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Showing posts with label Luddite. Show all posts
Showing posts with label Luddite. Show all posts

Wednesday 16 August 2023

A level Economics: Conservatives are attacking Capitalism

The Economist writes about four new books that show how the reactionary right and Luddite left have converged

A man hitting a punching bag in the shape of a top hat
image: francesco ciccolella

2. Tyranny, Inc: How Private Power Crushed American Liberty—And What to Do About It By Sohrab Ahmari. Forum Books; 288 pages; $28

3. Regime Change: Towards a Postliberal Future. By Patrick Deneen. Sentinel; 288 pages; $30. Forum; £22

4. Decades of Decadence: How Our Spoiled Elites Blew America’s Inheritance of Liberty, Security and Prosperity. By Marco Rubio. Broadside Books; 256 pages; $32 and £20


Two decades ago Johan Norberg, a Swedish liberal, wrote a bracing polemic called “In Defence of Global Capitalism”. Leftists hated it and sniffed that he was “on the ‘crazy right’”. Now, when he makes exactly the same arguments, people on the right accuse him of being “woke left”. “I’m not the one who’s changed,” he writes.

The angriest critiques of global capitalism come increasingly from the populist right. This is true in several Western countries, but especially so in America. Republicans used to extol the benefits of free trade and free markets. Now, following Donald Trump’s lead, Republican candidates demand higher barriers, especially to goods from China, and berate corporations for their “wokeness” in supporting greenery and diversity. Four new books illuminate this shift, which fans of economic liberty find alarming.

Their critiques target two villains: corporations and liberalism. Sohrab Ahmari, a socially conservative Iranian-American journalist, is part of the anti-corporate crowd. In “Tyranny, Inc”, he claims that we live in “a system that allows the asset-owning few to subject the asset-less many to pervasive coercion—coercion that, unlike governmental actions, can’t be challenged in court or at the ballot box.”

Many of his complaints sound lefty. Amazon uses intrusive cameras to monitor its warehouse workers; other firms snoop on their minions’ private emails and web browsing. Employers set unpredictable working hours, which staff cannot easily refuse because they need to put food on the table. Life for the bottom 50% in America is precarious, stressful and unjust.

Other complaints reflect Mr Ahmari’s social conservatism. He disapproves of unpredictable working hours partly because of their effect on family life. He rages that woke corporations such as Disney and American Express “train” workers to accept controversial progressive ideas on race and gender.

He is a deft storyteller. A favourite trick is to describe some terrible injustice as if it occurred in a dictatorship like China or Iran and then to reveal—hey, presto!—that it happened in America. He highlights genuine injustices, such as the way some firms abuse gag clauses, non-compete agreements and the arbitration process.

His analysis, however, is flawed. Private firms in America have far less power over workers than he claims. When they behave abusively, they are often challenged in court. More importantly, with unemployment at 3.5%, disgruntled employees can credibly threaten to quit.

To tame corporate tyranny, Mr Ahmari would supercharge the state. It should encourage unionisation in every sector, play “a far more active role in co-ordinating economic activity” and require financial speculators who buy a company and want to change things to submit to the veto of “workers, local communities and other stakeholders”.

This is a recipe for slower growth and less innovation. Indeed, it is often hard to distinguish Mr Ahmari’s economic proposals from those of Elizabeth Warren or Bernie Sanders on the Democratic left. Yet he thinks his mix of social conservatism and economic populism is the future of the Republican Party, helping it win elections long after Donald Trump has retired or gone to jail. He may be right. This was the calculation made by jd Vance, who first rose to prominence as the author of “Hillbilly Elegy”, which explained the plight of America’s forgotten white working-class, before he ran in Ohio for a Senate seat—and won.

In “Regime Change: Towards a Postliberal Future”, Patrick Deneen, a professor of political science at the University of Notre Dame, gives voice to a gloomy, reactionary strain of thinking. On the first page he laments America’s blighted cities, family breakdown, inequality and “psychic despair”, noting “a growing chorus of voices [reflecting] on the likelihood and even desirability of civil war”.

For all this, he blames liberalism: both the classical sort, which seeks material progress through creative destruction, and the progressive sort that aims to upend family and tradition. To turn back the clock, he would have the state support bigger traditional families (as it does in Hungary) and manufacturing (as it does under Joe Biden). He would restrict immigration, which he says elite liberals support in order to undercut the wages of the native-born and supply themselves with cheap servants.

None of this will work. Plenty of evidence suggests that immigration has little effect on native wages (so curbing it will not raise them); that industrial policy is generally wasteful; that pro-family policies have little effect on fertility; and that Hungary is a kleptocracy.

“Conservative” parties in the West have championed free markets at least since the days of Ronald Reagan and Margaret Thatcher. But free markets are profoundly unconservative. They bring rapid change, usually making people better off, but also disrupting old ways of doing things. Serious conservatives aim to minimise this disruption without impeding growth too much. Demagogues, however, pretend there is no trade-off: that you can have all the benefits of progress without changing the way you live.

For an idea of how ideas like Mr Ahmari’s and Mr Deneen’s might sound when stripped of nuance for the campaign trail, try “Decades of Decadence”. When Marco Rubio first ran for the United States Senate in 2010, he talked about how wonderful it was that he, the son of penniless Cuban immigrants, could aspire to high office in America. Now, still aspiring to even higher office from within a much-changed Republican Party (despite losing to Donald Trump in the Republican primary in 2016), he has embraced his erstwhile rival’s nativist clichés.

He decries America’s “open southern border” and yearns for the good old days when “we took it for granted that most of the things we bought…were made right here at home by our fellow Americans.” He blames China’s entry to the World Trade Organisation for the fact that “Too many Americans who want to live normal decent lives are unable to do so.” To those who say that imports from China might improve American lives, he retorts that such people think of Americans not as “workers, fathers and citizens” but as “consumers…nothing more”.

“The Capitalist Manifesto” by Mr Norberg of the Cato Institute, a think-tank, offers a joyful counterblast to Mr Rubio’s Trumpy stridence. The three decades after 1990, when globalisation took off, have seen greater improvements in human living conditions than the previous three millennia, he shows. Poverty is down, lifespans are longer and technology that only the Pentagon could afford in 1990 is now on every smartphone. “I am not saying that the era has been unequivocally good, only that it has been better than any other era humanity has experienced,” comments Mr Norberg.

When imitation isn’t flattery


Both the new right and the old (and new) left share a zero-sum view of economics, imagining that one person’s gain must be another’s loss. The old left hated free trade and free markets because they supposedly let rich countries exploit poor ones. Now that many of those poor countries have debunked this argument by prospering, the new right complains that free trade and free markets let China exploit the West.

Mr Norberg shows that all of their proposed solutions have been tried before, with dismal results. One study of 50 countries with populist leaders found that 15 years after they take control, their economies are a tenth smaller than those of comparable countries.

In a book packed with vivid examples, one of the most compelling concerns covid-19. Pandemic lockdowns, though widely opposed by the new right, actually achieved many of their stated aims. Borders were closed, migration halted, supply chains disrupted. Global poverty soared—and life became miserable in rich countries, too. Mr Norberg concludes: “It is difficult to imagine a stronger and more tragic proof that progress depends on open societies and economies.” If only his was the last word.

Sunday 7 May 2023

Why the Technology = Progress narrative must be challenged

John Naughton in The Guardian

Those who cannot remember the past,” wrote the American philosopher George Santayana in 1905, “are condemned to repeat it.” And now, 118 years later, here come two American economists with the same message, only with added salience, for they are addressing a world in which a small number of giant corporations are busy peddling a narrative that says, basically, that what is good for them is also good for the world.

That this narrative is self-serving is obvious, as is its implied message: that they should be allowed to get on with their habits of “creative destruction” (to use Joseph Schumpeter’s famous phrase) without being troubled by regulation. Accordingly, any government that flirts with the idea of reining in corporate power should remember that it would then be standing in the way of “progress”: for it is technology that drives history and anything that obstructs it is doomed to be roadkill.

One of the many useful things about this formidable (560-page) tome is its demolition of the tech narrative’s comforting equation of technology with “progress”. Of course the fact that our lives are infinitely richer and more comfortable than those of the feudal serfs we would have been in the middle ages owes much to technological advances. Even the poor in western societies enjoy much higher living standards today than three centuries ago, and live healthier, longer lives.

But a study of the past 1,000 years of human development, Acemoglu and Johnson argue, shows that “the broad-based prosperity of the past was not the result of any automatic, guaranteed gains of technological progress… Most people around the globe today are better off than our ancestors because citizens and workers in earlier industrial societies organised, challenged elite-dominated choices about technology and work conditions, and forced ways of sharing the gains from technical improvements more equitably.”

Acemoglu and Johnson begin their Cook’s tour of the past millennium with the puzzle of how dominant narratives – like that which equates technological development with progress – get established. The key takeaway is unremarkable but critical: those who have power define the narrative. That’s how banks get to be thought of as “too big to fail”, or why questioning tech power is “luddite”. But their historical survey really gets under way with an absorbing account of the evolution of agricultural technologies from the neolithic age to the medieval and early modern eras. They find that successive developments “tended to enrich and empower small elites while generating few benefits for agricultural workers: peasants lacked political and social power, and the path of technology followed the vision of a narrow elite.” 

A similar moral is extracted from their reinterpretation of the Industrial Revolution. This focuses on the emergence of a newly emboldened middle class of entrepreneurs and businessmen whose vision rarely included any ideas of social inclusion and who were obsessed with the possibilities of steam-driven automation for increasing profits and reducing costs.

The shock of the second world war led to a brief interruption in the inexorable trend of continuous technological development combined with increasing social exclusion and inequality. And the postwar years saw the rise of social democratic regimes focused on Keynesian economics, welfare states and shared prosperity. But all of this changed in the 1970s with the neoliberal turn and the subsequent evolution of the democracies we have today, in which enfeebled governments pay obeisance to giant corporations – more powerful and profitable than anything since the East India Company. These create astonishing wealth for a tiny elite (not to mention lavish salaries and bonuses for their executives) while the real incomes of ordinary people have remained stagnant, precarity rules and inequality returning to pre-1914 levels.

Coincidentally, this book arrives at an opportune moment, when digital technology, currently surfing on a wave of irrational exuberance about ubiquitous AI, is booming, while the idea of shared prosperity has seemingly become a wistful pipe dream. So is there anything we might learn from the history so graphically recounted by Acemoglu and Johnson?

Answer: yes. And it’s to be found in the closing chapter, which comes up with a useful list of critical steps that democracies must take to ensure that the proceeds of the next technological wave are more generally shared among their populations. Interestingly, some of the ideas it explores have a venerable provenance, reaching back to the progressive movement that brought the robber barons of the early 20th century to heel.

There are three things that need to be done by a modern progressive movement. First, the technology-equals-progress narrative has to be challenged and exposed for what it is: a convenient myth propagated by a huge industry and its acolytes in government, the media and (occasionally) academia. The second is the need to cultivate and foster countervailing powers – which critically should include civil society organisations, activists and contemporary versions of trade unions. And finally, there is a need for progressive, technically informed policy proposals, and the fostering of thinktanks and other institutions that can supply a steady flow of ideas about how digital technology can be repurposed for human flourishing rather than exclusively for private profit.

None of this is rocket science. It can be done. And it needs to be done if liberal democracies are to survive the next wave of technological evolution and the catastrophic acceleration of inequality that it will bring. So – who knows? Maybe this time we might really learn something from history.

Wednesday 19 April 2017

Crush the saboteurs! How hard-Brexit rhetoric turned Leninist

Steven Poole in The Guardian

Hatred of dissent, it seems, is the new normal in British politics. “Crush the saboteurs,” screamed the Daily Mail, announcing Theresa May’s calling of a snap election. “Crush pro-EU saboteurs, PM,” advised the Sun for good measure. But what exactly are saboteurs and how should we crush them? 

Surprisingly, the language of hard-Brexit Tory supporters is now that of the Russian Revolution. In 1918, the Bolsheviks dissolved Russia’s democractically elected constituent assembly on the grounds that it was a front for the bourgeois counter-revolution. “All power to the Soviets!” Lenin declared. “We shall crush the saboteurs.” For a while, it had seemed as though neo-Soviet rhetoric was the preserve of squabbling factions within the Labour party, with both Corbyn and his opponents accused of organising “purges”. But since three judges defending the rights of the British people were denounced in the rightwing press last autumn as “enemies of the people”, it appears to have become the de facto mode of political argument on left and right. Supporters of the two main parties are complicit in creating an ambient political atmosphere of paranoid permanent revolution. (Rather sweetly, the Mail devoted pages two and three on 19 April to a Soviet-style heroic-agriculture tribute to a British farmer who insists on ploughing his field with horses, which is just as well, since he probably won’t be able to afford a tractor, post-Brexit.)

The political saboteurs Lenin complained of were alleged conspirators, working behind the scenes to ruin his virtuous plans, but the word actually originates in the language of industrial disputes. “Saboteur” and “sabotage” are of French origin, and a popular etymology relates them to “sabots”, the wooden clogs that Luddite workers supposedly threw into machines to break them. Whether or not that is true, the verb “saboter”, meaning to deliberately mess something up, came to be used in the late 19th century by anarchist thinkers, and “sabotage” appeared in English in 1910 to describe the destructive actions of French railway strikers.

The word’s origins in the struggle between workers and capital, then, makes it an appropriate term for enemies of the modern Conservative party in particular. (Home counties Tories, of course, are especially likely to disdain people thus characterised, given their historic battles with “hunt saboteurs”.) And it is no doubt thrilling for well-lunched tabloid editors to dream of “crushing” people they wouldn’t dare pick a physical fight with in person. But Theresa May did not call anyone a saboteur, so perhaps this is all just an unfortunate case of macho projection.

Yet May’s speech announcing the election was, paradoxically, profoundly anti-democratic. “At this moment of enormous national significance, there should be unity here in Westminster, but instead there is division,” she complained. “The country is coming together, but Westminster is not.” This rather charmingly combined a totally made-up fact (the country is coming together) with a bizarre whine that parliamentary democracy is functioning as it should. Any persistent total unity in an elected assembly, after all, would signal that it had been hijacked by a fascist. If there were no “division” in Westminster, we would find ourselves in a de facto one-party state, in which the wisdom of the dear leader is all – a vision of “strong leadership” at which Vladimir Putin would nod sagely.
May’s contempt for the democratic functioning of government neatly mirrors Lenin’s own nearly a century ago, when he asserted that the workers’ councils were better than any democratically elected body: “The Soviets, being revolutionary organisations of all the people, of course became immeasurably superior to all the parliaments in the world.”

In Theresa May’s implicit view, too, superior to all the parliaments in the world would be a British establishment that offered zero obstacles to her “getting on with the job” of delivering what she considers best for the British people (whatever that turns out to be, since apparently no one needs to know right now). In May’s habitual way of phrasing things, the normal workings of parliament – in which MPs and members of the Lords may disagree with a government’s plans – are nothing but “playing politics” or “political game-playing” which must not be allowed to continue lest it cause “damaging uncertainty and instability”. To cast disagreement as game-playing is to characterise dissent as fundamentally unserious, and to bring the very idea of politics into disrepute.

And so, despite her disavowal of the term, the tabloid characterisation of May’s plan as one of crushing the “saboteurs” does not seem inaccurate. Indeed, the recent finale of the TV drama Homeland, which saw the newly elected president Elizabeth Keane holed up in the Oval Office ordering arrests of senators and congressmen, now looks as relevant to British as to American politics. When you have a hammer, everything looks like a nail; when you are a paranoid aspiring autocrat, everyone is a potential saboteur.

In George Orwell’s Nineteen Eighty-Four, Winston Smith invents the heroic historical figure Comrade Ogilvy, who had “no aim in life except the defeat of the Eurasian enemy and the hunting-down of spies, saboteurs, thought-criminals, and traitors generally”. Theresa May’s world, too, seems to have shrunk to one in which the greatest enemies are the enemies within and democracy must be democratically eliminated for the good of the people.