodity and internalize its cost into the price at which they sell their utility (electricity, heat) to customers of their own. Due to the extraordinary weather currently gripping the nation, the initial commodity and corresponding utilities have become crucial to the health and safety of those second-degree customers, who are presented with the cruel choice between paying exorbitant rates or being left to face the cold. But that choice is only available to those with both the means to pay the surge prices, and homes in areas where service has not been cut. Many do not even have those scant prerequisites: millions are without power, thousands are sleeping in their cars, others have died from exposure.
All this because the market, despite the near-perfect efficiency alleged by its staunch supporters, is unable to allocate for and address this unexpected disaster. Rather, the market is unwilling to allocate appropriately, since doing so would require the natural gas suppliers to take a loss. This is clearly the case in Texas: utility companies cut massive swaths of customers off from the grid expressly to avoid paying the inflated gas prices driven up by demand in response to the storm. Under normal circumstances, the fees that these firms charge their customers are capped to limit the degree of their exploitation—electricity is a public utility, after all. Given those price caps and the increased cost of gas, the utility firms would have had to pay more for the gas required to run their powerplants than they would be able to make up by charging their customers for power usage. In response to this dilemma, the Electric Reliability Council of Texas (ERCOT, a nonprofit tasked by the Public Utility Commission with managing “90% of the state’s electric load”) issued an emergency order allowing electricity suppliers to charge consumers enough to internalize their elevated costs, price cap be damned, forcing the public to bear the entire burden imposed by increased market demand. This is blatant extortion: the people are made to pay obscene amounts for a public utility under threat of the bitter cold. It is only via this shakedown, this racket, this criminal abuse, that those diligent oilmen celebrated by Ms. Adams-Heard are able to make their sudden gains.
The examples illustrated in these articles are just a few recent symptoms of a longstanding, institutional, ideologically mediated system of injustice. We have seen countless others over the past year. The U.S. has left its pandemic response in the hands of the market, a practice which has resulted in the wealthiest nation in the world facing the highest death count of any country. The Lancet Commission reports that about 40% of those U.S. COVID deaths could have been avoided, if not for the right-wing conspiratorial politicization of the virus and the implementation of policies foregrounding the protection of the economy (read: stock market) at the direct expense of public health. The rich have become astronomically richer thanks to trillion-dollar tax-cuts and deadly re-openings, the former funded by the liquidation of social welfare programs and the latter funded by the liquidation of working-class lives. Already limited social safety nets have been cut despite the unprecedented difficulties now facing us, for the benefit of those who possess more than they could ever dream of spending, their fortunes built over years of exploitation.
This social order, which pursues the ends of a small minority at the expense of the working majority, could not possibly maintain its existence through force alone. It requires the power of official morality, of the secular prosperity gospel which preaches that wealth, as productivity incarnate, is the manifestation of social value. That logic, which implicitly declares that the poor are worthy of their disenfranchisement and destitution, is responsible for the terrible repercussions that we now see. Such despicable “morality,” and the consequences that follow, are inevitable in a system that considers the individual not as a person, but as a totality of needs. Under such a system, the other is not a fellow member of the community to be treated with compassion, not a neighbor to be loved, but rather a commodity, a tool to be used in the satisfaction of one’s own selfish desire. As long as human life is treated as an object to be bought and sold, the principle of the “sacredness of human life” remains a hypocritical lie, intended only to trick the oppressed into consenting to their subjugation.
