Last week I wrote an article lampooning the idea that people are only following incentives and therefore are not bad people.
Let’s spell this out clearly.
The system, whatever the system is, whether it is New Deal capitalism, Stalinist communism, English high feudalism, neoliberal capitalism, or French late medieval feudalism, is a creation of humans.
Our system is always a choice.
It doesn’t feel like a choice to you as an individual, because it is a collective choice which weights a very few individuals’ preferences much higher than yours. Not being Barack Obama (who had a choice to end neoliberalism) or FDR (who did choose to create a new type of capitalism) or Khrushchev (who created a different type of communism, recognizably different from Stalinism–and much more pleasant to live in), you have never had much of a choice.
So, being weak and only one person, to you the system feels like a force of nature or God, given, not a man-made construction.
But the system is always made and is always the result of choices. Sometimes, individuals at key junctures get to make a choice or a difference, and most people only make choices as part of large groups. But it is a choice.
Even within a system, different results are produced. English feudalism was far kinder than French feudalism, with far more free men and far fewer villeins or serfs. England produced common law and even non-free men and women had rights. Russian serfdom by the end of the Czars was known for its cruelty, but it wasn’t always thus, and so on and so forth.
More recently, and if not within your memory (though it is within my memory), then certainly within the memory of people you know, the previous form of capitalism running the US and most of the “free” world produced the following results:
- steadily increasing incomes after real inflation was measured;
- steadily decreasing share of income being made by the richest in society;
- steadily increasing prices (but slower than wages).
It did all those things because it was designed to do those things. A choice was made in 1933, and made again pro-actively every four years after that to keep doing it. After a while, people became wishy washy about its continuation. You can trace it in stages: the post-war Congress weakening unions, Truman deciding to keep the war time state running, Kennedy deciding to lower top taxes, qualified immunity in the 60s, Nixon deciding to start the war on drugs, and so on.
But it didn’t really end until Reagan. Reagan was a choice, that’s why there were elections. He had been worked for, hard, by various rich people who could see that the current system was slowly siphoning away their power, and they found, with racism and the fear engendered by the oil shock crises, enough of a wedge to get a voting majority of Americans onside.
Then they systematically changed how the system operated so that it would produce:
- stangnant income for the majority of the population (really decreasing if inflation were properly measured);
- steadily increasing share of income and wealth controlled by the wealthiest in society;
- steadily decreasing prices of production of goods. At first some of this was passed on, but most of it was kept as profit.
Neoliberal capitalism produced different results from New Deal capitalism because it was designed to do so. It had different incentives, to use econo-speak.
To say “people just follow the incentives” is driveling idiocy when dealing with large social matters, because in large social matters, the incentives are dependent variables; they are chosen by the leadership and the mass of the people (who, yes, do have power in large enough groups–Reagan was not possible if enough Democrats hadn’t defected, they were called the “Reagan Democrats”).
Nor are people ex-nihilo. We are shaped by the society we live in. Reagan’s revolution could not have happened while the Lost Generation still had large numbers because the Lost Generation remembered not just the Great Depression, but the roaring 20s. Knowing that the wealthy had caused the Great Depression, most Lost believed in keeping the rich poor. Those who came afterwards, not properly remembering the 20s, did not feel this in their gut, and they were willing to sell out.
Neoliberals said, “You can have a suburban home, away from the blacks, and we’ll spike the value of housing and stocks, so you’ll be rich, and you won’t even have to work for it.” Sub Voce: “Because you’ll get it for doing nothing, you won’t care about wages, which we’ll crush.”
More than this, a system selects for people who will do what it requires. You cannot join many gangs without murdering someone first. You cannot be in power in DC, or almost any state capital, if you are not onside with crushing wages and making the rich richer. You will not be allowed in power. You will not want power, because you will quickly find out that you can’t do what you want, you can only do evil.
The system doesn’t so much turn people evil as it selects for evil. The “incentives” don’t work on everyone, what matters is that, if they don’t work on you, you don’t get into power. Or, if you somehow fluke in (like Corbyn) you don’t stay in power. You won’t compromise enough.
People worked hard to create neoliberalism. Once they were in power, they worked hard to create a system which excludes those who don’t want to crush wages and make the rich richer. The rules of the system, the incentives, were created by men and women and are maintained by men and women.
They are not unchallenged, but so far every challenge has lost. Corbyn was a challenge. Sanders was a challenge. There have been other challenges. They all lost. This was true of every challenge to the New Deal Order from 1936 to 1976. All challenges lost. It looked unbeatable.
One day, the New Deal Order lost. One day Neo-Liberalism will lose. The questions are only, “When?” and “To what?”
Hitler, Mussolini, and Lenin defeated older orders too.
So, the people who run the US and the developed world are almost all very bad people. They were selected to be very bad, and they also worked very hard to ensure that only evil people could get power, because only evil people will do what their system requires and it is the system that makes them powerful and rich. (Reminder: Nancy Pelosi is worth $120 million.)
The systems selects for evil, the system was created, and is maintained, by people who worked and are working hard to make sure it selects only evil people to run it.
Just like Soylent Green, the system is people.
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