Income Inequality?

Over the past decade or so, there’s been a great deal of talk about income inequality and also, to a lesser degree, about intergenerational mobility, that is, the changes in a family’s economic status between successive generations. What’s been surprising to some, and what many better-off Americans have trouble believing, is that the United States is no longer the leader in inter-generational family wealth/income upward mobility. A variety of studies over the last decade has shown that the United States had about one third the mobility of Denmark and less than half that of Canada, Finland and Norway. France, Germany, and Sweden also had higher mobility, with only the United Kingdom of this group being less mobile than the U.S. Less than four percent of Americans born to a family with income in the bottom fifth end up in top fifth.

Forty-two percent of U.S. children born to parents in the bottom fifth of the income distribution remain in the bottom, while 39 percent born to parents in the top fifth remain at the top.

Studies of wealth and income inequality all find that education and parental income play a significant role in determining the income mobility of their children, but there’s one factor that’s all too often downplayed, and that’s the role of family. First of all, the relative stagnation of middle and lower class wages, the rising costs of living, and, frankly, rising expectations – have all made it more and more difficult for families, especially families with children, to live on a single income. Today, men’s earnings still constitute the majority of total family income, but their share has dropped from 75 percent of average family earnings to 61 percent. In other words, for most families, even holding the same income position as one’s parents, let alone obtaining upward family income mobility, requires a couple’s combined earnings. Two-partner families increase, on average and over time, their assets by 16% more a year than single parent families.

But those figures ignore another aspect of family – and that’s the support, financial and otherwise, that doesn’t show up on balance sheets or in statistics. When parents help a couple over a hard financial period, or a medical catastrophe, or even lend a car when one breaks down, these acts of support often prevent the total disintegration of a family’s well-being. Obviously, such support is easier to give and obtain in families with higher incomes, yet this kind of support is even more comparatively valuable for lower middle class and working class families

Unfortunately, as a result of a number of factors, including the fact that financial problems are the largest single cause or marriage break-ups, marriage rates have plummeted in the lower-income socio-economic groups, resulting in a comparatively larger number of single-parent families. While such families have always had a harder time economically and especially in providing the additional education for children that is necessary for their economic success, this change makes it even harder for families in such groups to improve the financial situation.

This is rapidly becoming a vicious circle, because economic inequality reduces marriage rates and educational opportunities for the poorest members of society, which in turn makes it ever harder for them to escape poverty, while improving the opportunities for wealthier families to remain prosperous, even when the efforts and abilities of their offspring may well be less than those of others lower on the economic totem pole.

And, unless we find a way to break this cycle, income inequality and the concomitant anger and resentment of the less-fortunate will continue to increase, and, with it, social unrest and violence.

Hatred and Arrogance

Humans are beings who can both think more deeply than other creatures [at least from what we now know] and feel, often intensely. While these dual capabilities provide certain advantages, they also create problems which we tend to ignore, and this willful ignorance, at which we’re also very good, often makes the problems of overthinking and overfeeling worse.

As I’ve mentioned before, all too many overthinkers believe that correct logic leads to good solutions, but that’s not necessarily true, especially if the premises or assumptions or “facts” are incomplete or incorrect, or if the logic is designed to change people’s feelings, because emotions aren’t easily swayed by logic.

On the other side, strong feelings, especially hatred, can easily turn otherwise intelligent people into stupid idiots. And when hatred is linked to a need to belong to a group, or extreme frustration, and especially to both, the results range from horrible to catastrophic. Riots are almost always the result of emotions overriding intelligence, and the results of riots benefit no one and simply reduce the resources available, and usually that means fewer resources are available to those who had too few to begin with.

This allows those with resources to point out how “stupid” the rioters were, because most riots have the greatest destruction in the areas serving the rioters and the most loss of life among the rioters, at least until the frustration and hated among the under-privileged results in a national revolution, which has happened more than a few times.

Those with resources, more often than not, are not blinded so much by hatred, but by arrogance, or by supreme self-confidence in their own righteousness and abilities, which allows them to rationalize the idea they’ve earned, all by themselves, everything that they have, and that those with less have less solely because they have less ability and less determination.

Each “side” feels the other to be unreasonable and spoiled, and those feelings exacerbate hatred.

And, unhappily, this growth of hatred and arrogance is what has led to where we now stand, which is on a course toward severe social upheaval, if not worse.

Publishing in a Changing Market

Even a decade into a market changed by ebooks, it’s clear – at least to me – that a significant fraction of readers [and some rather large publishers as well] don’t really understand what’s happened and the implications and ramifications of those changes.

First off, despite all the words and arguments to the contrary, the costs of getting a book published haven’t changed much, except that they’ve increased. What has changed, particularly with self-published authors, is who is paying what costs. The cost of physically printing a book was never the majority of cost. From what I’ve been able to determine, the actual cost – just of printing – a hard-cover book runs in the range of three to six dollars, depending on the length of the book, the quality of paper and cover, etc. The costs of physically distributing print books likely run around a dollar a book. A standard publisher’s other costs — editing, proofing, typesetting, cover art, marketing, etc.– still run around ten dollars a hardcover. Those costs are all attributed to the first two years of sales for most publishers, but only a small percentage of books bring in significant revenue after two years. Now, I might be a bit off on some of this, but I’m in the ballpark.

Under the old marketing agreements, and those that still exist for printed books, the publishers sell books to stores at fifty to sixty percent of list price. Since most large publishers are barely more than breaking even, and some are losing money, there’s not a lot of profit involved. Add to that the fact that, even for the most successful publishers, almost half of all books sold lose money, which is why publishers need best-sellers.

So… how come all these independent authors can sell their ebooks for $3.99 or $5.99? Well… they can do that because they’re personally absorbing all the costs that are born by publishers. They have to come up with the cover design and artwork. They have to line up editors, or alpha or beta readers; they have to do the formatting or hire someone else to do it. They have to do the marketing, and make the arrangements with Amazon or someone else [who takes a percentage, of course]… or spend the time handling the finances and the bookkeeping. And the vast majority of these authors – probably 98% – actually lose money… in addition to spending a huge amount of time for which they’re not compensated, except if the book sells really well. Now, the ones who are indeed successful reap solid rewards, if not as much as most people think, because they’re not saddled with the costs of books that didn’t earn out in the way a standard publisher is.

So the lower prices of all those cheaper self-published books come out of the hides of their authors… and those dollar and time costs are substantial. Why do you think that almost all indie-published authors who are offered deals by major publishers take them… gladly?

For those of us who are with major publishers, and who aren’t multi-million sellers, the rules have also changed. We have to spend more time personally marketing, arranging appearances, attending things like comic-cons and conventions, for some of which we may be partly compensated and for some of which we’re not compensated at all. We spend more time and effort, generally for less return, than authors did twenty years ago – just like almost everyone else. And authors whose later books lose money also risk losing their publisher, requiring either more non-writing work or trying to make it by self-publishing or going with a small press [and a great many end up taking on more non-writing work].

One way or another, lower prices for ebooks come at the expense of the authors of those books. In addition, the consumer demand for cheaper books is creating a secondary market of generally lower-paid writers who are all competing with each other to write and produce books at a lower cost, and that means either lower quality or even more cost and strain on the writer. The demand for lower-cost ebooks also fuels the demand for pirated works, usually of best-sellers, but that piracy reduces the sales of those best-sellers, in turn reducing the risks that publishers will take on new or unpublished authors… and they’re definitely taking less of those risks, for the most part. That reduces the scope of what’s available from some major publishers and in some bookstores, and it means that readers have to work harder to find those kinds of books in the mass of hundreds of thousands of self-published or indie-published electronic works.

In short, no matter what anyone says, lower ebook prices have a lot of costs that no one really thinks about, and even fewer care about – just like they don’t really care about what’s behind the lower prices from Amazon and Walmart, or not enough to change their buying patterns.

The Change in Publishing/Book Marketing

This past weekend, as announced on the website here, I was at the Phoenix Comic Fest, where I was selling my books at Bard’s Tower, and doing some panel appearances. With me at the booth were Mercedes Lackey and Larry Dixon, Alan Dean Foster, Jody Lynn Nye, Melinda Snodgrass, David Butler, Christopher Husberg, Mark Gardner, Kevin Ikenberry, Amity Green, and Brian Lee Durfee – an array of writers ranging from old-timers to rising young authors.

So why were all of us at a “comic fest”?

Because of the dramatic change in the publishing world. Twenty to twenty five years ago, Tor –and other publishers – used to tour quite a few authors fairly often, and I was one of those toured. I was on the low-budget tour. Tor would fly me to a city, give me a formal signing or two each day, and I’d use the rental car to visit every bookstore I could get to where I wasn’t doing a formal signing so that I could talk to the staff and sign whatever stock they had of my books. I’d also leave a bound bookstore/press packet with glossy photos of covers of most of my books with a brief description, as well as other information that the bookstore would find useful. There were times when I’d visit ten to fifteen bookstores in a day, in addition to the formal signing. It worked fairly well back then.

It doesn’t work now… not unless the author is literally selling at least a few hundred thousand copies of a book, and it doesn’t because: (1) the number of bookstores has dwindled drastically; (2) e-books have grown considerably; and (3) despite what everyone contends, electronic book piracy has reduced paying sales without increasing overall sales. In addition to that, tours and book signings offered a venue where authors could meet readers and interest them in books and authors they hadn’t previously read. But because tours are no longer even remotely close to break-even exercises, except for high best-selling authors, publishers don’t tour nearly as many of their authors as they once used to do.

So… how do authors get new readers? Some invest heavily, both in time and money, in social media and an online presence. But as several newer authors I know have discovered, sometimes a huge social media presence doesn’t translate into sales. In fact, on a percentage basis, success through a social media presence is relatively infrequent [but, if I’m being honest, I have to admit that only a small percentage of would-be writers ever turn out to be commercially successful]. At a comic-con or a comic fest, however, there are thousands of people, many of whom are readers, and there’s a good chance to meet some potential new readers… and right now, it’s one of the few person-to-person venues left open to authors… which is why I – and other notable authors – appear at them.

The market’s changed, and if we don’t adapt with it, in some fashion, we’ll become less relevant. Besides, I had a good time talking to those readers, even when they didn’t buy my books.

Male Rights?

Apparently, I’ve been too generous toward at least some members of my gender, thinking that they might just understand why women are less than thrilled with the various fashions in which they’ve been treated by men over the past several millennia.

No… apparently at least some men believe that they have the right to have sexual relations with women, and even the woman of their choice, regardless of whether she shares that desire. Three recent fatal attacks, including the Santa Fe High school shooting, have been motivated at least in part by such self-professed sentiments on the part of the attacker, and are fairly clear symptoms of what I can only term a new “hate group” – so far, only a subset of the Incel [involuntary celibate] movement.

As with a great many groups that feel themselves disenfranchised in one way or another, while most incels do feel like outcasts, the majority obviously haven’t resorted to killing and violence, but laying the blame on women isn’t going to solve their problems or resolve the situation. Neither is telling these (mostly young) men to “just get over it.” From the limited studies on them, most have lacked opportunities, strong positive male father figures, and decent educations.

Part of what’s behind this “movement” is the feeling by these men that in the past men did have access to women, especially for sex, and that such availability no longer exists, but throughout history groups of men, especially young men, and often large groups of them, have suffered involuntary celibacy. So have women, and in fact the term “Incel” was actually coined by a Canadian woman some twenty years ago.

But now online male Incel communities are showing up, and some are more than vocal and demeaning toward women, including voicing resentment at being denied “their God-given rights to have sex with women.” [Personally, I find it incredibly disturbing how various uses of force and weapons are being touted as being “God-given” rights.] Before it was banned and removed in November of 2017, Reddit had a subreddit entitled “Incels,” with more than 40,000 members of that subreddit.

As women as a group become more highly educated, more financially and socially independent, fewer and fewer will need to be subservient to men… and the Incel movement may only be the tip of the iceberg as a manifestation of male dissatisfaction in the way the world is changing. While violence isn’t the answer, neither is ignoring the situation until we’re facing more and more incidents such as the few that have recently occurred.

But then, since when have we reacted in any other way?