Xiaorui
Huang
SOC 420 Political Economy
Paper 2
Paper 2
Instructor: Prof. John Foster
2013-Mar-4th
Grade: A+
The
Interactions between the Universal Market and the Social Norm of the Financial
Independence of Young Adults
Introduction
The universal market constructed in monopoly
capitalism is a nearly inescapable web entrapping its inhabitants and
determining conditions of their lives (Braverman 194). The construction and
expansion of the universal market lead to the destruction of family as a
previously dominant social institution for production and other social
activities. In this process, social norms change accordingly. One of norms
formed is the financial independence of young adults from parents. Within Braverman’s
theoretical framework of the universal market, I analyze the interactions
between the universal market and the social norm of the financial independence[1] of young adults in the
United States. On one hand, the expansion of the universal
market contributes to the formation of this norm. On the other hand, this norm reinforces
the expansion of the universal market in return.
The Universal Market Promotes
the Financial Independence of Young Adults
The conquest of household
manufacturing by the universal market is accompanied by a series of changes in
social norms. Braverman points out that the commodification of labor and home
provisions instills a “powerful urge in each family member toward an
independent income” (191). In other words, the construction of the universal
market encourages the formation of the social norm of the financial
independence of young adults.
The correlation between the
development of this norm and the expansion of the universal market can be shown
by a comparison between America and China. In America, a country has reached
the maturity of capitalism with a universal market completely built, the idea of
the financial independence of young adult is widely accepted and valued.
According to a 2012 survey by Pew Research Center, even though the economic
downturn since 2007 has significantly impaired the financial well-beings of
young adults, 67% of parents and 66% of young adults in America believe that young
people should achieve financial independence by the age of 22. On the contrary,
in China, where capitalism did not start until 30 years ago and the universal
market has not yet fully permeated, young adults are not compelled as much as
their counterparts in America to make their own livings. An online survey[2] shows that only 42% of
young adults agree that financial independence is an obligation for college
graduates (qtd. in Yan). Another study[3] shows that in 65% of
households in China, young adults at least partially rely on parents for
financial support (qtd. in Zhao).
The difference between America and China in
the extents to which the norm of financial independence of young adults is
accepted is correlated to the different levels to which the universal market is
built in the two countries. Based on Braverman’s argument mentioned above, it
is reasonable to argue that the expansion of universal market at least
partially causes the formation of the norm of the financial independence of
young adults.
Financial Independence of
Young Adults Reinforces the Expansion of the Universal Market
While the expansion of the universal
market promotes the social norm of financial independence of young adults, this
norm in return reinforces the universal market in three ways. First, it
provides extra labor force for the development of the universal market. As a
social norm, it compels young adults to earn their own incomes instead of
receiving financial support from parents. Since the universal market either
destroys or discredits nearly all its alternatives, the only way for the
majority of young adults to gain income is to sell their labor in the market in
exchange for wages, which fulfills capitalists’ demand for labor force.
Particularly, young adults satisfy the need for
labor force by retail and service sectors during the expansion of the universal
market. According to Braverman, the institutionalizations and commodification
of care and entertainment of human beings, a necessary step in the expansion of
the universal market, calls for a large amount of labor in retail, hospitality,
and service sectors in general (194). Not a coincidence, these sectors are
exactly the largest employers of young adults. Statistics show that in 2011,
service, sales, and office (non-managerial) occupations together count for 64%
of all jobs taken by workers between the ages of 16 and 24 (U.S. Bureau of
Labor Statistics). In this sense, the social norm of the financial independence
of young adults “feeds” the universal market with the inflow of young workers and
contributes to its expansion.
The second way that the norm of financial
independence of young adults reinforces the universal market is enlarging the
reserve army of the labor. While young adults (16 - 24) meet the market’s need
for low-wage labor, their unemployment rate is generally higher than other age
cohorts (U.S. Bureau of Labor Statistics). In other words, the inflow of young
adults to labor market increases both the absolute number of the unemployed and
the percentage of it to the whole labor force. According on Marx’s theory, the
reserve army “through their active competition on the labor market, exercise a
continuous downward pressure on the wage level” (Sweezy 87). Therefore, by
pushing young adults into labor market and thus enlarging the reserve army of
labor, the social norm of financial independence of young adults helps
capitalists exploit labors in general. As a result, capitalists are further
enriched and empowered. Meanwhile, workers with low wages and no savings have
their subsistence tied up to their jobs, and are forced to pay tribute to the
expansion of the universal market.
In addition, the social norm of the financial
independence of young adults reinforces the universal market by practically replacing
older members of society who are economically less active with young adults who
are economically more active. In the universal market, people are primarily
assigned the roles of labor and consumer. In both roles, young adults function
better than older people and thus serve the interest of capitalists and the
universal market better. In terms of labor, capitalists prefer younger, cheaper
workers over older ones (Foster & McChesney 134). With the inflow of young
adults to the labor market, capitalists can replace older workers who are deemed
to be unproductive, too expensive, or difficult to control with young adults
who are cheaper and more productive. Since almost all lower-end jobs have been
deskilled, the inexperience of young adults becomes irrelevant or even
beneficial as they are easier to manipulate. In terms of consumption, young
adults are generally more consumptive than older people with the same
purchasing power. This is because the sales effort and the educational process that
promotes market over other alternatives (e.g. family) work more on younger
generations than older ones (Braverman 191). Thus, by encouraging the inflow of
young adults into labor market and allowing capitalists to constantly replace
older workers with younger ones, the norm of financial independence of young
adults leads to the transfer of purchasing power (i.e. wages) from older people
to young adults, which then promote consumption and the expansion of the
universal markets. Combining both labor and consumption sides, this norm practically
encourage the replacement of older workers who are less productive and
consumptive with young adults who are more productive and consumptive, which
serves the interest of the universal market and the capitalists.
Conclusion
The interactions between the universal market
and the social norm of the financial independence of young adults are mutually
beneficial. While the expansion of the universal market contributes to the
formation of this norm, this norm in return reinforces the expansion of the
universal market by providing extra labor force, enlarging reserve army of
labor, and helping filter the society out all but economically active members
that best serve the interests of the market and the capitalists. It is
noteworthy that, however, the social norm of the financial independence of
young adults is not itself evil. It is formed under the historical conditions
of the expansion of the universal market, and is therefore born to serve the
interests of the universal market and capitalist economy.
Works
Cited
Braverman, Harry.
"The Universal Market." Labor and monopoly capital: the
degradation of work in the twentieth century. 1974. Reprint. New York:
Monthly Review Press, 1998. 188-96. Print.
Foster, John Bellamy,
and Robert Waterman McChesney. "The Global Reserve Army of Labor and the
New Imperialism." The endless crisis: how monopoly-finance capital
produces stagnation and upheaval from the USA to China. New York: Monthly
Review Press, 2012. 125-54. Print.
Sweezy, Paul Marlor.
"Accumulation and the Reserve Army." The theory of capitalist
development; principles of Marxian political economy. New York: Monthly
Review Press, 1942. 75-95. Print.
United States. Bureau
of Labor Statistics. "Labor Force Statistics from the Current Population
Survey." U.S. Bureau of Labor Statistics. N.p., 6 Feb. 2013. Web. 5
Mar. 2013. <http://www.bls.gov/cps/tables.htm>.
Yan, Tingting.
"When do you stop receiving financial support from parents." ChinaTaizhouNet.
TaizhouNet, 6 Apr. 2012. Web. 3 Mar. 2013.
<http://www.taizhou.com.cn/news/2012-04/06/content_568754.htm>.
"Young,
Underemployed and Optimistic | Pew Social & Demographic Trends." Pew
Social & Demographic Trends - Public Opinion Polling, Survey Research,
& Demographic Data Analysis. Pew Research Center, 9 Feb. 2012. Web. 5
Mar. 2013.
<http://www.pewsocialtrends.org/2012/02/09/young-underemployed-and-optimistic/1/>.
Zhao, Jian. "The
analysis on the NEET group in Chinese college graduates." Shi Ji Qiao
4 (2008): 119-20. n.a.. Web. 2 Mar. 2013.
[1] In
this paper, financial independence means
exclusively one person earning an income that is sufficient enough to make a
living without external financial support. Other types of individual
independence (e.g. producing one’s own basic needs directly) are not discussed
in this paper.
[2],
3 These two pieces of data have
only limited credibility because the original studies from which they are
extracted are untraceable. Also, the effort to search for more credible data
failed. For further study, more accurate and credible data is needed.
