Showing posts with label capitalism. Show all posts
Showing posts with label capitalism. Show all posts

Friday, August 26, 2022

Politics, personal attitudes and the approaching crisis

The following observations had their origin in an exchange I had with a friend, some of whose ideas about, and attitudes towards, politics and human freedom I saw – rightly or wrongly – as being false (the ideas) and counterproductive (the attitudes).


1. Attitudes

For me politics is a boring necessity which, at its best, runs in the background. Enthusiasm for politics is always a danger signal.

Such enthusiasm may manifest itself rhetorically or be rhetorically generated, but I am not condemning rhetoric per se. Rhetoric is an inevitable feature of any communication which incorporates a human element and engages the emotions. You can’t avoid it, and political talk – which is often designed to persuade or (let’s face it) to manipulate – is always going to be rhetorical to some extent.

So I am not criticizing people for utilizing rhetoric in the political sphere so much as for believing it – for falling for their own or other people’s rhetoric. Doing so, they are often implicitly seeking in politics something which politics or political action cannot, in the end, provide: that is, some kind of deep satisfaction or “salvation”. They are turning politics into a religion-substitute. This is a very dangerous thing to do.

Emotional satisfaction is a personal rather than a political matter and is best sought, I believe, in interpersonal relationships and personal, non-political activities and practices (work, hobbies and “creative” activities, walking, sitting in the sunshine, etc.). When people get (or seek to get) their deepest satisfactions from political or, more broadly, from ideological beliefs and activities, something is amiss.


2. Romanticism and politics

I keep seeing not only ideological (that is, political and personal-value-based) but also metaphysical elements in the political views of activists both of the left and the right. Much has been written about the implicit (and in my view dangerous) metaphysics of Marxism but right-libertarians – with their views on natural rights and their fetishization of freedom – are also committed to their own, ultimately empty and baseless, metaphysical ideas.

The origins of many current ideological fashions can be traced to the 19th century and the Romantic movement. Many Romantic ideas carry religious and metaphysical baggage deriving from Biblical as well as classical sources (Plato, the Stoics). It took me some years to see my own Platonist and Romantic commitments and assumptions for what they were – and so let go of them.

One’s views on art and human creativity and action need not have a metaphysical dimension but Romantic aesthetics certainly does, and these ideas have and still do play into political thinking in unfortunate ways. I am not saying that we, as individuals, can’t find deep satisfaction in creative activities at a personal level. My point is that no political solution can ever alter the underlying realities and imperatives of social and economic life and deliver the sorts of universal freedoms and satisfactions which are typically promised by radical, progressive or libertarian ideologies.


3. The current situation

Ideologies are real in the sense that they motivate political action and affect the way people interpret history and current events. They are essentially action-oriented, reality-distorting mechanisms and are worse than useless as analytical tools.

The “system” we currently find ourselves in is not capitalism, at least in the historical sense of the term. Western capitalism had deep cultural roots and was associated with certain patterns of thought and behaviour which no longer prevail (work ethic, deferred gratification, thrift, certain religious ideas, etc.). It involved the slow accumulation and deployment of actual capital, “creative destruction”, unprofitable companies being allowed to fail, and so on.

This is nothing like what we are witnessing today where everything is driven by debt and derivatives and there is an unholy alliance between heavily indebted governments, central banks and financial institutions. Markets are grossly distorted. Currencies are losing purchasing power. The financial system has become detached from economic reality.

The seeds of the current crisis were sown when the USD’s link to gold was finally severed in 1971. Or actually before that: in the fiscal profligacy of the 1960s which made the suspension of the Bretton Woods arrangement necessary.

Governments and central banks have played a major role in creating the current perverse and dysfunctional system, but other groups have also been involved (Wall Street bankers, certain business people and billionaires, NGOs, big tech and media). The system – such as it is – is now collapsing.

There will be inevitable pain.

Friday, March 9, 2012

Right-wing alternatives to free-market capitalism

Most critiques of capitalism are inspired by leftist ideas, but not all approaches accept the Marxist emphasis on class struggle and some have little interest in egalitarian ideals.

Chinese radicalism, for example, is first and foremost nationalistic and focuses now on the need for social harmony. Strong Confucian values - which have proved more resilient than the early revolutionaries foresaw - are incompatible not only with class conflict but also with strict egalitarianism.

In Europe, there has been a revival of right-wing radicalism, driven largely by economic upheavals and the perceived problems of mass immigration. In fact, I suspect the radical right will become more significant in the years to come as the economic situation worsens.

In France, the theorists and activists of the far right draw on a tradition of French and European thought expounded amongst others by Maurice Bardèche in the post World War II period. Bardèche wrote an essay* on 'fascist socialism', reprising a theme previously taken up in France by the novelist Pierre Drieu La Rochelle. Bardèche freely admits it's an idea which has never really been tested or implemented and his whole approach is romantic and revolutionary rather than pragmatic and conservative. He is essentially a literary figure, having written highly regarded works on French writers (notably on Proust) and on the history of cinema.

Bardèche believed that every new vision of social relations which rejects Marxism rests on a number of postulates. Only an authoritarian regime, he thought, can protect the national interest against the power of global capital. It is a key function of the state to protect the nation's economy which is such a crucial part of the social fabric.

In fact, modern nations are politico-economic enterprises and power lies just as much with those who control the economy as with those who make political decisions. Bardèche recognized, however, that the instruments appropriate to the exercise of such integrated power were yet to be invented.

He thought there should be loyal collaboration between different groups and classes rather than class struggle. The latter leads to the sabotage of the nation's economy and to a bureaucratic dictatorship. It is a function of the state to encourage and promote labor-capital collaboration.

Unfortunately, the emphasis on nationalism on the part of the radical right is inevitably associated with racism and the tendency to blame foreigners (whether they be non-European immigrants or the supposed - and inevitably 'Jewish' - agents of international capital) for the nation's problems.

My personal view is that European neo-fascism is little more than a quasi-literary fantasy, albeit a dangerous one (because it can give a cloak of sophistication and respectability to thuggish groups and causes). Chinese state capitalism will have a far greater global impact, but to what extent it will adapt to the current global economic system and to what extent it will change it remains to be seen.


* Socialisme fasciste. Waterloo: Editions de Javelot, 1991.

Monday, February 27, 2012

The amoral market

A strong case can he made that free market capitalism has enhanced human welfare more effectively than any other system and consequently offers our best hope for the future. But, as the economies of the developed world falter, questions about the viability and moral status of capitalism are being raised (just in case you hadn't noticed).

In my view the fatal flaw of the system lies not so much with the market side of things as with the current system of populist, majoritarian democracy. In other words it is our understanding of democracy which requires a radical rethink rather than capitalism. Though there is scope for argument about the extent of regulation and social security arrangements, I see no need for a radical critique of capitalism itself.

But of course the radical left thinks otherwise, and the vast bulk of the commentary on these matters has a leftist character and is driven - it seems - largely by anger and resentment against the rich and powerful, but also at times by youthful (or not so youthful) idealism. The history of European radical thought incorporates both these elements, but I always have the sense that an atavistic lust for blood or a desire for social destruction lurks at the heart of left-wing radicalism. I even sense a fascination with this side of things in the writings of Isaiah Berlin, whose attraction to such figures as Alexander Herzen and Georges Sorel I have never quite understood.

There is something childish or adolescent about radical thinking. Look at what is happening in Greece: many leftists and nationalists are acting like rebellious children, first of all in not accepting the hard, boring realities of needing to make a living in the world, and secondly in demonizing authority-figures (Merkel as Hitler) for persecuting them and humiliating them and treating them unfairly.

Hugh Schofield* has described an aggravating, adolescent strand (he goes further actually but I'll call it a strand) in French culture. And the French are notoriously averse to the unromantic but grown-up realities of what they call Anglo-Saxon economics.

French culture (unlike English or American) holds a respected place for moralists. The word 'moralist' has a strong negative connotation in English, but moraliste, a term often applied to French writers, does not have a similar connotation. More significant however is the strong state-supported arts-centered culture which is infused with an inflated sense of its own importance. Carla Bruni, when asked last year about her political position, told the interviewer that she was an artist and, of course, all artists in France were of the left.

The market is not romantic and is not a worthy object of contemplation for artists and idealists. The market is not moral, and so, for those who have a strong sense that all key social institutions should be moral, it is seriously flawed and must be abolished. Or - as what passes for the center-right in France would have it - merely taxed into oblivion.


* In a BBC radio piece. [Click on Chapter 6, 'Grumpy in Paris'.] Very much worth a listen.

Saturday, February 18, 2012

Politics beyond borders

Kemal Derviş* highlights what he sees as the crucial problem facing political systems. "Around the world, the stock of financial assets has become so large, relative to national income flows, that financial-market movements can overwhelm most countries. Even the largest economies are vulnerable, particularly if they are highly dependent on debt finance."

But citizens, according to Derviş, want to debate policies and give or withhold their consent. "Thus a more supra-national form of politics is needed to re-embed markets in democratic processes."

This, essentially, is the problem the EU is grappling with - so ineffectively. "Nonetheless, unless globalization can be slowed down or partly reversed, which is unlikely and undesirable in the long run, the kind of 'politics beyond borders' for which Europe is groping will become a global necessity."

"Indeed," Derviş continues, "the European crisis may be providing a mere foretaste of what will likely be the central political debate of the first half of the 21st century: how to resolve the tension between global markets and national politics."

Though this last prediction seems very plausible, the analysis as a whole betrays a degree of wishful thinking. Politics beyond borders may be a global necessity, but democracy is not.

Democracy will of necessity be constrained by the operation of global markets as the power of smaller and/or indebted states to determine the rules they live by is diminished.

On the other hand, the role of mega-states like China is becoming more significant as they relentlessly extend their spheres of influence. It seems likely that we are in the early stages of a new imperial age.


*Former Turkish Minister for Economic Affairs and head of the United Nations Development Programme.

Wednesday, December 7, 2011

Genetics and political orientation: some further thoughts

Let us assume that - as the research (which I discussed briefly in a previous post) seems to indicate - our political and other values are heavily influenced by genetic and genetic/environmental factors and even reflected in brain structures. What consequences flow from this?

First of all, it will make one skeptical about one's own political beliefs and values. As with someone 'born into' a particular religion, skepticism is definitely called for. But, just as my being born into a particular religion does not mean that the doctrines of that particular religion are necessarily false, so my having a genetic predisposition to believe or value certain things does not mean that these things are not true or valuable.

Even if our political beliefs were completely determined, this would not necessarily reflect on their truth, rightness, viability, plausibility - on their value and worth in other words. But are value and worth matters which can be objectively assessed?

I would suggest that the policy prescriptions of the right or the left or any other political perspective or orientation can be assessed in various ways. Whether particular methods or policies work in practice can be tested (and history can be seen as a record of such experiments). Science can be brought to bear on factual matters, from biology to economics. But basic values - such as whether to value equality over prosperity and individual freedom, etc. - seem not to be amenable to objective assessment.

Another lesson one might draw from the research is that people are different - every brain is unique, of course, but there are also differences which reflect general patterns of thought; and consequently changing someone's mind about a deep ideological issue will not be achieved simply by setting out a logical argument. Of course conversions occur, and people change their own minds (though often, as one of the commenters on the linked post said, as a result of much reading and reflection).

But presumably conversions occur when the new ideology is compatible with underlying brain structures, in other words when elements of that ideology are already present in a latent form. Given the research results, unconscious constraints and unconscious proclivities and tendencies clearly shape the possibilities for individual belief and orientation.

Knowing this, one would not try to convert everybody to one's own way of thinking, but rather accept that many would not be able (without major mental re-engineering) to value the things one values and so think the way one thinks about social issues. One would concentrate on those whose basic values were compatible with whatever social philosophy one was seeking to promote.

Unfortunately, much argument and debate is entered into with the assumption that we all have a more or less identical faculty which we call 'reason' - a kind of logic machine in our heads which determines our views. But - leaving aside areas like mathematics and formal logic - this is not the case. Our thinking is bound up with feeling and with (often unconscious) values. The research results undermine the view that debate and adversarial discussion are truth-seeking activities. There could be a more limited role for discussion, however, in helping those who have certain predispositions to develop a conscious and coherent social philosophy which accords with those predispositions.

It would be nice if we could have a workable dual or multi-choice social, political and economic system, so that we could all just gravitate towards the option we prefer; but unfortunately capitalism needs to be a universal system if it is to work properly. A dual capitalist/socialist (or free market/collectivist) system will fail because the wealth-producing (capitalist) part will always face increasing demands to subsidize the collectivist component.

In fact this is arguably what is happening today. Most Western countries, though nominally capitalist, have large public sectors which are major employers and providers of welfare. A dual (private/public) system operates in many areas of society: there are private schools and public schools, private hospitals and public hospitals, private health insurance and public health insurance, self-funded retirees and retirees on state pensions, and so on.

And - surprise, surprise - public debt is jeopardizing the future of many Western economies and threatening global prosperity.