Posts Tagged ‘Economics’

Well, dammit! Guess I’m gonna have to add a SWOTI tag after all. Obviously, I’ve been paying too much attention to bogus pronouncements by economists.

/rant on

Yet more fools stating confidently that climate change is not really a serious concern has me gasping in exasperation. Take, for instance, this astounding paragraph by Egon von Greyerz:

Yes, of course global warming has taken place recently as the effect of climate cycles. But the cycle has just peaked again which means that all the global warming activists will gradually cool down with the falling temperatures in the next few decades. The sun and the planets determine climate cycles and temperatures, like they have for many millions of years, and not human beings. [emphasis added]

So no climate change worries to disturb anyone’s dreams. Sleep soundly. I’m so relieved. All the effort expended over the past decades toward understanding climate change can be waived off with a mere three sentences by a motivated nonexpert. The linked webpage offers no support whatsoever for these bald statements but instead goes on to offer economic prophecy (unironically, of certain doom). For minimal counter-evidence regarding climate change, embedded below is a two-year-old video explaining how some regions are expected to become uninhabitable due to high wet-bulb temperatures.

The article ends with these brief paragraphs:

There is no absolute protection against this scenario [economic collapse] since it will hit all aspects of life and virtually all people. Obviously, people living off the land in remote areas will suffer less whilst people in industrial and urban areas will suffer considerably.

The best financial protection is without hesitation physical gold and some silver. These metals are critical life insurance. But there are clearly many other important areas of protection to plan for. A circle of friends and family is absolutely essential. [emphasis in original]

Ok, so I’m wrong: they guy’s not an economist at all; he’s a salesman. After placating one catastrophe only to trot out another, his scaremongering message clear: buy gold and silver. Might not be a bad idea, actually, but that won’t protect against TEOTWAWKI. So whose eyes are deceiving them, Egon’s or mine (or yours)? He’s selling precious metals; I’m sharing the truth (best as I can ascertain, anyway).

The other idiotic thing to darker my brow was several actual economists asked about the economic effects of implementing Greta Thunberg’s dream world (sarcasm much?). If her dream world is spelled out somewhere, I haven’t seen it, nor is it provided (link or otherwise) in the article. Seems like the sort of invented argument attached to a trending name for the purpose of clickbait attacking the messenger and thus shooting down her message. However, let me be generous for a moment and suggest that efforts to stop climate change include, at a minimum, getting off fossil fuels, reforming Big Ag, and denying developing nations their quest to join the First-World Age of Abundance. Those are the three subjects discussed in the article. These economists’ conclusion? It will be, um, costly. Well, yeah, true! Very costly indeed. I agree entirely. But what of the cost if those things aren’t done? Isn’t that question implied? Isn’t that what Greta Thunberg has insisted upon? The answer is it will cost far more, though perhaps not in something as cravenly readily quantifiable as profit or cost. Referring again to the embedded video above, it will cost us the very habitability of the planet, and not in just a few restricted regions we can add to existing sacrifice zones. Widespread species dislocation and die-off will include the human species, since we rely on all the others. Some prophesy a human death pulse of monstrous proportion (several billions, up to perhaps 90% of us) or even near-term human extinction. Is that costly enough to think about the problem differently, urgently, as Greta Thunberg does? Might the question be better framed as the cost of not implementing Greta Thunberg’s dream world so that economists are sent off on a different analytical errand?

In the middle of the 19th century, Scottish satirist Thomas Carlyle called economics The Dismal Science, which description stuck. The full context of that coinage may have had more to do with slavery than poor scholarship, so in the context of lying or at least misleading with numbers, I propose instead calling it The Deceitful Science. Among the stupid habits to dispel is the risible notion that, by measuring something as a means of understanding it, we grasp its fullness, and concomitantly, what’s really important. I suggest further that most economists deceive themselves by performing a fundamentally wrong kind of analysis.

The issue of deceit is of some importance beyond getting at the truth of climate change. Everything in the public sphere these days is susceptible to spin, massage, and reframing to such a degree that an epistemological crisis (my apt term) has fundamentally altered sense making, with the result that most nonexperts simply don’t know what to believe anymore. Economists are doing no one any favors digressing into areas beyond their Deceitful Science.

/rant off

For want of a useful way to describe multiple, intersecting problems plaguing the modern world — a nest of problems, if you will — let me adopt matryoshkas (a/k/a Russian nesting dolls). The metaphor is admittedly imperfect because problems are not discrete, resized replicas of each other that nest snugly, one inside the next. Rather, a better depiction would look more like some crazy mash-up of a Venn diagram and a Rorschach test but without the clean dividing lines or symmetry.

I use matryoshkas because they bear close relationship to each other. Also, the matryoshka is a maternal figure, much like Mother Earth. Matryoshkas are interlocking, each affecting others, though their relationships beyond the metaphor are far too complex to manage or manipulate effectively. For instance, the expansionary (growth) economy matryoshka (the paradigmatic problem of our time), nested two or three levels inside the Mother Earth matryoshka, bursts the outer dolls from within, whereas the collapsing Mother Earth matryoshka crushes the inner dolls. Similarly, if the economy matryoshka contracts (as it should and must), other inner dolls (e.g., nation states) will not survive. Which matryoshka fits inside another is a matter of interpretation. The one representing human consciousness is especially hard to position because it’s both cause and effect.

The Global Climate Strike underway this week reminds us of the outermost matryoshka, the largest one that contains or encapsulates all the others. Dealing with this biggest problem (since it’s truly an extinction level event, though slow-acting due to its global scale) has been delayed so long that (to mix my metaphors) the patient has become terminal. The diagnosis came long ago (i.e., quit smoking, or more accurately, quit burning fossil fuels and heating the planet), but treatment (cessation, really) never happened. We just kept puffing away with our transportation infrastructure (cars, boats, trains, and planes) and industrial machinery (including weaponry) because to do otherwise would — gasp — imperil the economy or negatively impact what’s become a nonnegotiable lifestyle, at least in the First World and only for a diminishing portion. The implicit decision, I suppose, is to live large now but condemn those unfortunate enough to follow in the wake of global ecological destruction.

Unless I misjudge the mood and consensus, climate change is (finally!) no longer the subject of controversy or denial except by a few intransigent fools (including political leaders and news groups that have inexplicably instituted gag orders to conceal the staggering immensity of the problem). Enough nasty events (storms, species die-offs, and epidemics — though no pandemic just yet) have piled up, including by way of example “unprecedented” flooding in Houston (never mind that flooding is a regular occurrence now, establishing a new precedent from which we steadfastly refuse to learn), that it’s impossible to dispute that we’ve entered an era of rather extraordinary instability. (That last sentence has problems with nesting, too, which I could fix by rewriting the sentence, but perhaps it’s fitting to just let the problems fester.) Indeed, as I have indicated before, we’re transitioning out of the Garden Earth (having left behind Ice Age Earth some 12,000 years ago) to Hothouse Earth. The rate of change is quite unlike similar transitions in the geological past, and we’re quite unlikely to survive.

Continuing (after some delay) from part 1, Pankaj Mishra concludes chapter 4 of The Age of Anger with an overview of Iranian governments that shifted from U.S./British client state (headed by the Shah of Iran, reigned 1941–1979) to its populist replacement (headed by Ayatollah Khomeini, ruled 1979–1989), both leaders having been authoritarians. During the period discussed, Iran underwent the same modernization and infiltration by liberal, Western values and economics, which produced a backlash familiar from Mishra’s descriptions of other nations and regions that had experienced the same severed roots of place since the onset of the Enlightenment. Vacillation among two or more styles of government might be understood as a thermostatic response: too hot/cold one direction leads to correction in another direction. It’s not a binary relationship, however, between monarchy and democracy (to use just one example). Nor are options between a security state headed by an installed military leader and a leader elected by popular vote. Rather, it’s a question of national identity being alternatively fractured and unified (though difficult to analyze and articulate) in the wake of multiple intellectual influences.

According to Lewis and Huntington, modernity has failed to take root in intransigently traditional and backward Muslim countries despite various attempts to impose it by secular leaders such as Turkey’s Atatürk, the Shah of Iran, Algeria’s Ben Bella, Egypt’s Nasser and Sadat, and Pakistan’s Ayub Khan.

Since 9/11 there have been many versions, crassly populist as well as solemnly intellectual, of the claims by Lewis and Huntington that the crisis in Muslim countries is purely self-induced, and [that] the West is resented for the magnitude of its extraordinary success as a beacon of freedom, and embodiment of the Enlightenment’s achievements … They have mutated into the apparently more sophisticated claim that the clash of civilizations occurs [primarily] within Islam, and that Western interventions are required on behalf of the ‘good Muslim’, who is rational, moderate and liberal. [p. 127]

This is history told by the putative winners. Mishra goes on:

Much of the postcolonial world … became a laboratory for Western-style social engineering, a fresh testing site for the Enlightenment ideas of secular progress. The philosophes had aimed at rationalization, or ‘uniformization’, of a range of institutions inherited from an intensely religious era. Likewise, postcolonial leaders planned to turn illiterate peasants into educated citizens, to industrialize the economy, move the rural population to cities, alchemize local communities into a singular national identity, replace the social hierarchies of the past with an egalitarian order, and promote the cults of science and technology among a pious and often superstitious population. [p. 133]

Readers may recognize this project and/or process by its more contemporary name: globalization. It’s not merely a war of competing ideas, however, because those ideas manifest in various styles of social and political organization. Moreover, the significance of migration from rural agrarian settings to primarily urban and suburban ones can scarcely be overstated. This transformation (referring to the U.S. in the course of the 20th century) is something James Howard Kunstler repeatedly characterizes rather emphatically as the greatest misallocation of resources in the history of the world. Mishra summarizes the effects of Westernization handily:

In every human case, identity turns out to be porous and inconsistent rather than fixed and discrete; and prone to get confused and lost in the play of mirrors. The cross-currents of ideas and inspirations — the Nazi reverence for Atatürk, a gay French philosopher’s denunciation of the modern West and sympathy for the Iranian Revolution, or the various ideological inspirations for Iran’s Islamic Revolution (Zionism, Existentialism, Bolshevism and revolutionary Shiism) — reveal that the picture of a planet defined by civilizations closed off from one another and defined by religion (or lack thereof) is a puerile cartoon. They break the simple axis — religious-secular, modern-medieval, spiritual-materialist — on which the contemporary world is still measured, revealing that its populations, however different their pasts, have been on converging and overlapping paths. [p. 158]

These descriptions and analyses put me in mind of a fascinating book I read some years ago and reviewed on Amazon (one of only a handful of Amazon reviews): John Reader’s Man on Earth (1988). Reader describes and indeed celebrates incredibly diverse ways of inhabiting the Earth specially adapted to the landscape and based on evolving local practices. Thus, the notion of “place” is paramount. Comparison occurs only by virtue of juxtaposition. Mishra does something quite different, drawing out the connective ideas that account for “converging and overlapping paths.” Perhaps inevitably, disturbances to collective and individual identities that flow from unique styles of social organization, especially those now operating at industrial scale (i.e., industrial civilization), appear to be picking up. For instance, in the U.S., even as mass shootings (a preferred form of attack but not the only one) appear to be on the rise at the same time that violent crime is at an all-time low, perpetrators of violence are not limited to a few lone wolves, as the common trope goes. According to journalist Matt Agorist,

mass shootings — in which murdering psychopaths go on rampages in public spaces — have claimed the lives of 339 people since 2015 [up to mid-July 2019]. While this number is certainly shocking and far too high, during this same time frame, police in America have claimed the lives of 4,355 citizens.

And according to this article in Vox, this crazy disproportion (police violence to mass shootings) is predominantly an American thing at least partly because of our high rate of fetishized civilian gun ownership. Thus, the self-described “land of the free, home of the brave” has transformed itself into a paranoid garrison state affecting civil authority even more egregiously than the disenfranchised (mostly young men). Something similar occurred during the Cold War, when leaders became hypervigilant for attacks and invasions that never came. Whether a few close calls during the height of the Cold War were the result of escalating paranoia, brinkmanship, or true, maniacal, existential threats from a mustache-twirling, hand-rolling despot hellbent on the destruction of the West is a good question, probably impossible to answer convincingly. However, the result today of this mindset couldn’t be more disastrous:

It is now clear that the post-9/11 policies of pre-emptive war, massive retaliation, regime change, nation-building and reforming Islam have failed — catastrophically failed — while the dirty war against the West’s own Enlightenment [the West secretly at war with itself] — inadvertently pursued through extrajudicial murder, torture, rendition, indefinite detention and massive surveillance — has been a wild success. The uncodified and unbridled violence of the ‘war on terror’ ushered in the present era of absolute enmity in which the adversaries, scornful of all compromise, seek to annihilate each other. Malignant zealots have emerged at the very heart of the democratic West after a decade of political and economic tumult; the simple explanatory paradigm set in stone soon after the attacks of 9/11 — Islam-inspired terrorism versus modernity — lies in ruins. [pp.124–125]

A potpourri of recent newsbits and developments. Sorry, no links or support provided. If you haven’t already heard of most of these, you must be living under a rock. On a moment’s consideration, that may not be such a bad place to dwell.

rant on/

I just made up the word of the title, but anyone could guess its origin easily. Many of today’s political and thought leaders (not quite the same thing; politics doesn’t require much thought), as well as American institutions, are busy creating outrageously preposterous legacies for themselves. Doomers like me doubt anyone will be around to recall in a few decades. For instance, the mainstream media (MSM) garners well-deserved rebuke, often attacking each other in the form of one of the memes of the day: a circular firing squad. Its brazen attempts at thought-control (different thrusts at different media organs) and pathetic abandonment of mission to inform the public with integrity have hollowed it out. No amount of rebranding at the New York Times (or elsewhere) will overcome the fact that the public has largely moved on, swapping superhero fiction for the ubiquitous fictions spun by the MSM and politicians. The RussiaGate debacle may be the worst example, but the MSM’s failures extend well beyond that. The U.S. stock market wobbles madly around its recent all-time high, refusing to admit its value has been severely overhyped and inflated through quantitative easing, cheap credit (an artificial monetary value not unlike cryptocurrencies or fiat currency created out of nothing besides social consensus), and corporate buybacks. The next crash (already well overdue) is like the last hurricane: we might get lucky and it will miss us this season, but eventually our lottery number will come up like those 100-year floods now occurring every few years or decades.

Public and higher education systems continue to creak along, producing a glut of dropouts and graduates ill-suited to do anything but the simplest of jobs requiring no critical thought, little training, and no actual knowledge or expertise. Robots and software will replace them anyway. Civility and empathy are cratering: most everyone is ready and willing to flip the bird, blame others, air their dirty laundry in public, and indulge in casual violence or even mayhem following only modest provocation. Who hasn’t fantasized just a little bit about acting out wildly, pointlessly like the mass killers blackening the calendar? It’s now de rigueur. Thus, the meme infiltrates and corrupts vulnerable minds regularly. Systemic failure of the U.S. healthcare and prison systems — which ought to be public institutions but are, like education, increasingly operated for profit to exploit public resources — continues to be exceptional among developed nations, as does the U.S. military and its bloated budget.

Gaffe-prone Democratic presidential candidate Joe Biden cemented his reputation as a goof years ago yet continues to build upon it. One might think that at his age enough would have been enough, but the allure of the highest office in the land is just too great, so he guilelessly applies for the job and the indulgence of the American public. Of course, the real prize-winner is 45, whose constant stream of idiocy and vitriol sends an entire nation scrambling daily to digest their Twitter feeds and make sense of things. Who knows (certainly I don’t) how serious was his remark that he wanted to buy Greenland? It makes a certain sense that a former real-estate developer would offhandedly recommend an entirely new land grab. After all, American history is based on colonialism and expansionism. No matter that the particular land in question is not for sale (didn’t matter for most of our history, either). Of course, everyone leapt into the news cycle with analysis or mockery, only the second of which was appropriate. Even more recent goofiness was 45’s apparent inability to read a map resulting in the suggestion that Hurricane Dorian might strike Alabama. Just as with the Greenland remark, PR flacks went to work to manage and reconfigure public memory, revising storm maps for after-the-fact justification. Has anyone in the media commented that such blatant historical revisionism is the stuff of authoritarian leaders (monarchs, despots, and tyrants) whose underlings and functionaries, fearing loss of livelihood if not indeed life, provide cover for mistakes that really ought to lead to simple admission of error and apology? Nope, just add more goofs to the heaping pile of preposterity.

Of course, the U.S. is hardly alone in these matters. Japan and Russia are busily managing perception of their respective ongoing nuclear disasters, including a new one in Russia that has barely broken through our collective ennui. Having followed the U.S. and others into industrialization and financialization of its economy, China is running up against the same well-known ecological despoliation and limits to growth and is now circling the drain with us. The added spectacle of a trade war with the petulant president in the U.S. distracts everyone from coming scarcity. England has its own clownish supreme leader, at least for now, trying to manage an intractable but binding issue: Brexit. (Does every head of state need a weirdo hairdo?) Like climate change, there is no solution no matter how much steadfast hoping and wishing one into existence occurs, so whatever eventually happens will throw the region into chaos. Folks shooting each other for food and fresh water in the Bahamas post-Hurricane Dorian is a harbinger of violent hair-triggers in the U.S. poised to fire at anything that moves when true existential threats finally materialize. Thus, our collective human legacy is absurd and self-destroying. No more muddling through.

/rant off

The supertall skyscraper biz has had its, um, ups and downs. My position over the 15 years of this blog is that they’re paeans to techno-utopianism and -narcissism and probably ought to stop being designed and built in an era of rapidly diminishing returns for economies around the globe. The initial price tag on these giants runs into the billions, and I have severe doubts they can be maintained even on the short term should when the next financial collapse impoverishes everyone. Just won’t be enough juice to keep nonessential luxury projects operating. That was very nearly our experience with the last collapse in 2008 — a (temporary or permanent?) setback from which many have not yet recovered despite new U.S. stock market records being set nearly every day (in mid-July 2019).

Eleven years ago, a number of skyscraper projects around Chicago were either scrapped entirely due to disappearance of financing or truncated well below their planned heights after lengthy construction hiatuses to allow time to regroup, redesign, and refinance. I had thought developers might be chastened enough by that experience to limit the grandiosity of future plans. Well, seems memories are short and nothing was learned. According to Curbed Chicago, the Loop has multiple projects in the conceptual through construction phases:

  1. Vista Tower — under construction at 1,198 feet
  2. NEMA Chicago — under construction at 896 feet
  3. Bank of America Tower — under construction at 820 feet
  4. One Chicago Square — site being prepped at 969 feet
  5. 1000M — approved at 832 feet
  6. Lakeshore East “Parcel I” — approved at 950 feet
  7. Salesforce Tower — approved at 813 feet
  8. BMO Tower — approved at 700 feet
  9. 725 W. Randolph — approved at 615 feet
  10. Tribune Tower East — proposed at 1,422 feet
  11. 400 N. Lake Shore Drive — on hold pending redesign
  12. The 78 — master plan approved, design subject to change
  13. One Central — conceptual

Number 11 is of particular interest to me as it’s the site of the ill-fated (doomed might be a better word) Chicago Spire (a/k/a Fordham Spire), a planned 2,000-foot building that would have been the world’s second tallest after the Burj Khalifa (a/k/a Burj Dubai) — at least until they were both eclipsed by the Jeddah Tower (a/k/a the Kingdom Tower) if stalled construction is ever restarted and completed. The most audacious and unnecessary proposal above is One Central, a preposterous 34-acre site situated atop existing Metra tracks serving commuters traveling into the Loop from the south and southeast.

All these projects appear to be mixed-use luxury developments: a combination of commercial, hotel, and condominium space. Affordable housing is a far more pressing need in Chicago, but those modest projects don’t produce the (presumed) profit or enhance the skyline. Where all the exceedingly well-heeled buyers will materialize from is a mystery. Indeed, claims that Chicago is fast becoming the new North American technology center for young, urban professionals after Seattle, Silicon Valley, and Austin (TX) are played out are hard to justify.

The skyscraper craze is a peculiar sort of madness from which we show no signs of recovering. A few similar madnesses have overtaken us. For instance, on the heels of the 50th anniversary of the moon landing, NASA has a renewed project for a manned moon shot. How far will we launch skyward in either aspect (skyscrapers or space travel) before our hubris gets the better of us?

Apologies for this overlong blog post. I know that this much text tries the patience of most readers and is well in excess of my customary 3–4 paragraphs.

Continuing my book blogging of Pankaj Mishra’s Age of Anger, Chapter Two (subtitled “History’s Winners and Their Illusions”) focuses on the thought revolution that followed from the Enlightenment in Western Europe and its imitation in non-Western cultures, especially as manifested in the century leading to the French Revolution. Although the American Revolution (more narrowly a tax revolt with insistence on self-rule) preceded the French Revolution by slightly more than a decade, it’s really the French, whose motto liberté, égalité, fraternité came to prominence and defined an influential set of European values, who effectively challenged enthusiastic modernizers around the globe to try to catch up with the ascendant West.

However, almost as soon as this project appeared, i.e., attempting to transform ancien régime monarchies in Northern Africa, the Middle East, and Russia into something pseudo-European, critics arose who denounced the abandonment of tradition and centuries-old national identities. Perhaps they can be understood as the first wave of modern conservatism. Here is Mishra’s characterization:

Modernization, mostly along capitalist lines, became the universalist creed that glorified the autonomous rights-bearing individual and hailed his rational choice-making capacity as freedom. Economic growth was posited as the end-all of political life and the chief marker of progress worldwide, not to mention the gateway to happiness. Communism was totalitarian. Ergo its ideological opponent, American liberalism, represented freedom, which in turn was best advanced by moneymaking. [p. 48]

Aside: The phrase “rights-bearing individual” has obvious echoes with today’s SJWs and their poorly conceived demand for egalitarianism not just before the law but in social and economic outcomes. Although economic justice (totally out of whack with today’s extreme income and wealth inequality) is a worthy goal that aligns with idealized but not real-world Enlightenment values, SJW activism reinforces retrograde divisions of people based on race, gender, sexual orientation, religion, disability, etc. Calls to level out all these questionable markers of identity have resulted in intellectual confusion and invalidation of large “privileged” and/or “unoppressed” groups such as white males of European descent in favor of oppressed minorities (and majorities, e.g., women) of all categories. Never mind that many of those same white males are often every bit as disenfranchised as others whose victimhood is paraded around as some sort virtue granting them authority and preferential treatment.

Modernization has not been evenly distributed around the globe, which accounts for countries even today being designated either First, Second, or Third World. An oft-used euphemism is “developing economy,” which translates to an invitation for wealthy First-World nations (or its corporations) to force their way in to exploit cheap labor and untapped natural resources. Indeed, as Mishra points out, the promise of joining First-World living standards (having diverged centuries ago) is markedly hollow:

… doubters of Western-style progress today include more than just marginal communities and some angry environmental activists. In 2014 The Economist said that, on the basis of IMF data, emerging economies — or, most of the human population — might have to wait for three centuries in order to catch up with the West. In this assessment, the last decade of high growth was an ‘aberration’ and ‘billions of people will be poorer for a lot longer than they might have expected just a few years ago’.

The implications are sobering: the non-West not only finds itself replicating the West’s trauma on an infinitely larger scale. While helping inflict the profoundest damage yet on the environment — manifest today in rising sea levels, erratic rainfall, drought, declining harvests, and devastating floods — the non-West also has no real prospect of catching up … [pp. 47-48]

That second paragraph is an unexpected acknowledgement that the earliest industrialized nations (France, the United Kingdom, and the U.S.) unwittingly put us on a path to self-annihilation only to be knowingly repeated and intensified by latecomers to industrialization. All those (cough) ecological disturbances are occurring right now, though the public has been lulled into complacency by temporary abundance, misinformation, under- and misreporting, and international political incompetence. Of course, ecological destruction is no longer merely the West’s trauma but a global catastrophe of the highest magnitude which is certainly in the process of catching up to us.

Late in Chapter Two, Mishra settles on the Crystal Palace exhibition space and utopian symbol, built in 1851 during the era of world’s fairs and mistaken enthusiasm regarding the myth of perpetual progress and perfectibility, as an irresistible embodiment of Western hubris to which some intellectual leaders responded with clear disdain. Although a marvelous technical feat of engineering prowess and demonstration of economic power (not unlike countries that host the Olympics — remember Beijing?), the Crystal Palace was also viewed as an expression of the sheer might of Western thought and its concomitant products. Mishra repeatedly quotes Dostoevsky, who visited the Crystal Palace in 1862 and described his visceral response to the place poignantly and powerfully:

You become aware of a colossal idea; you sense that here something has been achieved, that here there is victory and triumph. You even begin vaguely to fear something. However independent you may be, for some reason you become terrified. ‘For isn’t this the achievement of perfection?’ you think. ‘Isn’t this the ultimate?’ Could this in fact be the ‘one fold?’ Must you accept this as the final truth and forever hold your peace? It is all so solemn, triumphant, and proud that you gasp for breath. [p. 68]

And later, describing the “world-historical import” of the Crystal Palace:

Look at these hundreds of thousands, these millions of people humbly streaming here from all over the face of the earth. People come with a single thought, quietly, relentlessly, mutely thronging onto this colossal palace; and you feel that something final has taken place here, that something has come to an end. It is like a Biblical picture, something out of Babylon, a prophecy from the apocalypse coming to pass before your eyes. You sense that it would require great and everlasting spiritual denial and fortitude in order not to submit, not to capitulate before the impression, not to bow to what is, and not to deify Baal, that is not to accept the material world as your ideal. [pp. 69–70]

The prophetic finality of the Crystal Palace thus presaged twentieth-century achievements and ideas (the so-called American Century) that undoubtedly eclipsed the awesome majesty of the Crystal Palace, e.g., nuclear fission and liberal democracy’s purported victory over Soviet Communism (to name only two). Indeed, Mishra begins the chapter with a review of Americans declarations of the end of history, i.e., having reached final forms of political, social, and economic organization that are now the sole model for all nations to emulate. The whole point of the chapter is that such pronouncements are illusions with strong historical antecedents that might have cautioned us not to leap to unwarranted conclusions or to perpetuate a soul-destroying regime hellbent on extinguishing all alternatives. Of course, as Gore Vidal famously quipped, “Americans never learn; it’s part of our charm.”


Richard Wolff gave a fascinating talk at Google offices in New York City, which is embedded below:

This talk was published nearly two years ago, demonstrating that we refuse to learn or make adjustments we need to order society better (and to avoid disaster and catastrophe). No surprise there. (Also shows how long it takes me to get to things.) Critics of capitalism and the democracy we pretend to have in the U.S. are many. Wolff criticizes effectively from a Marxist perspective (Karl Marx being among the foremost of those critics). For those who don’t have the patience to sit through Wolff’s 1.5-hour presentation, let me draw out a few details mixed with my own commentary (impossible to separate, sorry; sorry, too, for the profusion of links no one follows).

The most astounding thing to me is that Wolff admitted he made it through higher education to complete a Ph.D. in economics without a single professor assigning Marx to read or study. Quite the set of blinders his teachers wore. Happily, Wolff eventually educated himself on Marx. Multiple economic forms have each had their day: sharing, barter, feudalism, mercantilism, capitalism (including subcategories anarcho-capitalism and laissez-faire economics), Keynesian regulation, socialism (and its subcategory communism), etc. Except for the first, prevalent among indigent societies living close to subsistence, all involve hierarchy and coercion. Some regard those dynamics as just, others as unjust. It’s worth noting, too, that no system is pure. For instance, the U.S. has a blend of market capitalism and socialism. Philanthropy also figures in somehow. However, as social supports in the U.S. continue to be withdrawn and the masses are left to fend for themselves, what socialism existed as a hidden-in-plain-sight part of our system is being scaled down, privatized, foisted on charitable organizations, and/or driven out of existence.

The usual labor arrangement nearly all of us know — working for someone else for a wage/salary — is defined in Marxism as exploitation (not the lay understanding of the term) for one simple reason: all economic advantage from excess productivity of labor accrues to the business owner(s) (often a corporation). That’s the whole point of capitalism: to exploit (with some acknowledged risk) the differential between the costs of labor and materials (and increasingly, information) vs. the revenue they produce in order to prosper and grow. To some, exploitation is a dirty word, but understood from an analytical point of view, it’s the bedrock of all capitalist labor relationships. Wolff also points out that real wages in the U.S. (adjusted for inflation) have been flat for more than 40 years while productivity has climbed steadily. The differential profit (rather immense over time) has been pocketed handily by owners (billionaire having long-since replaced millionaire as an aspiration) while the average citizen/consumer has kept pace with the rising standard of living by adding women to the workforce (two or more earners per family instead of one), racking up debt, and deferring retirement.

Wolff’s antidote or cure to the dynamic of late-stage capitalism (nearly all the money being controlled by very few) is to remake corporate ownership, where a board of directors without obligation to workers makes all the important decisions and takes all the profit, into worker-owned businesses that practice direct democracy and distribute profits more equitably. How closely this resembles a coop (read: cooperative), commune, or kibbutz I cannot assess. Worker-owned businesses, no longer corporations, also differ significantly from how “socializing a business” is generally understood, i.e., a business or sector being taken over and run by the government. The U.S. Postal Service is one example. (Curiously, that last link has a .com suffix instead of .gov.) Public K–12 education operated by the states is another. As I understand it, this difference (who owns and runs an enterprise) is what lies behind democratic socialism being promoted in the progress wing of the Democratic Party. Bernie Sanders is aligning his socialist politics with worker ownership of the means of production. Wolff also promotes this approach through his book and nonprofit organization Democracy at Work. How different these projects may be lies beyond my cursory analysis.

Another alternative to capitalist hegemony is a resource-based economy, which I admit I don’t really understand. Its rank utopianism is difficult to overlook, since it doesn’t fit at all with human history, where we muddle through without much of a plan or design except perhaps for those few who discover and devise ways to game systems for self-aggrandizement and personal benefit while leaving everyone else in the lurch. Peter Joseph, founder of The Zeitgeist Movement, is among the promoters of a resource-based economy. One of its chief attributes is the disuse of money. Considering that central banks (the Federal Reserve System in the U.S.) issue fiat currency worth increasingly little are being challenged rather effectively by cryptocurrencies based on nothing beyond social consensus, it’s interesting to contemplate an alternative to astronomical levels of wealth (and its inverse: debt) that come as a result of being trapped within the fiat monetary system that benefits so very few people.

Since this is a doom blog (not much of an admission, since it’s been obvious for years now), I can’t finish up without observing that none of these economic systems appears to take into account that we’re on a countdown to self-annihilation as we draw down the irreplaceable energy resources that make the whole shebang go. It’s possible the contemplated resource-based economy does so, but I rather doubt it. A decade or more ago, much of the discussion was about peak oil, which shortly thereafter gave way to peak everything. Shortages of materials such as helium, sand, and rare earths don’t figure strongly in public sentiment so long as party balloons, construction materials, and cell phones continue to be widely available. However, ongoing destruction of the biosphere through the primary activities of industrial civilization (e.g., mining, chemical-based agriculture, and steady expansion of human habitation into formerly wild nature) and the secondary effects of anthropogenic climate change (still hotly contested but more and more obvious with each passing season) and loss of biodiversity and biomass is catching up to us. In economics, this destruction is an externality conveniently ignored or waved away while profits can be made. The fullness of time will provide proof that we’ve enjoyed an extraordinary moment in history where we figured out how to exploit a specific sort of abundance (fossil fuels) with the ironic twist that that very exploitation led to the collapse of the civilization it spawned and supported. No one planned it this way, really, and once the endgame came into view, nothing much could be done to forestall it. So we continue apace with self-destruction while celebrating its glamor and excess as innovation and progress. If only Wolff would incorporate that perspective, too.

I put aside Harari’s book from the previous blog post in favor of Pankaj Mishra’s Age of Anger: A History of the Present (2017). Mishra’s sharp cultural criticism is far more convincing than Harari’s Panglossian perspective. Perhaps some of that is due to an inescapable pessimism in my own character. Either way, I’ve found the first 35 pages dense with observations of interest to me as a blogger and armchair cultural critic. Some while back, I published a post attempting to delineate (not very well, probably) what’s missing in the modern world despite its obvious material abundance. Reinforcing my own contentions, Mishra’s thesis (as I understand it so far) is this: we today share with others post-Enlightenment an array of resentments and hatreds (Fr.: ressentiment) aimed incorrectly at scapegoats for political and social failure to deliver the promises of progressive modernity equitably. For instance, Mishra describes

… flamboyant secular radicals in the nineteenth and early twentieth centuries: the aesthetes who glorified war, misogyny and pyromania; the nationalists who accused Jews and liberals of rootless cosmopolitanism and celebrated irrational violence; and the nihilists, anarchists and terrorists who flourished in almost every continent against a background of cosy political-financial alliances, devastating economic crises and obscene inequalities. [pp. 10–11]

Contrast and/or compare his assessment of the recent past:

Beginning in the 1990s, a democratic revolution of aspiration … swept across the world, sparking longings for wealth, status and power, in addition to ordinary desires for stability and contentment, in the most unpromising circumstances. Egalitarian ambition broke free of old social hierarchies … The culture of [frantic] individualism went universal … The crises of recent years have uncovered an extensive failure to realize the ideals of endless economic expansion and private wealth creation. Most newly created ‘individuals’ toil within poorly imagined social and political communities and/or states with weakening sovereignty … individuals with very different pasts find themselves herded by capitalism and technology into a common present, where grossly unequal distributions of wealth and power have created humiliating new hierarchies. This proximity … is rendered more claustrophobic by digital communications … [S]hocks of modernity were once absorbed by inherited social structures of family and community, and the state’s welfare cushions [something mentioned here, too]. Today’s individuals are directly exposed to them in an age of accelerating competition on uneven playing fields, where it is easy to feel that there is no such thing as either society or state, and that there is only a war of all against all. [pp. 12–14]

These long quotes (the second one cut together from longer paragraphs) are here because Mishra is remarkably eloquent in his diagnosis of globalized culture. Although I’ve only read the prologue, I expect to find support for my long-held contention that disorienting disruptions of modernity (using Anthony Giddens’ sociological definition rather than the modish use of the term Postmodern to describe only the last few decades) create unique and formidable challenges to the formation of healthy self-image and personhood. Foremost among these challenges is an unexpectedly oppressive information environment: the world forced into full view and inciting comparison, jealousy, envy, and hatred stemming from routine and ubiquitous frustrations and humiliations as we each struggle in life getting our personal share of attention, renown, and reward.

Another reason Mishra provides for our collective anger is a deep human yearning not for anarchism or radical freedom but rather for belonging and absorption within a meaningful social context. This reminds me of Erich Fromm’s book Escape from Freedom (1941), which I read long ago but can’t remember so well anymore. I do remember quite vividly how counter-intuitive was the suggestion that absolute freedom is actually burdensome as distinguished from the usual programming we get about breaking free of all restraints. (Freedom! Liberty!) Indeed, Mishra provides a snapshot of multiple cultural and intellectual movements from the past two centuries where abandoning oneself to a cause, any cause, was preferable to the boredom and nothingness of everyday life absent purpose other than mere existence. The modern substitute for larger purpose — commodity culture — is a mere shadow of better ways of spending one’s life. Maybe commodity culture is better than sacrificing one’s life fighting wars (a common fate) or destroying others, but that’s a much longer, more difficult argument.

More to follow as my reading progresses.

Renewed twin memes Universal Basic Income (UBI) and Debt Jubilees (DJ) have been in the news recently. I write renewed because the two ideas are quite literally ancient, unlearnt lessons that are enjoying revitalized interest in the 21st century. Both are capable of sophisticated support from historical and contemporary study, which I admit I haven’t undertaken. However, others have done the work and make their recommendations with considerable authority. For instance, Andrew Yang, interviewed repeatedly as a 2020 U.S. presidential candidate, has made UBI the centerpiece of his policy proposals, whereas Michael Hudson has a new book out called … and forgive them their debts: Lending, Foreclosure and Redemption — From Bronze Age Finance to the Jubilee Year that offers a forgotten history of DJ.

Whenever UBI or DJ comes up in conversation, the most obvious, predicable response I hear (containing a kernel of truth) is that either proposal would reward the losers in today’s capitalist regime: those who earn too little or those who carry too much debt (often a combination of both). Never mind that quality education and economic opportunities have been steadily withdrawn over the past half century. UBI and DJ would thus be giveaways, and I daresay nothing offends a sense of fairness more than others getting something for nothing. Typical resentment goes, “I worked hard, played by the rules, and met my responsibilities; why should others who slacked, failed, or cheated get the benefit of my hard work?” It’s a commonplace “othering” response, failing to recognize that as societies we are completely interconnected and interdependent. Granting the winners in the capitalist contest a pass on fair play is also a major assumption. The most iconic supreme winners are all characterized by shark-like business practices: taking advantage of tax loopholes, devouring everything, and shrewdly understanding their predatory behavior not in terms of producing value but rather as gobbling or destroying competition to gain market share. More than a few companies these days are content to operate for years on venture capital, reporting one quarterly loss after another until rivals are vanquished. is the test case, though how many times its success can be repeated is unknown.

With my relative lack of economic study and sophistication, I take my lessons instead from the children’s game Monopoly. As an oversimplification of the dynamics of capital formation and ownership, Monopoly even for children reaches its logical conclusion well before its actual end, where one person “wins” everything. The balancing point when the game is no longer worth playing is debatable, but some have found through experience the answer is “before it starts.” It’s just no fun destroying bankrupting other players utterly through rent seeking. The no-longer-fun point is analogous to late-stage capitalism, where the conclusion has not yet been fully reached but is nonetheless clear. The endgame is, in a word, monopoly — the significant element being “mono,” as in there can be only one winner. (Be careful what you wish for: it’s lonely and resentful at the top.) Others take a different, aspirational lesson from Monopoly, which is to figure out game dynamics, or game the game, so that the world can be taken by force. One’s growing stranglehold on others disallows fair negotiation and cooperation (social rather than capitalist values) precisely because one party holds all the advantages, leading to exploitation of the many for the benefit of a few (or one).

Another unlearnt ancient lesson is that nothing corrupts so easily or so much as success, power, fame, wealth. Many accept that corruption willingly; few take the lesson to heart. (Disclosure: I’ve sometimes embarked on the easy path to wealth by buying lottery tickets. Haven’t won, so I’m not corruptible yet corrupted. Another case of something for nearly nothing, or for those gambling away their rent and grocery money, nothing for something.) Considering that money makes the world go around, especially in the modern age, the dynamics of capitalism are inescapable and the internal contradictions of capitalism are well acknowledged. The ancient idea of DJ is essentially a reset button depressed before the endgame leads to rebellion and destruction of the ownership class. Franklin D. Roosevelt is credited in some accounts of history as having saved capitalism from that near endgame by transferring wealth back to the people through the New Deal and the war economy. Thus, progressives are calling for a Green New Deal, though it’s not clear they are aware that propping up capitalism only delays its eventual collapse through another couple cycles (reversals) of capital flow. Availability of cheap, plentiful energy that allowed economies (and populations) to balloon over the past two and one-half centuries cannot continue for much longer, so even if we get UBI or DJ, the endgame remains unchanged.

There is something ironic and vaguely tragic about how various Internet platforms — mostly search engines and social media networks — have unwittingly been thrust into roles their creators never envisioned for themselves. Unless I’m mistaken, they launched under the same business model as broadcast media: create content, or better yet, crowd-source content, to draw in viewers and subscribers whose attention is then delivered to advertisers. Revenue is derived from advertisers while the basic services — i.e., search, job networking, encyclopedias and dictionaries, or social connection — are given away gratis. The modest inconveniences and irritations of having the screen littered and interrupted with ads is a trade-off most end users are happy to accept for free content.

Along the way, some platform operators discovered that user data itself could be both aggregated and individualized and subsequently monetized. This second step unwittingly created so-called surveillance capitalism that Shoshana Zuboff writes about in her recently published book (previously blogged about it here). Essentially, an Orwellian Big Brother (several of them, in fact) tracks one’s activity through smart phone apps and Web browsers, including GPS data revealing movement through real space, not just virtual spaces. This is also the domain of the national security state from local law enforcement to the various security branches of the Federal government: dragnet surveillance where everyone is watched continuously. Again, end users shrug off surveillance as either no big deal or too late to resist.

The most recent step is that, like the Internet itself, various platforms have been functioning for some time already as public utilities and accordingly fallen under demand for regulation with regard to authenticity, truth, and community standards of allowable speech. Thus, private corporations have been thrust unexpectedly into the role of regulating content. Problem is, unlike broadcast networks that create their own content and can easily enforce restrictive standards, crowd-sourced platforms enable the general population to upload its own content, often mere commentary in text form but increasingly as video content, without any editorial review. These platforms have parried by deploying and/or modifying their preexisting surveillance algorithms in search of objectionable content normally protected as free speech and taken steps to remove content, demonetize channels, and ban offending users indefinitely, typically without warning and without appeal.

If Internet entrepreneurs initially got into the biz to make a few (or a lot of) quick billions, which some few of them have, they have by virtue of the global reach of their platforms been transformed into censors. It’s also curious that by enabling end uses to publish to their platforms, they’ve given voice to the masses in all their unwashed glory. Now, everyone’s crazy, radicalized uncle (or sibling or parent or BFF) formerly banished to obscurity railing against one thing or another at the local tavern, where he was tolerated as harmless so long as he kept his bar tab current, is proud to fly his freak flag anywhere and everywhere. Further, the anonymous coward who might issue death or bomb threats to denounce others has been given means to distribute hate across platforms and into the public sphere, where it gets picked up and maybe censored. Worst of all, the folks who monitor and decide what is allowed, functioning as modern-day thought police, are private citizens and corporations with no oversight or legal basis to act except for the fact that everything occurs on their respective platforms. This is a new aspect to the corporatocracy but not one anyone planned.