Tag: inequality

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Owners Dispute

Renovations of housing with distributed ownerships can be a challenging experience. In Berlin you can find a few places with visible long-term disagreement about what kind of modernization should be done. More luxurious additions like balconies or triple window isolation and so on are sometimes hotly debated and contested in courts. For most buildings you cannot spot disagreements on the outside, but some constitute exceptions to this rule. One size does not fit all preferences. In a metropolitan city there is a place and a space for all such exceptions to the rule and most people after years do no longer think about such kind of diversity in preferences or budgets available for modernization. Cities put our level of tolerance to a continuous test. You probably learn to love this or eventually you leave the inner city. There are subtle differences in urban versus rural lifestyles. In the social sciences we continue to try to understand the attraction of cities as on a global scale millions of people flock to cities.

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Retirement Plans

There are debates about the best organization of retirement. The major fault lines lie between public pension systems and systems that are built based on mainly private provision. Retirement plans in either system are subject to constraints. The recent stock market turbulence has increased the amount of uncertainty people face who invested in 401K plans in the US. Some had to take an unannounced hit to their retirement savings due to the loss after Trump’s back and forth policies on tariffs (OECD Pension Outlook). High volatility of stock market prices creates an additional constraint that you are less inclined to retire when your retirement investments have overall a reduced value. You are a bit at the mercy of capital markets even in your retirement decision, irrespective of the difficulty to predict what your retirement funds will yield as returns. Quite an important lesson to keep in mind when comparing retirement systems in OECD countries. It has been all too easy to blame public pension systems for maybe lower short term interests on pension savings. Being subject to an American president concerning your retirement plans is probably not what many countries would like to have. Trump’s choices on tariffs may have consequences we did not expect to affect us so directly.

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Tariffs trumped

Economists are used to differentiate between micro-and macro-level effects of tariffs. For each buyer of a car, import tariffs raise expectations about prices for a product. Many consumers will then decide to buy lower quality at the same price or postpone buying a new or replacement product for some time. For cars it might mean that many people will then decide to buy rather later than sooner. If thousands of people do so, the market will fall into recession overall and it will take months or years to come back to the same or a higher level. A political economy perspective has taught us that eager politicians are in favor of a short recession immediately after an election which increases the chances of re-election once the economy gets back to normal or catches up on lost growth. 

The US under Trump apparently gambles with such an economic rationale. Short term inflation is already rising, interest rates stay high before the upheaval caused by tariffs starts to settle. 

There is, however, another alternative mechanism at work as well. Thorstein Veblen long ago hinted towards what is not called in economics the Veblen effect. Some fancy cars for example can raise prices well above others because of their cleaving image. Just because they get even more expensive the buyers of such products gain additional attention as part of a social class which does not have to care much about their additional spending. The consequences of tariffs will most likely widen the gap between those saving dearly and those able to splash out cash despite increased tariffs. The most felt consequences, therefore, will be on social inequality within the US (compare WSJ 2025-4-24 A2 by Juliet Chung, “Richest of Rich Gain §1 Trillion”).

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Minority Politicians

We have regulations in favor of minorities in many countries. Most people immediately jump to their opinions about specific minorities they most strongly feel about. Favoritism through targeted policies versus discrimination are key issues here. Evaluation of effective policies to support minorities needs solid science before jumping to premature conclusions.
A recent study on the largest minority group of extraordinary people, often denoted as persons with disabilities, has focused on political representation. The results confirmed the hypothesis of an under-represention of the group in parliaments. Reher & Evans (2024) show ample evidence that despite the large and increasing shares of persons with disabilities (about 20-25% across Europe) under-represention is likely to lead to lack of concern of society as whole to topics of relevance to them. By-the-way, most of such policies would equally benefit an aging society and young families for example with regard to mobility. Perhaps another striking example is the tendency of extraordinary persons to not report their kind of disability out of fear of stigmatization and potential discrimination.
Policy makers need to take a long-term perspective to reorient public spending in favor of extraordinary persons. Infrastructure investments are needed here as well. More persons with disabilities across all political parties can bring about such changes. Extraordinary persons deserve equal representation. It is up to us to make it happen.
(Image: German Bundestag 2025-2).

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Blue Sky

In the period of romanticism the associations with a blue sky were very different from today. Getting out into the sun was a kind of privilege for the “leisure class”, of people who could afford to enjoy time outside for boating, walking or other pleasures. In our technology-driven 21st century the associations with Blue Sky are more like a technically enhanced view through for example “Windows” at the news and opinion platform or “Bluesky”.
Several scientific websites that report data on blue skies and air quality more generally across the world report indicators like ozone values O3, sun intensity, micro particles 2.5µm and 10µm, Nitrogen Dioxid NO2 to name the mostly quoted indicators. Hence, just enjoying the blue sky outside isn’t the same as it was before. People working outside in the sun or at times of a blue sky but with high air pollution levels are incurring severe medium-term health risks. The Ozon layers at very high altitudes protect our skin and eyes against high UV-radiation, but O3 on the ground is tough for eyes and lungs.
Technology has come with many blessings, but the negative effects on a global scale become also more evident. Getting used to a particular lifestyle, which produces lots of emissions of aggressive fine particles will make it more difficult to just simply enjoy a blue sky.
In consideration of all these background data with regional variations, we surely need an AI-system which we can ask for advice, whether we should go outside and enjoy the blue sky with or without respiratory mask.
Romanticism has led us all the way to Californication and dangerous enshittification of the air that surrounds us. Youth and the next generations will have very different associations with Blue Sky than we have the chance to, at least, have had.

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Obesity Revised

The scientific paper on a revised definition of obesity was produced by the special Commission on Obesity. It appeared in The Lancet Diabetes & Endocrinology in 2025-1. The previously common practice by medical doctors was to classify person in the obesity category based mainly on the simple calculation of the body mass index (BMI = weight/height²). A BMI  > 30 put persons into the obese category and stigma.
Since the Covid-19 society-wide testing experience, we are all familiar what it means if you get misclassified and have to live with the consequences (exclusion from work or events etc.). The simplifying and summarizing BMI calculation and classification has also produced many wrong classifications. For example, persons with a lot of muscles (just watch this at any fitness studio) will have a high weight relative to their body height², but they are likely to be more healthy than many other light weight, but seriously stressed persons.
In empirical test theory such cases are the so-called false positive cases, i.e. classified as obese, but not a medical problem at all. Medical doctors and health insurances should not finance special treatments for these persons, which foregoes treatment of other more needy persons.
With new expensive drugs on the market to treat obesity it is even more important to test with more precision the normal, pre-clinical and clinical status of obesity. Fatty tissue or muscles, that is the relevant question. Fatty tissue in muscles is the next level testing issue.

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Legal devices

In the 1st chapter of “The code of capital”, Pistor (2019, p.3) specifies the 6 major modules of the code that creates a lot of wealth, but is also eager to keep it to a few privileged persons in society. In order of appearance and not exclusively they are: “contract law, property rights, collateral law, trust, corporate, and bankruptcy law. In these modules 4 major attributes of assets are defined for the holder and later exercised courts as well as other state institutions: (1) priority, (2) durability, (3) universality, and (4) convertibility. In other words, the legal devices rank claims in a qualitative sorted order and guarantee the value of such claims over time and space. The fatal vice of the device is the convertibility of private claims in to one against the state as the ultimate insurance against a risk of credit default by other parties. Similar to bitcoins today, the financial derivatives make it possible to “create money” out of nothing, just like a “deus ex machina”. The states had and still have no control over this “artificial creation of money without being linked to a kind of reserve value.
Such intangible assets may contribute to wealth creation as tools that facilitate a faster turnover of goods and services in an economy or between countries and thereby create corresponding real value. The control of trade and currencies, however, becomes also subject of additional possibilities of fraud and crime. Here again it is the legal system that is challenged to protect the application and efficient functioning of the 6 major modules of the code of capital. The concerns of inequality in and through law are relegated to politics and policies within single states.
The final chapter 9 states rather bluntly: “capital rules by law” (p.205), but it enumerates several ways, how to curtail this code of capital. Tax sheltering in other countries or taxation by choice of country should be made more difficult. Blacklisting is efficient in most cases (p. 225). Arbitration might work if somehow an equality of power is achievable. Internalization of externalities is easier said than done, but needs to be considered right from the beginning of  changing laws. Purely speculative contracts should be referred to “casinos” and betting instances and no longer be eligible for business contracts. The revision of the education of lawyers is another part of the counter measures. The autopoiesis of the legal system and its profession has been highlighted by Niklas Luhmann before. A great deal of the difficulties we face with the code of capital appears to be due to the self-referential exclusionary practice of legal devices. We have to bring society back into the discourse of law in order to preserve democratic structures and the equality of chances in society.
The strength of “collective rights” in labour law, of cooperatives or the share economy allow for potential remedies to the hijack of law through capital and exchange markets. Open source movements as in software creation are forward-looking models that the creative commons licensing for security, but also equality purposes. Employees’ input in the process of capital creation should be rewarded and codified accordingly. Last, but not least, countries will have to reclaim legal authority in parts of law that affects “the wealth of a nation” and its distribution. Similar to  “no taxation without representation” we should claim “no legislation on us, without us”. The role of legal advisory firms to draft laws outside of parliament has probably gone too far already. The task of politicians to understand the consequences of what they vote for in parliament has become more and more difficult, yet there is no way around a drastic increase in competences, legal and otherwise.

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Juridification

Law has entered almost all domains of life. This has a lot of positive effects. Law in general, we tend to believe, has an intrinsic link to justice. If you go to court after failed attempts of mediation you will get a judgement(s) from several instances at times and with substantial delays. Justice, however, is a much more complex issue. Ethical concerns enter the stage as well as the ability and willingness to devote substantial resources to support a legitimate or legal claim. A kind of balance of power appears to be a necessary precondition for justice to be achieved. Of course, jurisdification is a process, where time plays to the advantage of one or the other side of contestants. The book by Katharina Pistor, “The code of capital. How the law creates wealth and inequality” has highlighted the importance of the legal intermediaries in the juridification and codification of modern societies. The basis of today’s capitalism relies on an expansive definition of what constitutes capital. The transformation of debt into a product, which can be traded by a “second hand” rather than the “invisible hand”, had created a warning to societies that the extension of rights and volumes led to a financial crash of the most powerful economies. The states, i.e. taxpayers, had to step in to guarantee credits taken out by banks and other financial institutions and ensure the solvability of underwritten debt. The state guaranteed for losses of capital and enforced the rule that deficits had to be shared among all. A well calculated bankruptcy of the system was then managed by lawyers and bankers rather than the politically elected representatives of the people.
The juridification has been extended to intellectual property rights as well. This made the fruits of intellectual property tradeable. It is rarely the authors that negotiate translation rights or the use of a novel as a screenplay. You better rely on a specialised lawyer to assist you in the national or transnational defence of intellectual property rights.
Artificial intelligence relies on huge data inputs. It is not an easy task to define ownership of data, especially of what we believe are “your own” data. Juridification means that a process of narrowing down definitions or the opposite, absence of a proper definition, creates market opportunities to trade data and the right to collect or use those data for specific or encompassing purposes.
Are we still all equal in front of the law? Or do the better informed have a significant advantage over the rest of society? Financial resources play a vital in the legal system as well. Collective solutions, like associations of consumers or trade unions, have demonstrated that they may operate as a societal antidote in the biased codification of capital. Democracies are well advised to open their eyes to the blind spots in the “regard” of justitia.
(Image: Auguste Rodin, Cariatide à la pierre, enlarged bronze statue in Paris)

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On Woke-ability

The past particle of “to awake” is “woke“. As early as the 1960s the term woke has appeared in a New York Times article to reflect the idea that in the African-American History movement you woke up to a new movement, leaving behind discriminatory practice and rhetoric. The definition of woke in dictionaries refers to an awareness of social facts and injustices. Additionally, the use of woke has implied a need to act upon injustices due to social and/or ethnic origin. Elements of the woke movement were the use of more general non-discriminatory terms like people of color (POC) in official documents and revisions of textbooks for pupils. Subsequently, the application of the term woke spread to other social concerns like the discrimination of LGTBQ+ people in many societies.
The underlying concern was and still is (1) to recognize the discrimination and disadvantages faced by many groups in society and (2) a call for changing the way we talk about it and (3) a shift of policies to counter social injustices. Societies differ in the capacity of “woke-ability”, i.e. the capability to address social inequalities of various types including intersectionality. Societies have never simply been only homogenous. Heterogeneity, plurality and complexity are much better suited to represent societies, regions or countries.  It is our willingness to deal with these complexities in an open way which includes the “woke-ability” of social phenomena. Acknowdge a social problem and act upon it. Change the way we talk about a problem and the discoursive practice in general are important steps to address old and new social problems. For example, over the last 50years the discourse with respect to handicapped persons has evolved and the Paris 2024 Paralympics have made this clear to the public on a global scale.
(Image: Installation of Daniel Boyd in the Martin Gropius Bau, Berlin 2023)

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On Intersectionality

Society deals with individualization or individualism in various forms. One way is to take each social group as a specific singular case. This is reasonable and justified in many instances. There are cases where this form of dealing with specific social groups comes to limits. Following the rationale of plurality and individualism it has become common practice to address each target group in a specific manner. Intersectionality, however, acknowledges the overlapping of target groups, which necessitates a more specialized approach to intersecting (social) phenomena. Gender might not be the single most important factor to describe a person, just as age is a concept of various intersections. Chronological age versus age defined through biomarkers demonstrate the variety and potential for intersectionality. The Paralympics 2024 in Paris gave another positive example of intersectionality as extraordinary persons achieved previously unimaginable world records in specicialized disciplines. Individualization and classification is only a first step in the scientific endeavour, the analysis of intersectionality is an additional step to consider in a broad range of fields beyond the social sciences.
(Image: Exposition Isa Genzken 75/75 in Neue Nationalgalerie 2023)