Re: Financial topics
Posted: Wed Apr 06, 2016 7:01 pm
Generational theory, international history and current events
https://gdxforum.com/forum/
I'm following the story, but so far it seems to be almost entirely ashoshin wrote: > John, are you going to write about the "Panama Papers" ? Seems
> like super grist for your mill...
The Archdruid is back and in good form:aedens wrote:As we watch and noted days ago Higg and conveyed Jevons paradox of doing more with less and the apparent sticky wage conversation...
Here, though, we’re in territory that has been well mapped out in advance by one of the historians who have helped guide the project of this blog since its inception. In his magisterial twelve-volume A Study of History, Arnold Toynbee explored in unforgiving detail the processes by which societies fail. Some civilizations, he notes, are overwhelmed by forces outside their control, but this isn’t the usual cause of death marked on history’s obituaries. Far more often than not, rather, societies that go skidding down the well-worn route marked “Decline and Fall” still have plenty of resources available to meet the crises that overwhelm them and plenty of options that could have saved the day—but those resources aren’t put to constructive use and those options never get considered.
This happens, in turn, because the political elites of those failed societies lose the ability to notice that the policies they want to follow don’t happen to work. The leadership of a rising civilization pays close attention to the outcomes of its policies and discards those that don’t work. The leadership of a falling civilization prefers to redefine “success” as “following the approved policies” rather than “yielding the preferred outcomes,” and concentrates on insulating itself from the consequences of its mistakes rather than recognizing the mistakes and dealing with their consequences. The lessons of failure are never learned, and so the costs of failure mount up until they can no longer be ignored.
This is where Peggy Noonan’s division of the current population into “protected” and “unprotected” classes has something useful to offer. Members of the protected class—in today’s America, as already noted, this is above all the more affluent half or so of the salary class—live within a bubble that screens them from any contact with the increasingly impoverished and immiserated majority. As far as they can see, everything’s fine; all their friends are prospering, and so are they; spin-doctored news stories and carefully massaged statistics churned out by government offices insist that nothing could possibly be wrong. They go from gated residential community to office tower to exclusive restaurant to high-end resort and back again, and the thought that it might be useful once in a while to step outside the bubble and go see what conditions are like in the rest of the country would scare the bejesus out of them if it ever occurred to them at all.
In a rising civilization, as Toynbee points out, the political elite wins the loyalty and respect of the rest of the population by recognizing problems and then solving them. In a falling civilization, by contrast, the political elite forfeits the loyalty and respect of the rest of the population by creating problems and then ignoring them. That’s what lies behind the crisis of legitimacy that occurs so often in the twilight years of a society in decline—and that, in turn, is the deeper phenomenon that lies behind the meteoric rise of Donald Trump. If a society’s officially sanctioned leaders can’t lead, won’t follow, and aren’t willing to get out of the way, sooner or later people are going to start looking for a way to shove them through history’s exit turnstile, by whatever means turn out to be necessary.
Thus if Trump loses the election in November, that doesn’t mean that the threat to the status quo is over—far from it. If Hillary Clinton becomes president, we can count on four more years of the same failed and feckless policies, which she’s backed to the hilt throughout her political career, and thus four more years in which millions of Americans outside the narrow circle of affluence will be driven deeper into poverty and misery, while being told by the grinning scarecrows of officialdom that everything is just fine. That’s not a recipe for social stability; those who make peaceful change impossible, it’s been pointed out, make violent change inevitable. What’s more, Trump has already shown every ambitious demagogue in the country exactly how to build a mass following, and he’s also shown a great many wage-earning Americans that there can be alternatives to an intolerable status quo.
No matter how loudly today’s establishment insists that the policies it favors are the only thinkable options, the spiraling failure of those policies, and the appalling costs they impose on people outside the bubble of privilege, guarantee that sooner or later the unthinkable will become the inescapable. That’s the real news of this election season: the end of ordinary politics, and the first stirrings of an era of convulsive change that will leave little of today’s conventional wisdom intact.