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mostlysignssomeportents · 7 days ago

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MLMs are the mirror-world version of community organizing

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2025/02/05/power-of-positive-thinking/#the-socialism-of-fools

In her unmissable 2023 book Doppelganger, Naomi Klein paints a picture of a "mirror world" of right wing and conspiratorial beliefs that are warped, false reflections of real crises:

https://pluralistic.net/2023/09/05/not-that-naomi/#if-the-naomi-be-klein-youre-doing-just-fine

For example, Qanon's obsession with "child trafficking" is a mirror-world version of the real crises of child poverty, child labor, border family separations and kids in cages. Anti-vax is the mirror-world version of the true story of the Sacklers and their fellow opioid barons making billions on Oxy and fent, with the collusion of corrupt FDA officials and a pliant bankruptcy court system. Xenophobic panic about "immigrants stealing jobs" is the mirror world version of the well-documented fact that big business shipped jobs to low-waged territories abroad, weakening US labor and smashing US unions. Cryptocurrency talk about "decentralization" is the mirror-world version of the decay of every industry (including tech) into a monopoly or a cartel.

Klein is at pains to point out that other political thinkers have described this phenomenon. Back in the 19th century, leftists called antisemitism "the socialism of fools." Socialism – the idea that working people are preyed upon by capital – is reflected in the warped mirror as "working people are preyed upon by international Jewish bankers."

The mirror world is a critical concept, because it shows that far right and conspiratorial beliefs are often uneasy neighbors with real, serious political movements. The swivel-eyed loons have a point, in other words:

https://locusmag.com/2023/05/commentary-cory-doctorow-the-swivel-eyed-loons-have-a-point/

Once you understand the mirror world, you start to realize that many right wing conspiracists could have been directed into productive movements, if only they'd understood that their problems were with systems, not sinister individuals (this is why Trump has ordered a purge of any federally funded research that contains the word "systemic"):

https://mamot.fr/@[email protected]/113943287435897828

This also explains why the "tropes" of right wing conspiratorialism sometimes echo left wing, radical thought. I once had a (genuinely unhinged) dialog with a self-described German "progressive" who told me that criticizing the finance industry as parasitic on the real economy was "structurally antisemitic." Nonsense like this is why Klein's "mirror world" is so important: unless you understand the mirror world, you can end up believing that "progressive" just means "defending anything the right hates."

Historian Erik Baker is the author of a new book, Make Your Own Job: How the Entrepreneurial Work Ethic Exhausted America, which has some very interesting things to say about the mirror world:

https://www.hup.harvard.edu/books/9780674293601

In a recent edition of the always-excellent Know Your Enemy podcast, the hosts interviewed Baker about the book, and the conversation turned to the subject of pyramid schemes, the "multilevel marketing systems" that are woven into so many religious, right-wing movements:

https://www.dissentmagazine.org/blog/know-your-enemy-the-entrepreneurial-ethic/

MLMs have it all: prosperity gospel ("God rewards virtue with wealth"), atomization ("you are an entrepreneur and everyone in your life is your potential customer"), and rabid anti-Communism ("solidarity is a trick to make you poorer").

The rise of the far right can't be separated from the history of MLMs. The modern MLM starts with Amway, a cultlike national scam that was founded by Jay Van Andel and Richard DeVos (father-in-law of Betsy DeVos).

Rank-and-file members of the Amway cult lived in dire poverty, convinced that their financial predicament was their own fault for not faithfully following the "sure-fire" Amway method for building a business. Andrea Pitzer's gripping memoir of growing up in an Amway household offers a glimpse of the human cost of the cult:

https://www.theatlantic.com/ideas/archive/2025/01/amway-america/681479/?gift=j9r7avb6p-KY8zdjhsiSZxYkntna5M_rYEv4707Zqqs

Amway – and MLMs like it – don't just bleed out their members by convincing them to buy mountains of useless crap they're supposed to sell to their families, while enriching the people at the top of the pyramid who sell it to them. The "toxic positivity" of multi-level marketing cults forces members deep into debt to pay for seminars and retreats where they are supposed to learn how to repair the personal defects that keep them from being "successful entrepreneurs." The topline of the cult isn't just getting rich selling stuff – they're making bank by selling false hope, literally, in Hilton ballrooms and convention centers across the country, where hearing an MLM scammer berate you for being a "bad entrepreneur" costs thousands of dollars.

Amway destroyed so many lives that Richard Nixon's FTC decided to investigate it. The investigation wasn't going well for Amway, which was facing an existential crisis that they were rescued from by Nixon's resignation. You see, Nixon's successor, Gerald Ford, was the former Congressman of Amway co-founder Jay Van Andel, who was also the head of the US Chamber of Commerce, the most powerful business lobbyist in America.

At Ford's direction, the FTC exonerated Amway of all wrongdoing. But it's even worse than that: Ford's FTC actually crafted a rule that differentiated legal pyramid schemes from illegal ones, based on Amway's destructive business practices. Under this new rule, any pyramid scheme that had the same structure as Amway was presumptively legal. Every MLM operating in America today is built on the Amway model, taking advantage of the FTC's Amway rule to operate in the open, without fear of legal repercussions.

MLMs prey on the poor and desperate: women, people of color, people in dying small towns and decaying rustbelt cities. It's not just that these people are desperate – it's that they only survive through networks of mutual aid. Poor women rely on other poor women to help with child care, marginalized people rely on one another for help with home maintenance, small loans, a place to crash after an eviction, or a place to park the RV you're living out of.

In other words, people who lack monetary capital must rely on social capital for survival. That's why MLMs target these people: an MLM is a system for destructively transforming social capital into monetary capital. MLMs exhort their members to mine their social relationships for "leads" and "customers" and to use the language of social solidarity ("women helping women") to wheedle, guilt, and arm-twist people from your mutual aid network into buying things they don't need and can't afford.

But it's worse, because what MLMs really sell is MLMs. The real purpose of an MLM sales call is to convince the "customer" to become an MLM salesperson, who owes you a share of every sale they make and is incentivized to buy stock they don't need (from you) in order to make quotas. And of course, their real job is to sign up other salespeople to work under them, and so on.

An MLM isn't just a pathogen, in other words – it's a contagion. When someone in your social support network gets the MLM disease, they don't just burn all their social ties with you and the people you rely on – they convince more people in your social group to do the same.

Which brings me back to the mirror world, and Erik Baker's conversation with the Know Your Enemy podcast. Baker starts to talk about who gets big into Amway: "people who already effectively lead by the force of their charisma and personality many other people in their lives. Right? Because you're able to sell to those people, and you're able to recruit those people. What are we talking about? Well, they're effectively recruiting organizers, people who have a natural capacity for organizing and then sending them out in the world to organize on behalf of Christian capitalism."

Listening to this, I was thunderstruck: MLM recruiters are the mirror world version of union organizers. In her memoir of growing up in Amway, Andrea Pitzer talks about how her mom would approach strangers and try to lead them through a kind of structured discussion:

Everywhere we went—the mall, state parks, grocery stores—she’d ask people whether they could use a little more money each month. “I’d love to set up a time to talk to you about an exciting business opportunity.” The words should have seemed suspect. Yet people almost always gave her their number. Her confidence and professionalism were reassuring, and her enthusiasm was electric, even, at first, to me. “What would you do with $1 million?” she’d ask, spinning me around the kitchen.

This kind of person, having this kind of dialog, is exactly how union organizers work. In A Collective Bargain, Jane McAlevey's classic book on labor organizing, she describes how she would seek out the charismatic, outgoing workers in a job-site, the natural leaders, and recruit them to help bring the other workers onboard:

https://pluralistic.net/2023/04/23/a-collective-bargain/

Organizer training focuses on how to have a "structured organizing conversation," which McAlevey described in a 2019 Jacobin article:

“If you had a magic wand and could change three things about life in America [or her town or city or school], what would you change?” The rest of your conversation needs to be anchored to her answers to that question.

https://jacobin.com/2019/11/thanksgiving-organizing-activism-friends-family-conversation-presidential-election

The MLM conversation and the union conversation have eerily similar structures, but the former is designed to commodify and destroy solidarity, and the latter is designed to reinforce and mobilize solidarity. Seen in this light, an MLM is a mirror world union, one that converts solidarity into misery and powerlessness instead of joy and strength.

The MLM movement doesn't just make men like Rich De Vos and Jay Van Andel into billionaires. MLM bosses are heavy funders of the right, a blank check for the Heritage Foundation. Trump is the MLM president, a grifter who grew up on the gospel of Norman Vincent Peale – a key figure in MLM cult dynamics – who tells his followers that wealth is a sign of virtue. Trump boasts about all the people he's ripped off, boasting about how getting away with cheating "makes me smart":

https://pluralistic.net/2024/12/04/its-not-a-lie/#its-a-premature-truth

The corollary is that being cheated means you're stupid. Caveat emptor, the motto of the cryptocurrency industry ("not your wallet, not your coins") that spent hundreds of millions to get Trump elected.

Tech has its own mirror world. The people who used tech to find fellow weirdos and make delightful and wonderful things are mirrored by the people who used tech to find fellow weirdos and call for fascism, ethnic cleansing, and concentration camps.

In Picks and Shovels, my next novel (Feb 17), I introduce readers to a fictitious 1980s religious computer sales cult called Fidelity Computing, run by an orthodox rabbi, a Catholic priest and a Mormon rabbi:

https://us.macmillan.com/books/9781250865908/picksandshovels

Fidelity is a faith scam, a pyramid scheme that is parasitic upon the bonds of faith and fellowship. Martin Hench, the hero of the story – a hard-fighting high tech forensic accountant – goes to work for a competing business, Computing Freedom, run by three Fidelity ex-employees who have left their faiths and their employers to pursue a vision of computers that is about liberation, rather than control.

The women of Computing Freedom – a queer orthodox woman who's been kicked out of her family, a Mormon woman who's renounced the LDS over its opposition to the Equal Rights Amendment, and a nun who's left her order to throw in with the Liberation Theology movement – are all charismatic, energetic, inspirational organizers.

Because of course they are – that's why they were so good at selling computers for the Reverend Sirs who sit at the top of Fidelity Computing's pyramid scheme.

Hearing Baker's interview and reading Pitzer's memoir last week made it all click together for me. Not just that MLMs destroy social bonds, but that within every person who gets sucked into an MLM, there's a community organizer who could be building the bonds that MLMs destroy.

#pluralistic #amway #mlm #picks and shovels #martin hench #devos #that makes me smart #rich devos #mirror world #doppelganger #naomi klein #crime fiction #technothrillers #books #cults

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mostlysignssomeportents · 2 years ago

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Iowa's starvation strategy

I don’t really buy that “the cruelty is the point.” I’m a materialist. Money talks, bullshit walks. When billionaires fund unimaginably cruel policies, I think the cruelty is a tactic, a way to get the turkeys to vote for Christmas. After all, policies that grow the fortune of the 1% at the expense of the rest of us have a natural 99% disapproval rating.

If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/04/19/whats-wrong-with-iowa/#replicable-cruelty

So when some monstrous new law or policy comes down the pike, it’s best understood as a way of getting frightened, angry — and often hateful — people to vote for policies that will actively harm them, by claiming that they will harm others — brown and Black people, women, queers, and the “undeserving” poor.

Pro-oligarch policies don’t win democratic support — but policies that inflict harm a ginned-up group of enemies might. Oligarchs need frightened, hateful people to vote for policies that will secure and expand the power of the rich. Cruelty is the tactic. Power is the strategy. The point isn’t cruelty, it’s power:

https://pluralistic.net/2022/06/25/roe-v-wade-v-abortion/#no-i-in-uterus

But that doesn’t change the fact that the policies are cruel indeed. Take Iowa, whose billionaire-backed far-right legislature is on a tear, a killing spree that includes active collaboration with rapists, through a law that denies abortion care to survivors of rape and forces them to bear and care for their rapists’ babies:

https://www.nytimes.com/2023/03/16/us/politics/iowa-kamala-harris-abortion.html

The forced birth movement is part of the wider far-right tactic of standing up for imaginary children (e.g. “the unborn,” fictional victims of Hollywood pedo cabals), and utterly abandons real children: poor kids who can’t afford school lunches, kids in cages, kids victimized by youth pastors, kids forced into child labor, etc.

So Iowa isn’t just a forced birth state, it’s a state where children are now to be starved, literally. The state legislature has just authorized an $18m project to kick people off of SNAP (aka food stamps). 270,000 people in Iowa rely on SNAP: elderly people, disabled people, and parents who can’t feed their kids.

Writing in the Washington Post, Kyle Swenson profiles some of these Iowans, like an elderly woman who visited Lisa Spitler’s food pantry for help and said that state officials had told her that she was only eligible for $23/month in assistance:

https://www.washingtonpost.com/dc-md-va/2023/04/16/iowa-snap-restrictions-food-stamps/

That’s because Iowa governor KimReynolds signed a bill cutting the additional SNAP aid — federally funded, and free to the state taxpayers of Iowa — that had been made available during the lockdown. Since then, food pantries have been left to paper over the cracks in the system, as Iowans begin to starve.

Before the pandemic, Spitler’s food pantry saw 30 new families a month. Now it’s 100 — and growing. Many of these families have been kicked off of SNAP because they failed to complete useless and confusing paperwork, or did so but missed the short deadlines now imposed by the state. For example, people with permanent disabilities and elderly people who no longer work must continuously file new paperwork confirming that their income hasn’t changed. Their income never changes.

SNAP recipients often work, borrow from relations, and visit food pantries, and still can’t make ends meet, like Amy Cunningham, a 31 year old mother of four in Charlton. She works at a Subway, has tapped her relatives for all they can afford, and relies on her $594/month in SNAP to keep her kids from going hungry. She missed her notice of an annual review and was kicked off the program. Getting kicked off took an instant. Getting reinstated took a starving eternity.

Iowa has a budget surplus of $1.91B. This doesn’t stop ghouls like Iowa House speaker Pat Grassley (a born-rich nepobaby whose grandpa is Senator Chuck Grassley) from claiming that the cuts were a necessity: “[SNAP is] growing within the budget, and are putting pressure on us being able to fund other priorities.”

Grassley’s caucus passed legislation on Jan 30 to kick people off of SNAP if their combined assets, including their work vehicle, total to more than $15,000. SNAP recipients will be subject to invasive means-testing and verification, which will raise the cost of administering SNAP from $2.2m to $18m. Anyone who gets flagged by the system has 10 days to respond or they’ll be kicked off of SNAP.

The state GOP justifies this by claiming that SNAP has an “error rate” of 11.81%. But that “error rate” includes people who were kicked off SNAP erroneously, a circumstance that is much more common than fraud, which is almost nonexistent in SNAP programs. Iowa’s error rate is in line with the national average.

Iowa’s pro-starvation law was authored by a conservative dark-money “think tank” based in Florida: the Opportunity Solutions Project, the lobbying arm of Foundation For Government Accountability, run by Tarren Bragdon, a Maine politician with a knack for getting money from the Koch Network and the DeVos family for projects that punish, humiliate and kill marginalized people. The Iowa bill mirrors provisions passed in Kentucky, Kansas, Wisconsin and elsewhere — and goes beyond them.

The law was wildly unpopular, but it passed anyway. It’s part of the GOP’s push for massive increases in government spending and bureaucracy — but only when those increases go to punishing poor people, policing poor people, jailing poor people, and spying on poor people. It’s truly amazing that the “party of small government” would increase bureaucratic spending to administer SNAP by 800% — and do it with a straight face.

In his essay “The Utopia of Rules,” David Graeber (Rest in Power) described this pathology: just a couple decades ago, the right told us that our biggest threat was Soviet expansion, which would end the “American way of life” and replace it with a dismal world where you spent endless hours filling in pointless forms, endured hunger and substandard housing, and shopped at identical stores that all carried the same goods:

https://memex.craphound.com/2015/02/02/david-graebers-the-utopia-of-rules-on-technology-stupidity-and-the-secret-joys-of-bureaucracy/

A society that can’t feed, house and educate its residents is a failed state. America’s inability to do politics without giving corporations a fat and undeserved share is immiserating an ever-larger share of its people. Federally, SNAP is under huge stress, thanks to the “public-private partnership” at the root of a badly needed “digital overhaul” of the program.

Writing for The American Prospect, Luke Goldstein describes how the USDA changed SNAP rules to let people pay with SNAP for groceries ordered online, as a way to deal with the growing problem of food deserts in poor and rural communities:

https://prospect.org/health/2023-04-19-retail-surveils-food-stamp-users/

It’s a good idea — in theory. But it was sabotaged from the start: first, the proposed rule was altered to ban paying for delivery costs with SNAP, meaning that anyone who ordered food online would have to use scarce cash reserves to pay delivery fees. Then, the USDA declined to negotiate discounts on behalf of the 40 million SNAP users. Finally, the SNAP ecommerce rules don’t include any privacy protections, which will be a bonanza for shadowy data-brokers, who’ll mine SNAP recipients’ data to create marketing lists for scammers, predatory lenders, and other bottom-feeder:

https://www.democraticmedia.org/sites/default/files/field/public-files/2020/cdd_snap_report_ff.pdf

The GOP’s best weapon in this war is statistical illiteracy. While racist, sexist and queerphobic policies mean that marginalized people are more likely than white people to be poor, America’s large population of white people — including elderly white people who are the immovable core of the GOP base — means that policies that target poor people inevitably inflict vast harms on the GOP’s most devoted followers.

Getting these turkeys to vote for Christmas is a sound investment for the ultra-rich, who claim a larger share of the American pie every year. The rich may or may not be racist, or sexist, or queerphobic — some of them surely are — but the reason they pour money into campaigns to stoke divisions among working people isn’t because they get off on hatred. The hatred is a tactic. The cruelty is a tactic. The strategic goal is wealth and power.

Tomorrow (Apr 21), I’m speaking in Chicago at the Stigler Center’s Antitrust and Competition Conference. This weekend (Apr 22/23), I’m at the LA Times Festival of Books.

[Image ID: The Iowa state-house. On the right side of the steps is an engraved drawing of Oliver Twist, holding out his porridge bowl. On the left side is the cook, denying him an extra portion. Peeking out from behind the dome is a business-man in a suit with a dollar-sign-emblazoned money-bag for a head.]

Image: Iqkotze (modified) https://commons.wikimedia.org/wiki/File:Iowa_State_Capitol_April_2010.jpg

CC BY 3.0 https://creativecommons.org/licenses/by-sa/3.0/deed.en

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