we talk a lot about the “post-war capital-labor accord” and the golden age of the 1940s-1970s. In these years, inequality went down, unions flourished, civil rights laws were passed along with LBJ’s Great Society programs like Medicare, etc. Corporations saw themselves as not just profit-seeking nexuses-of-contracts but also as institutions with duties to their stakeholders – employees, local community organizations, etc.
.. Then everything went to hell in the 1970s. Oil shocks, poor economic performance, large increases in foreign competition, an overheated economy created by the meeting of increased social spending and increased military spending, all combined to create massive inflation and other sorts of economic upheaval.
.. union contracts were blamed for causing inflation and big business began to push for
regulatory changes (to fight the hated EPA and OSHA, along with unions) and increased layoffs.
Institutional investors, growing rapidly in size in part *because* of the prosperity of the “golden age” (e.g. the massive pension funds like CALPERS and TIAA-CREF), began to demand discipline from corporations unused to having to listen to anyone
.. Changes in financial regulations and institutions made possible the junk bond market and, in turn, a more active market for corporate control – suddenly, large firms that were used to making acquisitions became targets.
.. by the mid-1980s, the golden age had ended along with the capital-labor accord and something new had begun – perhaps we can call it the “neoliberal era
.. This era’s hallmarks include the dramatic decline in unions, massive increases in the share of wealth going to the top 1% and .1% (cf. Piketty and Saez), massive increases in the share of profits going to finance (cf. Krippner 2005), and an overall change in the way that corporations perceived themselves.
.. No longer institutions with obligations beyond profit-seeking, corporations became (thought of as) legal fictions that served the sole purpose of maximizing shareholder value
.. The old dominant strategy of firms was to “retain and reinvest”, the new mantra was to “downsize and distribute”
.. The old model of the firm was GM – a massive, vertically integrated institution that dominated a market and did everything in-house. The new model was the “Original Equipment Manufacturer” (OEM), a firm like Nike that designs a product and markets it but outsources and off-shores as much of the actual producing, distributing, etc. The firm is now a brand, an identity demarcating a certain set of contracts, whose value is more about intangibles than men and machines.
.. Okun’s Law is an economic relationship between the magnitude of an economic downturn (in terms of real GDP) and increases in unemployment
.. if GDP (production and incomes, that is) rises or falls two percent due to the business cycle, the unemployment rate will rise or fall by one percent. The magnitude of swings in unemployment will always be half or nearly half the magnitude of swings in GDP.
.. The last downturns – 1991ish, 2001ish and the current moment – have all been characterized by “jobless recoveries” or, more broadly, much larger decreases and much smaller increases in unemployment than would be predicted by Okun’s law.
.. “businesses will tend to “hoard labor” in recessions, keeping useful workers around and on the payroll even when there is temporarily nothing for them to do”.
.. Manufacturing firms used to think that their most important asset was skilled workers. Hence they hung onto them, “hoarding labor” in recessions. And they especially did not want to let go of their prime productive asset when the recovery began. Skilled workers were the franchise. Now, by contrast, it looks as though firms think that their workers are much more disposable—that it’s their brands or their machines or their procedures and organizations that are key assets.
.. The 1980s saw a reordering of the world – a transition from a period governed by one set of rules that privileged the relationship between businesses and their employees to one that privileged (relatively speaking, in ideology anyway) shareholders.
.. What variables should we care about, if GDP seems to be connected less to welfare than it used to be?
.. the neoliberal period is marked by dramatic, mind-boggling increases in executive compensation without, as far as I know, any signs of better performance or increased shareholder value.
The Jordan Peterson Moment
My friend Tyler Cowen argues that Jordan Peterson is the most influential public intellectual in the Western world right now, and he has a point. Peterson, a University of Toronto psychologist, has found his real home on YouTube, where his videos have attracted something like 40 million views.
In his videos, he analyzes classic and biblical texts, he eviscerates identity politics and political correctness and, most important, he delivers stern fatherly lectures to young men on how to be honorable, upright and self-disciplined — how to grow up and take responsibility for their own lives.
.. His worldview begins with the belief that life is essentially a series of ruthless dominance competitions. The strong get the spoils and the weak become meek, defeated, unknown and unloved.
For much of Western history, he argues, Christianity restrained the human tendency toward barbarism. But God died in the 19th century, and Christian dogma and discipline died with him. That gave us the age of ideology, the age of fascism and communism — and with it, Auschwitz, Dachau and the gulag.
.. Since most conflict is over values, we’ve decided to not have any values. We’ll celebrate relativism and tolerance.
.. Chaos, the eternal feminine, is also the crushing force of sexual selection. Women are choosy maters. … Most men do not meet female human standards.”
.. Life is suffering, Peterson reiterates. Don’t be fooled by the naïve optimism of progressive ideology. Life is about remorseless struggle and pain. Your instinct is to whine, to play the victim, to seek vengeance.
.. “The individual must conduct his or her life in a manner that requires the rejection of immediate gratification, of natural and perverse desires alike.”
.. Instead, choose discipline, courage and self-sacrifice.
.. Much of Peterson’s advice sounds to me like vague exhortatory banality. Like Hobbes and Nietzsche before him, he seems to imagine an overly brutalistic universe, nearly without benevolence, beauty, attachment and love. His recipe for self-improvement is solitary, nonrelational, unemotional. I’d say the lives of young men can be improved more through loving attachment than through Peterson’s joyless and graceless calls to self-sacrifice.
The Flight 93 Election
2016 is the Flight 93 election: charge the cockpit or you die. You may die anyway. You—or the leader of your party—may make it into the cockpit and not know how to fly or land the plane. There are no guarantees.
Except one: if you don’t try, death is certain. To compound the metaphor: a Hillary Clinton presidency is Russian Roulette with a semi-auto. With Trump, at least you can spin the cylinder and take your chances.
.. To ordinary conservative ears, this sounds histrionic. The stakes can’t be that high because they are never that high—except perhaps in the pages of Gibbon. Conservative intellectuals will insist that there has been no “end of history” and that all human outcomes are still possible. They will even—as Charles Kesler does—admit that America is in “crisis.” But how great is the crisis?
.. “even if [Trump] had chosen his policies at random, they would be sounder than Hillary’s”—is unwarrantedly ungenerous. The truth is that Trump articulated, if incompletely and inconsistently, the right stances on the right issues—
- immigration,
- trade, and
- war
—right from the beginning.
.. the unwillingness even to entertain the possibility that America and the West are on a trajectory toward something very bad.
.. conservatives routinely present a litany of ills plaguing the body politic. Illegitimacy. Crime. Massive, expensive, intrusive, out-of-control government. Politically correct McCarthyism. Ever-higher taxes and ever-deteriorating services and infrastructure. Inability to win wars against tribal, sub-Third-World foes. A disastrously awful educational system that churns out kids who don’t know anything and, at the primary and secondary levels, can’t (or won’t) discipline disruptive punks, and at the higher levels saddles students with six figure debts for the privilege.
.. Conservatives spend at least several hundred million dollars a year on think-tanks, magazines, conferences, fellowships, and such, complaining about this, that, the other, and everything. And yet these same conservatives are, at root, keepers of the status quo.
.. Many of them are even good ideas. But are any of them truly fundamental? Do they get to the heart of our problems?
.. If conservatives are right about the importance of virtue, morality, religious faith, stability, character and so on in the individual; if they are right about sexual morality or what came to be termed “family values”; if they are right about the importance of education to inculcate good character and to teach the fundamentals that have defined knowledge in the West for millennia; if they are right about societal norms and public order; if they are right about the centrality of initiative, enterprise, industry, and thrift to a sound economy and a healthy society; if they are right about the soul-sapping effects of paternalistic Big Government and its cannibalization of civil society and religious institutions; if they are right about the necessity of a strong defense and prudent statesmanship in the international sphere—if they are right about the importance of all this to national health and even survival, then they must believe—mustn’t they?—that we are headed off a cliff.
.. But it’s quite obvious that conservatives don’t believe any such thing, that they feel no such sense of urgency, of an immediate necessity to change course and avoid the cliff.
.. But how are they going to save, or even meaningfully improve, the America that Continetti describes? What can they do against a tidal wave of dysfunction, immorality, and corruption? “Civic renewal” would do a lot of course, but that’s like saying health will save a cancer patient. A step has been skipped in there somewhere. How are we going to achieve “civic renewal”? Wishing for a tautology to enact itself is not a strategy.
.. Continetti trips over a more promising approach when he writes of “stress[ing] the ‘national interest abroad and national solidarity at home’ through foreign-policy retrenchment, ‘support to workers buffeted by globalization,’ and setting ‘tax rates and immigration levels’ to foster social cohesion.” That sounds a lot like Trumpism.
.. acknowledgment that the crisis is, indeed, pretty dire.
.. our liberal-left present reality and future direction is incompatible with human nature and must undermine society—and yet also believe that things can go on more or less the way they are going
.. if you genuinely think things can go on with no fundamental change needed, then you have implicitly admitted that conservatism is wrong. Wrong philosophically, wrong on human nature, wrong on the nature of politics, and wrong in its policy prescriptions. Because, first, few of those prescriptions are in force today. Second, of the ones that are, the left is busy undoing them, often with conservative assistance. And, third, the whole trend of the West is ever-leftward, ever further away from what we all understand as conservatism.
.. They will say, in words reminiscent of dorm-room Marxism—but our proposals have not been tried!
.. The tsunami of leftism that still engulfs our every—literal and figurative—shore has receded not a bit but indeed has grown. All your (our) victories are short-lived.
.. The whole enterprise of Conservatism, Inc., reeks of failure.
.. One of the Journal of American Greatness’s deeper arguments was that only in a corrupt republic, in corrupt times, could a Trump rise. It is therefore puzzling that those most horrified by Trump are the least willing to consider the possibility that the republic is dying.
.. It will be coupled with a level of vindictive persecution against resistance and dissent hitherto seen in the supposedly liberal West only in the most “advanced” Scandinavian countries and the most leftist corners of Germany and England. We see this already in the censorship practiced by the Davoisie’s social media enablers; in the shameless propaganda tidal wave of the mainstream media; and in the personal destruction campaigns—operated through the former and aided by the latter—of the Social Justice Warriors. We see it in Obama’s flagrant use of the IRS to torment political opponents, the gaslighting denial by the media, and the collective shrug by everyone else.
.. For two generations at least, the Left has been calling everyone to their right Nazis.
.. This trend has accelerated exponentially in the last few years, helped along by some on the Right who really do seem to merit—and even relish—the label.
.. the deck is stacked overwhelmingly against us. I will mention but three ways. First, the opinion-making elements—the universities and the media above all—are wholly corrupt and wholly opposed to everything we want, and increasingly even to our existence. (What else are the wars on “cis-genderism”—formerly known as “nature”—and on the supposed “white privilege” of broke hillbillies really about?)
.. Our “leaders” and “dissenters” bend over backward to play by the self-sabotaging rules the Left sets for them.
.. Third and most important, the ceaseless importation of Third World foreigners with no tradition of, taste for, or experience in liberty means that the electorate grows more left, more Democratic, less Republican, less republican, and less traditionally American with every cycle.
.. consider this. Trump is the most liberal Republican nominee since Thomas Dewey. He departs from conservative orthodoxy in so many ways that National Review still hasn’t stopped counting.
.. On trade, globalization, and war, Trump is to the left (conventionally understood) not only of his own party, but of his Democratic opponent.
.. there’s that other issue. The sacredness of mass immigration is the mystic chord that unites America’s ruling and intellectual classes.
.. many of them, also believe the academic-intellectual lie that America’s inherently racist and evil nature can be expiated only through ever greater “diversity.”
.. The junta of course craves cheaper and more docile labor. It also seeks to legitimize, and deflect unwanted attention from, its wealth and power by pretending that its open borders stance is a form of noblesse oblige.
.. The Republicans and the “conservatives”? Both of course desperately want absolution from the charge of “racism.”
.. Do they honestly believe that the right enterprise zone or charter school policy will arouse 50.01% of our newer voters to finally reveal their “natural conservatism” at the ballot box? It hasn’t happened anywhere yet and shows no signs that it ever will.
.. This is the mark of a party, a society, a country, a people, a civilization that wants to die.
.. I want to live. I want my party to live. I want my country to live. I want my people to live. I want to end the insanity.
.. only Trump-the-alleged-buffoon not merely saw all three and their essential connectivity, but was able to win on them.
.. The alleged buffoon is thus more prudent—more practically wise—than all of our wise-and-good who so bitterly oppose him. This should embarrass them. That their failures instead embolden them is only further proof of their foolishness and hubris.
.. When America possessed a vast, empty continent and explosively growing industry, high immigration was arguably good policy.
.. It hasn’t made sense since World War I. Free trade was unquestionably a great boon to the American worker in the decades after World War II. We long ago passed the point of diminishing returns.
.. The Gulf War of 1991 was a strategic victory for American interests. No conflict since then has been.
.. for most of the other #NeverTrumpers, is it just a coincidence that they also happen to favor Invade the World, Invite the World?
.. Trumpism, broadly defined as
- secure borders,
- economic nationalism, and
- America-first foreign policy.
.. We Americans have chosen, in our foolishness, to disunite the country through stupid immigration, economic, and foreign policies. The level of unity America enjoyed before the bipartisan junta took over can never be restored.
.. No more importing poverty, crime, and alien cultures.
.. simply building a wall and enforcing immigration law will help enormously, by cutting off the flood of newcomers that perpetuates ethnic separatism and by incentivizing the English language and American norms in the workplace.
.. These policies will have the added benefit of aligning the economic interests of, and (we may hope) fostering solidarity among, the working, lower middle, and middle classes of all races and ethnicities.
.. Who cares if productivity numbers tick down, or if our already somnambulant GDP sinks a bit further into its pillow? Nearly all the gains of the last 20 years have accrued to the junta anyway. It would, at this point, be better for the nation to divide up more equitably a slightly smaller pie than to add one extra slice
.. ? If you recognize the threat she poses, but somehow can’t stomach him, have you thought about the longer term? The possibilities would seem to be: Caesarism, secession/crack-up, collapse, or managerial Davoisie liberalism as far as the eye can see … which, since nothing human lasts forever, at some point will give way to one of the other three.
Mueller Is Said to Likely Seek to Interview Trump
White House officials viewed the discussion as a sign that Mr. Mueller’s investigation of Mr. Trump could be nearing the end. But even if that is so, allowing prosecutors to interview a sitting president who has a history of hyperbolic or baseless assertions carries legal risk for him.
.. Mr. Mueller appeared most interested in asking questions about the former national security adviser, Michael T. Flynn, and the firing of the F.B.I. director, James B. Comey — not the broader question of possible collusion with Russia.
.. Mr. Trump has sat for depositions before and shown discipline when under oath. His testimony in civil cases reveals a canny ability to avoid being cornered and a frank acknowledgment that he uses “truthful hyperbole” or “innocent exaggeration.” But he has never faced questioning from someone like Mr. Mueller, a veteran prosecutor and former F.B.I. director who has a dozen experienced litigators behind him.
.. “It’s pretty clear when Ty Cobb came in, he tightened up the ship and had a talk with Trump and must have said: ‘You’re O.K. on collusion. Stop attacking Mueller directly.’”
.. Mr. Mueller would almost certainly want to speak directly with Mr. Trump in person. They said Mr. Trump’s lawyers would want to prevent Mr. Mueller from putting Mr. Trump alone before a grand jury, where lawyers normally are not present.
.. Mr. Trump’s lawyers would do all they could to show Mr. Mueller they were cooperating to prevent the special counsel from putting him before the grand jury.