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Op-Ed Columnist
Winning the Class War

By BOB HERBERT

The class war that no one wants to talk about continues unabated.

Even as millions of out-of-work and otherwise struggling Americans are tightening their belts for the holidays, the nation’s elite are lacing up their dancing shoes and partying like royalty as the millions and billions keep rolling in.

Recessions are for the little people, not for the corporate chiefs and the titans of Wall Street who are at the heart of the American aristocracy. They have waged economic warfare against everybody else and are winning big time.

The ranks of the poor may be swelling and families forced out of their foreclosed homes may be enduring a nightmarish holiday season, but American companies have just experienced their most profitable quarter ever. As The Times reported this week, U.S. firms earned profits at an annual rate of $1.659 trillion in the third quarter — the highest total since the government began keeping track more than six decades ago.

The corporate fat cats are becoming alarmingly rotund. Their profits have surged over the past seven quarters at a pace that is among the fastest ever seen, and they can barely contain their glee. On the same day that The Times ran its article about the third-quarter surge in profits, it ran a piece on the front page that carried the headline: “With a Swagger, Wallets Out, Wall Street Dares to Celebrate.”

Anyone who thinks there is something beneficial in this vast disconnect between the fortunes of the American elite and those of the struggling masses is just silly. It’s not even good for the elite.

There is no way to bring America’s consumer economy back to robust health if unemployment is chronically high, wages remain stagnant and the jobs that are created are poor ones. Without ordinary Americans spending their earnings from good jobs, any hope of a meaningful, long-term recovery is doomed.

Beyond that, extreme economic inequality is a recipe for social instability. Families on the wrong side of the divide find themselves under increasing pressure to just hold things together: to find the money to pay rent or the mortgage, to fend off bill collectors, to cope with illness and emergencies, and deal with the daily doses of extreme anxiety.

Societal conflicts metastasize as resentments fester and scapegoats are sought. Demagogues inevitably emerge to feast on the poisonous stew of such an environment. The rich may think that the public won’t ever turn against them. But to hold that belief, you have to ignore the turbulent history of the 1930s.

A stark example of the potential for real conflict is being played out in New York City, where the multibillionaire mayor, Michael Bloomberg, has selected a glittering example of the American aristocracy to be the city’s schools chancellor. Cathleen Black, chairwoman of Hearst Magazines, has a reputation as a crackerjack corporate executive but absolutely no background in education.

Ms. Black travels in the rarefied environs of the very rich. Her own children went to private boarding schools. She owns a penthouse on Park Avenue and a $4 million home in Southampton. She was able to loan a $47,600 Bulgari bracelet to a museum for an exhibit showing off the baubles of the city’s most successful women.

Ms. Black will be peering across an almost unbridgeable gap between her and the largely poor and working-class parents and students she will be expected to serve. Worse, Mr. Bloomberg, heralding Ms. Black as a “superstar manager,” has made it clear that because of budget shortfalls she will be focused on managing cutbacks to the school system.

So here we have the billionaire and the millionaire telling the poor and the struggling — the little people — that they will just have to make do with less. You can almost feel the bitterness rising.

Extreme inequality is already contributing mightily to political and other forms of polarization in the U.S. And it is a major force undermining the idea that as citizens we should try to face the nation’s problems, economic and otherwise, in a reasonably united fashion. When so many people are tumbling toward the bottom, the tendency is to fight among each other for increasingly scarce resources.

What’s really needed is for working Americans to form alliances and try, in a spirit of good will, to work out equitable solutions to the myriad problems facing so many ordinary individuals and families. Strong leaders are needed to develop such alliances and fight back against the forces that nearly destroyed the economy and have left working Americans in the lurch.

Aristocrats were supposed to be anathema to Americans. Now, while much of the rest of the nation is suffering, they are the only ones who can afford to smile.

From the New York Times...

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Deal for Academic Deputy Paves Way for Schools Chief

By JAVIER C. HERNANDEZ Mayor Michael R. Bloomberg reached a deal Friday to save the tottering candidacy of Cathleen P. Black to be the next chancellor of New York City schools, agreeing to appoint a career educator who started as a classroom teacher to serve as her second in command.

As a result, the state education commissioner, David M. Steiner, has agreed to grant Ms. Black, a media executive, the exemption from the normal credentials required by state law for the position, according to a person with direct knowledge of the negotiations.

The move was a significant concession by Mr. Bloomberg, who has often resisted efforts from outside City Hall to meddle in his affairs.

The mayor’s hand was forced on Tuesday when Dr. Steiner questioned her readiness for the position. Ms. Black, the chairwoman of Hearst Magazines, has spent a lifetime in the media business, does not hold any advanced degrees and has had little exposure to public schools.

The controversy over Ms. Black, 66, had become a liability for Mr. Bloomberg, and a poll released on Tuesday showed that a majority of New Yorkers did not think Ms. Black was qualified to serve as chancellor.

After several days of talks with state officials, Mr. Bloomberg agreed to create the position of chief academic officer to oversee curriculum and testing at the city’s Department of Education. Under the deal, that job would go to Shael Polakow-Suransky, a former principal of a Bronx high school who is a top official at the city’s Department of Education.

But exactly how much authority Mr. Polakow-Suransky, 38, will wield is unclear. A job description prepared by the city said he would have “the broadest scope for the exercise of independent initiative and judgment” and listed 25 duties, including many that would normally fall to the head of a school system. But Mr. Polakow-Suransky will still report to Ms. Black, who is accustomed to setting the agenda in the rough-and-tumble world of corporate culture.

Ms. Black and Mr. Polakow-Suransky have met several times over the past week to discuss how they will divide authority.

Ms. Black is scheduled to take office Jan. 1 after the resignation of the current chancellor, Joel I. Klein. She will oversee the nation’s largest school system, with 1.1 million children, 135,000 employees and 1,600 schools.

Natalie Ravitz, a spokeswoman for the Department of Education, said on Friday, “As an experienced C.E.O., Ms. Black recognized the need to have a senior deputy with specific expertise in academic matters.”

Dr. Steiner, who declined to comment on Friday, is expected to announce his approval of a waiver on Monday. On Friday, Mr. Bloomberg submitted a letter making the case for Ms. Black and her new deputy. A mayoral spokesman declined to comment but did not dispute the details of the agreement. Mr. Polakow-Suransky did not respond to an e-mail seeking comment.

Merryl H. Tisch, the chancellor of the State Board of Regents, who played a central role in brokering the deal, also declined to comment. Referring to the position of chief academic officer earlier in the week, she said, “The issue for us is, ‘Can we create credibility around this position?’ ”

The deal reached Friday capped a week of frantic talks between the city and the state. Mr. Bloomberg, who was given control of city schools in 2002, has said that transforming the school system will define his legacy as mayor.

Mr. Bloomberg viewed Dr. Steiner’s challenge as a critical test of his authority over the school system. The mayor told people involved in the negotiations that a rejection of Ms. Black would undermine the model of mayoral control and set a dangerous precedent.

At one point while the negotiations were under way, Mr. Bloomberg said publicly that the law requiring the schools chancellor to hold education credentials was obsolete and should be abolished.

Mr. Bloomberg had initially believed he could build enough public pressure to force Dr. Steiner to approve Ms. Black, according to the person with knowledge of the negotiations. Business executives, former mayors and celebrities like Whoopi Goldberg flooded Dr. Steiner’s offices with messages in support of Ms. Black.

But Dr. Steiner remained skeptical, and he said on Tuesday he would consider her appointment only if Mr. Bloomberg installed an educator at her side.

The talks with the mayor about that possibility grew more serious after an eight-member panel advising Dr. Steiner on Ms. Black’s qualifications on Tuesday mustered only two votes unconditionally in support of her, unexpectedly throwing the selection process into disarray.

Mr. Bloomberg typically loathes intrusions into his management of the city. But throughout the negotiations for the waiver, he showed an unusual willingness to compromise to preserve Ms. Black’s candidacy. To the surprise of his own associates, he held his tongue in public, refusing to challenge Dr. Steiner and the panel that rebuked his choice for chancellor.

The reaction to the deal, and to Mr. Polakow-Suransky’s appointment, was mixed on Friday.

State Assemblyman Hakeem S. Jeffries, a Democrat who has helped coordinate the opposition to Ms. Black, said he would pursue a legal challenge, arguing that the appointment of a chief academic officer does not compensate for Ms. Black’s lack of educational experience.

Sol Stern, an education researcher at the Manhattan Institute, a conservative research group, said he thought that the deal was a victory for Mr. Bloomberg, and that Mr. Polakow-Suransky’s appointment would not be a serious check to Ms. Black’s authority. “He will be treated by the mayor and Black as a gofer,” Mr. Stern, a frequent critic of the mayor, wrote in an e-mail. “This is a farce.”

Underscoring the high-stakes nature of Ms. Black’s fate, even the federal secretary of education, Arne Duncan, spoke to both Dr. Steiner and Mr. Bloomberg during the negotiations.

On Friday, Mr. Duncan praised the outcome. “Can anyone do this alone? Of course not,” he said. “This is a monumentally tough, complex organization.”

Michael Barbaro contributed reporting.