Quotulatiousness

August 7, 2022

You will own nothing … and we don’t care if you like it or not, prole

Filed under: Economics, Food, Government — Tags: , , , , — Nicholas @ 03:00

David Solway, reposted at Brian Peckford’s site, gives us a glimpse of the future the Davos crowd want for all us lesser beings:

The much-circulated slogan “You will own nothing, and you will be happy” was coined by Danish MP Ida Auken in 2016 and included in a 2016 essay published by the purveyors of the so-called “Great Reset” at the World Economic Forum (WEF) headquartered in Davos, Switzerland. It is, of course, only half true. Nonetheless, the phrase is certainly apt and should be taken seriously. For once the Great Reset has been put in place, we will indeed own nothing except our compelled compliance.

The world’s farmers and cattle raisers, deprived of their livelihoods on the pretext of reducing nitrogenic fertilizers and livestock-produced methane, will own next to nothing. Meat and grain will become increasingly rare and we will be dining on cricket goulash and mealworm mash, an entomorphagic feast. We will be driving distance-limited electric vehicles rented from the local Commissariat and digitally monitored by Cyber Central — assuming we will still be allowed to drive. Overseen by a cadre of empowered financial managers who can “freeze” our assets at any time, we will possess bank accounts and credit ratings, but they will not be really ours.

Subject to a conceptual misnomer that is nothing but a vacuous abstraction, we will have become “stakeholders” — the WEF’s Klaus Schwab’s favorite word — with no real stake to hold apart from a crutch. In fact, what Schwab’s “stakeholder capitalism” really means, as Andrew Stuttaford explains at Capital Matters, is “transferring the power that capitalism should confer from its owners and into the hands of those who administer it.”

Should the Great Reset ever be fully implemented, we will have been diminished, as Joel Kotkin cogently argues in The Coming of Neo-Feudalism, to the condition of medieval serfs, or reduced to the status of febrile invalids, like those in Thomas Mann’s The Magic Mountain, which, as it happens, was also set in Davos. As Mann ends his novel, addressing his main character Hans Castorp: “Farewell, Hans … Your chances are not good. The wicked dance in which you are caught up will last many a little sinful year yet, and we will not wager much that you will come out whole.”

Modern-day Castorps, we will indeed own nothing, and most assuredly, we will not be happy. As Schwab writes in his co-authored Covid-19: The Great Reset, people will have to accept “limited consumption”, “responsible eating”, and, on the whole, sacrificing “what we do not need” — this latter to be determined by our betters.

What strikes me with considerable force is the pervasive indifference or cultivated ignorance of the general population respecting what the Davos cabal has in store for them. A substantial number of people have never heard of it. Others regard it as just another internet conspiracy — though it is not so much a conspiracy since it is being organized in full sight. The majority of “fact-checkers” and hireling intellectuals wave it away as a right-wing delusion.

August 4, 2022

“Klaus Schwab, it turns out, is Supervillain Thomas Friedman”

Filed under: Books, Economics — Tags: , , , — Nicholas @ 05:00

Chris Bray somehow manages to girds his loins to take on a task that most of us would run screaming from: actuall reading a book by Klaus Schwab:

Seeing roughly 4,000 references a day to Klaus Schwab and the World Economic Forum, it occurred to me late last week that I’d never gone to the source — I’ve never read a book by Klaus Schwab. So I set out to read the one the Dutch parliamentarian asked his prime minister about, the one about the Great Reset, which Schwab co-wrote with Thierry Malleret. It’s a little like saying, “Man, you know, I’ve never gone swimming in the sewer,” and then pulling on your swimsuit.

So.

First, if you weigh about ten pounds, I can report that the book is the perfect size and shape for lounging.

This is the only value the book provides to the world, and I recommend the immediate deployment of all remaining copies to the one population that can actually use them. Personal to Klaus Schwab: Give the next book a scratchy cardboard cover. Just trust me on this.

As for the book’s relationship to humans: Klaus Schwab, it turns out, is Supervillain Thomas Friedman. Being shrewd, he notices things: Did you know that a lot more people are online now than twenty years ago? Did you know that many objects are now connected to the Internet, from “electric grids and water pumps, to kitchen ovens and agricultural irrigation systems”, and that objects didn’t used to be connected to the Internet? Did you realize that this shift is causing change? When we talk about the pace of change, reader, we are talking about a term called velocity, and a lot of change happening quickly has a high velocity.

If you’ve ever worked for a corporate middle manager who held meetings to encourage the team to think outside the box, you’ve already read Klaus Schwab. We get an endless stream of tautological management-speak, encouraging leaders to embrace transformation by adopting a transformational approach, leading to transformational action and transformational policy caused by a transformational something or other. Page 63: “Innovation in production, distribution, and business models can generate efficiency gains and new or better products that create higher value added, leading to new jobs and economic prosperity.” Innovation can create things that are new, he explained, showing why he’s one of our best-known and most powerful economic experts. A warning to the world: If Kamala Harris and Klaus Schwab ever end up alone in a room together for a sustained and direct conversation, the banality will attain critical mass, and we will all die in a world-consuming implosion.

And here’s the key to the man’s power and status: He sounds like them. He talks to the governing class in language they recognize, telling them the things they already think. He went to a place where people already were, and he told them he led them there.

July 26, 2022

Is Trudeau channelling Caligula? – “Let them hate me as long as they fear me”

Filed under: Cancon, Government, Liberty, Media, Politics — Tags: , , , — Nicholas @ 03:00

Spencer Fernando, writing for the National Citizens Coalition:

When trying to ascertain where the Trudeau Liberals are trying to take the country, it’s important to look at the foundations of Justin Trudeau’s worldview.

Clearly, he was heavily influenced by his father, someone who continuously expanded the power of the state.

Justin Trudeau’s father was well known as a Communist-sympathizer, being a big fan of both Fidel Castro and Communist China.

Note, the version of the CCP that existed in Pierre Trudeau’s era was even more brutal than the CCP as it exists today. At the time, it was not far removed from the time of Mao’s Great Leap Forward, a government-imposed “reshaping of society” that led to roughly 45 million deaths.

To look at that, and still be a fan of the Chinese Communist Party, is to show a deep ideological commitment to authoritarian socialism and a deep aversion to human freedom.

The apple clearly didn’t fall far from the tree, as Justin Trudeau praised China’s “basic dictatorship” (AKA the centralized power structure that enables horrific crimes).

Trudeau also sought to move Canada closer to China’s orbit, only giving up on that when public opinion – and a subtle revolt among some backbench Liberals – rendered it politically unfeasible.

We can see how the authoritarian socialism that Trudeau praised in China (and let’s not forget his fawning eulogy for Fidel Castro), lines up with the fear and contempt he and the Liberals have for many Canadians.

Now, let’s also note this essential point:

The Liberals continuously target the same individuals that authoritarian socialists and communists have targeted:

    Rural Conservatives.

    Private Enterprise.

    Religious Groups.

    Freethinkers.

    Individualists.

    Private Farmers.

    Rural Gun Owners.

    Independent Press Outlets.

Historically, those are all groups that the far-left has targeted when given the opportunity.

We only need to look at how the Liberal approach to Covid was modelled after the approach taken by Communist China, and how both the Liberals and the CCP have been largely unwilling to move on.

While the Liberals are more constrained than the CCP by the fact that Canada maintains some freedoms, do we have any doubt that they would be far more severe if they could get away with it?

Remember, the moment he feared losing the 2021 election, Justin Trudeau used very divisive and disturbing rhetoric (especially disturbing when seen in a historical context), and purposely sought to direct hatred and blame towards those who resisted draconian state orders.

Since then, the Trudeau Liberals – even in the face of criticism by a few courageous Liberal MPs who were quickly “put back in their place” – have almost gleefully abused their power, purposely creating an “Us vs Them” narrative designed to pit Canadians against each other.

At the same time, they’ve continued their efforts to gain control over social media, silence dissenting views, and turn the establishment media into an extension of the state propaganda apparatus.

This is all being done because they fear those who have the intelligence and strength of character to see through their agenda.

They fear you, and have contempt for you.

May 27, 2022

Minoru Yamasaki and the Pruitt–Igoe urban housing project

Filed under: Architecture, Bureaucracy, Government, USA — Tags: , , , , , — Nicholas @ 05:00

Joseph Kast recounts the story of a post-war government scheme to demolish slums, re-house the slum-dwellers in a massive public housing project and the architect whose career was forever blighted by the failure of the design:

An undated overview of some of the 33 buildings of the Pruitt-Igoe complex in St. Louis, Missouri. Designed by Japanese-American architect Minoru Yamasaki and built in the early 1950s. All had been demolished by 1976.
Uncredited photo from Wikimedia Commons.

Can society be designed? Can an expert engineer alleviate people’s pains and struggles with a good-enough central plan and blueprint?

Minoru Yamasaki thought so.

Yamasaki was one of America’s most well-respected architects in the 20th century and was a member of the school of thought that people’s human nature could be improved (whether those people needed or wanted improving) by a properly planned building surrounding them.

Yamasaki got to test his theory by designing the public housing complex that promised to be a template for all public housing going forward. The complex, St. Louis’ Pruitt-Igoe, was made possible by post-war New Deal housing and urban development programs. And like many New Deal initiatives, Pruitt-Igoe was guided by the idea that good intentions, centralized planning, and strong government power would progress society more than protecting people’s rights or personal choices.

Pruitt-Igoe and Yamasaki’s designs were sold as the solution to poverty, crime, and housing in America’s major cities, but within just a few years, the complex would show the dangerous consequences when government planners take away people’s liberties and homes.

As with so many vast schemes to use the government’s power to reshape people’s lives, the hopes of the central planners quickly fell afoul of economic and social realities that the plan never took into account.

St. Louis quickly realized that Pruitt-Igoe was a problem. But it was unclear who, if anyone, could fix it. The federal government, the St. Louis Housing Authority, the state, and the City of St. Louis itself all shared responsibility for the complex. When a problem belongs to everyone, it belongs to no one.

Within five years of its launch, Yamasaki was regularly apologizing for his role in the project. Though the final design of the complex differed from his original vision, he came to question the core assumption behind the project: that people’s lives could be effectively engineered through urban design. He expressed regret for his “deplorable mistakes” with Pruitt-Igoe. By the late 1950s, he was giving eloquent speeches about the “tragedy of housing thousands in exactly look alike cells,” which “certainly does not foster our ideals of human dignity and individualism.”

To the Detroit Free Press, he put it more simply: “Social ills can’t be cured by nice buildings.”

By the early 1970s, the 33 concrete tombstones lining St. Louis’ skyline were a cautionary tale for utopian housing schemes. It was a den of crime and misery, rather than anything anyone could call home. When the decision came to demolish the complex, occupancy was only 10 percent.

The day the demolitions began at Pruitt-Igoe, architectural historian Charles Jencks declared the death of high modernist architecture and its grand assumptions: “It was finally put out of its misery. Boom, boom, boom.”

Three towers were demolished in 1972. The last tower finally came down in 1976, leaving nothing of Pruitt-Igoe behind.

The demolition of one of the Pruitt-Igoe buildings, which began in 1972 with the final building demolished in 1976.
Uncredited image from Wikimedia Commons.

May 5, 2022

Paul Wells reviews Davos Man by Peter S. Goodman

Paul Wells — now on Substack — considers an unusual-from-a-Canadian-perspective critical book on the World Economic Forum and the people who attend their exclusive shindigs in Davos, Switzerland:

I’ve been reading Peter S. Goodman’s Davos Man, a tough, angry — not entirely persuasive — critique of the sort of people who get top-level access to the World Economic Forum in Davos, Switzerland. Because Goodman’s vantage point is left-by-centre-left, his book provides fascinating counterpoint to a polemic about the WEF that is, in Canada, the almost exclusive preserve of the right.

[…]

Politicians who make a show of having a problem with Davos should explain what the problem is; why they didn’t raise their concerns when cabinet colleagues were lining up to go; and what solutions, if any, they propose. Otherwise they might seem to be faking their indignation to lure a few votes.

Second, it’s easy to see why Davos catastrophism has taken root in some corners of the electorate. We are coming off a COVID pandemic, after all. Very early, only weeks into this historic disaster, the WEF was quick to start discussing visions of a green egalitarian future with prominent roles for green progressive governments and Davos regulars. This was the “Great Reset”, which I discussed here in a magazine. Soon Trudeau was on video calls saying, “This pandemic has provided an opportunity for a reset. This is our chance to accelerate our pre-pandemic efforts to reimagine economic systems.” Which was jarring. Still is. Soon people were digging up old video of Klaus Schwab, the WEF founder, bragging about “penetrating the cabinets” of Western countries with “Young Global Leaders of the World Economic Forum”.

People who didn’t like everything that’s happened since — vaccines, lockdowns, restrictions — started reading great significance into all kinds of perceived Davos connections. Often Trudeau has seemed eager to help. Replacing his finance minister with the only member of his cabinet who sits on the WEF Board of Trustees, while yet again blathering on about how “we can choose to embrace bold new solutions to the challenges we face and refuse to be held back by old ways of thinking” was … loopy, sure, but it probably only accidentally resembled the second act of a Bond movie.

Bringing an element of novelty to all this is Peter S. Goodman, the Global Economics Correspondent of the New York Times. Even if he were Canadian, nobody should expect Goodman to support Poilievre for Conservative leader. Davos Man is a furious diatribe, not against the WEF as an institution but against many of Davos’s richest regulars — and it’s written from a consistently social-democratic perspective.

From its subtitle, “How the Billionaires Devoured the World”, Davos Man relentlessly skewers some of the most glamorous Davos habitués — Amazon gillionaire Jeff Bezos, Blackstone founder Stephen Schwarzman, BlackRock CEO Larry Fink, banker Jamie Dimon, Salesforce guy Marc Benioff. And their, you know, ilk.

“Over recent decades, the billionaire class has ransacked governments by shirking taxes, leaving societies deprived of the resources needed to combat trouble,” Goodman writes. Davos Man — Goodman has borrowed the term from Samuel Huntington — “is a rare and remarkable creature, a predator who attacks without restraint … expanding his territory and seizing the nourishment of others.” Goodman’s language is consistently violent. The billionaires “eviscerate financial regulations”, “defenestrated antitrust authorities”, “squashed the power of labor movements”.

April 16, 2022

QotD: The Edict of Diocletian

Such a system could not work without price control. In 301, Diocletian and his colleagues issued an Edictum de pretiis, dictating maximum legal prices or wages for all important articles or services in the Empire. Its preamble attacks monopolists who, in an “economy of scarcity”, had kept goods from the market to raise prices:

    Who is … so devoid of human feeling as not to see that immoderate prices are widespread in the markets of our cities, and that the passion for gain is lessened neither by plentiful supplies nor by fruitful years? — so that … evil men reckon it their loss if abundance comes. There are men whose aim it is to restrain general prosperity … to seek usurious and ruinous returns. … Avarice rages throughout the world. … Wherever our armies are compelled to go for the common safety, profiteers extort prices not merely four or eight times the normal, but beyond any words to describe. Sometimes the soldier must exhaust his salary and his bonus in one purchase, so that the contributions of the whole world to support the armies fall to the abominable profits of thieves.

The Edict was, until our time, the most famous example of an attempt to replace economic laws by governmental decrees. Its failure was rapid and complete. Tradesmen concealed their commodities, scarcities became more acute than before, Diocletian himself was accused of conniving at a rise in prices, riots occurred, and the Edict had to be relaxed to restore production and distribution. It was finally revoked by Constantine.

The weakness of this managed economy lay in its administrative cost. The required bureaucracy was so extensive that Lactantius, doubtless with political license, estimated it at half the population. The bureaucrats found their task too great for human integrity, their surveillance too sporadic for the evasive ingenuity of men. To support the bureaucracy, the court, the army, the building program, and the dole, taxation rose to unprecedented peaks of ubiquitous continuity.

As the state had not yet discovered the plan of public borrowing to conceal its wastefulness and postpone its reckoning, the cost of each year’s operations had to be met from each year’s revenue. To avoid returns in depreciating currencies, Diocletian directed that, where possible, taxes should be collected in kind: taxpayers were required to transport their tax quotas to governmental warehouses, and a laborious organization was built up to get the goods thence to their final destination. In each municipality, the decuriones, or municipal officials, were held financially responsible for any shortage in the payment of the taxes assessed upon their communities.

Since every taxpayer sought to evade taxes, the state organized a special force of revenue police to examine every man’s property and income; torture was used upon wives, children, and slaves to make them reveal the hidden wealth or earnings of the household; and severe penalties were enacted for evasion. Towards the end of the 3rd century, and still more in the 4th, flight from taxes became almost epidemic in the Empire. The well-to-do concealed their riches, local aristocrats had themselves reclassified as humiliores to escape election to municipal office, artisans deserted their trades, peasant proprietors left their overtaxed holdings to become hired men, many villages and some towns (e.g., Tiberias in Palestine) were abandoned because of high assessments; at last, in the 4th century, thousands of citizens fled over the border to seek refuge among the barbarians.

It was probably to check this costly mobility, to ensure a proper flow of food to armies and cities, and of taxes to the state, that Diocletian resorted to measures that, in effect, established serfdom in fields, factories, and guilds. Having made the landowner responsible through tax quotas in kind for the productivity of his tenants, the government ruled that a tenant must remain on his land till his arrears of debt or tithes should be paid.

We do not know the date of this historic decree; but in 332, a law of Constantine assumed and confirmed it, and made the tenant adscriptitius, “bound in writing”, to the soil he tilled; he could not leave it without the consent of the owner; and when it was sold, he and his household were sold with it. He made no protest that has come down to us; perhaps the law was presented to him as a guarantee of security, as in Germany today. In this and other ways, agriculture passed in the 3rd century from slavery through freedom to serfdom and entered the Middle Ages.

Similar means of compelling stability were used in industry. Labor was “frozen” to its job, forbidden to pass from one shop to another without governmental consent. Each collegium or guild was bound to its trade and its assigned task, and no man might leave the guild in which he had been enrolled. Membership in one guild or another was made compulsory on all persons engaged in commerce and industry, and the son was required to follow the trade of his father. When any man wished to leave his place or occupation for another, the state reminded him that Italy was in a state of siege by the barbarians and that every man must stay at his post.

Will Durant, The Story of Civilization, Volume 3: Caesar and Christ, 1944.

April 9, 2022

It wasn’t the Wuhan Coronavirus that crippled the world economy — it was government reaction to the pandemic

Filed under: Cancon, China, Europe, Government, Health, Media, USA — Tags: , , , — Nicholas @ 03:00

Dan Sanchez points out the undeniable truth that most of the economic damage we’ve sustained over the last two years wasn’t due to the pandemic itself, but to the incredibly disruptive public health measures almost every western government implemented in response (with huge connivance on the part of the legacy media and the social media companies):

… it will not be the coronavirus making us poorer, but the fallacy, embraced by officials from Beijing to DC, that central planners can manage society-wide problems, like “healing” a global pandemic or “fixing” a global supply chain.

As the great economists Ludwig von Mises and F.A. Hayek explained, societies and economies are inconceivably complex, and it is literally impossible for anyone to centrally plan something so far beyond their comprehension. To think otherwise is, as Hayek called it, a “fatal conceit”.

The fatal conceit of central planners is manifest in the very term “global supply chain”. The metaphor of a “chain” portrays the economy as something static and linear: something simple enough for a single mind to “fix”.

But, as Leonard Read vividly showed in his classic essay “I, Pencil”, even a seemingly simple good like a pencil is not the product of a single supply chain. Every good in the economy is descended from a vast “family tree” of innumerable factors of production. And all the family trees of all goods are intricately interconnected, making the economy, not a “chain”, but as economist Murray Rothbard depicted it, “a highly complex, interacting latticework of exchanges”.

This vast, dynamic latticework is self-healing and self-fixing: through the actions and interactions of its constituent individuals. Blundering, arrogant central planners only get in the way and make things worse.

That has been the lesson of free-market economists and social theorists going back to Adam Smith. The western world partly embraced that lesson, and it flourished as a result, becoming a beacon to the world. Starting in the 1970s, even Communist China emulated its example, opening up its markets. This was a humanitarian miracle for the Chinese people and a boon for us all. If not for Chinese manufacturing being integrated into the global division of labor, it is hard to imagine the west having the modern high-tech living standards and super-comfortable working conditions we enjoy (however precariously) today.

Whereas once China liberalized in emulation of the west, now the leaders of the “free world” are emulating (and, in the case of Canada’s prime minister, openly admiring) the authoritarianism of the CCP. As crises continue to mount, it is clear that this turn toward tyranny is putting our future at risk.

March 22, 2022

West Germany’s Wirtschaftwunder — the staggering economic postwar recovery

Filed under: Economics, Germany, History, USA — Tags: , , , , , — Nicholas @ 03:00

Christian Monson debunks the common tale taught in western schools of reason for the amazing recovery of West Germany’s economy after World War Two:

Occupation zone borders in Germany, 1947. The territories east of the Oder-Neisse line, under Polish and Soviet administration/annexation, are shown as cream as is the likewise detached Saar protectorate. Berlin is the multinational area within the Soviet zone.

Image based on map data of the IEG-Maps project (Andreas Kunz, B. Johnen, and Joachim Robert Moeschl of the University of Mainz) — www.ieg-maps.uni-mainz.de, via Wikimedia Commons.

This “economic miracle” is commonly referred to as die Wirtschaftswunder. But how did Germany go from rubble to riches in just a decade while neutral countries like Spain merely treaded economic water? If you ask your average American history student, they will say the Marshall Plan, of course!

Unfortunately, the ubiquity of the myth that the Marshall Plan rebuilt Germany is proof that state-controlled education favors propaganda over economic literacy. Despite the fact that most modern historians don’t give the Marshall Plan much credit at all for rebuilding Germany and attribute to it less than 5 percent of Germany’s national income during its implementation, standard history textbooks still place it at the forefront of the discussion about post-war reconstruction.

Consider this section from McDougal Littell’s World History (p. 968), the textbook I was given in high school:

    This assistance program, called the Marshall Plan, would provide food, machinery, and other materials to rebuild Western Europe. As Congress debated the $12.5 billion program in 1948, the Communists seized power in Czechoslovakia. Congress immediately voted approval. The plan was a spectacular success.

Of course, the textbook makes no mention of the actual cause of the Wirtschaftwunder: sound economic policy. That’s because, for the state, the Marshall Plan makes great statist mythology.

Not only is it frequently brought up to justify the United States getting involved in foreign conflicts, but it simply gives support for central planning. Just look at the economic miracle the government was able to create with easy credit, they say.

And of course, admitting that the billions of dollars pumped into Germany after WWII accomplished next to nothing, especially when compared to something as simple as sound money, would be tantamount to admitting that the government spends most of its time making itself needed when it isn’t and thereby doing little besides getting in the way.

Credit for the turnaround should be accorded to Ludwig Erhard, according to Alasdair Macleod at the Cobden Centre:

Anyone who favours regulation needs to explain away Germany’s post-war success. Her economy had been destroyed, firstly by the Nazi war machine, and then by Allied bombing. We easily forget the state of ruin the country was in, with people in the towns and cities actually starving in the post-war aftermath. The joint British and American military solution was to extend and intensify war-time rationing and throw Marshall aid at the problem.

Then a man called Ludwig Erhard was appointed director of economics by the Bizonal Economic Council, in effect he became finance minister. He decided, against British and American misgivings, as well as opposition from the newly-recreated Social Democrats, to do away with price controls and rationing, which he did in 1948. These moves followed his currency reform that June, which contracted the money supply by about 90%. He also slashed income tax from 85% to 18% on annual incomes over Dm2,500 (US$595 equivalent).

Economists of the Austrian school would comprehend and recommend this strategy, but it goes wholly against the bureaucratic grain. General Lucius Clay, who was the military governor of the US Zone, and to whom Erhard reported, is said to have asked him, “Herr Erhard, my advisers tell me what you have done is a terrible mistake. What do you say to that?”

Erhard replied, “Herr General, pay no attention to them! My advisers tell me the same thing.”

About the same time, a US Colonel confronted Erhard: “How dare you relax our rationing system, when there is a widespread food shortage?”

Erhard replied, “I have not relaxed rationing, I have abolished it. Henceforth the only rationing ticket the people will need will be the deutschemarks. And they will work hard to get those deutschemarks, just wait and see.”

The US Colonel did not have to wait long. According to contemporary accounts, within days of Erhard’s currency reform, shops filled with goods as people realised the money they sold them for would retain its value. People no longer needed to forage for the basics in life, so absenteeism from work halved, and industrial output rose more than 50% in the second half of 1948 alone.

March 10, 2022

QotD: Orwell on Capitalism, Socialism, and Fascism

Filed under: Economics, Germany, History, Politics, Quotations, WW2 — Tags: , , , , — Nicholas @ 01:00

Socialism is usually defined as “common ownership of the means of production”. Crudely: the State, representing the whole nation, owns everything, and everyone is a State employee. This does not mean that people are stripped of private possessions such as clothes and furniture, but it does mean that all productive goods, such as land, mines, ships and machinery, are the property of the State. The State is the sole large-scale producer. It is not certain that Socialism is in all ways superior to capitalism, but it is certain that, unlike capitalism, it can solve the problems of production and consumption. At normal times a capitalist economy can never consume all that it produces, so that there is always a wasted surplus (wheat burned in furnaces, herrings dumped back into the sea, etc., etc.) and always unemployment. In time of war, on the other hand, it has difficulty in producing all that it needs, because nothing is produced unless someone sees his way to making a profit out of it. In a Socialist economy these problems do not exist. The State simply calculates what goods will be needed and does its best to produce them. Production is only limited by the amount of labour and raw materials. Money, for internal purposes, ceases to be a mysterious all-powerful thing and becomes a sort of coupon or ration-ticket, issued in sufficient quantities to buy up such consumption goods as may be available at the moment.

However, it has become clear in the last few years that “common ownership of the means of production” is not in itself a sufficient definition of Socialism. One must also add the following: approximate equality of incomes (it need be no more than approximate), political democracy, and abolition of all hereditary privilege, especially in education. These are simply the necessary safeguards against the reappearance of a class-system. Centralized ownership has very little meaning unless the mass of the people are living roughly upon an equal level, and have some kind of control over the government. “The State” may come to mean no more than a self-elected political party, and oligarchy and privilege can return, based on power rather than on money.

But what then is Fascism?

Fascism, at any rate the German version, is a form of capitalism that borrows from Socialism just such features as will make it efficient for war purposes. Internally, Germany has a good deal in common with a Socialist state. Ownership has never been abolished, there are still capitalists and workers, and – this is the important point, and the real reason why rich men all over the world tend to sympathize with Fascism – generally speaking the same people are capitalists and the same people workers as before the Nazi revolution. But at the same time the State, which is simply the Nazi Party, is in control of everything. It controls investment, raw materials, rates of interest, working hours, wages. The factory owner still owns his factory, but he is for practical purposes reduced to the status of a manager. Everyone is in effect a State employee, though the salaries vary very greatly. The mere efficiency of such a system, the elimination of waste and obstruction, is obvious. In seven years it has built up the most powerful war machine the world has ever seen.

But the idea underlying Fascism is irreconcilably different from that which underlies Socialism. Socialism aims, ultimately, at a world-state of free and equal human beings. It takes the equality of human rights for granted. Nazism assumes just the opposite. The driving force behind the Nazi movement is the belief in human inequality, the superiority of Germans to all other races, the right of Germany to rule the world. Outside the German Reich it does not recognize any obligations. Eminent Nazi professors have “proved” over and over again that only Nordic man is fully human, have even mooted the idea that non-Nordic peoples (such as ourselves) can interbreed with gorillas! Therefore, while a species of war-Socialism exists within the German state, its attitude towards conquered nations is frankly that of an exploiter. The function of the Czechs, Poles, French, etc., is simply to produce such goods as Germany may need, and get in return just as little as will keep them from open rebellion. If we are conquered, our job will probably be to manufacture weapons for Hitler’s forthcoming wars with Russia and America. The Nazis aim, in effect, at setting up a kind of caste system, with four main castes corresponding rather closely to those of the Hindu religion. At the top comes the Nazi party, second come the mass of the German people, third come the conquered European populations. Fourth and last are to come the coloured peoples, the “semi-apes” as Hitler calls them, who are to be reduced quite openly to slavery.

However horrible this system may seem to us, it works. It works because it is a planned system geared to a definite purpose, world-conquest, and not allowing any private interest, either of capitalist or worker, to stand in its way. British capitalism does not work, because it is a competitive system in which private profit is and must be the main objective. It is a system in which all the forces are pulling in opposite directions and the interests of the individual are as often as not totally opposed to those of the State.

George Orwell, “The Lion And The Unicorn: Socialism and the English Genius”, 1941-02-19.

March 2, 2022

QotD: George Orwell was a dedicated socialist

Filed under: Britain, Economics, History, Quotations, WW2 — Tags: , , — Nicholas @ 01:00

I began this book to the tune of German bombs, and I begin this second chapter in the added racket of the barrage. The yellow gun-flashes are lighting the sky, the splinters are rattling on the house-tops, and London Bridge is falling down, falling down, falling down. Anyone able to read a map knows that we are in deadly danger. I do not mean that we are beaten or need be beaten. Almost certainly the outcome depends on our own will. But at this moment we are in the soup, full fathom five, and we have been brought there by follies which we are still committing and which will drown us altogether if we do not mend our ways quickly.

What this war has demonstrated is that private capitalism – that is, an economic system in which land, factories, mines and transport are owned privately and operated solely for profit – does not work. It cannot deliver the goods. This fact had been known to millions of people for years past, but nothing ever came of it, because there was no real urge from below to alter the system, and those at the top had trained themselves to be impenetrably stupid on just this point. Argument and propaganda got one nowhere. The lords of property simply sat on their bottoms and proclaimed that all was for the best. Hitler’s conquest of Europe, however, was a physical debunking of capitalism. War, for all its evil, is at any rate an unanswerable test of strength, like a try-your-grip machine. Great strength returns the penny, and there is no way of faking the result.

When the nautical screw was first invented, there was a controversy that lasted for years as to whether screw-steamers or paddle-steamers were better. The paddle-steamers, like all obsolete things, had their champions, who supported them by ingenious arguments. Finally, however, a distinguished admiral tied a screw-steamer and a paddle-steamer of equal horsepower stern to stern and set their engines running. That settled the question once and for all. And it was something similar that happened on the fields of Norway and of Flanders. Once and for all it was proved that a planned economy is stronger than a planless one.

George Orwell, “The Lion And The Unicorn: Socialism and the English Genius”, 1941-02-19.

February 9, 2022

QotD: Paper or plastic?

In his Nobel Lecture, The Pretence of Knowledge, Friedrich Hayek told us that it was never going to be possible to centrally plan an economy for economies are big, complex, even chaotic, things. That centre can never gain enough information in real time to be able to make decisions which bear much relation to reality. We can also run his logic backwards, if we do insist upon planning then we can only have a simple economy – all the knowledge we have allows us to plan – and simple economies are poor ones with poor people in them. Planning and poverty or market chaos and wealth: take your pick.

This point is illustrated in microcosm by those trying to get rid of single use plastic bags. The 5p charge for plastic bags has meant the sale of billions of so-called bags for life, which use twice as much plastic as the cheaper alternative. All those bags for life mean we use more plastic than we started with and even, possibly, more bags themselves. This was something that was warned about before the plastic bag charge was introduced, with some observing that even “single use” bags did tend to get used more than once.

So far, then, we have learnt that the planning deployed to reduce plastic has had the opposite effect. That, however, has not stopped the central planners from redoubling their efforts. The necessary charge for a bag is to double, the system is to be expanded to the tens of thousands of small shops that don’t currently have to charge. “It doesn’t work, let’s have more of it”, the cry of bureaucracies through the ages.

But this is the blending of government planning with the fashionable nostrums of our day so of course it gets worse. It’s not even true that the bags for life – and especially not the cotton ones, even less so the organic cotton – are more environmentally friendly than the single use ones. Even recycled ones use more resources than single-use ones – for yes, recycling is an industrial activity using energy and other resources.

We can even construct a little spectrum here. How many times do we need to reuse a bag for it to have as little resource use – and thus environmental effect – as just the one use of those thin single use plastic ones? Obviously enough, the single use that we’re told not to use has a value of one here. The bag for life must be reused 35 times. A bag for life from recycled plastic 84 times. A paper bag must be reused 43 times – yes, paper. A cotton bag 7,100 times and an organic cotton? 20,000.

Which is the environmentally friendly option here? Clearly and obviously the one that everyone insists we must not use. So much for fashionable nostrums then.

Tim Worstall, “Plastic bags and the problem with central planning”, CapX, 2019-01-02.

January 25, 2022

The fantasy of a modern economy without money

Filed under: Economics — Tags: , , , , — Nicholas @ 03:00

Jon Hersey and Thomas Walker-Werth consider the claim that we’d all be better off without money in a truly modern, egalitarian society:

Capitalism, to the extent it has existed, has been incredibly successful at lifting most of humanity out of poverty, incentivizing the creation of incredible, life-enhancing technologies, such as those Maezawa used to make his fortune — not to mention, travel to space. But it’s long had its critics, and he is far from the first to propose a sort of Garden-of-Eden world where everything is plentiful and free. Karl Marx envisioned a similar utopia. Communism, he said, ultimately would bring about a world without money:

    In the case of socialised production the money-capital is eliminated. Society distributes labour-power and means of production to the different branches of production. The producers may, for all it matters, receive paper vouchers entitling them to withdraw from the social supplies of consumer goods a quantity corresponding to their labour-time. These vouchers are not money. They do not circulate.

And although “society distributes labour-power” — meaning government planners tell people what to do to ensure that things (such as “free” Ferraris) get made — workers could also all pursue whatever hobbies or occupations strike their fancy. “[I]n communist society,” Marx explained,

    where nobody has one exclusive sphere of activity but each can become accomplished in any branch he wishes, society regulates the general production and thus makes it possible for me to do one thing today and another tomorrow, to hunt in the morning, to fish in the afternoon, rear cattle in the evening, criticize after dinner, just as I have in mind, without ever becoming hunter, fisherman, shepherd or critic.

[…]

Although Marx considered himself a social scientist and economist — and although his ideas are still some of the most widely taught — they aren’t much taught in social science or economics departments, except as foils. That’s because virtually all of Marx’s hypotheses have been debunked. For one, who’s going to build the free Ferraris that Maezawa has dreamed up, never mind tackle more mundane tasks, with no incentive? But for those who don’t find such commonsense thought experiments convincing — or who think, as Marx did, that human nature will somehow mysteriously change — the impracticality of Marx’s moneyless state was demonstrated by what Austrian economists have come to call the calculation problem. Ludwig von Mises once explained the problem as follows:

    If a hydroelectric power station is to be built, one must know whether or not this is the most economical way to produce the energy needed. How can he know this if he cannot calculate costs and output?

    We may admit that in its initial period a socialist regime could to some extent rely upon the experience of the preceding age of capitalism. But what is to be done later, as conditions change more and more? Of what use could the prices of 1900 be for the director in 1949? And what use can the director in 1980 derive from the knowledge of the prices of 1949?

    The paradox of “planning” is that it cannot plan, because of the absence of economic calculation. What is called a planned economy is no economy at all. It is just a system of groping about in the dark.

In short, without prices, people have no relatable, quantifiable means of comparing and contrasting options about how to spend time and capital, which is vital for determining how best to use these naturally scarce resources. “New Scientist magazine reported that in the future, cars could be powered by hazelnuts,” said comedian Jimmy Fallon, in a skit that captures this point hilariously. “That’s encouraging, considering an eight-ounce jar of hazelnuts costs about nine dollars. Yeah, I’ve got an idea for a car that runs on bald eagle heads and Fabergé eggs.”

December 28, 2021

“After the Second World War, the architecture-industrial complex … began a massive rebuilding of major cities”

Filed under: Architecture, Britain, Europe, History — Tags: , , , , — Nicholas @ 03:00

In The Critic, Nikos A. Salingaros decries “architectural urbanicide”:

Cumbernauld Shopping Centre, voted as Britain’s most hated building.
Photo by Ed Webster via Wikimedia Commons.

Biological life transforms energy from the sun into complexes of organic materials that either metabolize while remaining relatively fixed, or move about and eat each other. Human energy creates the analogous case of artifacts and buildings, which give us a healing effect akin to the feedback experienced from our interaction with biological organisms. This positive emotion corresponds to the mechanism of “biophilia”.

Women grow and nurture the human baby. They are predisposed to appreciate the created life form through an intense bond of love through beauty. Most people — though not all, a notable exception being the architect Le Corbusier — love babies and have a built-in reflex of smiling at the sight of one, even if it’s not their own. Beauty is inseparable from creation and life.

Established architecture in our times, and for a century before now, has been an almost exclusively male domain, dominated by sheer power. The profession has aligned itself with ideology and extractive money interests. A design movement that ignores living structure took dominance after World War II. It thrives through global consumption. Mathematical analysis can measure very precise living qualities embedded in design and materials, such as fractal scaling, multiple nested symmetries, color harmonization, organized details, vertical axis, etc. Recent experimental tools of eye-tracking and artificial intelligence using Visual Attention Software determine which designs attract the eye unconsciously, and which remain uninteresting to our sophisticated brain evolved for survival.

[…]

After the Second World War, the architecture-industrial complex of building and real estate industries began a massive rebuilding of major cities. This freed up real estate for new construction, an activity that enriched a certain section of society. Working with politicians at all levels, architectural review boards did not value traditional buildings, nor those in any of several new but non-modernist form languages. Any qualms about the irreversible destruction of the life of cities were offset by the media convincing the population that this was an inexorable and much desired move towards progress. Anybody opposing this program of architectural substitution — replacing living by dead structure — was labeled an obscurantist reactionary. The promised utopia seduced academia to join this campaign. People failed to realize that an ideology ostensibly linked to Marxist beliefs was driven by ruthless industry manipulation.

Nevertheless, architects don’t tear down buildings: it is real estate speculators who do. Those corporate entities are amoral, willing to do anything for profit. It’s not their responsibility to save valuable older buildings; that task falls upon society, which has failed miserably in this duty. The various mechanisms that are supposed to protect a perfectly sound and health-inducing building become a cruel joke when such a building is demolished. A decision is taken outside the light of public scrutiny, while implementing the strategy of the fait accompli — after the bulldozers and wreckers, it’s too late to do anything.

The story of the systematic destruction of the UK’s architectural heritage is long and ugly. To mention just one example, the corrupt Newcastle City Council Member Thomas Daniel Smith managed to erase large swaths of central city districts and replace them with cheaply-built glass-and-steel monstrosities before he was jailed in 1974. Smith worked closely with dishonest — and extremely successful — architect John Poulson, who was also jailed in 1974. He appealed directly to democratic and liberal sentiments to further his ambitions, and the political class at the time fell for his manipulations. This sordid story repeats, with only minor variations, except that the other urbanicides were never prosecuted.

November 29, 2021

Giovanni Gentile, “the ideological father of Fascism”

Filed under: Europe, History, Italy, Politics — Tags: , , , , — Nicholas @ 03:00

Emmanuel Rincón on the Italian philosopher who created the ideological underpinnings of Benito Mussolini’s Fascist movement:

Giovanni Gentile
Undated photograph probably before 1930 via Wikimedia Commons.

Giovanni Gentile, a neo-Hegelian philosopher, was the intellectual author of the “doctrine of fascism”, which he wrote in conjunction with Benito Mussolini. Gentile’s sources of inspiration were thinkers such as Hegel, Nietzsche, and also Karl Marx.

Gentile went so far as to declare “Fascism is a form of socialism, in fact, it is its most viable form.” One of the most common reflections on this is that fascism is itself socialism based on national identity.

Gentile believed that all private action should be oriented to serve society. He was against individualism, for him there was no distinction between private and public interest. In his economic postulates, he defended compulsory state corporatism, wanting to impose an autarkic state (basically the same recipe that Hitler would use years later).

A basic aspect of Gentile’s logic is that liberal democracy was harmful because it was focused on the individual which led to selfishness. He defended “true democracy” in which the individual should be subordinated to the State. In that sense, he promoted planned economies in which it was the government that determined what, how much, and how to produce.

Gentile and another group of philosophers created the myth of socialist nationalism, in which a country well directed by a superior group could subsist without international trade, as long as all individuals submitted to the designs of the government. The aim was to create a corporate state. It must be remembered that Mussolini came from the traditional Italian Socialist Party, but due to the rupture with this traditional Marxist movement, and due to the strong nationalist sentiment that prevailed at the time, the bases for creating the new “nationalist socialism”, which they called fascism, were overturned.

Fascism nationalized the arms industry, however, unlike traditional socialism, it did not consider that the state should own all the means of production, but more that it should dominate them. The owners of industries could “keep” their businesses, as long as they served the directives of the state. These business owners were supervised by public officials and paid high taxes. Essentially, “private property” was no longer a thing. It also established the tax on capital, the confiscation of goods of religious congregations and the abolition of episcopal rents. Statism was the key to everything, thanks to the nationalist and collectivist discourse, all the efforts of the citizens had to be in favor of the State.

November 7, 2021

QotD: Shoe manufacturing in the Soviet Union

The Commies weren’t big on consumer goods for obvious reasons, but even the proles need shoes. If you’re a Communist (or a teenager), it seems simple enough: send your flunkies out into a region, have them write down everyone’s shoe sizes, and then make those. Which would work, I guess, if not for the fact that industry doesn’t operate that way. Industries are only efficient through economies of scale. “A shoe factory” only beats “a cordwainer” because the factory can crank out 10,000 pairs of shoes in the time it takes the cordwainer to produce one pair. Worse, factories are massive resource sinks if they’re not running at full blast at all times …

After trying several workarounds, GOSPLAN, the state production ministry, decided to use “Gross Output Targets” to produce goods. Which probably worked ok for stuff like rebar, if you don’t care about quality (see Mao’s DIY backyard blast furnaces), but is terrible for stuff like shoes. So let’s say GOSPLAN decides that 100,000 lucky proles of Irkutsk Oblast shall receive one pair of shoes apiece. Since all materials had to be requisitioned in advance from GOSSNAB (I confess: I love Soviet acronyms), and since the production line would need to be re-tooled for each individual size and style of shoe, the factory managers — who had to hit the Gross Output Target, or go tour Siberia — did the only logical thing: They cranked out 100,000 baby shoes, all left feet. (Baby shoes use less leather; the excess can be sold or traded, see below).

Again, Commies couldn’t care less about consumer complaints, but eventually some up and comer in the Party will notice that everyone is wandering barefoot around a big pile of baby shoes. That might make him look bad, so he sends a report, and, after a long and convoluted bureaucratic process, GOSPLAN revises their order: 100,000 pairs of shoes, but in different sizes and styles, for men and women. In response to which, the factory manager does the only logical thing: 99,999 pairs of baby shoes, all left feet, plus one pump and one wingtip.

Lather, rinse, repeat. The factory manager isn’t a bad guy — in fact, let’s say he’s Wyatt. He’s just operating on an entirely different incentive structure than even his immediate boss, to say nothing of the faceless apparatchiks at GOSPLAN. Hitting any Gross Output Target is a real task, given that his workforce is a bunch of illiterate peasants who hate him and are constantly drunk. What probably seems like spectacularly inventive cruelty to the proles of Irkutsk Oblast is just Wyatt doing everything he can to keep his family out of the Gulag. And since Wyatt’s a smart guy, he can get around any target GOSPLAN sets. If they tell him to produce 100,000 pounds of shoes, his factory cranks out one enormous pair of concrete sneakers.

That’s one of Wyatt’s two overriding priorities: Staying out of the Gulag. The other one is: Using whatever he can scrimp, save, or scrounge from GOSSNAB as trade goods in the black market.

Here again, Wyatt’s not a bad guy. He’s not doing this to feather his own nest (though of course he lives a little better than others; he’s only human). In the words of the immortal Mike Tyson, everyone has a plan until he gets punched in the mouth, and even the most meticulously “scientific” management gets punched in the mouth all the time. As we’ve seen, GOSPLAN can’t even get it right with something as low-tech, as easy to mass-produce as shoes, so imagine how they do with more complex bits of equipment. The factory managers, who have to hit the Gross Output Targets, no matter what, quickly figure out that they’ll be waiting until doomsday if they try requisitioning what they need from GOSSNAB, so they form a kind of black market between themselves. Indeed there’s an entire class of quasi-criminals, whose name I forget, that exists only to facilitate such transactions.

Extend that paradigm to everything, and you’ve got life in the USSR. There’s the “official” economy, which is pure fantasy. There’s the black market economy at the factory level, where bulk materials change hands (since the official economy is pure fantasy, nobody blinks an eye when, say, 100,000 metric tons of concrete disappears off a manifest somewhere and reappears, un-manifested (as it were), somewhere else). There’s the black market at the consumer level, since of course the poor proles of Irkutsk Oblast have to have shoes and there’s no way they’re getting them from Wyatt’s factory. And finally, there’s the black market at the service level — those go-betweens arranging for 100,000 metric tons of concrete to fall off a truck in Vladivostok and appear, like magic, in Kiev (and their consumer-level equivalents — think pimps, but for everything).

Severian, “Darker Shade of Black IV: Black Market”, Rotten Chestnuts, 2021-04-02.

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