work/life balance revisited*

In the nineteenth century, there was a prohibition in the United States on banks opening branches in communities other than the ones in which they originally operated. People had to trust the bank if they were to deposit their money in it, and bankers had to assess the character of borrowers before writing loans; it was generally believed that “the bankers’ interests and the interests of the larger community are one and the same,” as a historical sociologist of banking writes. We might imagine a banker sits down with a young couple and begins to form a judgment of their credit worthiness, that is, their character. This character is knowable because there is a community. Maybe the banker asks around at the grocery and the hardware store, and notes subtle cues in the tone of voice or body language of their proprietors as he mentions the name of the applicants and inquires after their record of credit. Satisfied, he vouchsafes their creditworthiness to his colleague bankers, who live in the same community, and a mortgage is secured. A thirty-year relationship is established between the bank and the couple. The banker feels he has done a good turn, helping virtue to its reward by the diligent application of his own powers of discerning observation, and his knowledge of the ways of men. He exercises prudence; his work calls on some of his best capacities…

Now consider the reality of the mortgage broker circa 2005, whose work takes on a very different character under absentee capitalism. Knowing the mortgage he secures will be sold by the originating bank (a branch of a nationwide bank) to some other entity, he needn’t concern himself with the creditworthiness of the applicant. The bank has no interest in the ongoing viability of the loan; its interest is limited to the fees it gets from originating the loan. The mortgages will be bundles on Wall Street then these bundles will themselves be transformed through securitization… The original encounter between mortgage broker and borrower as they sit across from one another is fraught with moral content- questions of trust- and both of the original parties no doubt experience it this way, in 2005 as ever. The mortgage broker gets a feeling in his gut. But this information is discarded through a process of depersonalization. The discarding is purposeful. Indeed the originating banks get frequent phone calls from Wall Street investment houses, urging them to invent new kinds of loans in which the borrower doesn’t even need to claim income or assets, much less prove their existence. This makes a certain kind of psychic demand on the mortgage broker who actually writes the loans: he must silence the voice of prudence, and suspend the action of his own judgment and perception.

Why would a system demand the stupidification of the mortgage professional? Again, imagine it is 2005. Unprecedented concentrations of capital have arisen, and these pools of money are competing with one another to find a home, and get a return. As a result, there is an insatiable worldwide appetite for mortgage-backed securities among investors. Further, the fees to be made from all the transactions between originator and investor are fueling a Wall Street boom. Therefore more loans must be written. So our mortgage broker writes loans that he knows to be bad, and makes a lot of money. Stripped of the kind of judgments that are at the very heart of the idea of “credit,” shot through with bad faith, his work is now predicated on irresponsibility, rooted in the absence of community. Whatever lingering fiduciary consciousness he may have has become a liability, given the rush to irresponsibility by his competitors. The work cannot sustain him as a human being. Rather, it damages the best part of him, and it becomes imperative to partition work off from the rest of life. So during his vacation he goes and climbs Mount Everest, and feels renewed. The next summer, he becomes an ecotourist in the Amazon rain forest. It is in this gated ghetto of his second life that he inhabits once again an intelligible moral order where feeling and action are linked, if only for a couple of weeks.

~ Matthew Crawford, Shop Class as Soulcraft: An Inquiry into the Value of Work

* The original work/life balance post can be found here.
** Wow, that quote took a very long time to type up. Please let me know if I made any typos.