WORK-LIFE Post Corona Outbreak










The cholera epidemic has given way to the corona pandemic. The virus has hit our planet like a meteor, threatening to disrupt life, and one of the major human activities that it is reshaping is work. For years now, there’s been talk about the “future of work" (FoW), or how technology, demographic changes and lifestyle choices will transform the way we work. We have been slowly but inexorably heading towards a new construct of work. However, sometimes life-changing events greatly accelerate the future to suddenly make it the present: work in the time of Covid-19. The current pandemic will turn the future into the present. To understand that, let us look at the nine key tenets of FoW, and how Covid-19 is fast-forwarding them to the present.



Where will we be in six months, a year, ten years from now? I lie awake at night wondering what the future holds for my loved ones. My vulnerable friends and relatives. I wonder what will happen to my work, even though I’m luckier than many: I've got work and can work remotely. I am writing this from India, where I still have self-employed friends who are staring down the barrel of months without pay, friends who have already lost jobs. The contract that pays 80% of their salary runs out in December. Coronavirus is hitting the economy badly. Will anyone be hiring when I need work?I think we can understand our situation – and what might lie in our future – by looking at the political economy of other crises. My research focuses on the fundamentals of the modern economy: global supply chains, wages, and productivity. I look at the way that economic dynamics contribute to challenges like climate change and low levels of mental and physical health among workers. I have argued that we need a very different kind of economics if we are to build socially just and ecologically sound futures. In the face of COVID-19, this has never been more obvious.



The responses to the COVID-19 pandemic are simply the amplification of the dynamic that drives other social and ecological crises: the prioritisation of one type of value over others. This dynamic has played a large part in driving global responses to COVID-19. So as responses to the virus evolve, how might our economic futures develop?



From an economic perspective, there are four possible futures: a descent into barbarism, a robust state capitalism, a radical state socialism, and a transformation into a big society built on mutual aid. Versions of all of these futures are perfectly possible, if not equally desirable.



Small changes don’t cut it

Coronavirus, like climate change, is partly a problem of our economic structure. Although both appear to be “environmental” or “natural” problems, they are socially driven.

Yes, climate change is caused by certain gases absorbing heat. But that’s a very shallow explanation. To really understand climate change, we need to understand the social reasons that keep us emitting greenhouse gases. Likewise with COVID-19. Yes, the direct cause is the virus. But managing its effects requires us to understand human behaviour and its wider economic context.

Tackling both COVID-19 and climate change is much easier if you reduce nonessential economic activity. For climate change this is because if you produce less stuff, you use less energy, and emit fewer greenhouse gases. The epidemiology of COVID-19 is rapidly evolving. But the core logic is similarly simple. People mix together and spread infections. This happens in households, and in workplaces, and on the journeys people make. Reducing this mixing is likely to reduce person-to-person transmission and lead to fewer cases overall.

Reducing contact between people probably also helps with other control strategies. One common control strategy for infectious disease outbreaks is contact tracing and isolation, where an infected person’s contacts are identified, then isolated to prevent further disease spread. This is most effective when you trace a high percentage of contacts. The fewer contacts a person has, the fewer you have to trace to get to that higher percentage.

We can see from Wuhan that social distancing and lockdown measures like this are effective. Political economy is useful in helping us understand why they weren’t introduced earlier in European countries and the US.

A fragile economy

Lockdown is placing pressure on the global economy. We face a serious recession. This pressure has led some world leaders to call for an easing of lockdown measures.

Even as 19 countries sat in a state of lockdown, the US president, Donald Trump, and Brazilian President Jair Bolsonaro called for roll backs in mitigation measures. Trump called for the American economy to get back to normal in three weeks (he has now accepted that social distancing will need to be maintained for much longer). Bolsonaro said: “Our lives have to go on. Jobs must be kept … We must, yes, get back to normal.”

In the UK meanwhile, four days before calling for a three-week lockdown, Prime Minister Boris Johnson was only marginally less optimistic, saying that the UK could turn the tide within 12 weeks. Yet even if Johnson is correct, it remains the case that we are living with an economic system that will threaten collapse at the next sign of pandemic.

The economics of collapse are fairly straightforward. Businesses exist to make a profit. If they can’t produce, they can’t sell things. This means they won’t make profits, which means they are less able to employ you. Businesses can and do (over short time periods) hold on to workers that they don’t need immediately: they want to be able to meet demand when the economy picks back up again. But, if things start to look really bad, then they won’t. So, more people lose their jobs or fear losing their jobs. So they buy less. And the whole cycle starts again, and we spiral into an economic depression.

In a normal crisis the prescription for solving this is simple. The government spends, and it spends until people start consuming and working again. (This prescription is what the economist John Maynard Keynes is famous for).

But normal interventions won’t work here because we don’t want the economy to recover (at least, not immediately). The whole point of the lockdown is to stop people going to work, where they spread the disease. One recent study suggested that lifting lockdown measures in Wuhan (including workplace closures) too soon could see China experience a second peak of cases later in 2020.

As the economist James Meadway wrote, the correct COVID-19 response isn’t a wartime economy – with massive upscaling of production. Rather, we need an “anti-wartime” economy and a massive scaling back of production. And if we want to be more resilient to pandemics in the future (and to avoid the worst of climate change) we need a system capable of scaling back production in a way that doesn’t mean loss of livelihood.

So what we need is a different economic mindset. We tend to think of the economy as the way we buy and sell things, mainly consumer goods. But this is not what an economy is or needs to be. At its core, the economy is the way we take our resources and turn them into the things we need to live. Looked at this way, we can start to see more opportunities for living differently that allow us to produce less stuff without increasing misery.

I and other ecological economists have long been concerned with the question of how you produce less in a socially just way, because the challenge of producing less is also central to tackling climate change. All else equal, the more we produce the more greenhouse gases we emit. So how do you reduce the amount of stuff you make while keeping people in work?

Proposals include reducing the length of the working week, or, as some of my recent work has looked at, you could allow people to work more slowly and with less pressure. Neither of these is directly applicable to COVID-19, where the aim is reducing contact rather than output, but the core of the proposals is the same. You have to reduce people’s dependence on a wage to be able to live.

We could be in for some long-term changes. 

 

What is the economy for?

The key to understanding responses to COVID-19 is the question of what the economy is for. Currently, the primary aim of the global economy is to facilitate exchanges of money. This is what economists call “exchange value”.
The dominant idea of the current system we live in is that exchange value is the same thing as use value. Basically, people will spend money on the things that they want or need, and this act of spending money tells us something about how much they value its “use”. This is why markets are seen as the best way to run society. They allow you to adapt, and are flexible enough to match up productive capacity with use value.
What COVID-19 is throwing into sharp relief is just how false our beliefs about markets are. Around the world, governments fear that critical systems will be disrupted or overloaded: supply chains, social care, but principally healthcare. There are lots of contributing factors to this. But let’s take two.
First, it is quite hard to make money from many of the most essential societal services. This is in part because a major driver of profits is labour productivity growth: doing more with fewer people. People are a big cost factor in many businesses, especially those that rely on personal interactions, like healthcare. Consequently, productivity growth in the healthcare sector tends to be lower than the rest of the economy, so its costs go up faster than average.
Second, jobs in many critical services aren’t those that tend to be highest valued in society. Many of the best paid jobs only exist to facilitate exchanges; to make money. They serve no wider purpose to society: they are what the anthropologist David Graeber calls “bullshit jobs”. Yet because they make lots of money we have lots of consultants, a huge advertising industry and a massive financial sector. Meanwhile, we have a crisis in health and social care, where people are often forced out of useful jobs they enjoy, because these jobs don’t pay them enough to live.

 

Pointless jobs

The fact that so many people work pointless jobs is partly why we are so ill prepared to respond to COVID-19. The pandemic is highlighting that many jobs are not essential, yet we lack sufficient key workers to respond when things go bad.
People are compelled to work pointless jobs because in a society where exchange value is the guiding principle of the economy, the basic goods of life are mainly available through markets. This means you have to buy them, and to buy them you need an income, which comes from a job.
The other side of this coin is that the most radical (and effective) responses that we are seeing to the COVID-19 outbreak challenge the dominance of markets and exchange value. Around the world governments are taking actions that three months ago looked impossible. In Spain, private hospitals have been nationalised. In the UK, the prospect of nationalising various modes of transport has become very real. And France has stated its readiness to nationalise large businesses.
Likewise, we are seeing the breakdown of labour markets. Countries like Denmark and the UK are providing people with an income in order to stop them from going to work. This is an essential part of a successful lockdown. These measures are far from perfect. Nonetheless, it is a shift from the principle that people have to work in order to earn their income, and a move towards the idea that people deserve to be able to live even if they cannot work.
This reverses the dominant trends of the last 40 years. Over this time, markets and exchange values have been seen as the best way of running an economy. Consequently, public systems have come under increasing pressures to marketise, to be run as though they were businesses who have to make money. Likewise, workers have become more and more exposed to the market – zero-hours contracts and the gig economy have removed the layer of protection from market fluctuations that long term, stable, employment used to offer.
COVID-19 appears to be reversing this trend, taking healthcare and labour goods out of the market and putting it into the hands of the state. States produce for many reasons. Some good and some bad. But unlike markets, they do not have to produce for exchange value alone.
These changes give me hope. They give us the chance to save many lives. They even hint at the possibility of longer term change that makes us happier and helps us tackle climate change. But why did it take us so long to get here? Why were many countries so ill-prepared to slowdown production? The answer lies in a recent World Health Organisation report: they did not have the right “mindset”.

Our economic imaginations

There has been a broad economic consensus for 40 years. This has limited the ability of politicians and their advisers to see cracks in the system, or imagine alternatives. This mindset is driven by two linked beliefs:
·         The market is what delivers a good quality of life, so it must be protected
·         The market will always return to normal after short periods of crisis
These views are common to many Western countries. But they are strongest in the UK and the US, both of which have appeared to be badly prepared to respond to COVID-19.
In the UK, attendees at a private engagement reportedly summarised the Prime Minister’s most senior aide’s approach to COVID-19 as “herd immunity, protect the economy, and if that means some pensioners die, too bad”. The government has denied this, but if real, it’s not surprising. At a government event early in the pandemic, a senior civil servant said to me: “Is it worth the economic disruption? If you look at the treasury valuation of a life, probably not.”
This kind of view is endemic in a particular elite class. It is well represented by a Texas official who argued that many elderly people would gladly die rather than see the US sink into economic depression. This view endangers many vulnerable people (and not all vulnerable people are elderly), and, as I have tried to lay out here, it is a false choice.
One of the things the COVID-19 crisis could be doing, is expanding that economic imagination. As governments and citizens take steps that three months ago seemed impossible, our ideas about how the world works could change rapidly. Let us look at where this re-imagining could take us.

Four futures

To help us visit the future, I’m going to use a technique from the field of futures studies. You take two factors you think will be important in driving the future, and you imagine what will happen under different combinations of those factors.
The factors I want to take are value and centralisation. Value refers to whatever is the guiding principle of our economy. Do we use our resources to maximise exchanges and money, or do we use them to maximise life? Centralisation refers to the ways that things are organised, either by of lots of small units or by one big commanding force. We can organise these factors into a grid, which can then be populated with scenarios. So we can think about what might happen if we try to respond to the coronavirus with the four extreme combinations:
1) State capitalism: centralised response, prioritising exchange value
2) Barbarism: decentralised response prioritising exchange value
3) State socialism: centralised response, prioritising the protection of life
4) Mutual aid: decentralised response prioritising the protection of life.


A new kind of patriotism

The world has long equated patriotism with the armed forces. But you can’t shoot a virus. Those on the frontlines against coronavirus aren’t conscripts, mercenaries or enlisted men; they are our doctors, nurses, pharmacists, teachers, caregivers, store clerks, utility workers, small-business owners and employees. Like Li Wenliang and the doctors of Wuhan, many are suddenly saddled with unfathomable tasks, compounded by an increased risk of contamination and death they never signed up for.

When all is said and done, perhaps we will recognize their sacrifice as true patriotism, saluting our doctors and nurses, genuflecting and saying, “Thank you for your service,” as we now do for military veterans. We will give them guaranteed health benefits and corporate discounts, and build statues and have holidays for this new class of people who sacrifice their health and their lives for ours. Perhaps, too, we will finally start to understand patriotism more as cultivating the health and life of your community, rather than blowing up someone else’s community. Maybe the de-militarization of American patriotism and love of community will be one of the benefits to come out of this whole awful mess.

Less individualism
The coronavirus pandemic marks the end of our romance with market society and hyper-individualism. We could turn toward authoritarianism. Imagine President Donald Trump(USA) trying to suspend the November election. But I believe we will go in the other direction. We’re now seeing the market-based models for social organization fail, catastrophically, as self-seeking behavior makes this crisis so much more dangerous than it needed to be.

When this ends, we will reorient our politics and make substantial new investments in public goods—for health, especially—and public services. I don’t think we will become less communal. Instead, we will be better able to see how our fates are linked. The cheap breakfast I eat from a restaurant that denies paid sick leave to its cashiers and kitchen staff makes me more vulnerable to illness, as does the neighbour who refuses to stay home in a pandemic because our public school failed to teach him science or critical thinking skills. The economy—and the social order it helps support—will collapse if the government doesn’t guarantee income for the millions of workers who will lose their jobs in a major recession or depression. Young adults will fail to launch if government doesn’t help reduce or cancel their student debt. The coronavirus pandemic is going to cause immense pain and suffering. But it will force us to reconsider who we are and what we value, and, in the long run, it could help us rediscover the better version of ourselves.


Religious worship will look different
All faiths have dealt with the challenge of keeping faith alive under the adverse conditions of war or diaspora or persecution—but never all faiths at the same time. Religion in the time of quarantine will challenge conceptions of what it means to minister and to fellowship. But it will also expand the opportunities for those who have no local congregation to sample sermons from afar. Contemplative practices may gain popularity. And maybe—just maybe—the culture war that has branded those who preach about the common good with the epithet “Social Justice Warriors” may ease amid the very present reminder of our interconnected humanity. We all go to temples for to find home but when all poor needed them they were all closed, whose money has built it? Humans’!

New forms of reform
The epidemic also revealed deadly flaws in the health care system, and it awakened us to the need for the protection of marriage—revelations which led to landmark reforms. I wouldn’t be surprised to see some analogous changes in the wake of coronavirus. People are finding new ways to connect and support each other in adversity; they are sure to demand major changes in the health-care system and maybe also the government; and they’ll become newly conscious of interdependency and community. I can’t predict the precise effects, but I’m sure we'll be seeing them for years.
         

TECH
Regulatory barriers to online tools will fall
COVID-19 will sweep away many of the artificial barriers to moving more of our lives online. Not everything can become virtual, of course. But in many areas of our lives, uptake on genuinely useful online tools has been slowed by powerful legacy players, often working in collaboration with overcautious bureaucrats. Medicare allowing billing for telemedicine was a long-overdue change, for instance, as was revisiting HIPAA to permit more medical providers to use the same tools the rest of us use every day to communicate, such as Skype, Facetime and email. The regulatory bureaucracy might well have dragged its feet on this for many more years if not for this crisis. The resistance—led by teachers’ unions and the politicians beholden to them—to allowing partial homeschooling or online learning for K-12 kids has been swept away by necessity. It will be near-impossible to put that genie back in the bottle in the fall, with many families finding that they prefer full or partial homeschooling or online homework. For many college students, returning to an expensive dorm room on a depopulated campus will not be appealing, forcing massive changes in a sector that has been ripe for innovation for a long time. And while not every job can be done remotely, many people are learning that the difference between having to put on a tie and commute for an hour or working efficiently at home was always just the ability to download one or two apps plus permission from their boss. Once companies sort out their remote work dance steps, it will be harder—and more expensive—to deny employees those options. In other words, it turns out, an awful lot of meetings (and doctors’ appointments and classes) really could have been an email. And now they will be.

A healthier digital lifestyle
Perhaps we can use our time with our devices to rethink the kinds of community we can create through them. If, moving forward, we apply our most human instincts to our devices,that will have been a powerful COVID-19 legacy. Not only alone together, but together alone.

A boon to virtual reality
VR allows us to have the experiences we want even if we have to be isolated, quarantined or alone. Maybe that will be how we adapt and stay safe in the next outbreak. I would like to see a VR program that helped with the socialization and mental health of people who had to self-isolate. Imagine putting on glasses, and suddenly you are in a classroom or another communal setting, or even a positive psychology intervention.


HEALTH/SCIENCE

The rise of telemedicine
The pandemic will shift the paradigm of where our healthcare delivery takes place. For years, telemedicine has lingered on the sidelines as a cost-controlling, high convenience system. Out of necessity, remote office visits could skyrocket in popularity as traditional-care settings are overwhelmed by the pandemic. There would also be containment-related benefits to this shift; staying home for a video call keeps you out of the transit system, out of the waiting room and, most importantly, away from patients who need critical care.

An opening for stronger family care
The coronavirus pandemic has revealed gaping holes in our care infrastructure. With loved ones sick and children suddenly home from school indefinitely, they’ve been forced to make impossible choices among their families, their health and financial ruin. After all, meaningful child care assistance is extremely limited, access to long-term care is piecemeal at best, and too few workers have access to paid family and medical leave, which means that missed work means missed pay. This crisis should unleash widespread political support for Universal Family Care—a single public federal fund that we all contribute to, that we all benefit from, that helps us take care of our families while we work, from child care and elder care to support for people with disabilities and paid family leave. Coronavirus has put a particular national spotlight on unmet needs of the growing older population in our country, and the tens of millions of overstretched family and professional caregivers they rely on. Care is and always has been a shared responsibility. Yet, our policy has never fully supported it. This moment, challenging as it is, should jolt us into changing that.

Science reigns again
Truth and its most popular emissary, science, have been declining in credibility for more than a generation.  Unlike with tobacco use or climate change, science doubters will be able to see the impacts of the coronavirus immediately. At least for the next 35 years, I think we can expect that public respect for expertise in public health and epidemics to be at least partially restored.

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