Tag Archives: Super-rich

Unearned wealth and unmerited suffering: Mini review of 2023

Homeowners are locked into dramatically escalating mortgage payments, and rented property is tipped into lucrative Airbnb short lets. There is real social pain behind macro-economic headlines, genuine suffering among those paying rent, struggling in work or in positions of disability. Yet such a troubling scene need not impinge on the expanded ranks of the super affluent. While the majority of people face challenges to their daily living, life for the wealthy may seem more like a kind of luxury advent calendar – each day bringing a new surprise whether it be the shower of unearned cash, the vehicle of offshore wealth innovations or the shiny baubles of the prospect of reducing inheritance tax (as well as the abandonment of a wealth tax by the political left).

The keyword in this toxic, hyper-divided social context is denial, the goal? To build a world that makes it easy to forget the desperation and chaos. This includes a new round of 5-star hotel openings in London, a record-breaking year for sales of homes worth more than £5m and a record year in prospect for super yacht builders. Yet who can morally lay claim to enough fuel to send a personal rocket to space, the use of a mega yacht to amble the Mediterranean, or possession of a string of residences that require unending private jet travel to access them? It may not be long before secretly sponsored piracy is used to challenge these excesses.

The toxicity of inequality today is now played-out in national politics as a series of diversions or refusals that persist until there is no way out from the truth. Something deeper and more destabilising appears to be at work as the parameters of political life, the fog of social media and the sharp work of legal teams fuels an industry of obfuscation working to deny the extent of tax evasion, to defend tax avoidance, to suggest that economic crime is somehow appalling but cannot be challenged. Grand lies, like the idea that the rich will go elsewhere if tax rates rise, are perpetuated most often by those working for them. Underlying this labour to defend inequality and corruption is a deep malaise in social life, while public fatalism has become widespread as a result of its endemic nature. As one elite after another tumbles in public esteem the idea of a common future and work to prepare for it by a more or less cohesive society is undermined at a time when it is most needed.

One of the best antidotes to denial is the dogged pursuit of tax justice – seeking fair contribution from across a, usually nationally defined, community. This may sound somewhat abstract but we must remember that tax receipts (or their absence) determine whether people are able to access core health, education and other public services. This year the Tax Justice Network wrote on this issue to King Charles asking that he set the tone for debates on fair taxation which would ultimately mean the difference between a well-staffed NHS or the parlous state it is currently in. Meanwhile it seems that the British government cares little about fairness or tax avoidance and finds only weasel words to avoid anything approaching action. The idea of the state itself has been so far denigrated by those who lead and manage it that it is no surprise that those with considerable money would prefer to put their money elsewhere. Why give money to a system that offers further tax breaks to the rich while presiding over the collapse of social conditions? But even here things are more complex, with ‘patriotic millionaires’ clamouring to step up and help out.

Naming the system and its functionaries for what they are is critical. But the political right are on to this, proclaiming communist plots for public wifi or social housing, or of a deep state run by leftist elites. It is hard to swallow this kind of provocative analysis at the best of times. But it is again a form of intentional fogging of the lenses we need to see with clarity the kind of country we have become – a country that sees the premature deaths of tenants, stress and anxiety locked into the housing pathways of millions, lack of action on affordable housing and the callous shadow play of immigration policy. A government formed of the rich and those connected to property interests continues to throw favours at those that don’t need them while those desperately trying to stay afloat are left to drown. We will see what 2024 brings, but it would seem naïve to think that things can only get better.

Going up? High Rise Housing, Wealth and Social Alienation

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Jephcott's Homes in High Flats, 1971

Jephcott’s Homes in High Flats, 1971

The politics of wealth, inequality and austerity are hotting-up in the run-up to the general election. Anger is pervasive, from all political sides but the ‘mediamacro’ presentation of the reality and need for continued austerity remains intact it seems. This is particularly depressing for those seeking to launch renewed optimism about the possibilities for reform, progressive taxation (getting those into it who should but aren’t and those avoiding it) and initiatives to address major issues like the crisis in housing affordability and provision. Cities, like London, are spaces of dramatic excess or continued social abandonment. Yet many of those renting (public or private) in London sit adjacent to massive changes to the built environment that speak of the extraordinary excesses of consumption and accumulation among the very wealthy, despite one of the largest historical economic reverses the country has known.

There have been some excellent analyses of London’s and New York’s dramatically evolving skylines environments recently, pointing out that much of this landscape is an exclusive landscape, off-limits to those distressed and upended by the property market across the city. In the context of ongoing debates about what to do about the super-rich (as though they were inseparable from the operations of an expanding, more global, neoliberal and capitalist system) this transformation is nevertheless notable. As human societies it seems curious that the possibility of such a new landscape could not be applied to the need to face-down much social need. ‘Going up’ will not mean helping out. Yet one of the most curious features of the changes happening in London is that high rise has shaken the taint that we continue to apply to tower blocks and public housing estates – it is social composition and only partially design that separates these structures.

Talking to capital, photo Rowland Atkinson, 2014

Talking to capital, Rowland Atkinson, 2014

I was particularly struck by this change when I recently picked-up Pearl Jephcott’s study of high rise living in Glasgow from 1971 (Homes in High Flats), there is much to think about here, particularly in the context of super-prime real estate that suspends residents for the scant time they spend in these homes. Even by the early seventies the story of a new utopia was facing a rapid turnaround in fortunes for a model that had initially appeared to offer good, clean living after the mess of the slums and tenements. Jephcott’s study had meticulously considered the problems (the difficulties for families with children, noise, new feelings of isolation within vertical communities and emerging anxieties about crime) including measuring the waiting times of lifts in a rather interesting appendix! Yet this story appears old now, almost as done and dusted as many of the blocks themselves and system-built complexes like Pruitt Igoe, destroyed by another administration that had done as much to fail its own experiments by defunding it as changing social conditions overtook its initial promise. But this story continues to unfold. A recent report suggests that around 50 estates have been remodelled in London to add homes of other tenures but we also know that these stories have generated evictions and net losses of affordable homes – new rounds of expulsion in the wake of cash-strapped local authorities facing the lure of investment from private investors.

Today high rise means high profits for developers on small land footprints, increasingly conspicuous displays of wealth and panoptic views of the city for the partial elite of residents who spend perhaps only a few weeks there, leave it to grow in value unoccupied or decide to let it out. In this context it isn’t surprising that high rise can be made to deliver (despite of course the obvious anxieties that followed the attacks on the World Trade Centre fourteen years ago and after which predictions quickly emerged that high rise was doomed as the potential target of future suicide bombers). What is more surprising is the dearth of imagination and means that might see public investment channelled to deliver more housing to those on more modest means in a city with such stressed physical infrastructure. These new rounds of construction spring from the ground because they are connected to flows of capital accumulated across the global economy, both because of and despite the economic downturn. Anyone who follows the FT’s How to Spend It, their property section or the websites of the elite property vendors and luxury goods houses will know that the consumption of the rich, and their number, has been one of the most recession-proof stories at a time when housing stress, homelessness, food-banks, beds in garden sheds, precarious and zero hours contracts mark the life of the capital outside the bright lights of the super prime areas.

It is interesting that we have moved from visions of the catastrophe of tower block living, widespread height reduction and demolition programmes and the block as the stand-in for social distress and crime in popular films and news media to the shiny new landscape of the world cities and their Shards (London) and Nordstrom (NYC) developments. The residents of these blocks may already have gone mad from boredom, like the residents of J G Ballard’s High Rise (1975), who descend into chaos and warfare between the levels of their brand new block. Unlikely perhaps. But the deeper commentary that Ballard was offering rings true – a concern about an alienating physical environment, the boredom of affluence and perhaps most importantly the barely concealed violence of the wealthy. Is a city that only provides for the wealthy in the face of need not pathological? The imperatives and logics of capital accumulation, purchase, investment and renting will always trump the concerns for a city more grounded in the attempt to tackle human need unless we say it is wrong. If the height and structure of the 260 plus high rise blocks in London’s centre are an index of anything it is the de facto callousness of political systems and politicians who suggest that this is the only game in town and, worse, that somehow this benefits those on no and low incomes. It may seem a rather obvious observation but surely we need more than ever before to being these ambitions back down to earth and make cities like London work better for all citizens.

View from the Shard, Rowland Atkinson, 2014

View from the Shard, Photo, Rowland Atkinson, 2014

The random neighbourhood: Bringing concentrated wealth into the concentrated poverty debate

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rich and poor 2

The unfair distribution of wealth and income today are increasingly at the forefront of social debate. These arguments appear to be rising in intensity, largely because new media systems have made allowed data and insights to circulate more quickly and clearly. It is likely that you have heard that roughly 80 people own half of the entire globe’s wealth, and similar figures that highlight these massive disparities. But it is also important to think spatially in relation to these questions. London has become a kind of gilded ghetto, a series of positive area effects in which wealth brings more wealth and the agglomeration of unparalleled cultural and financial infrastructures drives further investment. Being wealthy in London allows access to these services and shows how space matters and its attributes drive the residential decisions of the wealthy. This is, of course, in some contrast to the conditions of many neighbourhoods and more deprived households whose position has been further distressed, not only by austerity but the almost wholesale exit of public strategies to address market failure, social and regional disparities. Where the neighbourhood was central to policy interventions it is now side-lined amidst a race to further concentrate capital investment in London and among other existing winners.

There is a palpable anger about inequality that is being channelled and given weight by the cumulative evidence of meticulous analyses. Piketty’s book on Capital in the 21st Century and Dorling’s Inequality and the 1% are good source books with which to face-down dominant ideas that circulate in political and media circuits used to justify why government debt cannot be allowed to escalate, why more equitable taxation as a means to address deficits cannot be used to resolve current conditions and how large the yawning gulf is between the majority of the population and its well-paid and wealthy elites really is. This has made these issues new-found targets that are fair game for debate and criticism.

Let’s go back to the question of how to understand these issues in spatial terms. How do places pull us back or help us to move forward? These are long-standing concerns that underpin urban policies designed to iron-out the worst wrinkles in the uneven social patchwork of market failure and social distress – tackling uneven economic opportunities and social outcomes. In all of this the idea of the neighbourhood effect, of the compounding disadvantages that people face when living side-by-side with many other people with few or no resources, was a powerful theory. Of course in such conditions it isn’t the neighbourhood itself that magically acts to hold people back, but a range of social and economic effects generated by, for example large numbers of unruly kids in a classroom, the lack of role models in the neighbourhood, the increased risk of victimisation from acquisitive criminals and so on. These ideas are not without their controversies, many have left ideas of an underclass and of concentrated poverty because of their relation to paternalistic policies and indeed regressive explanations of those problems.

Areas of concentrated deprivation are produced by at least two key factors – first, a population of households and individuals generated by the economic system we inhabit (so obvious yet so very important!) and second by the nature of public and private housing systems that sort people into estates and neighbourhoods with bundles of more or less desirable qualities and proximity to essential services, amenities and employment opportunities. One way of thinking about the impact of this social mosaic is to consider a thought experiment. Imagine twins who, at birth and incredibly cruelly, were separated and moved to the most affluent and deprived neighbourhoods in the country. What experiences, challenges and advantages do you think they would each face as a result of developing in these different contexts? Such an experiment goes some way to forcing us to think about how we might plan to tackle general levels of deprivation, but also think through how to encourage more socially diverse areas.

One possible way to imagine a template for neighbourhood planning would be to randomly allocate people to all local areas in the country. This interesting thought experiment forms the basis of an article by Danny Dorling and Phil Rees. Yet it isn’t a million miles away from the ambitions of planners to create socially diverse localities by engineering variables like housing tenure, building size and type and so on. The idea of a random neighbourhood that thereby draws in a good cross-section of people with varying incomes, class, gender, sexuality, occupations and ages can be used to think through the benefits of social mix and diversity – how they might be optimised to generate greater inclusion, lower reliance on services and a broader social base of daily contact. This image stands in contrast to the kinds of areas of concentrated deprivation and exclusion that we see in many towns and cities. This isn’t just about the lumpy areas of concentrated exclusion but also necessarily about the nature of concentrated wealth and its obliviousness to social distress.

Visions of what an optimal neighbourhood might be have arguably been stunted by the absence of interest in neighbourhoods by the current government, and no doubt the continued de-funding of policies that have been shown to make a difference at this level in the pursuit of deficit reductions. We don’t have neighbourhood policies, local programmes, forms of social investment and catalysts to mitigate against the way that capitalism will always tend to produce big winners and losers. Without recognition of the need to make concessions the kind of anger expressed at housing shortages (among many other areas of social need) are likely to become much more concerted, aggressive and generate wider appeal. Perhaps more importantly we need to look to and understand how the places and virtues of concentrated affluence and economic growth in the south-east shape the policy ambitions of our political elite. Their disconnection (from the lived reality of poor living environments, denuded public services) takes away any urgency to providing vehicles for mass employment in the post-Fordist heartlands. For those arguing that to improve our chances we should somehow get on our bikes and join the glittering economic heartlands of the south-east we need to recognise not only the segregation and distress of the capital itself but also how very broken and over-stressed that system is already. We need more imagination around local and regional planning as well taxes on wealth and income to even begin to start to redress these unacceptable gaps between rich and poor.

The poverty of urban research: London’s super-rich

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The Shard

The Shard

Space matters, as geographers often like to say to sociologists – it also matters to the very wealthy who are overwhelmingly concentrated around the social asset-rich spaces of London’s super-prime property markets. Unless you have been living in a cave for the last few years this is an issue that is exercising rather a lot of people. What kind of a city has London become and who is it for? The project that I am co-leading with Roger Burrows (Goldsmiths) is focused on trying to understand the changes that the city has experienced alongside the massive increases in wealth, both from international and ‘local’ sources. Instead of looking down, as has often been criticised in sociological research, we are trying to look-up and understand the property markets, neighbourhoods, social circuits and wider impacts of these groups on the city.

For the super-rich and the merely very wealthy London works – it has relatively low levels of property taxation, unrivalled cultural and leisure circuits, sits astride the time line and is a relatively safe city, both to live and do business. But there is a much broader series of political questions that lurks in the background here – austerity, welfare cuts, stagnating housing supply, gentrification, estate demolitions and the general sense that London works for capital rather than its citizens. If anything we feel that this makes studying the rich a more urgent problematic – the displacement of low-income households in the city is by no means disconnected from the rising fortunes and investments of off-shore investors and to the insulated political lives of those making the decision to cut welfare and housing programmes. As we move into the research we are learning much more about how and why the wealthy are choosing London, as a place to live or as a place to park money for a time. Much of London’s gain has been generated by the chaos of other regions globally, or the relative intrusiveness of the state in other countries.

The social splitting-off of super-affluence represents one of the foremost challenges for applied social science. Fundamentally this relates to the lag between models of society, power and civic life and the growth, dynamics and effects of super-affluence that have not tended to be captured through these lenses. In a city like London it is clear that there are those investing in, but rarely living in, the city, but there are also many very wealthy people who seek to be in the city. What do these types of engagement and non/elective belonging imply for politics and fiscal policies?

Gaining contact and learning more is fraught with difficulty, one of the reasons ‘studying-up’ , though laudable, is so difficult in the first place. The very rich present us with difficulties precisely because they tend to challenge the ability of a public sociology to locate, understand and report on them.  In many cases the very possibility of connection with such groups has evaporated, and the state already acknowledges this. In the past the traditional imperatives of research meant that work on elite was difficult – secretaries, various defensive and other power relationships kept social investigators at bay.  But, more recently, services like the Australian Bureau of Statistics and US statistical authorities have expressed concern at what is effectively the growing myopia of the state to super rich citizens whose residential arrangements, such as gated communities, prevent their basic profiling. Instead of concern with unemployed and young males, the perennial problem group for survey researchers, we need to acknowledge the increasing opacity of affluent life – from the state and from public understandings of the full range of social life. The state sees unevenly, and appears to be predisposed to support most those it sees least.

London’s burgeoning high rise landscape appears to be driven by underground pipelines of capital flowing into the city from across the globe. London’s luck brings more luck, the longest run of a nationally-sanctioned pyramiding scheme in the form of its property market. Perhaps worst of all the city of Lanchester’s Capital is a heartless space, money talks and politicians listen. Hostility to migrants but not migrating money, to new homes but not to empty homes speak of a callous money-logic that trumps attempts at stating the case for the city as a place for communities, social life and nurturing spaces. How very old-fashioned and cringe-worthy even to suggest such things.

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One Hyde Park, ultra prime market residences.

Any basic commitment to an equitable social and economic agenda should feel obliged to encompass these changes and move beyond speculation to learn more about the extent, lifestyles, attitudes and daily life of the very wealthy. Debates about taxation, house-building, civic engagement and urban politics cannot proceed without such insights. This is not to suggest that with knowledge might come political action or condemnation, but that we cannot achieve commitments to social equity and more just cities without it.