Micro-Foundations of Financialization. Status Anxiety and the Market for Consumer Credit in Chile

This project investigates why people in Chile acquired so much consumer debt in contexts of material prosperity, and asks what the role of inequality and commodification is in this process. The case raises an important challenge to the literature. Insofar as existing accounts assume that the financialization of consumption occurs in contexts marked by wage stagnation and a general deterioration of the middle classes, they engender two contradictory explanations: while political economists argue that people use credit in order to smooth their consumption in the face of market volatility, economists maintain that concentration of wealth at the top pushes middle income consumers to emulate the expenditures of the rich and consume beyond their means. These explanations do not necessarily fit the reality of developing countries. Triangulating in-depth interviews with middle class families, multivariate statistical analysis and secondary literature, the project shows that consumers in Chile use credit to finance “ordinary” forms of consumption that do not aim either at coping with market instability or emulating and signaling status to others. Rather, Chileans use department store credit cards in order to acquire a standard package of “inconspicuous” goods that they feel entitled to have. From this point of view, the systematic indebtedness of consumers originates in a major concern with “rank”, “achievement” and "security" that – following De Botton -- I call “status anxiety”. Status anxiety does not stem from the desire to emulate rich consumers, but from the impossibility of complying with normative expectations about what a middle class family should be (and have) that outweigh wage improvements. The project thus investigates the way in which “status anxiety” is systematically reproduced by means of two broad mechanisms that prompt people to acquire consumer debt. The first mechanism generating debt stems from an increase of real wages and high levels of inequality. It is explained by a general sociological principle known as relative deprivation, which points to the fact that general satisfaction with one´s income, possessions or status, is assessed not in absolute terms such as total income, but in relation with reference groups. In this sense, I explore the mechanisms that operate as catalyzers of relative deprivation, by making explicit social inequalities and distorting the perception of others´ wealth. Despite upward mobility and economic improvement, Chileans share the perception of “falling behind,” which materializes in an “imaginary middle class” against which people compare their status, possessions and economic independence. Finally, I show that the commodification of education, health and pension funds does not directly prompt people to acquire consumer debt, but operate as “income draining” mechanisms that demand higher shares of middle class families’ “discretionary income.” In combination with “relative deprivation,” these “income draining” mechanisms leave families with few options to perform their desired class identities, other than learning how to bring resources from the future into the present with the help of department store credit cards.

Nuclei of Nearby Active Galaxies: NIR and Sub-mm Views and Finalizing the LINC-NIRVANA Fringe and Flexure Tracking System: Flexure and Temperature Behavior

The work presented in my thesis addresses the two cornerstones of modern astronomy: Observation and Instrumentation. Part I deals with the observation of two nearby active galaxies, the Seyfert 2 galaxy NGC 1433 and the Seyfert 1 galaxy NGC 1566, both at a distance of $\sim10$ Mpc, which are part of the Nuclei of Galaxies (NUGA) sample. It is well established that every galaxy harbors a super massive black hole (SMBH) at its center. Furthermore, there seems to be a fundamental correlation between the stellar bulge and SMBH masses. Simulations show that massive feedback, e.g., powerful outflows, in Quasi Stellar Objects (QSOs) has an impact on the mutual growth of bulge and SMBH. Nearby galaxies follow this relation but accrete mass at much lower rates. This gives rise to the following questions: Which mechanisms allow feeding of nearby Active Galactic Nuclei (AGN)? Is this feeding triggered by events, e.g., star formation, nuclear spirals, outflows, on $\sim500$ pc scales around the AGN? Does feedback on these scales play a role in quenching the feeding process? Does it have an effect on the star formation close to the nucleus? To answer these questions I have carried out observations with the Spectrograph for INtegral Field Observation in the Near Infrared (SINFONI) at the Very Large Telescope (VLT) situated on Cerro Paranal in Chile. I have reduced and analyzed the recorded data, which contain spatial and spectral information in the H-band ($1.45 \mic-1.85 \mic$) and K-band ($1.95 \mic-2.45 \mic$) on the central $10\arcsec\times10\arcsec$ of the observed galaxies. Additionally, Atacama Large Millimeter/Sub-millimeter Array (ALMA) data at $350$ GHz ($\sim0.87$ mm) as well as optical high resolution Hubble Space Telescope (HST) images are used for the analysis. For NGC 1433 I deduce from comparison of the distributions of gas, dust, and intensity of highly ionized emission lines that the galaxy center lies $\sim70$ pc north-northwest of the prior estimate. A velocity gradient is observed at the new center, which I interpret as a bipolar outflow, a circum nuclear disk, or a combination of both. At least one dust and gas arm leads from a $r\sim200$ pc ring towards the nucleus and might feed the SMBH. Two bright warm H$_2$ gas spots are detected that indicate hidden star formation or a spiral arm-arm interaction. From the stellar velocity dispersion (SVD) I estimate a SMBH mass of $\sim1.74\times10^7$ \msol. For NGC 1566 I observe a nuclear gas disk of $\sim150$ pc in radius with a spiral structure. I estimate the total mass of this disk to be $\sim5.4\times10^7$ \msol. What mechanisms excite the gas in the disk is not clear. Neither can the existence of outflows be proven nor is star formation detected over the whole disk. On one side of the spiral structure I detect a star forming region with an estimated star formation rate of $\sim2.6\times10^{-3}$ \msol\ yr$^{-1}$. From broad Br$\gamma$ emission and SVD I estimate a mean SMBH mass of $\sim5.3\times10^6$ \msol\ with an Eddington ratio of $\sim2\times10^{-3}$. Part II deals with the final tests of the Fringe and Flexure Tracker (FFTS) for LBT INterferometric Camera and the NIR/Visible Adaptive iNterferometer for Astronomy (LINC-NIRVANA) at the Large Binocular Telescope (LBT) in Arizona, USA, which I conducted. The FFTS is the subsystem that combines the two separate beams of the LBT and enables near-infrared interferometry with a significantly large field of view. The FFTS has a cryogenic system and an ambient temperature system which are separated by the baffle system. I redesigned this baffle to guarantee the functionality of the system after the final tests in the Cologne cryostat. The redesign did not affect any scientific performance of LINC-NIRVANA. I show in the final cooldown tests that the baffle fulfills the temperature requirement and stays $<110$ K whereas the moving stages in the ambient system stay $>273$ K, which was not given for the old baffle design. Additionally, I test the tilting flexure of the whole FFTS and show that accurate positioning of the detector and the tracking during observation can be guaranteed.