Finding New Perspectives in the Social Sector
Neubauer Civic Scholars find immediate use and long term insights in the MBA curriculum.
Finding New Perspectives in the Social SectorOn May 2, former New York Times columnist Anand Giridharadas will sit down with Chicago Booth professor Marianne Bertrand to discuss the themes of economic and social costs of altruism in Giridharadas’ new book, Winners Take All: The Elite Charade of Changing the World, in which he argues that the global elite's efforts to "change the world" often serve to preserve the status quo and obscure their role in causing the problems they later seek to solve.
The event is cohosted by Chicago Booth’s Rustandy Center for Social Sector Innovation, the Stigler Center for the Study of the Economy and the State, and the Institute of Politics at the University of Chicago as part of UChicago's Innovation Fest. RSVP to attend or live stream here.
Below is an excerpt from Giridharadas’ book.
A successful society is a progress machine. It takes in the raw material of innovations and produces broad human advancement. America’s machine is broken. When the fruits of change have fallen on the United States in recent decades, the very fortunate have basketed almost all of them. For instance, the average pretax income of the top tenth of Americans has doubled since 1980, that of the top 1 percent has more than tripled, and that of the top 0.001 percent has risen more than sevenfold—even as the average pretax income of the bottom half of Americans has stayed almost precisely the same. These familiar figures amount to three and a half decades’ worth of wondrous, head-spinning change with zero impact on the average pay of 117 million Americans.
Thus many millions of Americans, on the left and right, feel one thing in common: that the game is rigged against people like them. It is no wonder that the American voting public— like other publics around the world—has turned more resentful and suspicious in recent years, embracing populist movements on the left and right, bringing socialism and nationalism into the center of political life in a way that once seemed unthinkable, and succumbing to all manner of conspiracy theory and fake news. There is a spreading recognition, on both sides of the ideological divide, that the system is broken and has to change.
Some elites faced with this kind of gathering anger have hidden behind walls and gates and on landed estates, emerging only to try to seize even greater political power to protect themselves against the mob. But in recent years a great many fortunate people have also tried something else, something both laudable and self-serving: They have tried to help by taking ownership of the problem.
All around us, the winners in our highly inequitable status quo declare themselves partisans of change. They know the problem, and they want to be part of the solution. Actually, they want to lead the search for solutions. They believe that their solutions deserve to be at the forefront of social change. They may join or support movements initiated by ordinary people looking to fix aspects of their society. More often, though, these elites start initiatives of their own, taking on social change as though it were just another stock in their portfolio or corporation to restructure. Because they are in charge of these attempts at social change, the attempts naturally reflect their biases.
The initiatives mostly aren’t democratic, nor do they reflect collective problem-solving or universal solutions. Rather, they favor the use of the private sector and its charitable spoils, the market way of looking at things, and the bypassing of government. They reflect a highly influential view that the winners of an unjust status quo— and the tools and mentalities and values that helped them win—are the secret to redressing the injustices. Those at greatest risk of being resented in an age of inequality are thereby recast as our saviors from an age of inequality.
Socially minded financiers at Goldman Sachs seek to change the world through “win-win” initiatives like “green bonds” and “impact investing.” Tech companies like Uber and Airbnb cast themselves as empowering the poor by allowing them to chauffeur people around or rent out spare rooms. Management consultants and Wall Street brains seek to convince the social sector that they should guide its pursuit of greater equality by assuming board seats and leadership positions. Conferences and idea festivals sponsored by plutocrats and big business host panels on injustice and promote “thought leaders” who are willing to confine their thinking to improving lives within the faulty system rather than tackling the faults. Profitable companies built in questionable ways and employing reckless means engage in corporate social responsibility, and some rich people make a splash by “giving back”—regardless of the fact that they may have caused serious societal problems as they built their fortunes. Elite networking forums like the Aspen Institute and the Clinton Global Initiative groom the rich to be self-appointed leaders of social change, taking on the problems people like them have been instrumental in creating or sustaining. A new breed of community-minded so-called B Corporations has been born, reflecting a faith that more enlightened corporate self-interest—rather than, say, public regulation—is the surest guarantor of the public welfare. A pair of Silicon Valley billionaires fund an initiative to rethink the Democratic Party, and one of them can claim, without a hint of irony, that their goals are to amplify the voices of the powerless and reduce the political influence of rich people like them.
The elites behind efforts like these often speak in a language of “changing the world” and “making the world a better place” more typically associated with barricades than ski resorts. Yet we are left with the inescapable fact that in the very era in which these elites have done so much to help, they have continued to hoard the overwhelming share of progress, the average American’s life has scarcely improved, and virtually all of the nation’s institutions, with the exception of the military, have lost the public’s trust.
Are we ready to hand over our future to the elite, one supposedly world-changing initiative at a time? Are we ready to call participatory democracy a failure, and to declare these other, private forms of change-making the new way forward? Is the decrepit state of American self-government an excuse to work around it and let it further atrophy? Or is meaningful democracy, in which we all potentially have a voice, worth fighting for?
There is no denying that today’s elite may be among the more socially concerned elites in history. But it is also, by the cold logic of numbers, among the more predatory in history. By refusing to risk its way of life, by rejecting the idea that the powerful might have to sacrifice for the common good, it clings to a set of social arrangements that allow it to monopolize progress and then give symbolic scraps to the forsaken—many of whom wouldn’t need the scraps if the society were working right. This book is an attempt to understand the connection between these elites’ social concern and predation, between the extraordinary helping and the extraordinary hoarding, between the milking—and perhaps abetting—of an unjust status quo and the attempts by the milkers to repair a small part of it.
There are many ways to make sense of all this elite concern and predation. One is that the elites are doing the best they can. The world is what it is; the system is what it is; the forces of the age are bigger than anyone can resist; the most fortunate are helping. This view may allow that this helpfulness is just a drop in the bucket, but it is something. The slightly more critical view is that this elite-led change is well-meaning but inadequate. It treats symptoms, not root causes; it does not change the fundamentals of what ails us. According to this view, elites are shirking the duty of more meaningful reform.
But there is still another, darker way of judging what goes on when elites put themselves in the vanguard of social change: that it not only fails to make things better, but also serves to keep things as they are. After all, it takes the edge off of some of the public’s anger at being excluded from progress. It improves the image of the winners. With its private and voluntary half-measures, it crowds out public solutions that would solve problems for everyone. For when elites assume leadership of social change, they are able to reshape what social change is—above all, to present it as something that should never threaten winners. In an age defined by a chasm between those who have power and those who don’t, elites have spread the idea that people must be helped, but only in market-friendly ways that do not upset fundamental power equations. The society should be changed in ways that do not change the underlying economic system that has allowed the winners to win and fostered many of the problems they seek to solve.
What is at stake is whether the reform of our common life is led by governments elected by and accountable to the people, or rather by wealthy elites claiming to know our best interests. We must decide whether, in the name of ascendant values such as efficiency and scale, we are willing to allow democratic purpose to be usurped by private actors who often genuinely aspire to improve things but, first things first, seek to protect themselves. Yes, government is dysfunctional at present. But that is all the more reason to treat its repair as our foremost national priority. Pursuing workarounds of our troubled democracy makes democracy even more troubled. We must ask ourselves why we have so easily lost faith in the engines of progress that got us where we are today—in the democratic efforts to outlaw slavery, end child labor, limit the workday, keep drugs safe, protect collective bargaining, create public schools, battle the Great Depression, electrify rural America, weave a nation together by road, pursue a Great Society free of poverty, extend civil and political rights to women and African Americans and other minorities, and give our fellow citizens health, security, and dignity in old age.
This book offers a series of portraits of this elite-led, market- friendly, winner-safe social change. In these pages, you will meet people who ardently believe in this form of change and people who are beginning to question it.
What these various figures have in common is that they are grappling with certain powerful myths—the myths that have fostered an age of extraordinary power concentration; that have allowed the elite’s private, partial, and self-preservational deeds to pass for real change; that have let many decent winners convince themselves, and much of the world, that their plan to “do well by doing good” is an adequate answer to an age of exclusion; that put a gloss of selflessness on the protection of one’s privileges; and that cast more meaningful change as wide-eyed, radical, and vague.
It is my hope in writing what follows to reveal these myths to be exactly that. Much of what appears to be reform in our time is in fact the defense of stasis. When we see through the myths that foster this misperception, the path to genuine change will come into view.
Excerpted from Winners Take All by Anand Giridharadas. Copyright © 2018 by Anand Giridharadas. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
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