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Month: September 2024 Page 2 of 4

Week-end Wrap – Political Economy – September 22 2024

by Tony Wikrent

 

Strategic Political Economy

What is the deep state? (YouTube video)

(Jeffrey Sachs, John Mearsheimer, YouTube, via Thomas Neuburger, God’s Spies, 09-20-2024]

This video segment is taken from a symposium at which Sach and Mearsheimer offered their views on U.S. foreign policy. The whole thing is worth a listen, but I’ve cued this to start at the point where the question, “What is the deep state?” is asked and answered.

Note: The answer relates to foreign policy only, not the broader question of “Does the Establishment State try to influence domestic politics?”

“Sachs: My experience … is that there’s a deeply entrained foreign policy. It has been in place in my interpretation for many decades. But arguably a variant of it has been in place since 1992. I got to watch some of it early on because I was an adviser to Gorbachev and I was an adviser to Yeltsin, and so I saw early makings of this though I didn’t fully understand it except in retrospect.

“But that policy has been mostly in place pretty consistently for 30 years, and it didn’t really matter whether it was Bush Senior, whether it was Clinton, whether it was Bush Jr., whether it was Obama, whether it was Trump.

“After all, who did Trump hire? He hired John Bolton. Well, duh, pretty deep state. That was the end of … they told, you know, he [Bolton] explained this is the way it is. And by the way, Bolton explained also in his memoirs, when Trump didn’t agree we figured out ways to trick him basically.”

….

“MEARSHEIMER: When we talk about the ‘Deep State,’ we’re really talking about the Administrative State. It is very important to understand that starting in the late 19th and early 20th century, given developments in the American economy, it was imperative that we develop — and this is true of all Western countries — a very powerful central state that could ‘run the country.’ And over time, that state has grown in power.

“Since World War Two, the United States has been involved in every nook and cranny of the world, fighting wars here, there, and everywhere. And to do that, you need a very powerful administrative state that can help manage that foreign policy. But in the process, what happens is you get all of these high-level, middle-level, and low-level bureaucrats who become established in positions in the Pentagon, the State Department, and the intelligence community — you name it. And they end up having a vested interest in pursuing a particular foreign policy.

“That particular foreign policy that they like to pursue is the one the Democrats and the Republicans are pushing. That’s why we talk about tweedle-dee and tweedle-dum with regard to the two parties. You could throw in the deep state as being on the same page as those other two institutions….”

[TW: This is an important glimpse into the thinking of USA ruling elites. But just as important as what was said, is what was not said. There was no discussion of cooperation between nations on solving global problems, in line with what I have identified as a core principle of civic republicanism: one major role of government is to encourage people to do good by increasing humanity’s power over nature. There was no mention whatsoever of climate change, which absolutely will require global cooperation, probably on an unprecedented level. How about an international effort to help Mexico build a second Panama Canal? Or a crossing of the straits of Gibraltar, now considered an insurmountable engineering challenge. Wouldn’t it be much better to focus energies and resources on such projects?

[Increasing humanity’s power over nature: that’s what sewer systems and water distribution systems did — projects which are probably the single largest factor in tripling average human life expectancy in the past three centuries. Sewer systems and water distribution systems are primary examples of increasing humanity’s power over nature. Not just power over flows of water, but power over the spread of bacteria and viruses.

[The “realism” discussed by Sachs and Mearsheimer emphasizes competition — just like neoliberal “free market” economics. The real way to avoid nuclear war is to emphasize the cooperation of the human family in solving the problems we call face. The old paradigms of thought must be banished and replaced. For example, the idea that economics is about how “society allocates scarce resources” (taught in all “classical economics” texts and courses in the West), must be replaced by the understanding of civic republican political economy that the foremost economic task of any society is to overcome scarcity and provide abundance by increasing the power of humanity to understand and prudently control natural resources, then to distribute that abundance equitably to all of humanity. One major international cooperative project that cries out for attention and support is to build sewer systems and water distribution systems throughout the entire world, most especially areas in Africa and South American which do not now have them. There should not be any people anywhere on the globe who are forced to spend large parts of their day filling the basic need of securing enough clean water to drink, bathe, and cook.

[Eight years ago, China proposed an international $50 trillion project to build an electric power grid to bring solar and wind generated electricity from the polar and equatorial regions of the world, to the more populated regions that use the electricity. It is a great strategic mistake to ignore such proposals. ]

 

Global power shift

China leads world in 57 of 64 critical technologies; up from 3 just 20 years ago 

[Hacker News, via Naked Capitalism 09-21-2024]

 

ASPI’s two-decade Critical Technology Tracker 

[ASPI, via Naked Capitalism 09-21-2024]

Open Thread

Use to discuss topics unrelated to recent posts. No vax/anti-vax.

The Rise & Fall Of Higher Education & The Medieval Universities Crisis

This is based mainly on “Crises and Decline in Credential Systems”, found in Sociology Since Midcentury, Randall Collins, 1981.

We’re currently in the late-middle stage of a higher education crisis in the West. This isn’t a worldwide crisis: the Chinese system is still in its expansion phase, but it’s very real here. Recently I was talking to a friend in Norway, who noted that most young people want a trades education and to avoid university.

I’ve noticed when discussing this that most people are resistant to the idea that this isn’t the first time it’s happened. We have this weird idea that before the modern era, there weren’t large post-secondary education sectors: that degrees and credentials from schooling are something new. This isn’t even slightly true: heck, if we had the data I’m sure we could find something similar in Ancient Egypt, and for sure the massive university systems of Buddhist India went thru more than one cycle. This before we even get to China, a civilization which was based on a credential system for something like two millennia.

But neither is it new in the West.

Schools produced standard culture (and standardized people, as far as that goes.) Culture allows the creation of longstanding institutions: not just the universities themselves, but bureaucracies of various forms, including corporate bureaucracies. It’s not an accident that companies demand degrees, especially for managers.

This culture creation is used in political competition. Think the medieval church vs. various kings, or the kings v.s their feudal lords, or Confucian scholar officials v.s hereditary nobility. In the modern world consider what happened when university trained, mostly Ivy league, degree holders took over the media, or the effect of MBAs taking over from engineers in companies. Boeing is a good example of the consequences, but so is the entire shipping of industry out of the US, and the enablement of China.

Education is one of the sinews of political conflict.

Universities (or credential systems in general) go thru four phases. All four don’t always happen, sometimes the cycle is stopped before it reaches its end.

Expansion. Lots of new students pour in. More institutions are created. Formal requirements for professions are credentialized thru the institutions. In the Medieval era this was civil law, canon law, medicine and theology. In the modern era it includes much more, but of particular note are engineers. During this period having a degree means an almost complete certainty of getting a job. Think of the 50s: a BA was all you needed to vault into management.

Cultural Production Outstrips Positions. An end to the easy early period. You have to compete for positions, there aren’t enough. Credential inflation starts: what once required a B.A. now requires an M.A. The amount of time for higher degrees gets longer and so on. (Back in the early 90s a friend taking a PhD in psychology told me that a PhD alone was no longer enough. Ten years earlier, it had been.) The price of getting an education increases, and in this and the third stage, it tends to skew more and more to the wealthy.

This, I note, has obviously happened in our society. Back in the sixties, education was practically free, now it requires a loan students may not pay off for decades, or ever.

All the positions are filled. (We are here.) There isn’t just a lot of competition, the degrees are increasingly worthless unless you also have clout from something other than education because the positions are filled. The number of people who live off the productive system but don’t contribute to it goes up.

This goes in phases: right now BAs get you nothing but a chance to apply and be rejected, and BA enlistment is falling, but STEM still offers a decent chance. (This won’t remain true in the West for much longer.) During this period alternate culture production really gets fired up: intellectuals who can’t get positions produce books, pamphlets, blogs, podcasts and so on. They attack academia and seek forms of legitimacy other than credentials.

Finally, collapse. The state stops enforcing monopolies, university enrollment drops and many institutions fail entirely. Other forms of cultural production become dominant.

The Medieval University Cycle

The rise really gets going in the 1100s, though some institutions are created earlier. By the 1200s they are accredited by the Church of the Holy Roman Emperor. This makes the credentials valid throughout Christendom, which no other higher credentials are. At this time both the papacy and various kings and principalities are expanding their administration, and there are tons of positions. As with the Confucian scholars in the early days, these administrators are used to expand central authority: feudalism begins its decline. In addition the monopoly of law, medicine and theology works against feudal nobles.

Every major pope from 1159 to 1303 held a degree in law from a university. One of the signs of the end of the reign of the medieval scholastics is when other ways of training come to the fore. In England in the 1400s, for example, lawyers no longer learn and OxBridge, but in London in what amounts to an apprenticeship system. By the 1500s OxBridge no longer teaches physicians, this moves to the Royal College of physicians and soon after the monopoly of clergy on medicine is ended.

The height of the system is significant: two thousand to four thousand students were enrolled at Oxford and Cambridge, for example. This is 4x as many, proportionally, as were enrolled in Elizabethan England and as a proportion of the population the medieval height wasn’t surpassed until after 1900. At this height at least five percent of the male population attended university and it could have been as high as 10%.

The medieval system, note, goes into decline fifty years before the black death: so it wasn’t caused by declining population.

As the medieval system goes into decline, the humanists rise. They work outside of universities often as publishers or authors and rely on noble patronage. They mock the old academics as rigid, fusty and out of date.

But the decline isn’t good for ordinary people: as mentioned in our own case, education becomes less and less available unless you have money and stops being a major way for people to rise. This was very much true in the medieval university decline: at the beginning many poor individuals could attend, but as time went on this became much less true.

Signposts of Decline

  • smaller institutions folding. (The closure of many of the small liberal arts colleges in our time, for example.)
  • a fall in the number of students.
  • decline in number of institutions.
  • loss of monopolies over credentials.
  • widespread attacks on what is taught and how it is taught. (We see a great deal of this now, and it has progressed to politicians passing laws.)
  • Increase in the cost of education, with poorer students being cut out.
  • Cheap degrees which are mere formalities: degree mils and so on.

Note that phases three and four also can feed into political instability. In recent years Peter Turchin has popularized this, and many think he created the idea but it’s long been discussed as important in revolutions such as the French and Russian ones. People who are highly educated but didn’t get the positions they wanted are vastly destabilizing: they feel betrayed and they have the tools to fight ideologically and often the understanding of how to administer movements and other organizations.

Raise someone’s expectations, train them, then let them rot in poverty and you’ve made yourself a potential enemy.

These cycles are dead common. Collins identifies a number, just in the West:

  • The Medieval cycle – starts in the 1100s, peaks in the 1200s, over in most places by the 1400s.
  • English cycle from 1500-1860
  • Spain from 1500-1850
  • France 1500-1850
  • Germany 1500-1850
  • US 1700-1880

The various national ones, though they start at about the same time, other than in America, are separate and have different patterns of rise and decline. Not all of them go all the way: the American universities never go thru phase four, for example.

Education Systems Rise and Fall like all else in human society. What is happening now in our system is very similar to what has happened before and if we want to understand what will happen to our system, the best way to know is to see what happened before. It will never be a one-to-one match: the details will differ, but the pattern will hold.

The obvious thing to do for those who want to slow the fall and end it before collapse is to figure out what sort of training they can produce which isn’t in oversupply. For individuals the question is where the new form of cultural production is and how to legitimize it and reap the benefits of that legitimization. One might wonder if the rise of podcasting intellectuals who use their celebrity to sell their books is a fad, or a sign of something greater, for example. I may return to that in the future.

In the meantime: it’s all happened before.


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The cold comfort of a military coup

This is from Col Lawrence Wilkerson, former chief-of-staff to the Secretary of State, on Judge Napolitano’s show:

I’ve been told by fairly reliable sources that (Sec of State Anthony) Blinkin and (National Security Advisor Jake) Sullivan… Blinkin primarily but Sullivan too, have been sidetracked.

What’s happened is the Pentagon has taken over diplomacy as well as any action militarily speaking with regard to both theaters of war and so they’re now in charge.

I have to change my evaluation of (Defence Secretary Lloyd) Austin if that’s the case because it means he listened finally to the people in the bowels of the Pentagon who know the truth. He’s reacting to that.

He’s told the President that and to Biden’s credit even though he was furious he finally took that advice (not to allow Ukraine to fire long-range missiles into Russia or to back Israel against Hezbollah and/or Iran if Israel starts the war).

I’m generally not the type to root for a military takeover of deciding diplomatic and military matters. But the level of callow brinksmanship paired with epic cluelessness that has characterized Team Biden’s foreign policy has me greatly relieved by this Pentagon takeover (if true).

The best part was Bibi Netanyahoo being told that if he invades Lebanon he’s on his own.

The fact that UK Prime Minister Keir Starmer was publicly humiliated by Biden was just a sweetener on top.

Dollar Hegemony Decline Watch

So, nice little chart here:

Seems… bad. At least for America and Europe.

Let’s lay this out:

  1. Most of what you want to buy you can buy from China, you don’t need to get it from the West, so why use dollars?
  2. China almost never uses sanctions or seizes foreign currency. The US often does. US dollars are risky, the right to use them can and is often taken away, and so often are the dollars themselves.

So why use the dollar, except that it’s still easier in some cases?

What happens when it’s no longer easier? The BRICS are spending a lot of time on an international banking system which bypasses the West and it’s allies (Japan and South Korea, basically). As that system becomes easier to use, why use the Western system or the dollar? It only exposes you to risk.

This is similar to what happened after the Huawei sanctions. Chinese firms saw the damage that was done to Huawei (they’ve roared back, but it was touch and go for a couple years.) The cry in Chinese business was “delete America.” If you bought anything important from the US you needed to find another source outside of the West, which for manufactured goods usually meant domestically, and for resources meant Africa, South America and Russia.

For a long time the way the banking system was set up you had to use the dollar, but more and more you don’t. And for a long time some key providers, like oil producers, would only take dollars, but now they’ll take Yuan.

So, again, why use the dollar when there is a safer alternative which can be used to buy or sell almost anything you want?


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Week-end Wrap – Political Economy – September 15 2024

by Tony Wikrent

 

Russia / Ukraine

Russia will be ‘at war’ with NATO if Ukraine long-range missile restrictions lifted, Putin warns

Avery Schmitz and Michael Conte, September 13, 2024 [CNN]

Russian President Vladimir Putin has warned NATO alliance leaders that a move to lift restrictions on Ukraine’s use of longer-range Western missiles to strike deep inside his country would be considered an act of war.

“This will mean that NATO countries – the United States and European countries – are at war with Russia. And if this is the case, then, bearing in mind the change in the essence of the conflict, we will make appropriate decisions in response to the threats that will be posed to us,” Putin told reporters on Thursday.

 

Putin says NATO will be “in the war” if U.S. or allies let Ukraine fire long-range missiles at Russia

Haley Ott,  September 13, 2024 [CBS News]

Russian President Vladimir Putin warned Thursday that a decision by the U.S. or its NATO allies to allow Ukraine to use Western-supplied long-range missiles to hit targets deep inside Russia would be viewed as NATO’s direct participation in the war, which he said would significantly change “the very nature of the conflict.”

“Flight assignments for these missile systems can, in fact, only be entered by military personnel from NATO countries. Ukrainian servicemen cannot do this. And therefore, it is not a question of allowing the Ukrainian regime to strike Russia with these weapons or not. It is a question of making a decision whether NATO countries directly participate in the military conflict or not,” Putin said in response to a question on Thursday.

“If this decision is made, it will mean nothing less than the direct participation of NATO countries, the United States, and European countries, in the war in Ukraine,” the Russian leader added.

 

Strategic Political Economy

Master Plan, Ep 5: How Corporations Became People

David Sirota and The Lever staff, September 10, 2024 [The Lever]

In Master Plan’s fifth episode, we explore how an unlikely catalyst — Robert Kennedy’s 1968 assassination — created an opportunity for his Senate replacement to manufacture the first and perhaps most important blow against America’s new campaign finance laws: Buckley v. Valeo. With a supporting cast including James Buckley, John Bolton, Charles Koch, and Robert Bork, this U.S. Supreme Court case was the first to frame the fight against campaign finance regulations as a crusade for free speech and third-party rights.

The master planners were just getting started. While Buckley v. Valeo blew the lid off limits to certain kinds of campaign expenditures, Big Business also wanted to ensure that corporations could spend as freely as their human counterparts. This is where the master planners’ sleeper agent on the Court, Justice Lewis Powell, would work behind the scenes to deliver an expansive ruling that created the foundation for Citizens United.

Short Take: Reforming NATO

1. How many of you think the Atlantic Alliance (NATO) needs reformation in some way?

2. How many of you think it is just fine the way it is?

3. How many of you think it should just be abolished?

If you could please limit your answer in the comments to 1, 2 or 3 I would be very appreciative. There will be a long post for a full discussion of the issue soon. I want to get a sense of how everyone is thinking on this issue before I complete to essay.

The Necessity Of Surplus For Tech Innovation

by Bruce Wilder

(Ian–this is an elevated comment from my post on Breakout Societal Power. It fills in much of the gap elided to in this phrase “Small groups in competition have the chance, though not the certainty, of fast progress, stuck as they are in a cauldron. It doesn’t always happen…” but does so better than I would have. It’s not just about why some societies in sharp competition don’t make it, however.)

There is an underlying dynamic of solidarity and surplus that seldom gets the attention it deserves.

Ancient Greece at the end of the of the Bronze Age participated in the famous but mysterious collapse and entered a Dark Age of significantly diminished population, political organization and culture. They emerged beginning around 800 BCE, apparently with a new set of technologies, politics and agriculture and trade that generated surplus. People were healthy and well-fed (comparatively). Greece experienced a population boom, increasing in numbers roughly ten times over 400 years and a critical part of the competition among city-states was to found colonies. It wasn’t just Greece, Phoenicia and the Etruscans and others were involved.

Technological innovation is not a merely moral phenomenon; it is a matters of surplus and numbers. There must be a surplus to feed an artisan class and trade and a differentiation of labor.

The surplus that fed the urban civilization that Rome engineered diminished with soil erosion. The extraction of the tradeable surplus from a slave class on the great latifundia was inefficient and self-defeating on many levels, undermining the economic foundation of an urban civilization. People at the bottom of the system were unhealthy. Famines and plagues ensued. Trade declined with falling division of labor in a dimishing artisanal class, compounding the effects of declining agricultural surplus.

The rise of China followed on the creation of enormous agricultural surplus to feed vast armies and an urban civilization with a huge artisanal population, with trade driving deep division of labor and technological inventiveness. The surplus originated in vast hydraulic projects and the elaboration three-crop rice production.

There would be no social barrier in China to ever more labor intensive agriculture: more and more hands in the fields until the extraction of surplus was choked off by congestion losses. By 1500, Chinese peasants could barely feed themselves. Ordinary people were physically weak. The cities were huge, but represented only single-digit percentages of total population.

Europe recovering from the Dark Ages that followed the collapse of Rome saw a revival of surplus, especially after iron plows turned the heavy but fertile soils of Northern Europe and dug deeper in the south. But, the congestion losses of too many hands in the fields showed quickly too and the flowering of the High Middle Ages ended in overpopulation and the Black Death, which was driven as much by imminent famine as rats and fleas.

The contrasting aftermaths of the Plague of Justinian and the Black Death — two, long series of bubonic plagues sweeping thru Europe is worth contemplating. One destroyed a civilization and the other seemed to spark a new civilization.

Agricultural surplus feeding a growth of artisanal production and merchant trade, but being choked off by congestion and extractive oppression is a recurrent dynamic. It underlies the peculiar history of rivalry between England and France. France, with the greatest agricultural potential in western Europe, occupying an extensive well-watered plain, had a vastly greater population than England thruout the Middle Ages and well into the 19th century. But, France became overpopulated. Famine and hunger drove the French Revolution when bad weather triggered bad harvests that threatened the surplus that fed Paris.

England’s ability to feed its industrializing cities was a near-run thing in the 18th and 19th centuries. The additional surplus generated by the British Agricultural Revolution was a paltry thing and Ireland was kept on the edge of famine by overpopulation until pushed over the edge.

The productive often desperate competition that Ian draws attention to has a multi-path causal relation to the generation and/or extraction of surplus. That surplus may originate in accidents, be managed or neglected by elites and be extinguished without intention.

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