Capitalism’s fatal flaws
What she and Deaton began to discover was that the well-being of Americans who did not have a college degree was deteriorating in all walks of life: economically, socially, emotionally, and medically. It was manifesting in how much pain they were physically experiencing (and self-reporting on US government surveys) and how many deaths were occurring as a result of drug overdoses, liver failure, and suicide. The life expectancy for adults without a college degree reached its peak around 2010 and has been falling ever since. By 2021, people without a bachelor’s degree were living “roughly eight and a half years less than people with college degrees,” Case and Deaton wrote in a New York Times essay last year. The country’s ever-transitioning economy had slowly beaten down the US working class over the past few decades, and they weren’t feeling good about it. It had eliminated many of their jobs, shrunk their paychecks, narrowed their employment opportunities, hollowed out their communities, taken a toll on their status in society, and led some to turn to unhealthy behaviors to cope.
Tim Besley, of the London School of Economics, said that Case and Deaton’s “initial work created quite a stir.” He remembers hearing a story that at a White House gathering, then-President Barack Obama cornered the two to talk about their findings.
What the Princeton duo later described in their 2020 book is a torrent of bad breaks that began to rain down on middle-aged, working-class, less-educated Americans over several decades. No race or gender was spared. But middle-aged white Americans who had not graduated from college did not fare particularly well, especially in regions where manufacturing and blue-collar jobs were once plentiful and rewarding. It was a familiar story for Case. It started with misfortune from economic shifts that had been slowly brewing for years, like the offshoring of US jobs to cheaper labor markets and the yawning disparity between the rich and the poor. And it generated resentment that leached into lifestyle behaviors. If it continued, it foretold a disturbing potential to accelerate social, economic, and educational polarization in the country.
The economy’s tilt was beneficial to some but deeply demoralizing for those it left behind. And this time around there was one big twist that Case and Deaton realized was making things exponentially worse. The overprescribing of painkillers such as OxyContin in the late 1990s, followed by the availability of cheaper heroin and then synthetic opioids such as fentanyl, led to an unusual spike in overdose deaths.
The drug epidemic arrived at a vulnerable moment in the United States, when the workforce was evolving, the Internet economy was dawning, and a lot of people were trying to find their balance. Case was poring over the government’s data and trying to connect the dots. “This work took on a life of its own, which was my life,” she said. “Once we started digging, it was just hard to stop.” “Sometimes I think Anne carries every piece of every number in the US statistical system in her head somewhere,” said Deaton.
“We found that the things that were rising were suicide, alcohol use, liver disease, and drug overdoses,” Case noted. “They’re all deaths by one’s own hand,” she said, and in the early 2000s those types of deaths began to pile up and have a profound impact on mortality rates in the country. “I thought they all signaled a certain amount of despair.”
Charles Fain Lehman, of the Manhattan Institute, is skeptical that all the dots connect so neatly. “I don’t necessarily think that the evidence supports the narrative that they were advancing,” he said. He believes that easy access to ever-stronger drugs on the street is more to blame for the rise in mortality than the economy-induced despair narrative that Case describes.
Other rich-world countries, Case points out, contended with many of the same challenges regarding globalization, automation, and the impact on their workforces. “But they did not unleash a drug that is basically heroin in pill form with an FDA label on it and give any doctor with a script pad the ability to prescribe this drug,” she said. “Congress just looked the other way.”
Unlike those other developed economies, the United States let “Purdue Pharma blanket the country with marketers who, with maps, targeted areas where people were in pain, where people had lost jobs, where people were less well educated, and they targeted those places.” Those pills had to land on fertile soil, she said.
Skills reconsidered
About two-thirds of the US working population does not have an undergraduate degree. It’s an important demographic to consider as the economy’s relentless modernization creates new jobs that overwhelmingly require increasingly digital and technical skills. The country, Case said, is more divided than ever by education levels, which has led to a pervasive and worrisome sense of injustice and inequality. “People without a BA don’t see hope for themselves. And perhaps as important, they don’t see hope for their children. They think that that they live in a system that’s rigged against them,” Case said. “It’s pretty understandable.”
She is encouraged by some of the efforts underway today to address the situation. One solution that is gaining traction is to prohibit discrimination based on educational attainment. During the past two years, according to the Brookings Institution, more than 20 states have expanded access to state government jobs by dropping requirements for an undergraduate degree. They are expanding hiring to workers who “gained their skills through community college, the military, partial college, certification programs, and, most commonly, on-the-job training.”
As an economist with a deep focus on how health issues affect income and how income disruptions affect health, Case believes that “capitalism needs to be put back on the rails,” particularly when it comes to access and affordability of health care.
Case’s journey from a young woman growing up in a region grappling with deindustrialization to a leading health and labor economist has been driven by profound compassion for those left behind by economic change. “I’ve been really moved by the number of people who have written to me personally,” she said. “They would tell stories about what has happened to them or to their sister or brother or father.”
Her work serves as a reminder of the importance of using economic analysis to improve the human condition, and it has ignited a national discussion about the challenges facing working-class Americans. Case’s work isn’t a “narrow empirical exercise,” said Besley, it’s “a piece of social science that joins everything together.” Ultimately it offers a stark and sobering assessment of the current state of US capitalism and the policies and investments that are needed to create a more equitable environment for workers, strengthen safety nets for those falling behind, and address the opioid epidemic.