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Category: Class Warfare Page 5 of 36

The Democratic Bargain, Abortion and Responsibility

The Problem With Aristocrats Is That They Inflict What They Can Never Suffer

— (someone else, can’t find the original)

The democratic bargain, or really, the bargain of all civilization that is worthy of existing, is based on the idea of resolution of conflict by means other than violence. Band level hunter gatherers are much more egalitarian than we are, and are generally better off on most metrics than anyone except industrial age humans (who they are still better off than in terms of free time, equality, dental health and female hip width) but they usually have higher levels of violence than we do.

Early civilizations were also shockingly violent and extremely cruel, both to their own residents (not citizens, residents) and to those nearby. “An eye for an eye” wasn’t even the law: punishments for crimes were often excessive, feuds were common and often lead to far more death and suffering than the original crime being avenged.

In civilizations and especially in democracy, at least in theory, the idea is that we give up our private right to determine what is right and wrong and especially our private right to take justice into our own hands. In exchange we avoid the evils of vengeance and feuds and reduce the amount of internal violence. (Native Americans might not think that British democracy reduced violence, though, note, nor did Rome’s neighbours think Republican Rome reduced violence towards them.)

In Democracy we elect people to make and enforce our laws, and to implement policy. This is based on the idea that people we elect will act largely in the interests of society as a whole, and thus that more people will be better off. Because it is impossible to make policy or laws without harming at least a few people, those who run society are supposed to be disciplined not by violence but by legal means and thru the ballot box.

However, representative democracy (not direct democracy, which has other failure modes), especially when combined with capitalism, tends to fall into oligarchy. There are multiple forms of oligarchy, an oligarchy isn’t always rich, but under capitalism those with the most money tend to form the core of any oligarchy, even if it has some sort of base in the population. There would be no right wing in America of the current sort, or the world, without the massive financial support of the Koch brothers and other extremely rich individuals.

The end result of this is governments which act against the interests and desires of the majority. The Princeton oligarchy study found that, for all intents and purposes, the opinions of most of the American population have no effect on legislation.

Oligarchies are a form of aristocracy, and aristocracies have three fundamental principles:

  1. Aristocrats are the best people and deserve their wealth, power and privileges.
  2. Aristocrats as a class should never lose their power; and,
  3. Individual aristocrats should never be held responsible for their actions unless they harm other aristocrats or their interests;

There are two issues here.

First, democracies which become aristocratic oligarchies stop acting in the interests of the majority.

Second, the members of an aristocratic oligarchy don’t suffer what they inflict.

For well over 40 years now productivity and wages have not risen together, for example, where before they did. This is a direct result of policy, both legislative (massive tax cuts and regulatory changes) and monetary, central banks acting to “control inflation” by suppressing wages on theory that “wage push inflation” is the only important type of inflation, while also acting to increase asset prices held by the rich, like stocks, bonds and real estate.

Likewise, starting in the 70s many types of drugs were made illegal, but the rich don’t tend to be arrested for doing them, either because their drugs are legal, or by simple lack of enforcement, as with the widespread use of cocaine amongst elites in the 80s and 90s.

I recently read someone claiming that Federal Reserve members had “skin in the game” because they had to live in America, which is a massive misuse of the idea, akin to saying that Jeff Bezos and workers in his warehouses both have interests in common. Well, sort of. Or that just because they are Americans Bill Gates and homeless person both have skin in the game.

Yeah, OK. And the Queen and Boris Johnson have skin in the British game, just like food bank users and people who die from NHS cuts.

In 2008 there was a huge financial crisis, starting in the US, but spreading thru much of the world.

It was caused by the actions of executives in the financial sector and as a result, essentially every brokerage and most banks were, had they taken their losses, bankrupt. If the normal course had been allowed, they would have lost all their money, and thus their power

Aristocrats, as a class, must never lose their money or power. (Money is power, in our societies.)

The Federal Reserve and the Treasury department stepped in, with some legislative help, and saved them. The cost for saving them was, at the time, for America alone, something like 20 trillion dollars.

Some ordinary people were bailed out, but the vast majority weren’t.

Later, when banks foreclosed homes because of the financial crisis’s fallout, they fraudulently signed legal documents, en-masse, stating that they had title to the properties they were foreclosing. They were allowed to foreclose anyway, and they were not prosecuted for this clear crime.

Democracies which become aristocratic oligarchies stop acting in the interests of the majority.

As for the crimes which lead up to the crisis, of which there were many, most of the bubble, especially in the last two years, they were not prosecuted, but instead they were fined for amounts less than they had made, thus immunizing them from criminal penalties.

Aristocrats should never be held responsible for their actions,  unless they hurt other aristocrats.

The one major prosecution was of Bernie Madoff. Madoff had victimized out members of the elite, not the general public.

So, the system operated to save the rich and powerful and when saving them was in opposition to saving regular people it not only didn’t save them, it allowed the rich and powerful to victimize them further.

Much of this was illegal by the law at the time, but a lot of it was legal. Aristocracies make laws that favor those in power. They create policies which favor the already powerful and rich.

And, as the Princeton study showed, they ignore majority opinion if it contradicts elite preference.

Let us now move to abortion, the issue of the day. A majority of the population wanted to keep Roe vs. Wade, by about a 2:1 margin.

Some years ago I asked my father, a very conservative guy, his position on abortion. He said he didn’t like it but believed it should be legal. I asked why. “Because I saw what happened when it was illegal. Rich women got abortions, and poor women didn’t.”

Let us say that abortion becomes effectively illegal. Do you think that the wives, sisters and daughters of the rich and powerful will still have access to them?

We all know the answer.

Aristocrats inflict what they never must suffer.

An example given by, I think, Nassim Taleb, used the Roman Republic. When Hannibal wiped out a huge Roman army at Cannae, one-third of the Roman Senate’s members were killed. They fought in battles.

What important politician or rich person of the last two generations died in any of America’s wars? Most didn’t even fight, including Bush Jr., Trump and Clinton all of whom weaseled out of the Vietnam war using dubious means.

Now let’s bring this back. One of the benefits of civilization is the reduction of violence which comes from prohibiting people from taking vengeance or justice (not the law) into their own hands. The benefit of Democracy is supposed to be that the government acts in the interests of the majority of the population, and liberal democracy it is supposed to also protect the rights of minorites against the majority.

This is what the legitimacy of civilization and democracy rest on. In exchange for these benefits, people don’t make life unpleasant for people with power, they don’t get vengeance themselves and so on.

I’ve seen the argument that protesting outside the houses of Supreme Court justices is illegal. It is. Hiding slaves was illegal. Blacks riding at the front buses was illegal. Strikes were illegal. Almost nothing that the Nazis did was illegal when they did it, because they were in power and made the laws.

What the French aristocracy did before the revolution was legal, and so was what the Russian aristocracy did.

Legality isn’t justice, even in good societies, though sometimes it approximates it.

But when legitimacy is broken: when civilization or democracy or liberalism doesn’t provide what it’s supposed to do, people stop caring so much about what is legal.

Nobody on the supreme court is going to be affected negatively by the loss of Roe. They and their friends and families, all of whom are rich, powerful or both, will still be able to get abortion when needed or when they want them. They, their daughters, wives and sisters will not die of untreated ectopic pregnancies or bleed out from back alley abortions.

And, as a commenter pointed out, the supreme court did rule that protests outside the houses of abortion doctors were constitutionally protected free speech, but protests outside their houses aren’t.

The evil of aristocracy is that aristocrats inflict what they never suffer.

If you are a member of the American elite life has never been better. You are the richest rich the world has ever known, even richer than in the Gilded Age. For over 40 years salaries, stock options, stocks and other assets like real-estate have just gone up and up and up, and when they haven’t the government, often in the form of the Fed, has stepped into to make sure they do.

Meanwhile ordinary people increasingly can’t afford houses, rent or medical care and where one salary could support a 4 person family, now 2 often can’t. (Ignore the official inflation and wage adjusted stats, and focus on reality, the stats don’t tell the picture and everyone knows it.)

Life gets better and better for the elite; the aristocrats and some of their retainer class, and shittier for almost everyone else.

There isn’t really a social contract, but there is legitimacy, and our elites have broken it. Since they have broken it, I will gently suggest that expecting those will die or suffer in large numbers due to their decisions to respect them or their laws is unreasonable.

When Jared Diamond tried to figure out why societies collapse, he dug into many civilization collapses and found out they almost all had one thing in common: the decision makers were cut off from the consequences of their decisions. Things were getting worse for almost everyone else, but everything was good for them, and often even improving, so they did nothing.

Eventually that broke. Sometimes due to environmental collapse; sometimes economic collapse; sometimes invasion; sometimes rebellion; and sometimes a combination or all of them at once.

Our aristocratic oligarchy is inflicting on others what they won’t suffer, even as they enrich themselves and pat themselves on the back about how they deserve everything they have.

That is leading where it always does, and it starts with the loss of legitimacy.

Those who protest rudely when those who will never suffer what they inflict hurt them or kill them, are minor in this context, but they are a sign of what is to come.

And that will be far worse than some judges being made uncomfortable or scared. It will be an age of war and revolution, throughout the world, and it will also be an age where some of their victims decide that if they are to suffer, their victimizers will suffer too.

This means either full on dystopian police states or an age of assassination and rebellion, and probably both.

This is what our aristocrats have sowed, and they will reap it. Alas, so will the rest of us. In the meantime, those who try and intrude on their bubbles and make their displeasure known are actually doing them a favor, offering them one last (and it is very close to last) chance to course correct.

History suggest they won’t, but occasionally it does happen, and we must hope for that occasionally.

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Official Inflation vs. Real Inflation (Rent Edition)

So, rent increases:

In the 50 largest U.S. metro areas, median rent rose an astounding 19.3 percent from December 2020 to December 2021, according to a Realtor.com analysis of properties with two or fewer bedrooms. And nowhere was the jump bigger than in the Miami metro area, where the median rent exploded to $2,850, 49.8 percent higher than the previous year.

Other cities across Florida — Tampa, Orlando and Jacksonville — and the Sun Belt destinations of San Diego, Las Vegas, Austin, Texas, and Memphis, Tennessee, all saw spikes of more than 25 percent during that time period.

Bozeman, Montana (not in that top 50):

According to the rental site Zumper, the average two-bedroom apartment in Bozeman surged from $1,300-a-month in February of 2020 to $2,175 in February of 2022. 

BOOM.

The fact is that official inflation numbers (and even those are jumping) are underreported and have been for decades. The nonsense of hedonic adjustments, things like taking prices from places like CostCo which poor people can’t reach and how the basket is determined, among other things, have made inflation appear much less than it actually has been. In no way have wages for most people, especially in the bottom 50 percent, kept up.

Homes and apartments are being snapped up en-masse by private equity and other large private investors who are raising rents massively and holding vast numbers of properties off the market to keep prices up. Places like Bozeman get hit hard, as workers who can now work remote got there, and with their “big city” money drive up prices — which are still low to them, but which locals can’t afford, and so on.

Prices rising faster than wages is one of the simple stories of the last 50 years that rarely gets told, because official stats make it seem like it didn’t happen.

But people feel it, and it has political consequences. As people feel poorer and poorer, and perceive their future will be poorer still, they are willing to turn to people like Trump and LePen, or vote for policies like Brexit. They know they are in a trap, and they will do anything to get out, like a wolf who will chew of it’s own leg to escape a leg trap.

Wise governments and ruling classes don’t make their populations desperate, because desperate populations are the seeding ground for tyrants, men-on-horseback, fascism, and revolutions of all kinds.

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Simple Ethics For Groups And Individuals

The simplest thing we require in the social world, after food, water and shelter, is safety. Without safety, everything else is precarious and to live in constant fear destroys people’s psyches and health.

The basic rules required for a safe group are as follows.

First: each individual must not prey on others. Under no circumstances must they hurt another person or take from them just because they are weak and they can.

Second: anyone who does prey on others must be removed from the group. This may mean ostracism; it may mean confinement; or it may mean death.

Anyone who will prey on someone else who is weak, just because they are weak is a threat to you. One day you will be weaker than them, and if you have something they want they will take it. That could mean theft, violence or rape.

Whenever you encounter a predator or abuser, they are someone you cannot and should not trust. They have already said what they are, the only question is who they will do it to.

There are some complexities to this, mostly to do with “property” and “accumulation.” In a good society, the only time anyone would go hungry or without shelter is if there wasn’t enough, and only in cases where there was not enough would those who can “work” be prioritized. (Working means creating that which people need. Wall street jobs are almost all predator jobs.) In a vast surplus world like our current world, there is no reason for everyone not to fed, have a home and medical care.

People who have way more than they need while others don’t have enough are predators: abusers who prey on the weak. We have built up entire ideologies about why this OK, the most recent of which is modern capitalism.

Basically, you can’t, ever, tolerate predators or predation. Predation includes every job which preys on other people: health insurance in the US; most pharma jobs (except creating the drugs, and even many of those, since they create palliatives rather than cures in most cases), most financial jobs, almost all lobbying, the vast majority of the military-industrial complex and almost all “intellegence” agency jobs.

It is less important that everyone work, than that jobs be positive sum: creating more than they destroy, which includes not destroying the environment. It is better that a million people are supported, doing nothing, than that Jamie Dimon has a job.

The worst predators in most societies are the very rich and politicians. They kill and impoverish the most people with their actions and inactions, and they work for other predators.

Again:

First: each individual must not prey on others. Under no circumstances must they hurt another person or take from them just because they are weak and they can.

Second: anyone who does prey on others must be removed from the group. This may mean ostracism; it may mean confinement; or it may mean death.

These rules and guidelines may seem to be about ethics, but they are also the only way to create good prosperous societies and groups which last, which aren’t “suckers” (no violence ever) and which last. Any society or group which tolerates predators is eventually taken over by them, and any “prosperity” built in such ways is built on blood, bones and misery, and will eventually be lost.

Anyone who preys on others, will prey on you if they decide they can get away with it and your misery or death will benefit them.

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Another Stock Up Moment

This time everyone’s talking about inflation and the coming food and fuel issues, so you’ve probably read about them.

Russia and Ukraine are the first and fifth largest exporters of wheat. Russia is an important exporter of a vast number of minerals, as well as oil, gas and coal. Sanctions are completely disrupting markets, and Russia will not be exporting any grain or sugar to Europe and ex-Soviet countries till at least August.

This will have a ripple effect thru the entire supply chain. Everything that substitutes (rice, for example) will increase in price. Of course, there have already been significant increases, and I advised stocking up multiple times in the past, but there will be more. The NYTimes notes that even before Ukraine:

Between April 2020 and December 2021, the price of wheat increased 80%.

This is likely to be a multi-year phenomenon leading to a permanent decline in almost everyone’s standard of living, but I’ll discuss that in a separate article.

This will extend far beyond food and fuel, since fuel and minerals are important in the manufacturing and services prices, as well.

For now, buy up staples which can be stored safely if you can. If you have money and need to buy anything, in general, do so now. The prices aren’t likely to be lower any time soon. If you can figure out a way to grow some of your own food or arrange to reduce your vulnerability to food prices, do so. Note that every sign is also that rent increases will continue to be significant as well, and anything you can do to reduce your vulnerability will be wise.

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The Decline and Fall of Post-war Liberalism and the Rise of Neoliberalism

strikes-involving-more-than-1k-workersIn the Anglo-US world, post-war liberalism has been on the defensive since the 1970s. This is normally shown through various wage or wealth graphs, but I’m going to show two graphs of a different nature. The first, to the right, is the number of strikes involving more than 1K workers. Fascinating, eh?

The second, below and to your left, is the incarceration rate. It isn’t adjusted for population increases, but even if it was, the picture wouldn’t change significantly.

This is the change caused by the Reagan revolution in the US, which, as is the case with most revolutions, started before its flagship personality.

(Article re-published as it’s important and a lot of current readers won’t have seen it.)

Graph of incarceration in the US over time

From Wikipedia

 

I was born in 1968. I remember the 70s, albeit from a child’s perspective. They were very different from today. My overwhelming impression is that people were more relaxed and having a lot more fun. They were also far more open. The omnipresent security personnel, the constant ID checks, and so forth, did not exist. Those came in to force, in Canada, in the early 1990s. As a bike courier in Ottawa, I would regularly walk around government offices to deliver packages. A few, like the Department of National Defense and Foreign Affairs, would make us call up or make us deliver to the mail room, but in most cases I’d just go up to the recipient’s office. Virtually all corporate offices were open, gated only by a receptionist. Even the higher security places were freer. I used to walk through Defense headquarters virtually every day, as they connected two bridges with a heated pedestrian walkway. That walkway closed in the Gulf War and has never, so far as I know, re-opened.

I also walked freely through Parliament Hill, un-escorted, with no ID check to get in.

This may seem like a sideline, but it isn’t. The post-war liberal state was fundamentally different from the one we have today. It was open. The bureaucrats and the politicians and even the important private citizens were not nearly as cut off from ordinary people as they are today. As a bike courier, I interrupted senior meetings of Assistant Deputy Ministers with deliveries. I walked right in. (They were very gracious — in every case.)

The post-war liberal state involved multiple sectors, in conflict, but in agreement about that conflict. Strikes were allowed, they were expected, and unions were considered to have their part to play. It was understood that workers had a right to fight for their part of the pie. Capitalism, liberal capitalism, meant collective action because only groups of ordinary workers can win their share of productivity increases.

productivity and wages

productivity and wages

Which leads us to our second chart. The moment you lock up everyone who causes trouble (usually for non-violent, non-compliance with drug laws), the moment you crack down on strikes, ordinary people don’t get their share of productivity increases. It’s really just that simple.

This is all of a piece. The closing off of politicians and bureaucrats from public contact, the soaring CEO and executive salaries which allow them to live without seeing anyone who isn’t part of their class or a servitor, the locking up of people who don’t obey laws that make no sense (and drug laws are almost always stupid laws), the crushing of unions, which are a way to give unfettered feedback to politicians and our corporate masters, are all about allowing them to take the lion’s share of the meat of economic gains and leave the scraps for everyone else.

But why did the liberal state fail? Why did this come about? Let’s highlight three reasons: (1) the rise of the disconnected technocrat; (2) the failure to handle the oil crisis, and; (3) the aging of the liberal generations.

The rise of the disconnected technocrat has been discussed often, generally with respect to the Vietnam war. The “best and the brightest” had all the numbers, managed the war, and lost it. They did so because they mistook the numbers for reality and lost control. The numbers they had were managed up, by the people on the ground. They were fake. The kill counts coming out of Vietnam, for example, were completely fake and inflated. Having never worked on the ground, having not “worked their way up from the mail room,” having not served in the military themselves, disconnected technocrats didn’t realize how badly they were being played. They could not call bullshit. This is a version of the same problem which saw the Soviet Politburo lose control over production in the USSR.

The second, specific failure was the inability to manage the oil shocks and the rise of OPEC. As a child in the 1970s, I saw the price of chocolate bars go from 25c to a dollar in a few years. The same thing happened to comic books. The same thing happened to everything. The post-war liberal state was built on cheap oil and the loss of it cascaded through the economy. This is related to the Vietnam war. As with the Iraq war in the 2000s, there was an opportunity cost to war. Attention was on an essentially meaningless war in SE Asia while the important events were occurring in the Middle East. The cost, the financial cost of the war, should have been spent instead on transitioning the economy to a more efficient one — to a “super-analog” world. All the techs were not in place, but enough were there, so that, with temporizing and research starting in the late 1960s, the transition could have been made.

Instead, the attempt was left too late, at which point the liberal state had lost most of its legitimacy. Carter tried, but was a bad politician and not trusted sufficiently. Nor did he truly believe in, or understand, liberalism, which is why Kennedy ran against him in 1980.

But Kennedy didn’t win and neither did Carter. Reagan did. And what Reagan bet was that new oil resources would come online soon enough to bail him out.  He was right. They did and the moment faded. Paul Volcker, as Fed Chairman, appointed by Carter, crushed inflation by crushing wages, but once inflation was crushed and he wanted to give workers their share of the new economy, he was purged and “the Maestro,” Alan Greenspan, was put in charge. Under Greenspan, the Fed treated so-called wage push inflation as the most important form of inflation.

Greenspan’s tenure as Fed chairman can be summed up as follows: Crush wage gains that are faster than inflation and make sure the stock market keeps rising no matter what (the Greenspan Put). Any time the market would falter, Greenspan would be there with cheap money. Any time workers looked like they might get their share of productivity gains, Greenspan would crush the economy. This wasn’t just so the rich could get richer, it was to keep commodity inflation under control, as workers would then spend their wages on activities and items which increased oil consumption.

The third reason for the failure of liberalism was the aging of the liberal generation. Last year, I read Chief Justice Robert Jackson’s brief biography of FDR (which you should read). At the end of the book are brief biographies of main New Deal figures other than Roosevelt. Reading them, I was struck by how many were dying in the 1970s. The great lions who created modern liberalism, who created the New Deal, who understood the moving parts were dead or old. They had not created successors who understood their system, who understood how the economy and the politics of the economy worked, or even who understood how to do rationing properly during a changeover to the new economy.

The hard-core of the liberal coalition, the people who were adults in the Great Depression, who felt in their bones that you had to be fair to the poor, because without the grace of God there go you, were old and dying.  The suburban part of the GI generation was willing to betray liberalism to keep suburbia; it was their version of the good life, for which everything else must be sacrificed. And sacrificed it was, and has been, because suburbia, as it is currently constituted, cannot survive high oil prices without draining the rest of society dry.

Reagan offered a way out, a way that didn’t involve obvious sacrifice. He attacked a liberal establishment which had not handled high oil prices, which had lost the Vietnam war, and which had alienated its core southern supporters by giving Blacks rights.

And he delivered, after a fashion. The economy did improve, many people did well, and inflation was brought under control (granted, it would have been if Carter had his second term, but people don’t think like that). The people who already had good jobs were generally okay, especially if they were older. If you were in your 40s or 50s when Reagan took charge in 1980, it was a good bet that you’d be dead before the bill really came due. You would win the death bet.

Liberalism failed because it couldn’t handle the war and crisis of the late 60s and 70s. The people who could have helped were dead or too old. They had not properly trained successors; those successors were paying attention to the wrong problem and had become disconnected from the reality on the ground. And the New Deal coalition was fracturing, more interested in hating blacks or keeping the “good” suburban lifestyle than in making sure that a rising tide lifted all boats (a prescriptive, not descriptive, statement).

There are those who say liberalism is dying now. That’s true, sort of, in Europe, ex-Britain. The social-democratic European state is being dismantled. The EU is turning, frankly, tyrannical, and the Euro is being used as a tool to extract value from peripheral nations by the core nations. But in the Anglo-American world, liberalism was already dead, with the few great spars like Glass-Steagall, defined benefit pensions, SS, Medicare, welfare, and so on, under constant assault.

Europe was cushioned from what happened to the US by high density and a different political culture. The oil shocks hit them hard, but as they were without significant suburbia, without sprawl, it hit them tolerably. They were able to maintain the social-democratic state. They are now losing it, not because they must, but because their elites want it. Every part of the social-democratic state is something which could be privatized to make money for your lords and masters, or it can be gotten rid of if no money can be made from it and the money once spent on it can be redirected towards elite priorities.

Liberalism died and is dying because liberals aren’t really liberal, and when they are, they can’t do anything about it.

None of this means that modern conservatism (which is far different from the conservatism of my childhood) is a success if one cares about mass well-being. It isn’t. But it is a success in the sense that it has done what its lords and masters wanted —- it has transferred wealth, income, and power to them. It is self-sustaining, in the sense that it transfers power to those who want it to continue. It builds and strengthens its own coalition.

Any political coalition, any ideology behind a political coalition, must do this: It must build and strengthen support. It must have people who know that, if it continues, they will do well, and that if it doesn’t, they won’t. Liberalism failed to make that case to Southerners, who doubled down on cheap factory jobs and racism, as well as to suburbanite GI Generation types, who wanted to keep the value of their homes and knew they couldn’t if oil prices and inflation weren’t controlled. Their perceived interests no longer aligned with liberalism and so they left the coalition.

We can have a new form of liberalism (or whatever we wish to call it) when we understand why the old form failed and can articulate the conditions for our new form’s success. Maybe more on that another time.

Published April 11, 2015, published back in the ’00s too, but I don’t remember when. Republishing doesn’t send out to lists, so I’m doing it as new piece. The original and comments can also be viewed.


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Democracy Cannot Survive Hegemonic Capitalism

The history of capitalism and democracy shows that we need to choose one or the other. The problem is that capitalism concentrates power in the hands of a few people who aren’t chosen through democratic means. Capitalism requires those people to pursue unlimited profit, because those who don’t lose their power to those who do.

When they have that power, they then buy government, because government is both the main threat to them, and the force which by which, through use of law and means like central banks bailing them out, they can keep themselves obscenely rich — even when markets would otherwise cause them to lose their money and thus their power.

The history from the Great Depression onwards is instructive. Capitalism caused a huge, nearly worldwide, depression. Government did not bail them out, and so they lost their power. FDR came to power, and more or less following Keynes’s prescriptions, he bailed them out. He and the people working with him put in place multiple protections to make sure that capitalism couldn’t cause such a crisis again.

Capitalists hated him for it. He had rescued them, but with the cost of 90 percent top marginal tax rates, huge estate taxes, regulation and aggressive anti-trust laws. Upon his death (little could be done while he was alive, as he was so popular), they immediately started attacking all the protections he had put in place. It took them decades, but they stuck to it, and after all, even in their reduced state, they were still powerful and could afford to pay people to spend their lives working against the New Deal.

The foremost intellectual servant of these men was Milton Friedman, but many, many labored in this cause. They built a political, economic, and intellectual infrastructure and waited for their opportunity. With the oil crises, inflation, and unemployment of the 70s, they had their chance. They made sure that an egalitarian model for dealing with the crisis wouldn’t work, and they got Thatcher and Reagan elected. Then, they dismantled the New Deal and all the protections against another economic catastrophe like the Great Depression.

This allowed them to vastly consolidate wealth, pushing power into the hands of fewer and fewer people. Antitrust law was gutted, unions cut to ribbons, and regulations which protected against them were destroyed, while new ones were put in place to ensure the concentration of wealth and power.

A small example of this was given to me by an accountant, who in the 70s used to do the taxes for Indian bands. When Reagan took over, the regulations were changed so that only large companies were allowed in the business and he was frozen out. This sort of thing happened everywhere, and, indeed, continues to this day.

But, alas, the capitalists weren’t stupid, and they knew that market concentration and removal of protections against bubbles meant that one day there might be another great crisis.

So they bought up economics lock, stock and barrel and paid economists like Bernanke to figure out how to make sure they’d never lose their wealth (and thus power) in a great market collapse again. Bernanke’s academic ouvre was described to me by Stirling Newberry, back around 2005, as “how to make sure another 1929 doesn’t lead to another FDR.”

They got him into the Federal Reserve, and people like him into other central banks, and when the Financial crisis of 2007/8 happened, the Fed bailed out the rich. Without the Federal Reserve, most of them would have lost everything, but the Fed alone effectively printed and gave them 20 trillion dollars, accepted their worthless securities at near face value for loans, and so on.

Meanwhile, largely under Obama, the crimes they had committed (and there was fraud all the way down, I doubt a single senior executive on Wall Street hadn’t engaged in red-letter fraud), were forgiven in exchange for fines that were less than the amount of money they had individual earned.

Power and money consolidated even further, and the “another-FDR moment” was avoided.

Since then, they have seized further and further control and increased their wealth and power even more. Citizen’s United, which allowed unlimited money into elections was probably the red line moment, but really, once the full-faith and money-printing ability of government was behind the rich, ensuring they could never lose power as a class, it was over.

The important thing to understand is that this structural. If capitalism is hegemonic (that is, dictates how most economic decisions are made and how power is parceled out), then this pattern repeats. FDR made the best effort in the history of capitalism to stop it form happening again, and he failed, buying only a few decades of relative egalitarianism and control of democratically-elected government over business rather than business over government.

There can be no peace between democracy and capitalism. They are in direct opposition to each other. Democracy requires egalitarianism to work, and capitalism requires money and power to be concentrated in a few hands.

We can have democracy, or we can have capitalism and we need to stop pretending that democracy can control capitalism sufficiently to stop it from doing vast damage. Indeed, the terrible timing of having capitalists take over democracy in the core industrial nations just as action on climate change and ecological collapse became necessary will cause billions of lives, and wipe out about half of all known species on Earth.

Because democracy also failed, democracy is now on the firing line. As things get worse (and they will get MUCH worse), every political arrangement and ideology which failed to deal with climate and ecology will be discredited.

Either democracy blames capitalism and kills capitalism, finding a new way to organize the economy, or democracy is likely to die with capitalism. And it will deserve to do so.

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Work & School Are Fundamentally Awful for Most People

During the first year of the pandemic, there was a great deal of squealing about suicide. Turns out the squealers, as usual, were exactly wrong.

I have a friendly acquaintance who quit his job to teach the Alexander Technique online. He had a good paying consultant gig. First, for a month, he basically collapsed. Nine months later, he looks like a different person.

Daily life in our societies is essentially slavery. We spend most of the day doing what we are told, when we are told — things we would never do if we didn’t need the money, because without it we would wind up on the street.

For children, it is little different: School is training for work. Sit down, speak only when given permission, do what your’re told, the way you’re told to do it. Don’t even use the bathroom without permission.

Once the school or work day is over, we have a few hours, mostly, to do things like eat, wash, commute, and take care of family members — with perhaps a few hours of entertainment, usually something passive.

If we’re lucky, we get two days off a week, one of which most people spend on chores.

Our entire lives are oriented around doing what our masters tell us, when they tell us, in the way they want, and, if we refuse (unless we were born rich or are very lucky), we suffer.

So it’s no surprise that when we got a good period off from work or school, suicide rates dropped EVEN during a pandemic.

There was a plague, but people were still less likely to kill themselves than during ordinary work periods.

Wage slavery and school are just a description of everyday life for most people and almost any break from it, even due to a plague, is a relief.

I particularly find ridiculous all the adults who seem to have forgotten how happy most children were when school ended and summer break happened. School was and is, for most people, a lot less pleasant than “no school.” Not because of the subject matter learning (what little there is), but because the real teaching at school isn’t centered on subject matter, it’s centered on “how to be a good little slave so you’ll slave well for the bosses in the future.”

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The Psychological Difficulty of Radicalization

“Radical” is a slur word in most of our discourse. “A radical” is someone who thinks society needs truly fundamental changes. If you are a democrat in a monarchy or a one-party state, you’re a radical. If you believe in equal rights in a state with rights based on rank, you’re a radical. If you believe in fascism in a democratic state, you are also a radical, and if you want to go back to women not having the vote and blacks only being able to vote in theory, you’re a radical, though we tend to call that style of radical a reactionary or sometimes a Republican.

Another kind of radical, perhaps the most common in our society, though still rare, is the type that believes that capitalism has to go away; that fundamental economic relationships shouldn’t be determined through markets controlled by capitalists. (You can be for markets, and against capitalism, weirdly, though it’s rare.)

It’s clear our societies have failed. We pretend they haven’t because the final collapse hasn’t happened, but that’s like saying that the Titanic hadn’t sunk after it hit the iceberg. Technically true, but believing it will get you hurt, bad. Might be good if other people believe it, though, while you sprint for the lifeboats.

The argument for this is tedious, and I’ve made it many times so I won’t bother here.

In the face of a failed society, trust in leaders is insane. Crazed. They’ve obviously run society off a cliff, and they either are okay with that or are incompetent, or both. (And the smart ones are selling you the line that everything is okay while they sprint for the lifeboats: a.k.a., New Zealand.)

For over ten years now I’ve been telling Americans to get out. Oh, it’s not that the US is the only developed nation heading for failed state status — for all intents and purposes there are no exceptions, not even Sainted New Zealand, but the US is one of the leaders in the failed-state race (Britain’s another), and I have a lot of American readers. If you’re going to have everything go sideways into a propeller, better later than sooner.

But most Americans won’t or can’t get out, and Musk and Bezo’s dreams of escape to space aren’t going to happen for humanity en-masse, not in time.

We’re all in a big ship, and it’s going down. Some areas are already underwater, others will be soon, and the entire thing is going to sink.

And we have no lifeboats. We could, perhaps, have built some, if we’d started 30 to 40 years ago with massive investments, but we didn’t, and if our leaders were that able, they’d have been able to save the ship, since that’s when they had to act.

But this article isn’t about how “we are fucked,” it’s about how “too many of us refuse to admit it and that it means we need radical change.”

And one of the big reasons for this is the need for “Daddy.” One of the big hurdles preventing radicalization is that becoming radicalized means you realize you can’t trust your leaders at all. That they have fucked up, betrayed you, or both. That they are bad, evil people who not only aren’t acting in your best interest, but are your enemies.

I’ve been pounding this issue for a couple  years, and some regular readers are probably sick of it. I am.

But it matters. If you don’t accept, psychologically and intellectually, who your enemies are, you can’t protect yourself from them. If you don’t accept, psychologically and intellectually, that your leaders are your enemies, you can’t properly take action on your own, with friends, family, and other groups — because at some level, you’re still thinking that government or corporations will come through and take care of things.

All your life, government and corporations have taken care of you. They’ve often been abusive parents, but they have made sure there’s food available to buy, streets to walk and drive on, laws, jobs, etc, etc. They run almost everything and you’re dependent on them for almost everything just like  you were dependent on your parents and teachers when you were a child.

Bad parents still feed and house you. They’re monsters, but monsters who kept you alive. Children love their abusive parents even as they fear and hate them, and the same screwed up psychology pertains to business and government leaders, and those they lead.

An entire life’s conditioning works against radicalization in anyone for whom the system has even slightly worked.

But the fact of the matter is that if we want to handle climate change, environmental collapse, or any of our other problems (“handle” doesn’t mean “stop,” but many problems are essentially trivial, and could be fixed any time our leadership wants to, like health care or spam calls), that means we need radical change. We need to change our system completely, and we need to get rid of our entire current leadership class, all of whom have proved their incompetence and ill will.

That’s radical. That’s a leap.

And that’s hard.

But acknowledging that there will be no real help from above until radical change happens is necessary, for the world, and if we can’t change them before they defenestrate themselves after trying to shove us all out the window first, to protect and care for yourselves in the face of a malign government and corporate class.

Corporate and government daddies and mommies aren’t going to save you. They’re the ones hurting you. They’re the ones making your life hell and destroying your world.

Accept that at your core.

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