Showing posts with label us politics. Show all posts
Showing posts with label us politics. Show all posts

Newt Gingrich, The Last Bolshevik  

Posted by Big Gav in

Guy Rundle’s latest missive from the campaign trail looks at Newt Gingrich’s intellectual roots (not a phrase you would associate with any other Republican candidate save Ron Paul, whose roots are wildly different), echoing some of the content from Fred Turner’s book "From Counterculture To Cyberculture” (Fred had a somewhat jaundiced view of the outcome of Stewart Brand and co hooking up with Newt in the 90s) - No one understands how utterly unconservative Newt Gingrich is.

Today’s appearance wasn’t Newt at his most energetic. The big old dog has been, as have all candidates, on the road for ten weeks solid now, and they’re all showing the strain. Ron Paul wisely takes two days in every seven off. Rick Santorum is showing the strain of, well, failure, and the illness of his three-year-old daughter. Mitt Romney has the greatest physical stamina of the four, but the least in existential terms – since he doesn’t believe much of what he’s saying anyway, his stump speech has now become a discontinuous series of lines, punched home with effectiveness but no life. Newt still has the belief, but the sheer physical oomph ain’t there.

He is, after all, carrying a lot of weight – he looks like a man who got up one morning and decided to wear a barrel, and then put his pants on over it anyway. That massing, topped with white hair in the style of an eight-year old boy from 1961, completes the weird look. Today his blonde 3.0 wifebot Callista stayed by his side throughout the speech, laughing and smiling on queue, like there was electric cabling running into her brain stem, a slight whirring sound each time her head turned, her hair a helmet made of super-metal mined from passing asteroids.

They look like what they are: aging cashed-out strip mall developer, and the widow of his business partner, having moved to Boca Raton, and now putting too much energy into the condo management committee. When he’s on form, he can dispel that demeanour, with a burst of energy and righteous anger. Then he becomes a raging bull, and you wouldn’t want to be in front of him. You’d have to be churlishly one-sided not to admire Gingrich at his height – his response in South Carolina, on the accusation that his claim that Obama was ‘the food stamp President’ was racist: "I don’t care if it makes liberals unhappy, I’m going to continue to find ways to help poor people learn how to get a job, learn how to get a better job, and learn someday to own the job!” to cheers, was magnificent, and should be a little chastening for anyone who thinks that a Gingrich candidacy would be a slam dunk for Obama.

But that’s at full throttle. At lower speeds, Gingrich tends to stall a little, for all but the true believers. The delivery is pat and professorial – he was, believe it or not, a global pioneer of environmental studies – and the pose of taking on the establishment collapses into victimhood and borderline paranoia. For anyone who knows this man, the claim to outsider status is absurd beyond belief, and only wilful blindness or deep-fried stupidity on the part of his followers can ignore this champion of earmarks (unrelated local spending grants attached to major bills), this K street lobbyist, and influence peddlar to the highest bidder.

No-one should be able to ignore a personal morality that is not merely hypocritical, but disgusting by all moral standards – divorcing two wives, when not one, but both of them suffered from cancer at the time. His first wife, mother of his children – and also his high-school geography teacher, whom he wed age nineteen – was dumped while in hospital, by phone.

While serving as speaker he was loathed by colleagues, wholly disorganised, and then forced out, after which he was fined three hundred thousand dollars for ethics violations. Through all that time he was prosecuting the Clinton-Lewinsky scandal with great force, even as he attempted to persuade his second wife to accept his relationship with Callista. Son of a man who didn’t stick around, and stepson of a military man who beat him throughout his childhood, he is that distinctive American political product, a self-styled conservative incapable of governing his own appetites, a one-man incontinental congress.

When in the 90s, he inadvertently revealed that he had shut-down the government in a stand-off with Bill Clinton – a stand-off the Republicans lost – because he had been given a seat down the back in an Airforce One trip, he was universally depicted as a huge baby, and there wasn’t much that artists had to alter to achieve the likeness.

That drive, going off in all directions at once, extends to his politics, and it was well on display in a hangar on the edge of town. Gingrich’s pitch is always towards action – "when I am elected President I will ask Congress to stay sitting through January, and to repeal Obamacare, repeal Dodd-Frank [the bank regulation bil], repeal Sarbanes-Oxley [a 2002, enhanced orporate regulation bill, passed by a Republican congress], so that I will have those bills on my desk to sign on the 20th January.”

That always gets a big cheer, and there’s a lot more like it. The appeal is not to the idea of the President as CEO of a country – that’s Romney’s schtick – nor to Ron Paul’s implicit appeal to the idea of an 18th century President, abolishing a whole lot of stuff, and then running the office part-time, as a free people pursue their divers happinesses. Instead, it’s a revival of the Reaganite notion that a President makes war within and without the borders – political war inside, abolishing, shaking up, reorganising, synthesising – and actual war without, annihilating enemies.

Though it cloaks itself in the language of the Constitution and the Revolution, it is nothing like the state that the eighteenth century revolutionaries imagined — a settled, pious inward looking free people (and, erm, their slaves). Gingrich’s vision is Promethean, expansionary, transformative. Though he talks of reducing the size of government, and would certainly take an axe to social programmes if he could, he is no proponent of the nightwatchman state. He wants bigger, better, more, now sooner. He wants the qualitative transformation of human existence by the application of the scientific technological revolution in every sphere of existence.

His Americanism is not that of Jefferson or Hamilton still less of Calhoun or Rothbard, and not even of Ayn Rand – it is the America of Buckminster Fuller, of Norbert Weiner, of a more aggressive Bill Gates, and a smarter Jack Welch. Gingrich sees the US as the manifest destiny of humanity, but he sees that destiny as unrealised. He doesn’t want to balance the budget and get on the gold standard. He wants the private sector to go to Mars.

Gingrich is a true revolutionary, the last Bolshevik, of the Rightist tendancy, the Bukharin de nos jours. When you hear him talking about not merely colonising the Moon, but having the 13,000 residents of it apply for US statehood, what do we hear but this: "Man will become immeasurably stronger, wiser, and subtler; his body will become more harmonious, his movements more rhythmic, his voice more musical. The forms of life will become dynamically dramatic. The average human type will rise to the heights of an Aristotle, a Goethe, or a Marx. And above these heights, new peaks will rise.” Which is Trotsky.

Indeed, the case of Newt Gingrich, his intellectual and political history is so extraordinarily interesting, that there is no space to do anything but scratch the surface here. But the gist is this: Gingrich taps into a utopian stream of the twentieth century that came to be identified with post-war America, but began on the radical left – the idea that finding the right state form to unleash humanity’s productive forces was the true path to human liberation, and that technology would do the rest. The Bolsheviks differed within themselves on the immediate state form – would it be wholly socialist or harness the forces of capitalism – but it is they who introduced this idea to global politics.

Over the ensuing decades, when people departed from the movement, they took that promethean urge with them. One who did was James Burnham, a writer of the 30s and 40s, who wrote the Managerial Revolution, a book which argued that scientists, engineers, and managers were now running the joint, creating their own path to class victory in both the US and the USSR. One of Burnham’s followers was a bloke named Alvin Toffler, who wrote seminal 70s book Future Shock, to be found wedged between The Dice Man and The Joy of S-x in many a 70s bookshelf.

Future Shock and Toffler’s other books, such as The Third Wave, pointed out that we were heading to an information and post-industrial society at a time when Detroit was still the heart of the US, and the economy was organised around the making of stuff. Toffler, like Burnham, had passed through the Communist movement, and retained a scepticism towards bourgeois notions of politics.

And Gingrich? Gingrich was a follower of Toffler’s, has written introductions to his books, and been inspired by him, and often spruiked him in public. Toffler believes that US political institutions are obsolete; Gingrich believes – or says he does – that they are the form of the future. That prometheanism, that futurism, is what fuels Gingrich’s disdain for Obama, a social democrat whose programme most neatly corresponds to Karl Popper’s notion that piecemal social reform should try and make people’s lives somewhat less worse.

In Gingrich you see something triangulate between Marx, Mussolini, Toffler and sundry others, an investment in nation and species, an utter disinterest in the fate of the individual. None of his supporters really understand that, or how utterly unconservative he is. He flatters and coos to them with the stories the want to hear. They do not want to go to Mars. They want to go to 1960, when America roared with industry, ran the world, and was not talked back to, when material production, not fiddling with screens, was at the centre of life, and when all this goddam multifarious. "It breaks his heart seeing foreign cars/filled with fuel that isn’t ours” goes a line from Made in America one of the country rock songs they pump out at these events.

They want to hear about strength, and enemies, and enemies within, and the vanquishing of them. Newt wants to talk about how poor high school kids could pay for their astrophysics degrees by being cyber janitors at cloud schools run by Apple and Oprah, or something. The journos in the back suck their pencils, and wonder at adults like teenagers who won’t face their nation’s problems, and worship a Golden Baby, telling them what they want to hear, to the music of jets, already warming up for the next gig down the road.

Rick Santorum, Communist ?  

Posted by Big Gav in

Crikey's Guy Rundle, still serving his sentence on the US campaign trail, has a look at Republican contender (albeit close to also-ran) Rick Santorum's family history (while kindly ignoring the terrible fate Santorum's name - like Thomas Crapper before him - has suffered) - A Pinch of piss in Sth Carolina as Santorum sells lunch pail nostalgia.

The Springdale Historic Conference Centre was the usual, symbolic deal — a historic home, lit to the gills, with a plain oblong building behind, slapped up in minutes. Families were streaming past the house and up the pathway, in actual Sunday best. At the head of the path, a morbidly obese Santorum supporter had set up the badges stall, so everyone had to step through the flowerbed to get around him. No one said a word.

“That doesn’t seem to be the best place to set up.”

“Oh yeah, I guess so.”

Everyone had a slightly floaty, Xanaxy air. Perhaps this was relaxed southern charm. Then three black SUVs pulled up, and the candidate stepped out, with three staffers and three secret service agents, all of these bald and black-coated and nothing like his supporters, more like a Fast and Furious sequel had just turned up. In the middle of them all, the candidate, in his now-signature sweater-vest, curly-hair and addled grin, looked jaunty, a Pennsylvania Italian-American, not a lot like the southern folk among whom he had found a following. He bounded in through the open faux-french windows, all energy — and then realised that he was at the back of the press pen, and there was no route to the stage. How the hell had he pulled out a draw in Iowa?

Three days after the New Hampshire primary, and Rick Santorum is still in the game, purely on the strength of the surprise Iowa result. No one, but no one had predicted that he would get anything like that vote, even though he was the last conservative standing, after the Right’s speed-dating fiasco through Bachmann, Perry and Gingrich at the end of 2011. Santorum had flatlined throughout, he had no serious money, and he had no organisation to speak of in New Hampshire. He’d taken the usual route of the last chance longshot, effectively moving to Iowa for several months, and working “every one of its 99 counties” as his tagline went.

Since Iowa’s main crop is corn, it was a case of coals to Newcastle, because Rick Santorum, more than any candidate, has planted himself firmly in the faith and family camp. Ron Paul had his gold standard end the Fed thing, Newt Gingrich wants to build Facebook on the moon or something, and Rick Perry is still campaigning off executing innocent people, but Santorum, the sole Roman Catholic, has planted himself at the centre of the values vote. Standing before an echt banner at the Peachtree, which read Faith, Family, Freedom, he yowled:

“I always thought that banner should read faith plus family equals freedom!” to moderate enthusiasm SC style. Santorum’s credentials — he is not only opposed to abortion, but to legal contraception, he has seven home-schooled kids — should have make him a shoo-in for the religious Right, but there have been problems along the way. The religious values vote is overwhelmingly evangelical, and until recently overwhelmingly anti-Catholic. South Carolina is the home of Bob Jones University, whose founder calls the Pope the “anti-Christ”. Yes, that’s absurd, but these people believe Adam and Eve rode to church on dinosaurs so, y’know.

By the time the South Carolina primary came around, the evangelicals had failed to endorse a candidate, even though Newt Gingrich was a serial adulterer and Mitt Romney was a Mormon, which the evangelicals regard as one up from being a children’s party magician. Having run more or less equal fourth in New Hampshire, with 10% of the vote, Santorum needs to separate himself from the pack. At the end of the first week, he had gone from 19% to 16%,and the base wasn’t firing.

Consequently, at the Springdale, he was laying it on with a trowel. There was plenty there for anyone who wanted a constitutional theocracy, and enough to freak out anyone who thought that might not be the best idea.

“You know in the old USSR, some of you are old enough to remember that [all of them were, except those too young to remember SpongeBob] and every time they had a new leader, they’d rewrite the history books, well that’s kinda what the progressives do. But we hold these truths, these truths to be self-evident, that we are endowed with certain rights by … who, by who? …”

“By our Creator!” the audience replied in unison.

“We are children of God,” he continued, “because we’re made in his image.”

On it went, the full American theology, a flagrant Christianist misconstruction of Thomas Jefferson’s specifically Deist rendering of reality.

“The pursuit of happiness!” Santorum said, “The founding fathers didn’t mean pleasure! They meant living in accordance with God!”

By now I was getting shouty in my head, wanting to raise the bit where Ben Franklin got closer to God via two whores in a bath in Paris. But Santorum was already on to de Tocqueville ”read Alexis de Tocqueville! He knew how great we are!”

No, you read de Tocqueville! He thought democracy would turn you into an atomised mediocrity! Nurrggghhh!

The first part of Santorum’s speech was the most Messianic version of American exceptionalism on offer in the primaries so far, and drew in his grandfather coming over from Italy, to pursue freedom and escape fascism. In the second half, he outlined an economic plan that could have been straight out of Mussolini.

Having enunciated a constitution promising limited government, Santorum then outlined a program that was pure corporatism, a fantasy projection by which America gets back its manufacturing base. Santorum’s “Made In America” plan is a scheme not merely to reintroduce a degree of high-end manufacture, but to get back the sort of full-bore grunt jobs that have long since gone east.

“The average manufacturing job makes 77 thousand dollars a year. Those are the sort of jobs we can get back, if we can get high corporate taxes off the back of business and get those businesses back!”

The argument is a fantasy of course, and of a particular kind, for it reaffirms the idea that a certain type of America could be returned — solid, blue-collar jobs requiring nothing more than a high-school diploma, and offering a wage guaranteeing a life that would elsewhere be seen as middle-class. The message has resonated in Santorum’s home state of Pennsylvania whose towns are rusting wrecks, and in South Carolina, where the final departure of textile mills has cost the state much of its sense of self.

The contradiction between a minimal constitution, and the proposal for a federal industry policy that would draw energy and talent away from new industries and into old non-viable ones disappears only if you enter into the full fantasy that Rick Santorum is selling more than any other candidate — that the Constitution is a guarantee not merely of liberty of a sort, but also of prosperity, and dominance. This element, always present in American campaigns, has become obsessive this year, therapeutic. The crowds can’t get enough of it.

“Being exceptional doesn’t make us special,” Santorum noted in a barely consistent caveat, before noting “but we kinda know we are”, which brought a self-indulgent giggle from a section of the audience. They all do it, save Ron Paul, but Santorum is the one selling the most all-embracing nostalgia, the whole package, the Stars and Stripes on the lunch-pail vision.

He wrapped up with a bit of business about what a busy year this is for him family-wise, and how he shouldn’t be running … “but” (long pause) “it’s my dooty”. He has a low and portentous delivery that is sinister and compelling. He is a professional politician, of course, who has poured out the pork, souvenired the earmarks, opened his doors wide to lobbyists, and supported a whole raft of big government legislation.

One can usually find the gales of exceptionalia in US politics either amusing or merely blathersome, but there is something about Rick Santorum that gets under my skin, and it has nothing to do with his positions on sexuality, etc, which is simply consistent religious conservatism.It is instead the total fiction that he makes of his family’s history, as a way of inserting it into the national myth, and a fairly suffocating version of it at that. After all, Santorum’s father, a doctor in state-run veterans’ hospitals throughout his career, credited the New Deal-era GI Bill as “making his life”, allowing him to return from World War II and not have to slide straight into a job. The GI Bill was exactly the sort of “socialist” bill that Santorum purports to not merely despise, but believes is a net drain on the economy, and a debilitating enslavement to big government.

When your father is on record as saying that the government helped make the life that in turn made yours, there is something deeply dishonourable in traducing it — not merely on his behalf, but for the millions who gained better lives out of that initiative. It is part and parcel of the simple, total mythology that seems essential to holding national self-belief together. Going back one generation further, it got weirder —  Santorum’s grandad Pietro came to the States in 1925 to escape Mussolini — but as a Communist, escaping fascist death squads. He later returned to Italy, where The Daily Beast found the other side of Santorum’s family — “I have visited them,” Santorum said in his speech, “they are wonderful people, but they are nothing like me” — and they were all Communists. That is all simply part of the complex history of the 20th century. But like doctored photos in the USSR, as the man said, Pietro Santorum has had a flag inserted in his hand, in a grainy photo at Ellis Island.

Rundle also casts a jaundiced eye over Obama's "State Of The Union" speech (just to demonstrate he is an impartial observer of both Republican and Democrat politicians, and carefully avoiding the use of the "f" word) - Obama rolls his tanks onto the GOP’s country-club lawns.
They call the north-west “the forgotten coast”, and it’s an eerie and beguiling stretch — cheek-by-jowl with the metropolis, the roaring new cities of the eastern “space coast”, the foreclosure lands of Orlando — yet decades away from it. No convenience stores or schmick fast-food outlets here — the gas comes from ancient stations that sell nothing else, save for souvenir baskets made from shells, and Doritos.

The place even has its own time zone — central time, an hour behind the east coast, extending halfway into the state, stopping at the Apalachicola River, except where a town decides different. Go into an old weatherboard trading post for a burger, and the clock’ll show it an hour behind the place 10 minutes back along the road.

Given all that it was inevitable, perhaps, that the bursts of Christian rock (“come to our Creator/dude don’t wait till later”) and identikit nu-country (“I stopped driving my rig three years ago, when Cheryl-Anne got cancer/she said don’t ask ‘why us’ babe, cos you know we got the answer/ it’s those three sons we raised to men/it’s the flag we raise each evening, when …”) would be interspersed with warnings of disaster — of an America “we have four more years to save”, of a “country disappearing beneath our feet”, of the “trickery and manipulation” of the grand “community organiser in chief”, of Hitler and Stalin, of the income tax system being based on need and “from each according to their needs, to each …”.

Yes, every second or third station, beamed from Panama City, from Pensacola, from Carrabelle, there was measured panic from the paid ranters of the Right: from Rush Limbaugh, from Fox News Radio, and from crazed locals (“I’m so angry I can’t even speak right now! Here’s an ad for gold investing!”) stirred up by what Limbaugh called the “class warfare rally”, otherwise known as President Obama’s 2012 state of the union speech.

While Mitt Romney and Newt Gingrich went at it hammer and tongs up and down the peninsula, Obama had launched his 2012 re-election campaign, with an address that liberal commentators assessed as less partisan than previous years, but which, to me, had the distinct feel of the President rolling his tanks onto the GOP’s country-club lawns.

Wrapping his remarks in the killing of bin Laden, at the opening and closing of the speech, Obama presented a combative politics, emphasising the idea that “fairness” should be at the centre of American life, that as a principle, “no one earning more than a million dollars should pay less than 30% in tax”, and laying claim to the notion of “teamwork” as part of the American experience, relating it to the teamwork of the Navy SEALS team. If you’re of an internationalist leftish persuasion I wouldn’t read this bit while consuming liquids:
“Which brings me back to where I began. Those of us who’ve been sent here to serve can learn a thing or two from the service of our troops. When you put on that uniform, it doesn’t matter if you’re black or white, Asian, Latino, Native American, conservative, liberal, rich, poor, gay, straight. When you’re marching into battle, you look out for the person next to you, or the mission fails. When you’re in the thick of the fight, you rise or fall as one unit, serving one nation, leaving no one behind. You know, one of my proudest possessions is the flag that the SEAL team took with them on the mission to get bin Laden. On it are each of their names. Some may be Democrats; some may be Republicans. But that doesn’t matter. Just like it didn’t matter that day in the Situation Room, when I sat next to Bob Gates, a man who was George Bush’s defence secretary, and Hillary Clinton, a woman who ran against me for president.

“All that mattered that day was the mission. No one thought about politics. No one thought about themselves.

“One of the young men involved in the raid later told me that he didn’t deserve credit for the mission. It only succeeded, he said, because every single member of that unit did their job: the pilot who landed the helicopter that spun out of control; the translator who kept others from entering the compound; the troops who separated the women and children from the fight; the SEALs who charged up the stairs. More than that, the mission only succeeded because every member of that unit trusted each other, because you can’t charge up those stairs into darkness and danger unless you know that there’s somebody behind you watching your back.

“So it is with America. Each time I look at that flag, I’m reminded that our destiny is stitched together like those 50 stars and those 13 stripes. No one built this country on their own. This nation is great because we built it together. This nation is great because we worked as a team. This nation is great because we get each other’s backs. And if we hold fast to that truth, in this moment of trial, there is no challenge too great; no mission too hard. As long as we’re joined in common purpose, as long as we maintain our common resolve, our journey moves forward, and our future is hopeful, and the state of our union will always be strong.

“Thank you, God bless you, and may God bless the United States of America.”

Well, I did warn you, didn’t I? Now you need a new laptop.

The speech was the first time that Obama has really laid claim to the bin Laden raid, and to the fact that, through his lethal drone wars, he has effectively crippled al-Qaeda far more effectively than Bush, etc, managed to do. But it’s linking it back to the domestic fight that is particularly audacious — and effective, because it gives him a way of anchoring his centre-right social market politics — or Marxist communism, to use the Right’s technical term — in American traditions.

For years the Right have sought to claim ownership of individualism, and the collective purpose that any society craves, by assigning them to separate spheres — the military is the collective enterprise that protects borders and allows the individualist society to flourish.

That’s a simple story, and easily told. Obama pushed the military model into the centre of civilian life, which leaves the Right the unenviable task of clarifying their objection without insulting the notion of collective effort. At the centre of every story told by every vet, is always collective — of how you did what you did for your unit, your buddies, the man or woman next to you. By fusing that to the domestic effort, Obama creates a platform to make the contrived nature of the Right’s account of American life obvious. It was pretty audacious, I thought, and I was surprised that the US press made very little commentary on the manoeuvre. But it was also of course not merely a move to the Right, but a leapfrog across.

When you start to use the military as a model for collective social action, you’re well into corporatism, and perhaps something more. I wouldn’t use the “F” word here, though I’m sure many will, because it is neither accurate nor useful, even metaphorically. Really, it’s a form of liberal imperialism, maintain an empire abroad while slowly drawing back its borders and power projection, while extending collective aspects at home, through an appeal to patriotic unity.

The hope, I suspect, is that the emotions attached to power projection can be swung around to the domestic sphere. The Democrats can then own this energy, and leave the Right with very little. ...

Amid their decrying of class warfare and envy and the like, they really have no idea how that “individualism” (an inaccurate portrayal of 1776, in any case) comes across to tens of millions: as atomisation, lawlessness and a wasteland where the strong rule the weak, inheritors rule workers, white black, native born immigrant, and the like. The whole military-civilian thing scares the bejesus out of me, and sets up for worse ahead, but I couldn’t suppress a cheer that he was taking the fight to them, and the notion that a mildly tilted tax system might be “communistic class envy”.

Moving over to the usually ignored left side of the political divide, TomDispatch has an article arguing that government serves some sort of useful purpose - Why Climate Change Will Make You Love Big Government .
Look back on 2011 and you’ll notice a destructive trail of extreme weather slashing through the year. In Texas, it was the driest year ever recorded. An epic drought there killed half a billion trees, touched off wildfires that burned four million acres, and destroyed or damaged thousands of homes and buildings. The costs to agriculture, particularly the cotton and cattle businesses, are estimated at $5.2 billion -- and keep in mind that, in a winter breaking all sorts of records for warmth, the Texas drought is not yet over.

In August, the East Coast had a close brush with calamity in the form of Hurricane Irene. Luckily, that storm had spent most of its energy by the time it hit land near New York City. Nonetheless, its rains did at least $7 billion worth of damage, putting it just below the $7.2 billion worth of chaos caused by Katrina back in 2005.

Across the planet the story was similar. Wildfires consumed large swaths of Chile. Colombia suffered its second year of endless rain, causing an estimated $2 billion in damage. In Brazil, the life-giving Amazon River was running low due to drought. Northern Mexico is still suffering from its worst drought in 70 years. Flooding in the Thai capital, Bangkok, killed over 500 and displaced or damaged the property of 12 million others, while ruining some of the world’s largest industrial parks. The World Bank estimates the damage in Thailand at a mind-boggling $45 billion, making it one of the most expensive disasters ever. And that’s just to start a 2011 extreme-weather list, not to end it. ...

These days, big government gets big press attention -- none of it anything but terrible. In the United States, especially in an election year, it’s become fashionable to beat up on the public sector and all things governmental (except the military). The Right does it nonstop. All their talking points disparage the role of an oversized federal government. Anti-tax zealot Grover Norquist famously set the tone for this assault. "I'm not in favor of abolishing the government,” he said. “I just want to shrink it down to the size where we can drown it in the bathtub." He has managed to get 235 members of the House of Representatives and 41 members of the Senate to sign his “Taxpayer Protection Pledge” and thereby swear never, under any circumstances, to raise taxes.

By now, this viewpoint has taken on the aura of folk wisdom, as if the essence of democracy were to hate government. Even many on the Left now regularly dismiss government as nothing but oversized, wasteful, bureaucratic, corrupt, and oppressive, without giving serious consideration to how essential it may be to our lives.

But don’t expect the present “consensus” to last. Global warming and the freaky, increasingly extreme weather that will accompany it is going to change all that. After all, there is only one institution that actually has the capacity to deal with multibillion-dollar natural disasters on an increasingly routine basis. Private security firms won’t help your flooded or tornado-struck town. Private insurance companies are systematically withdrawing coverage from vulnerable coastal areas. Voluntary community groups, churches, anarchist affinity groups -- each may prove helpful in limited ways, but for better or worse, only government has the capital and capacity to deal with the catastrophic implications of climate change.

Consider Hurricane Irene: as it passed through the Northeast, states mobilized more than 100,000 National Guard troops. New York City opened 78 public emergency shelters prepared to house up to 70,000 people. In my home state, Vermont, where the storm devastated the landscape, destroying or damaging 200 bridges, more than 500 miles of road, and 100 miles of railroad, the National Guard airlifted in free food, water, diapers, baby formula, medicine, and tarps to thousands of desperate Vermonters trapped in 13 stranded towns -- all free of charge to the victims of the storm.

The damage to Vermont was estimated at up to $1 billion. Yet the state only has 621,000 residents, so it could never have raised all the money needed to rebuild alone. Vermont businesses, individuals, and foundations have donated at least $4 million, possibly up to $6 million in assistance, an impressive figure, but not a fraction of what was needed. The state government immediately released $24 million in funds, crucial to getting its system of roads rebuilt and functioning, but again that was a drop in the bucket, given the level of damage. A little known state-owned bank, the Vermont Municipal Bond Bank, also offered low-interest, low-collateral loans to towns to aid reconstruction efforts. But without federal money, which covered 80% to 100% of the costs of rebuilding many Vermont roads, the state would still be an economic basket case. Without aid from Washington, the transportation network might have taken years to recover.

As for flood insurance, the federal government is pretty much the only place to get it. The National Flood Insurance Program has written 5.5 million policies in more than 21,000 communities covering $1.2 trillion worth of property. As for the vaunted private market, for-profit insurance companies write between 180,000 and 200,000 policies in a given year. In other words, that is less than 5% of all flood insurance in the United States. This federally subsidized program underwrites the other 95%. Without such insurance, it’s not complicated: many waterlogged victims of 2011, whether from record Midwestern floods or Hurricane Irene, would simply have no money to rebuild.

Or consider sweltering Texas. In 2011, firefighters responded to 23,519 fires. In all, 2,742 homes were destroyed by out-of-control wildfires. But government action saved 34,756 other homes. So you decide: Was this another case of wasteful government intervention in the marketplace, or an extremely efficient use of resources? ...

When thinking about the forces of nature and the nature of infrastructure, a slightly longer view of history is instructive. And here’s where to start: in the U.S., despite its official pro-market myths, government has always been the main force behind the development of a national infrastructure, and so of the country’s overall economic prosperity.

One can trace the origins of state participation in the economy back to at least the founding of the republic: from Alexander Hamilton’s First Bank of the United States, which refloated the entire post-revolutionary economy when it bought otherwise worthless colonial debts at face value; to Henry Clay’s half-realized program of public investment and planning called the American System; to the New York State-funded Erie Canal, which made the future Big Apple the economic focus of the eastern seaboard; to the railroads, built on government land grants, that took the economy west and tied the nation together; to New Deal programs that helped pulled the country out of the Great Depression and built much of the infrastructure we still use like the Hoover Dam, scores of major bridges, hospitals, schools, and so on; to the government-funded and sponsored interstate highway system launched in the late 1950s; to the similarly funded space race, and beyond. It’s simple enough: big government investments (and thus big government) has been central to the remarkable economic dynamism of the country.

Government has created roads, highways, railways, ports, the postal system, inland waterways, universities, and telecommunications systems. Government-funded R&D, as well as the buying patterns of government agencies -- (alas!) both often connected to war and war-making plans -- have driven innovation in everything from textiles and shipbuilding to telecoms, medicine, and high-tech breakthroughs of all sorts. Individuals invent technology, but in the United States it is almost always public money that brings the technology to scale, be it in aeronautics, medicine, computers, or agriculture.

Without constant government planning and subsidies, American capitalism simply could not have developed as it did, making ours the world’s largest economy. Yes, the entrepreneurs we are taught to venerate have been key to all this, but dig a little deeper and you soon find that most of their oil was on public lands, their technology nurtured or invented thanks to government-sponsored R&D, or supported by excellent public infrastructure and the possibility of hiring well-educated workers produced by a heavily subsidized higher-education system. Just to cite one recent example, the now-familiar Siri voice-activated command system on the new iPhone is based on -- brace yourself -- government-developed technology.

Ron Paul and Michele Bachmann: Manufacturing irrelevance ?  

Posted by Big Gav in ,

The Economist has a column wondering why nut-job Republican presidential hopeful Michelle Bachmann is getting lots of positive media coverage while her more principled and far more experienced competitor Ron Paul gets ignored (as in every other election he’ll continue to get no coverage unless he toes the Fox party line and gives up on half of his libertarian ideals) - Ron Paul and Michele Bachmann: Manufacturing irrelevance.

This passage from the text "Ron Paul is a goofily avuncular non-comformist ideologue who speaks unutterable truths about American foreign policy and delivers incessant indignant harangues about the monetary system that approximately no one in the media understands. I think Mr Paul's influence on the ideological cast of American conservatism has been underestimated and underreported, but to take even his influence, if not his candidacy, more seriously would require the talking haircuts and the newspaper typing corps to wrestle with a charged set of geopolitical and economic topics they would rather continue helping Americans not understand." is a classic.

It turned out that I was not wrong to wonder if Ms Bachmann would really pull it off. It was a squeaker. Mr Paul fell short by less than 1% of the vote. But, to the surprise of absolutely no one, Ms Bachmann scored a legitimising media boost from her victory while Mr Paul's near-win scored him bupkis. Even Jon Stewart says so!

But wait! If Jon Stewart is pointedly chastising the media for ignoring Ron Paul, and Jon Stewart is himself part of the media, is the media really ignoring Ron Paul? It is, yes. The subject of Ron Paul remains as willfully overlooked as an American war crime, even as the question of the justice of Ron Paul-neglect has become a white hot topic. Even Mr Stewart's amusing segment, which persuasively makes the case that much of the media has in fact conspired to slight Mr Paul, is not about Mr Paul so much as whether there is too little in the media about Mr Paul. And the generous Mr Stewart is at odds with the prevailing opinion that the media's present pattern of Ron Paul non-coverage gets it just about right. Here's Kevin Drum of Mother Jones. Here's Steve Kornacki at Salon. Here's Eric Zorn at the Chicago Tribune. Here's Dan Amira at New York. They speak with one voice: Mr Paul is a marginal candidate with a proven base of highly-motivated supporters who turn out in droves for mock-electoral trifles, but he lacks the the broader base of support necessary to qualify as a contender worth covering.

Though I think there's something to this line of thought, I also think there's something insidiously circular about it. Perhaps the best way to grasp this complaint is to compare Mr Paul's coverage to Ms Bachmann's. Both serve in the House of Representatives, though Mr Paul's record of service is decades longer. Both are significant figures within the populist tea-party movement. Real Clear Politics's average of recent national polls puts Ms Bachmann and Mr Paul at 9.6% and 8.8% of the Republican vote, respectively. Of course, poll results aren't independent of press coverage. Ms Bachmann, for reasons known only to the gods, has been lavished with media attention, even before dipping a toe in the presidential water. Yet she remains at least as unviable a candidate as Mr Paul is said to be. Indeed, had the media hivemind determined early on to treat Ms Bachmann as a badly underqualified tenderfoot legislator who was for a time the tea-party flavour of the month, chances are she'd be noshing deep-dish with Herman Cain at 5%. And had the hivemind resolved to treat Mr Paul as a conservative elder statesmen whose memorable 2008 run for the GOP nomination prepared the ideological ground for the tea-party movement and helped get his son elected to the senate, he very well might look like a "top-tier" candidate in this election season's weak Republican field.

None of this implies that Mr Paul deserves Ms Bachmann's ridiculous level of coverage. He doesn't. Rather, I think Ms Bachmann deserves to be treated like the unprepared also-ran she is. If a Ron Paul victory in Ames would have unmasked the straw poll as a colourful but politically irrelevant spectacle, Michele Bachmann's victory ought to have done the same. But it didn't because the MSM likes Michele Bachmann; it made Michele Bachmann. She's a photogenic embodiment of a certain polarising brand of conservatism that makes good copy and great TV. By contrast, Ron Paul is a goofily avuncular non-comformist ideologue who speaks unutterable truths about American foreign policy and delivers incessant indignant harangues about the monetary system that approximately no one in the media understands. I think Mr Paul's influence on the ideological cast of American conservatism has been underestimated and underreported, but to take even his influence, if not his candidacy, more seriously would require the talking haircuts and the newspaper typing corps to wrestle with a charged set of geopolitical and economic topics they would rather continue helping Americans not understand. So Ron Paul's a proven loser we can neglect with a clear conscience, while it is a matter of great public interest whether or not Michele Bachmann actually attended a family reunion, because, you see, the winner of the Ames straw poll is a real up-and-comer who's pulling down a fearsome 10% in national polls, right up there with non-candidates Rudy Giuliani and Sarah Palin. Right up there with Ron Paul.

Central Planning and The Fall of the US Empire  

Posted by Big Gav in ,

John Robb has a look at the causes of America's decline - Central Planning and The Fall of the US Empire.

One of the most interesting underlying reasons for the decline of the Soviet Union, and soon the US, is misallocation of resources due to a reliance on central planning.

Misallocation in this context means that year after year, decade after decade, the wealth of a nation is spent on the wrong things. The wrong projects are funded. The wrong infrastructure is built (or not built -- the US is 38th in the world in Internet connectivity and falling). The wrong things were bought and so on. Eventually, the accumulation of bad investment made the USSR so fragile that even the smallest shock could topple them.

The reason for this failure was that the Soviets relied on central planning. A system of economic governance where small group of people -- in the Soviet Unions case bureaucrats -- had all the decision making power. They decided what was spent and where. Even with copious amount of information, they decided badly.

Why did they decide badly? The massive economy of a modern superstate is too complex for a small group of people to manage. Too much data. Too many uncertainties. Too many moving parts.

The only way to manage an economy as complex as this is to allow massively parallel decision making. A huge number of economically empowered people making small decisions, that in aggregate, are able to process more data, get better data (by being closer to the problem), and apply more brainpower to weighing alternatives than any centralized decision making group.

Of course, the misallocation due to centralized decision making wasn't supposed to be a vulnerability of the West. To allocate resources in our economy, we had a conceptually more efficient mechanism: markets. Markets are supposed to be a mechanism that allows massively parallel decision making.

Those assumptions are proving false. The succession of market bubbles, the global financial collpse of 2008, and the recent US debt problem is prima facie evidence that gross misallocation has occurred for decades. The wealth of the West, particularly the US, is being spent on the wrong things year after year, decade after decade. We are now as fragile as the Soviet Union in the late 80's.

What happened?

Central planning took over the decision making process in the US, both through the growth of government and through an unparalleled concentration of wealth.

The parallels between the rapid growth of US government bureaucracy and the Soviet bureaucracy is straight forward. As more and more of US economy was controlled by a narrow group of decision makers allocating government resources, the more sluggish the entire economy became (most of this was due to massive growth and mis-allocation in entitlements and defense). Further, the ability of government bureaucracies to extend their decision making to remaining majority of the economy through regulatory action, is also a form of centralization. However, even with all of this government growth, it's is still not enough to account for the level of misallocation we are seeing.

There's is something else at work.

The answer is that an extreme concentration of wealth at the center of our market economy has led to a form of central planning. The concentration of wealth is now in so few hands and is so extreme in degree, that the combined liquid financial power of all of those not in this small group is inconsequential to determining the direction of the economy. As a result, we now have the equivalent of centralized planning in global marketplaces. A few thousand extremely wealthy people making decisions on the allocation of our collective wealth. The result was inevitable: gross misallocation across all facets of the private economy.

To see what this extreme wealth concentration looks like as a distribution, we don't have to look further than income distribution in the US (classic power law). The liquid wealth of those on the extreme left of the curve completely outweighs the 99.5% of the population to the right (the distribution is FAR more skewed than most people even imagine -- Republican or Democrat). This graph would also be a good way to demonstrate how decision making in a bureaucratic dictatorship in a country like the Soviet Union looked like before it collapsed.

The result of central planning in the US has finally hit the wall. The list of problems is endless. The misallocations range from the dangerous $600 trillion derivatives market to the destruction of the US middle class (by exporting jobs and the substitution of income with debt).

The end result is that our economic and political system has become very fragile. All it will take is is one extremely bad decision and the cascade of failure that follows will catch everyone off guard.

Glenn Greenwald has a look at a different aspect of the same problem - A prime aim of the growing Surveillance State.
Several weeks ago, a New York Times article by Noam Cohen examined the case of Aaron Swartz, the 24-year-old copyright reform advocate who was arrested in July, after allegedly downloading academic articles that had been placed behind a paywall, thus making them available for free online. Swartz is now being prosecuted by the DOJ with obscene over-zealousness. Despite not profiting (or trying to profit) in any way -- the motive was making academic discourse available to the world for free -- he's charged with "felony counts including wire fraud, computer fraud, unlawfully obtaining information from a protected computer and recklessly damaging a protected computer" and "could face up to 35 years in prison and $1 million in fines."

The NYT article explored similarities between Swartz and Bradley Manning, another young activist being severely punished for alleged acts of freeing information without any profit to himself; the article quoted me as follows:
For Glenn Greenwald . . . it also makes sense that a young generation would view the Internet in political terms.

"How information is able to be distributed over the Internet, it is the free speech battle of our times," he said in interview. "It can seem a technical, legalistic movement if you don't think about it that way."

He said that point was illustrated by his experience with WikiLeaks -- and by how the Internet became a battleground as the site was attacked by hackers and as large companies tried to isolate WikiLeaks. Looking at that experience and the Swartz case, he said, "clearly the government knows that this is the prime battle, the front line for political control."

This is the point I emphasize whenever I talk about why topics such as the sprawling Surveillance State and the attempted criminalization of WikiLeaks and whistleblowing are so vital. The free flow of information and communications enabled by new technologies -- as protest movements in the Middle East and a wave of serious leaks over the last year have demonstrated -- is a uniquely potent weapon in challenging entrenched government power and other powerful factions. And that is precisely why those in power -- those devoted to preservation of the prevailing social order -- are so increasingly fixated on seizing control of it and snuffing out its potential for subverting that order: they are well aware of, and are petrified by, its power, and want to ensure that the ability to dictate how it is used, and toward what ends, remains exclusively in their hands.

The Western World has long righteously denounced China for its attempts to control the Internet as a means of maintaining social order. It even more vocally condemned Arab regimes such as the one in Egypt for shutting down Internet and cell phone service in order to disrupts protests.

But, in the wake of recent riots in London and throughout Britain -- a serious upheaval to be sure, but far less disruptive than what happened in the Middle East this year, or what happens routinely in China -- the instant reaction of Prime Minister David Cameron was a scheme to force telecoms to allow his government the power to limit the use of Internet and social networking sites. Earlier this week, when San Francisco residents gathered in the BART subway system to protest the shooting by BART police of a 45-year-old man, city officials shut down underground cell phone service entirely for hours; that, in turn, led to hacking reprisals against BART by the hacker collective known as "Anonymous." As the San-Fransisco-based Electronic Frontier Foundation put it on its website: "BART officials are showing themselves to be of a mind with the former president of Egypt, Hosni Mubarak." Those efforts in Britain and San Fransisco are obviously not yet on the same scale as those in other places, but it illustrates how authorities react to social disorder: with an instinctive desire to control communication technologies and the flow of information.

The emergence of entities like WikiLeaks (which single-handedly jeopardizes pervasive government and corporate secrecy) and Anonymous (which has repeatedly targeted entities that seek to impede the free flow of communication and information) underscores the way in which this conflict is a genuine "war." The U.S. Government's efforts to destroy WikiLeaks and harass its supporters have been well-documented. Meanwhile, the U.S. seeks to expand its own power to launch devastating cyber attacks: there is ample evidence suggesting its involvement in the Stuxnet attacks on Iran, as well as reason to believe that some government agency was responsible for the sophisticated cyber-attack that knocked WikiLeaks off U.S. servers (attacks the U.S. Government tellingly never condemned, let alone investigated). Yet simultaneously, the DOJ and other Western law enforcement agencies have pursued Anonymous with extreme vigor. That is the definition of a war over Internet control: the government wants the unilateral power to cyber-attack and shut down those who pose a threat ot it, while destroying those who resists those efforts.

There have literally been so many efforts over the past several years to heighten surveillance powers and other means of control over the Internet that it's very difficult to chronicle them all. In August of last year, the UAE and Saudi Arabian governments triggered much outrage when they barred the use of Blackberries on the ground that they could not effectively monitor their communications (needless to say, the U.S. condemned the Saudi and UAE schemes). But a month later, the Obama administration unveilled a plan to "require all services that enable communications -- including encrypted e-mail transmitters like BlackBerry, social networking Web sites like Facebook and software that allows direct 'peer to peer' messaging like Skype" to enable "back door" government access.

This year, the Obama administration began demanding greater power to obtain Internet records without a court order. Meanwhile, the Chairwoman of the DNC, Rep. Debbie Wasserman-Schultz, is sponsoring a truly pernicious bill that would force Internet providers "to keep logs of their customers’ activities for one year." And a whole slew of sleazy, revolving-door functionaries from the public/private consortium that is the National Security State -- epitomized by former Bush DNI and current Booz Allen executive Adm. Michael McConnell -- are expoiting fear-mongering hysteria over cyber-attacks to justify incredibly dangerous (and profitable) Internet controls. As The Washington Post's Dana Priest and William Arkin reported in their "Top Secret America" series last year: "Every day, collection systems at the National Security Agency intercept and store 1.7 billion e-mails, phone calls and other types of communications." That is a sprawling, out-of-control Surveillance State.

One must add to all of these developments the growing attempts to stifle meaningful dissent of any kind -- especially civil disobedience -- through intimidation and excessive punishment. The cruel and degrading treatment of Bradley Manning, the attempted criminalization of WikiLeaks, the unprecedentedly harsh war on whistleblowers: these are all grounded in the recognition that the technology itself cannot be stopped, but making horrific examples out of those who effectively oppose powerful factions can chill others from doing so. What I tried to convey in my NYT interview was that the common thread in the Swartz and Manning persecutions -- as well as similar cases such as the two-year prison term for non-violent climate change protester Tim DeChristopher, the FBI's ongoing investigation of pro-Palestinian peace activists, and even the vindictive harassment of White House/DADT protester Dan Choi -- is the growing efforts to punish and criminalize non-violent protests, as a means of creating a climate of fear that will deter similar dissent.

It is not hard to understand why the fears driving these actions are particularly acute now. The last year has seen an incredible amount of social upheaval, not just in the Arab world but increasingly in the West. The Guardian today documented the significant role which poverty and opportunity deprivation played in the British riots. Austerity misery -- coming soon to the U.S. -- has sparked serious upheavals in numerous Western nations. Even if one takes as pessimistic a view as possible of an apathetic, meek, complacent American populace, it's simply inevitable that some similar form of disorder is in the U.S.'s future as well. As but one example, just consider this extraordinary indicia of pervasive American discontent, from a Gallup finding yesterday (click on image to enlarge):

The intensely angry "town hall" political protests from last August, though wildly misdirected at health care reform, gave a glimpse of the brewing societal anger and economic anxiety; even Tea Party politicians are now being angrily harangued by furious citizens over growing joblessness and loss of opportunity as Wall Street prospers and Endless Wars continue. This situation -- exploding wealth inequality combined with harsh austerity, little hope for improvement and a growing sense of irreversible national decline -- cannot possibly be sustained for long without some serious social unrest. As Yale Professor David Bromwich put it in his extraordinarily thorough analysis of the "continuities" in what he calls "the Bush-Obama presidency":
The usual turn from unsatisfying wars abroad to happier domestic conditions, however, no longer seems tenable. In these August days, Americans are rubbing their eyes, still wondering what has befallen us with the president’s "debt deal" -- a shifting of tectonic plates beneath the economy of a sort Dick Cheney might have dreamed of, but which Barack Obama and the House Republicans together brought to fruition. A redistribution of wealth and power more than three decades in the making has now been carved into the system and given the stamp of permanence.

Only a Democratic president, and only one associated in the public mind (however wrongly) with the fortunes of the poor, could have accomplished such a reversal with such sickening completeness.

Economic suffering and anxiety -- and anger over it and the flamboyant prosperity of the elites who caused it -- is only going to worsen. So, too, will the refusal of the Western citizenry to meekly accept their predicament. As that happens, who it is who controls the Internet and the flow of information and communications takes on greater importance. Those who are devoted to preserving the current system of prerogatives certainly know that, and that is what explains this obsession with expanding the Surveillance State and secrecy powers, maintaining control over the dissemination of information, and harshly punishing those who threaten it. That's also why there are few conflicts, if there are any, of greater import than this one.

Foreign Policy has a look at the authors of "Future Shock" (whose work heavily influenced John Brunner's book "The Shockwave Rider" which did a good job of predicting many modern day trends)- Technology Will Take on a Life of Its Own ?.
They may be octogenarians now, but pick up a copy of the Tofflers' most famous books -- Future Shock (1970) and The Third Wave (1980) -- and you will quickly wonder why anyone bothers to write the redundant meta social and political commentaries that drown us today. These books, written when we were children, contain such stunning and prescient insights, encapsulated in elegant yet racing prose, that they ought to be essential reading four decades onward. Indeed, you couldn't be blamed for thinking they had just been published this year.

Terms and concepts that are on the tip of everyone's tongue today leap off the pages: the crisis of industrialism, the promise of renewable energy, ad-hocracy in business, the rise of the non-nuclear family, technology-enabled telecommuting, the power of the pro-sumer, sensors embedded in household appliances, a gene industry that pre-designs the human body, corporate social responsibility, "information overload" -- and yes, right there on p. 292 of The Third Wave, the phrase Wired magazine can't get enough of today: "DIY Revolution." No wonder the book has been dubbed the "classic study of tomorrow." (Of the very few things they seem to have gotten wrong, or at least not yet right, is widespread polygamist communes.) ...

IN THE THIRD WAVE, the Tofflers foresaw that advanced societies would no longer be content to see humankind as the pinnacle of evolution. Instead, they wrote, we are moving into a brave new world where knowledge will become an inexhaustible commodity and transform not just our economies but more deeply our sense of who we are -- and "not just for a generation, but forever," as they put it.

A generation later, it is time to revive the Tofflers' methodology as we try to understand an incipient future in which technology has insinuated itself into every sphere and nook of human activity -- from the manipulation and replication of DNA to space exploration -- and in which humans continuously seek ways to speed up their biological evolution to match the breakneck pace of technological evolution. The only way to do that is to incrementally integrate with technology, launching an era of change and innovation that we call the Hybrid Age. If the first wave was agrarian and tribal, the second industrial and national, and the third informational and transnational, then the Hybrid Age is what the Tofflers might call the "Fourth Wave." In this new era, human evolution has become human-technology co-evolution: We're becoming part of the machine, and it is becoming part of us.

There is no adequate word in English to capture this complex entanglement of humans and technology. The German word Technik comes closest: It means not just technology, but the mastery of the methods and processes that shape and steer it. In today's emerging world, Technik can be something of a broad index of preparedness for the future Hybrid Age. It rejoins the scientific and mechanical dimensions of technology with a necessary concern for its effect on humans and society. So while today we talk about promoting democracy, tomorrow we will realize we should be promoting good Technik.

Five characteristics differentiate this Hybrid Age from those that came before it: the ubiquitous presence of technology, its growing intelligence, its increasingly social dimensions, its ability to integrate and combine in new forms, and its growing power to disrupt, faster and on a larger scale than ever before in human history. ...

And it's not just business models that will be affected. Take the coming advent of do-it-yourself manufacturing. At first blush, the United States' first-mover advantage in developing these affordable designer devices will empower its mom-and-pop shops to tailor-make niche products at cut-rate costs, threatening China's manufacturing base while reviving the U.S. economy. But if China suddenly loses revenue to America's heartland, how will it continue to recycle its vast foreign exchange reserves into U.S. Treasury bonds? In the end, one technological innovation in the United States could lead to its interest rates skyrocketing and economy tanking (again). Be careful what you wish for: The Hybrid Age is also an age of disruption.

What collapsing empire looks like  

Posted by Big Gav in , , ,

Glenn Greenwald has a story referencing the gravel roads story from a last month - What collapsing empire looks like.

As we enter our ninth year of the War in Afghanistan with an escalated force, and continue to occupy Iraq indefinitely, and feed an endlessly growing Surveillance State, reports are emerging of the Deficit Commission hard at work planning how to cut Social Security, Medicare, and now even to freeze military pay. But a new New York Times article today illustrates as vividly as anything else what a collapsing empire looks like, as it profiles just a few of the budget cuts which cities around the country are being forced to make. This is a sampling of what one finds:
Plenty of businesses and governments furloughed workers this year, but Hawaii went further -- it furloughed its schoolchildren. Public schools across the state closed on 17 Fridays during the past school year to save money, giving students the shortest academic year in the nation.

Many transit systems have cut service to make ends meet, but Clayton County, Ga., a suburb of Atlanta, decided to cut all the way, and shut down its entire public bus system. Its last buses ran on March 31, stranding 8,400 daily riders.

Even public safety has not been immune to the budget ax. In Colorado Springs, the downturn will be remembered, quite literally, as a dark age: the city switched off a third of its 24,512 streetlights to save money on electricity, while trimming its police force and auctioning off its police helicopters.

There are some lovely photos accompanying the article, including one showing what a darkened street in Colorado looks like as a result of not being able to afford street lights. Read the article to revel in the details of this widespread misery. Meanwhile, the tiniest sliver of the wealthiest -- the ones who caused these problems in the first place -- continues to thrive. Let's recall what former IMF Chief Economist Simon Johnson said last year in The Atlantic about what happens in under-developed and developing countries when an elite-caused financial crises ensues:
Squeezing the oligarchs, though, is seldom the strategy of choice among emerging-market governments. Quite the contrary: at the outset of the crisis, the oligarchs are usually among the first to get extra help from the government, such as preferential access to foreign currency, or maybe a nice tax break, or -- here's a classic Kremlin bailout technique -- the assumption of private debt obligations by the government. Under duress, generosity toward old friends takes many innovative forms. Meanwhile, needing to squeeze someone, most emerging-market governments look first to ordinary working folk -- at least until the riots grow too large.

The real question is whether the American public is too apathetic and trained into submission for that to ever happen. ...

Does anyone doubt that once a society ceases to be able to afford schools, public transit, paved roads, libraries and street lights -- or once it chooses not to be able to afford those things in pursuit of imperial priorities and the maintenance of a vast Surveillance and National Security State -- that a very serious problem has arisen, that things have gone seriously awry, that imperial collapse, by definition, is an imminent inevitability?

Who Cooked the Planet ?  

Posted by Big Gav in , ,

The NYT has a column from Paul Krugman on global warming politics in the US - Who Cooked the Planet?.

Never say that the gods lack a sense of humor. I bet they’re still chuckling on Olympus over the decision to make the first half of 2010 — the year in which all hope of action to limit climate change died — the hottest such stretch on record.

Of course, you can’t infer trends in global temperatures from one year’s experience. But ignoring that fact has long been one of the favorite tricks of climate-change deniers: they point to an unusually warm year in the past, and say “See, the planet has been cooling, not warming, since 1998!” Actually, 2005, not 1998, was the warmest year to date — but the point is that the record-breaking temperatures we’re currently experiencing have made a nonsense argument even more nonsensical; at this point it doesn’t work even on its own terms.

But will any of the deniers say “O.K., I guess I was wrong,” and support climate action? No. And the planet will continue to cook.

So why didn’t climate-change legislation get through the Senate? Let’s talk first about what didn’t cause the failure, because there have been many attempts to blame the wrong people.

First of all, we didn’t fail to act because of legitimate doubts about the science. Every piece of valid evidence — long-term temperature averages that smooth out year-to-year fluctuations, Arctic sea ice volume, melting of glaciers, the ratio of record highs to record lows — points to a continuing, and quite possibly accelerating, rise in global temperatures.

Nor is this evidence tainted by scientific misbehavior. You’ve probably heard about the accusations leveled against climate researchers — allegations of fabricated data, the supposedly damning e-mail messages of “Climategate,” and so on. What you may not have heard, because it has received much less publicity, is that every one of these supposed scandals was eventually unmasked as a fraud concocted by opponents of climate action, then bought into by many in the news media. You don’t believe such things can happen? Think Shirley Sherrod.

Did reasonable concerns about the economic impact of climate legislation block action? No. It has always been funny, in a gallows humor sort of way, to watch conservatives who laud the limitless power and flexibility of markets turn around and insist that the economy would collapse if we were to put a price on carbon. All serious estimates suggest that we could phase in limits on greenhouse gas emissions with at most a small impact on the economy’s growth rate.

So it wasn’t the science, the scientists, or the economics that killed action on climate change. What was it?

The answer is, the usual suspects: greed and cowardice.

If you want to understand opposition to climate action, follow the money. The economy as a whole wouldn’t be significantly hurt if we put a price on carbon, but certain industries — above all, the coal and oil industries — would. And those industries have mounted a huge disinformation campaign to protect their bottom lines.

Look at the scientists who question the consensus on climate change; look at the organizations pushing fake scandals; look at the think tanks claiming that any effort to limit emissions would cripple the economy. Again and again, you’ll find that they’re on the receiving end of a pipeline of funding that starts with big energy companies, like Exxon Mobil, which has spent tens of millions of dollars promoting climate-change denial, or Koch Industries, which has been sponsoring anti-environmental organizations for two decades.

Or look at the politicians who have been most vociferously opposed to climate action. Where do they get much of their campaign money? You already know the answer.

By itself, however, greed wouldn’t have triumphed. It needed the aid of cowardice — above all, the cowardice of politicians who know how big a threat global warming poses, who supported action in the past, but who deserted their posts at the crucial moment.

The "Epistemic Closing" of the Conservative Mind  

Posted by Big Gav in

Billmon has an article looking at the strange process going on within the conservative echo chamber, with mindless loyalty commanding an ever higher premium and even nuts like David Frum beginning to get ejected from the circle of trust for minor breaches of cult discipline - The "Epistemic Closing" of the Conservative Mind. Billmon also had another column recently looking at some disinformation tactics being used lately (and lapped up by some of the dumber sections of the media, like The New York Times) - Spock with a Beard.

One of the more striking features of the contemporary conservative movement is the extent to which it has been moving toward epistemic closure. Reality is defined by a multimedia array of interconnected and cross promoting conservative blogs, radio programs, magazines, and of course, Fox News. Whatever conflicts with that reality can be dismissed out of hand because it comes from the liberal media, and is therefore ipso facto not to be trusted. (How do you know they’re liberal? Well, they disagree with the conservative media!) This epistemic closure can be a source of solidarity and energy, but it also renders the conservative media ecosystem fragile.

Julian Sanchez
Frum, Cocktail Parties, and the Threat of Doubt
March 26, 2010


An epistemic community may consist of those who accept one version of a story, or one version of validating a story . . . In philosophy of science and systems science the process of forming a self-maintaining epistemic community is sometimes called a mindset. In politics, a tendency or faction is usually described in very similar terms . . . Some consider forming an epistemic community a deep human need, and ultimately a mythical or even religious obligation.

Wikipedia entry
Epistemic Community

A few weeks ago I pointed out that the conservative propaganda machine was resorting to a standard "disinformation" technique to try to negate (or at least blunt) the PR damage done by the teabagger fit of rage following the passage of health care reform.

The specific disinformation tactic (which I like to call "Spock With a Beard") essentially consists of creating a false narrative in which black is white, up is down -- and, in this particular case, where liberal Democrats are "inciting" violent threats against peace-loving Republicans like GOP Minority Whip Eric Cantor by, well, making a big fuss about violent threats from angry teabaggers.

By disinformation, I meant:
the systematic creation and dissemination of false narratives . . . aimed at constructing an entire alternative reality -- one in which the truth can find no foothold because it conflicts just not with a specific falsehood, but with the entire fabric of the false reality that has been created.

Since then, I've noticed the conservative fondness for propaganda methods that would not be out of place in Orwell's Minitrue (oldspeak translation: Ministry of Truth) is also drawing attention from other observers -- including, at least obliquely, some on the right.

Paul Krugman, who is rarely oblique about anything or anyone, points the Orwellian finger at GOP Senate Majority Leader Mitch McConnell, for his stubborn insistance that fiercely defending the interests of huge Wall Street banks is actually a way of preventing future government bailouts.
Has there ever been a time in US political history when one of the two major political parties was so addicted to doublethink, so committed to pretending that it’s advocating the opposite of its actual agenda?

To which, one can only reply: Do the years 2001 through 2008 count? Or are the Rove Administration's two terms in office still too fresh to be treated as history?

But what really caught my attention was a blog entry by fellow New York Times columnist Ross Douthat (posted, coincidentally or not, on the same day as Krugman's question) which managed, in Douthat's pretentious yet obtuse way, to talk all the way around the current state of the conservative "mind" without ever acknowledging, much less addressing, the fact that this "mind" is, to a large and ever-increasing degree, a propaganda construct, and thus not really a "mind" at all -- more like an anti-mind.

But, fortunately, Douthat also linked to a much more interesting take from the libertarian writer Julian Sanchez, who digs a bit closer to the truth (although not quite all the way there) in the quote cited at the beginning of this diary.

Sanchez's post, which appears to have caused a buzz in both left and right Blogistan (I'm usually late to party these days) was in reaction to the summary excommunication of David Frum, banished from the American Enterprise Institute for his apostasy on health care reform. (It's a telling sign that the AEI's commissars deported Frum to the conservative version of Siberia not for dissenting on the substance of health care -- he didn't, really -- but rather for questioning the political line, i.e. extreme stonewalling, adopted by the GOP. Truly, the party must always be right. ...

All in all, Sanchez paints a pretty accurate, not to mention damning, picture of the modern conservative ideological machine and its increasingly Orwellian methods -- both of message propagation and social control. But, apart from the China reference, he more or less elides the question of intentionality. In Sanchez's telling (and even more so in Douthat's retelling) the current withered, sectarian and paranoid state of the conservative "mind" is something that just happened -- a bottom-up social trend, not a top-down directive.

This is partially true, I guess, in the sense that a formal Republican Politburo does not exist (and even if it did, its members most likely would be found chilling at a lesbian bondage club, not steering a high-tech dictatorship from the bowels of a fortress-like ministry.)

But it’s also not true, in the sense that the conservative propaganda machine referenced at the start of this diary does exist, and has shown a relatively high degree of self-awareness and top-down control -- as witnessed, for example, by the infamous daily guidance memos circulated within Fox News by vice president John Moody ("Let’s be on the lookout for any statements from the Iraqi insurgents, who must be thrilled at the prospect of a Dem-controlled Congress.") and the talking points distributed directly to Fox commentators by the White House in Rovian times).

It may not qualify as a bona fide Inner Party, but it is a party cadre, and it knows its business. (Figuring out exactly where and how and from whom it learned that business would make for a fascinating social study -- or possibly a legal one).

The business, of course, is disinformation: the creation of a closed loop of emotions, beliefs and pseudo-facts that buttress, at all times and all points, the party line.

However, the more I study this, the more I’m convinced the primary goal of the exercise isn’t to convince the broader public, whom I think the Rovians essentially view as the equivalent of the "proles" of 1984 -- dull lumps of unthinking flesh who, nine times in 10, will follow the loudest, most simplistic and most passionate voice they hear.

The goal of conservative disinformation, then, is to provide that voice by creating the kind of "mind" (e.g. epistemic community) among the true conservative faithful that Sanchez is talking about: one impervious to reason, logic and -- most importantly of all -- factual evidence. The growing nervousness of some conservative intellectuals, like Douthat and Frum, about this project perhaps reflects the dawning realization that they are basically irrelevant to its success.

The creation of a closed mind is, of course, a prerequisite for successful doublethink (defined as the ability to hold two diametrically opposed beliefs at the same time, and to immediately change one or both of those beliefs when instructed). By their very nature, doublethink constructs tend to be fragile. They have a low tolerance for contact with non-managed reality -- much less open debate (thus the need, in 1984, for the constant writing and rewriting of history, to ensure a seamless and timeless continuity to the party line).

But the real breakthrough discovery by the conservative propaganda machine (Fox News, in particular) is that despite this inherent fragility, it doesn’t take an Orwellian police state to create and maintain the kind of self-contained, artificial consciousness that doublethink requires.

American kleptocracy  

Posted by Big Gav in

Salon has an article by William Astore looking at the state of play in American politics - The business of America is kleptocracy.

Think of socialism and fascism as the red herrings of this moment or, if you’re an old time movie fan, as Hitchcockian MacGuffins -- in other words, riveting distractions. Conservatives and tea partiers fear invasive government regulation and excessive taxation, while railing against government takeovers -- even as corporate lobbyists write our public healthcare bills to favor private interests. Similarly, progressives rail against an emergent proto-fascist corps of private guns-for-hire, warrantless wiretapping, and the potential government-approved assassination of U.S. citizens, all sanctioned by a perpetual, and apparently open-ended, state of war.

Yet, if this is socialism, why are private health insurers the government’s go-to guys for healthcare coverage? If this is fascism, why haven’t the secret police rounded up tea partiers and progressive critics as well and sent them to the lager or the gulag?

Consider this: America is not now, nor has it often been, a hotbed of political radicalism. We have no substantial socialist or workers’ party. (Unless you’re deluded, please don’t count the corporate-friendly “Democrat” party here.) We have no substantial fascist party. (Unless you’re deluded, please don’t count the cartoonish “tea partiers” here; these predominantly white, graying, and fairly affluent Americans seem most worried that the jackbooted thugs will be coming for them.)

What drives America today is, in fact, business -- just as was true in the days of Calvin Coolidge. But it’s not the fair-minded “free enterprise” system touted in those freshly revised Texas guidelines for American history textbooks; rather, it’s a rigged system of crony capitalism that increasingly ends in what, if we were looking at some other country, we would recognize as an unabashed kleptocracy.

Recall, if you care to, those pallets stacked with hundreds of millions of dollars that the Bush administration sent to Iraq and which, Houdini-like, simply disappeared. Think of the ever-rising cost of our wars in Iraq and Afghanistan, now in excess of a trillion dollars, and just whose pockets are full, thanks to them.

If you want to know the true state of our government and where it’s heading, follow the money (if you can) and remain vigilant: our kleptocratic Houdinis are hard at work, seeking to make yet more money vanish from your pockets -- and reappear in theirs.

Peak Oil And The Tea Party Movement  

Posted by Big Gav in , ,

I've reworked my recent post on the Tea Party movement and added some more commentary and a oil consumption scenario that shows the magnitude of the transition facing the average American, even under a fairly optimistic "peak oil" assumption of 2026 - Peak Oil And The Tea Party Movement.

Time Magazine recently had an article (Why the Tea Party Movement Matters) that looked at the latest manifestation of populism in the United States, with widespread discontent at the state of the US economy and the US political system, particularly the lack of transparency evident in many government initiatives ranging from the bail-out of the financial system to proposed changes to healthcare, along with discontent about costly wars in the middle east that seem to be never-ending.

The "tea partiers" remain a somewhat disorganised grass-roots movement (albeit one with concerted efforts by the conservative establishment to pull their strings) and they are showing some signs of adopting the tactics of the hippie counterculture of past decades and simply dropping out of mainstream society (see this piece on the "Rippies" for some background), but they do have the potential to grow as a result of a number of problematic trends affecting the western world in general and the United States in particular.

The graph below shows a possible scenario for average per capita oil consumption in the United States over the next 40 years, which could possibly drop by 90%. In this post I'll have a look at the boost this is likely to give to populist politics and some of the possibilities for addressing this.

The oil production scenario is a simple one most peak oil analysts would find optimistic - it is based on peak production being achieved in 2026.

Global and US population numbers are based on population models that show global population rising to 9.5 billion (and US population rising to 530 million) in 2050.

The US consumption model assumes that US per capita oil consumption will equalise with that elsewhere in the world over the next 40 years as a result of globalisation.

Mythological thinking, the de-industrialisation of the West and the New World Order  

Posted by Big Gav in , , , ,

Australian climate change minister Penny Wong recently made a speech to a conference on "Coasts and Climate Change" (see Wong: Climate sceptics are all red herrings and quackery for the full text) where she made some remarks about climate skeptics and their frequent theorising that climate scientists are "part of a vast conspiracy to de-industrialise the Western world" - which is often just one facet of conspiracy theories involving the "New World Order".

While the climate scientists are no doubt innocent of these charges (and most likely correct when they point to global warming being a serious and growing problem) the idea that the West is being deindustrialised may not be as wacky as it appears at first glance, so I might spend some time exploring a few problematic trends affecting the western world in general and the United States in particular.

Given recent allegations you might be excused for thinking that climate change science has been completely discredited.

Remember the people who have been barrackers for policy failure at home and abroad are the same people who have been peddling misinformation and misleading information about the science of climate change.

There is, in fact, a certain similarity between debates about the impact carbon pollution is having on our planet, and earlier debates about the impact cigarette smoke has on our health.

It's not hard to imagine these barrackers for failure as the characters in the sequel to 'Thank you for smoking', which will be called: 'Thank you for polluting.'

Given how confused debates on the science have become, I think it is important to get some facts on the table.

And I don't just mean facts like that 2009 was the second hottest year on record in Australia and the fifth hottest globally, and that 2009 finished the hottest decade in recorded history.

I refer more to the series of breathless, scandalised claims implying that we have all been hoodwinked by climate scientists, who have manipulated evidence and published bare-faced lies as part of a vast conspiracy to de-industrialise the Western world.

Those hoodwinked would have to include the Pentagon and Margaret Thatcher.

Michael Lind recently had an interesting column in Salon (Mythological politics), exploring the beliefs of the populist right, in particular its recent manifestation via the "tea party" movement in the US (occasionally referred to as the "tea baggers" by their detractors), noting that they are ideological descendants of liberty loving Britons of the 17th century.
American political culture was British before it was American. During the English civil war of the 17th century, two themes crystallized — and have influenced American public discourse to this day. One was the idea of the Ancient Constitution. The other was the idea of the True Religion.

Many British opponents of the Stuart monarchs claimed that they were defending an ancient, unwritten English constitution against corruption in the service of tyranny. Sometimes this ancient constitution was identified with the laws of the Anglo-Saxon King Alfred, and contrasted with the "Norman yoke" imposed on freedom-loving English people by William the Conqueror and his despotic successors after the Norman invasion of Britain in 1066. As history, this was nonsense, but as political mythology this narrative had enormous appeal. History was viewed as a gradual decline into tyranny, a long fall following a golden age of English liberty in the distant past.

This myth of primordial English liberty rhymed neatly with radical Protestantism. According to dissenting Protestants, the true church was the earliest church. Christianity had been corrupted over time, and Reformation required a restoration of the early, pure practices and beliefs of the apostles.

Put the myths of the ancient constitution and the early church together, and you have a view of history as decline from an original state of perfection, in politics and also in religion. Innovation is equated with tyranny in politics and heresy in religion. Virtue consists of defending what is left of the old, more perfect system and, if possible, restoring the original government or church. Progress is redefined as regress — movement away from the wicked present toward the pure and uncorrupted past. ...

This is the key to understanding the otherwise inexplicable accusations by the populist right that Barack Obama is a socialist or fascist or whatever, as well as fantasies about a global secular humanist conspiracy. We are dealing with a mythological mentality, based on simple and powerful archetypes. Contemporary figures and current events are plugged into a framework that never changes. "King Charles (or King George) is threatening the rights of Englishmen" becomes "Barack Obama is promoting socialism" — or fascism, or monarchism, or daylight saving time.

As in other cases of mythological politics, like messianic Marxism, this kind of thinking is resistant to argument. If you disagree, then that simply proves that you are part of the conspiracy. Inconvenient facts can be explained away by the true believers. It's hard to come up with arguments that would persuade people who think that Harry Reid and Nancy Pelosi are totalitarians to change their mind.

While the narrative expounded by the populists is frequently based on myth rather than reality, their charge that the west is being deindustrialised is partially true (as a result of globalisation) and the people who support these groups are mostly the people directly impacted by this.

As an aside, a lot of conspiracy theorists - from both the right and the left - often quote influential Canadian Maurice Strong (viewed as a prototypical member of the "New World Order" in tinfoil circles) as saying "Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring this about?", though apparently this was a fictional scenario being described rather than an actual plan he wanted implemented.

Stuart Staniford has an interesting post (Chinese Labor Costs, Tea Partiers as True Believers) exploring the impact of low cost Chinese manufacturing on workers in the US and how this is likely to create the conditions necessary for mass movements (of the right or left, but given the current state of the US left these are much more likely to form on the right) as large numbers of workers find themselves in long term unemployment, with few prospects.
Tuesday evening, I was reading Don Peck's generally excellent cover piece, How a New Jobless Era Will Transform America in the March Atlantic. The piece lays out the social damage caused by extended unemployment. ... The entire thing is very well worth reading. I have intimate personal acquaintance with this issue - my Dad had an extended period of unemployment that began during the economic backwash from the 1973 oil shock, and I still bear a few psychic scars from that episode.

I was musing on this piece, and couldn't help thinking of the statistics in Chinese steel production I examined a few days ago. In particular, Peck's piece gives the example of "Errol", a young unemployed machinist ... US steel production has roughly halved since 2006, and so jobs for folks like Errol working with that steel are naturally going to be very hard to find. ...

Alright, so the federal government could continue to run a big deficit, fix a bunch of old infrastructure in Pennsylvania (and elsewhere) and Errol might find a job in that effort for a while. But clearly, the US, with its strong political resistance to paying taxes, can only increase it's national debt up to a certain point, and so after a few years such a government program would have to cease (if indeed it were politically feasible even to start it). So that gets Errol to, say, his mid thirties as a much more experienced and capable machinist. Then what is he to do?

It seems to me that Errol has a much deeper problem: what is it that some US company can employ Errol to make that cannot be made much cheaper in China? And do not the data on Chinese steel production (above) and Chinese transportation and housing, make it clear that the Chinese have every intention of building industrial production capacity that completely dwarfs that of the US?

In search of data on comparative labor costs, I discovered the the US Bureau of Labor Statistics sent a couple of experienced labor statisticians to China to sort out the data situation there. The latest summary of their work is here, and the key graph is this one:



While Chinese wages are increasing, they clearly have an incredibly long way to go before they reach anything like Western levels. The current average for manufacturing wages in China is less than $1/hour. ...

But, and perhaps more importantly, I want to address a reaction I suspect many readers might have - "Oh, we've been dealing with Asian competition for decades now, yeah it's not good, yeah unemployment in Michigan is bad, but the sky hasn't fallen."

Indeed, this is true. However, I suggest that the problem with China is an order of magnitude larger than the earlier problem with Japan and Korea. Firstly, those countries have population of about 130 million (Japan) and 50 million (Korea). China has a population of 1.3 billion - ten times larger than Japan - and is determinedly trying to bring them all into the twentieth century. Secondly, as the labor cost graph higher up shows, Japanese manufacturing wages, for example, are about 80% of those in the US, while Chinese manufacturing wages are about 3%. It's going to take a very long while, or an unthinkably large correction in exchange rates, for Chinese wages to get anywhere close to those in the US.

You can see the effects of this in the data for US manufacturing employment. It peaked in 1980 and then gradually descended to the 2000 recession. But since then, as Chinese exports have ramped up, it's gone into a much more serious decline. It goes off a cliff in each recession, and it doesn't recover at all in between - in fact it continues to decline, only more slowly.

If we continue with our existing policies, it's very hard to see how this is going to change in the next decade or so (absent some internal collapse in China). As the Chinese figure out how to make cars, computers, furniture, etc, etc, to western quality standards, the entire industrial production capacity of the United States is going to get hollowed out. Manufacturing employment in the United States would appear to be headed towards zero, give or take some noise.

Let's not put too fine a point on this: guys like Errol are fucked.

In fact, the entire working class of the United States is fucked. Without manufacturing jobs, they are reduced to the small number of jobs installing and fixing the stuff that comes from China, and then low paying unskilled retail and service jobs. With large numbers of chronically unemployed, the folks who are employed will have no leverage whatsoever on pay and conditions. ...

It appears to me that the Tea Party movement, as disorganized and incoherent as it may currently be, places us on notice that conditions in the United States are now such as to support the beginnings of mass movements of the kind Hoffer is talking about. Such movements are not known for having good ideas for how to run society (note the failures and crimes of both Communism and Nazism when put into practice). In particular, they don't need to have ideas that make sense to the elite of the current society (such as abolishing the Federal Reserve). They just need to have ideas good enough to appeal to the unbearably disappointed and frustrated, the failed and the failing, and credibly promise to solve their emotional problems and give meaning to their lives.

It appears to me that with a working class that is now fundamentally and massively uncompetitive with China, a country with four times the population and wages a tiny fraction of ours, the United States is ripe for a lot more of this kind of thing. What ails us is not just the aftermath of a financial crisis, to be solved with a stimulus. Instead, if present trends continue, we face a national crisis of the first order which will play out over decades. What should our entire working class do now that will give their lives meaning? No quick fix is apparent.

While its arguable that lower wages will mean all manufacturing shifts to China (Germany and Japan have had some success at retaining manufacturing industries in spite of high local wages by concentrating on high quality products, for example), given present trends it does seem that the manufacturing base for the US and other Anglo-Saxon countries, along with much of western Europe, is in long term decline.

The US has had some success in shifting to a services and intellectual property based economy, however financial services have proved to be a not entirely reliable pillar of the economy and intellectual property is hard to protect and extract revenue from offshore (as Cory Doctorow noted in an interesting speech a few years ago).

As Stuart points out, the working class in these countries have little to gain from globalisation - while it may eventually result in a higher standard of living for everyone, it will take decades before labour costs equalise globally and the "rising tide raises all boats" effect could kick in. In the meantime elites seem to be prospering from the trend, so there will likely be a continuing increase in inequality and the resentment this causes.

We've seen populist movements have some limited political success in the past as a result of this. For example, the One Nation party which arose in Australia in the 1990's following the liberalisation of the economy by the Hawke and Keating governments - interestingly there has been some speculation ex-One Nation leader Pauline Hanson will become involved with the BNP in the UK (a right wing group that has shown an interest in using peak oil as a campaigning tool) now she has decided to leave Australia.

The US seems to be most at risk of seeing a revival of a populist mass movement (there seems less chance of a sudden revival of socialism there as a result of rising levels of joblessness, given the political left remains largely moribund outside of Latin America), with the last decade seeing revenge fantasies like the "Left Behind" series being lapped up by those in the working class who are being left behind and the tea partier / bagger movement being the latest sign that populism is on the rise.

Unemployment caused by globalisation and cheap Chinese labour is one reason, but there are a number of others :

1. The US is slowly losing the geopolitical dominance it has enjoyed since the end of the second world war. As George Kennan famously put it half a century ago:
We have about 50% of the world's wealth but only 6.3% of its population. This disparity is particularly great as between ourselves and the peoples of Asia. In this situation, we cannot fail to be the object of envy and resentment. Our real task in the coming period is to devise a pattern of relationships which will permit us to maintain this position of disparity without positive detriment to our national security. To do so, we will have to dispense with all sentimentality and day-dreaming; and our attention will have to be concentrated everywhere on our immediate national objectives. We need not deceive ourselves that we can afford today the luxury of altruism and world-benefaction.

For these reasons, we must observe great restraint in our attitude toward the Far Eastern areas. The peoples of Asia and of the Pacific area are going to go ahead, whatever we do, with the development of their political forms and mutual interrelationships in their own way. This process cannot be a liberal or peaceful one. The greatest of the Asiatic peoples-the Chinese and the Indians-have not yet even made a beginning at the solution of the basic demographic problem involved in the relationship between their food supply and their birth rate. Until they find some solution to this problem, further hunger, distress, and violence are inevitable. All of the Asiatic peoples are faced with the necessity for evolving new forms of life to conform to the impact of modern technology. This process of adaptation will also be long and violent. It is not only possible, but probable, that in the course of this process many peoples will fall, for varying periods, under the influence of Moscow, whose ideology has a greater lure for such peoples, and probably greater reality, than anything we could oppose to it. All this, too, is probably unavoidable; and we could not hope to combat it without the diversion of a far greater portion of our national effort than our people would ever willingly concede to such a purpose.

In the face of this situation we would be better off to dispense now with a number of the concepts which have underlined our thinking with regard to the Far East. We should dispense with the aspiration to "be liked" or to be regarded as the repository of a high-minded international altruism. We should stop putting ourselves in the position of being our brothers' keeper and refrain from offering moral and ideological advice. We should cease to talk about vague and -- for the Far East -- unreal objectives such as human rights, the raising of the living standards, and democratization. The day is not far off when we are going to have to deal in straight power concepts. The less we are then hampered by idealistic slogans, the better.

2. This geopolitical dominance had enabled the US to exert a large degree of control over much of the world's oil supply (viewing the middle east as ‘the most strategically important area of the world’ and ‘…one of the greatest material prizes in world history’) and to become by far the largest consumer of it.



3. US control of oil is steadily slipping. While the Iraq war was viewed by many as a grab for the country's oil reserves, control has remained elusive, with the Iraqi government handing over rights to exploit a lot of large fields to oil companies from other countries (with the Asia Times putting it like this - "After at least US$2 trillion spent by Washington and arguably more than a million dead Iraqis, it has come to this: a pipe dream definitely buried this past weekend in Baghdad with round two of bids to exploit a number of vast and immensely profitable oil fields.")

4. As US economic pre-eminence fades, US consumers are going to find that they no longer get to consume the lions share of the oil that is being produced and their per capita consumption will steadily decline towards the global mean (meaning a huge shift in relative consumption in the graph shown earlier).

5. As oil becomes harder to extract and we reach a peak of production, consumers will be competing for supplies that are static or falling in volume and there is further pressure for average per capita oil consumption to shrink.

6. As the global population continues to rise towards the 9 billion mark there is again further pressure for average per capita oil consumption to shrink.

7. The US has a large population of war veterans who are likely traumatised by their experiences in Iraq and Afghanistan and facing a weak economy and poor employment prospects when they return home (especially those who are less skilled).

The combination of these factors means the average US consumer is going to find maintaining the lifestyle they are used to (particularly regarding effectively unlimited use of motor vehicle based transportation) impossible over the next decade or two, unless there is a large and sudden shift to electric transport and clean energy sources.

The stress that this transition will cause seems likely to amplify the appeal of populist politicians offering "simple" solutions (involving further military adventures abroad or draconian policies at home).

What can be done about this (to ensure a prosperous and peaceful future for all) remains an unanswered question, but Jeremy Rifkin has some interesting ideas in a recent article in New Scientist ("The third industrial revolution "), involving the "democratisation of energy".
What is the premise of The Empathic Civilization?

My sense is that we're nearing an endgame for the modern age. I think we had two singular events in the last 18 months that signal the end. First, in July 2008 the price of oil hit $147/barrel. Food riots broke out in 30 countries, the price of basic items shot up and purchasing power plummeted. That was the earthquake; the market crash 60 days later was the aftershock. It signaled the beginning of the endgame of a great industrial era based on fossil fuels. The second event, in December 2009, was the breakdown in Copenhagen, when world leaders tried to deal with our entropy problem and failed.

That's the context of the book. Why couldn't our world leaders anticipate or respond to the global meltdown of the industrial revolution? And why can't they deal with climate change when scientists have been telling us that it may be the greatest threat our species has ever faced? ...

In the book you argue that we can break the paradox by shifting from geopolitical consciousness to biosphere consciousness.

We need to implement reglobalization from the bottom-up in order to achieve a more sustainable global economy. Geopolitics is an extension of the Enlightenment view of human nature, the idea that we pursue our utilitarian pleasures and individual self-interests. In geopolitics, the nation-state becomes a macro view of that. Nations deal with nations by being rational, detached and calculating, pursuing self-interests, excercising power and acquiring more capital and wealth. That's why Copenhagen failed. The world leaders weren't thinking biosphere, they were thinking geopolitics. Everyone was looking out for their nation's self-interest.

What we need to do is attempt biosphere politics. Governing units are going to change--I think there's going to be a shift toward continentalization. The EU is a first attempt at organizing a new frame of reference across continents, but it's a transitional governing form. The Asian Union, African Union and South American Union are in their early stages. ...

What will the Third Industrial Revolution look like? When will it happen?

I think we're on the verge. I had the privilege to help design the European Union's Third Industrial Revolution economic stability game plan, which was endorsed by the European Parliament in 2007. What we noticed is that in the last 10 or 15 years we've had a very powerful communication revolution with the internet, and the key word is that it's distributed. What's beginning to happen now is that the distributed ICT [information and communication technologies] revolution is beginning to converge with a new energy regime: distributed renewable energy. When they do converge, it's likely to change consciousness once again.

Distributed ICT will organize distributed energies. Renewables like wind, solar, geothermal and biomass are found in some proportion everywhere, in people's backyards. As people begin to harvest these renewable energies they can share electricity peer-to-peer across an internet-like smart energy grid that extends across nations and even continents. We see buildings as the new power plants. Buildings are the number one source of C02 emmissions, but they might also be the solution if they can harness renewables to produce their own energy on site. People will also need new energy storage technologies like hydrogen. The EU has committed 8 billion Euros to hydrogen storage technologies. Those technologies will give us dependable distributed energy.

I founded the Third Industrial Revolution Global CEO Business Roundtable, which is comprised of 100 leading companies from renewable energy to utilities to architectural firms. We're starting to lay out plans. ...

You said that people hear "empathy" and think "socialism". How does capitalism survive an empathic society?

Market capitalism will be transformed into "distributed capitalism". Just as the internet led to the democratization of information, the Third Industrial Revolution will lead to the democratization of energy. The required changes to infrastructure are going to create massive amounts of jobs and a whole new economy. But when you have peer-to-peer sharing of energy across an intelligent grid system, you no longer have the top-down, centralized economic system. Distributed energy requires distributed capitalism, and that relies on the opposite view of human nature than that of market capitalism. But the politics isn't right or left--its centralized, top-down versus collaborative commons. You don't hear people say, I'm going onto a social networking space because I'm a socialist--it's just a different frame of reference.

I'll close with a quote from Bucky Fuller, who foresaw many of these problems a long time ago and advocated a revolutionary approach to solving them. I should have the (long delayed) next installment of my series on Bucky ready in the near future.
We are in for the greatest revolution in history. If it's to pull the top down and it's bloody, all lose. If it is a design science revolution to elevate the bottom and all others as well to unprecedentedly new heights, all will live to dare spontaneously to speak and live and love the truth, strange though it often may seem.

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