A future without a liberal class will prove to be a problem not only for the people it is supposed to protect but also for the integrity of the American democratic system as a whole.
Indeed, the government needs to have a liberal functioning class, as it acts as a safeguard against policies that are too harsh. A liberal bulwark too is often the last hope for those whom the government has wronged.
It was the liberal class, for example, that pushed reforms such as workers’ rights, saving people from complete exploitation under an unfettered free market or despotic government.
A functioning liberal class also acts as an attack dog, battling radical movements that might wish to topple a government by instituting the moderate reforms that discredit more radical action.
The liberal class can claim, rightly or wrongly, that its policies can improve a social situation without the insecurity and chaos that can come with radical change.
Furthermore, Americans have become disappointed and restless without a functioning liberal class.
The failed liberal class in the United States provides no new meaningful reforms and is thus no longer a safeguard against governmental controls. Consequently, today’s working class feels disappointed and angry.
We can also find examples throughout history of how the disappearance of a functioning liberal class has caused the collapse of entire governments.
At the end of the Weimar Republic in Germany, for example, the liberal class failed to satisfy the needs of its citizens, such as providing job security and a stable economy. With their needs unmet, the public turned to extremists on both sides of the political spectrum for support, which eventually allowed the Nazi party to rise significantly in power.
The failure of the liberal class weakens an entire political system, the consequences of which are much harsher and broader than you might initially think.
What’s the big deal about thank-you notes that are politically shrewd and reflect the old-fashioned habits of a well-bred patrician?
In fact, those missives of appreciation spoke to qualities that were fundamental to the 41st president of the United States. He was a much shrewder and tougher politician than we remember. He was a patrician, but of a very particular sort, a throwback to a time when elites felt a profound sense of public obligation. Being well-born entailed a commitment to duty and a requirement to live up to certain expectations.
And if his privilege gave him good reason to be a sunny optimist, he shared his cheerfulness with others. Not for him a habit all too common among the wealthy these days of expressing irritation and resentment when others fail to see them as exemplars of greatness and virtue.
.. Bush represented a very different kind of Republicanism. He was a Burkean conservative who saw change and reform as necessary to the work of conserving what he believed to be a fundamentally good society. A fierce partisan when necessary, he refused to see cooperation with political adversaries as a form of ideological treason. As a product of the World War II generation, he did not dismiss government as merely a necessary evil.
.. He cared about deficits in fact and not just in his rhetoric. So he was willing to violate his politically opportunistic 1988 “No new taxes” pledge to get a responsible budget deal two years later.
.. Conservatives never forgave him, although his tax increase was smaller than the one Ronald Reagan signed. Conservatives were willing to forgive their hero almost anything; if the Gipper agreed to raise taxes, it must have been because he had no choice. The right never gave Bush any benefits of the doubt.
.. And it’s worth remembering that when Bush asked Congress to approve the military campaign to reverse Saddam Hussein’s invasion of Kuwait, he did not seek a war vote during the run-up to the 1990 midterm elections. He waited until afterward, thus keeping the war decision out of electoral politics. He showed both resolve and restraint, resisting calls to send U.S. troops to Baghdad after Kuwait was freed from Hussein’s grip. It was a much-contested choice that looks better and better in retrospect.
The response to the 2008 economic crisis has relied far too much on monetary stimulus, in the form of quantitative easing and near-zero (or even negative) interest rates, and included far too little structural reform. This means that the next crisis could come soon – and pave the way for a large-scale military conflict.
BEIJING – The next economic crisis is closer than you think. But what you should really worry about is what comes after: in the current social, political, and technological landscape, a prolonged economic crisis, combined with rising income inequality, could well escalate into a major global military conflict.
The 2008-09 global financial crisis almost bankrupted governments and caused systemic collapse. Policymakers managed to pull the global economy back from the brink, using massive monetary stimulus, including quantitative easing and near-zero (or even negative) interest rates.
But monetary stimulus is like an adrenaline shot to jump-start an arrested heart; it can revive the patient, but it does nothing to cure the disease. Treating a sick economy requires structural reforms, which can cover everything from financial and labor markets to tax systems, fertility patterns, and education policies.1
Policymakers have utterly failed to pursue such reforms, despite promising to do so. Instead, they have remained preoccupied with politics. From Italy to Germany, forming and sustaining governments now seems to take more time than actual governing. And Greece, for example, has relied on money from international creditors to keep its head (barely) above water, rather than genuinely reforming its pension system or improving its business environment.
The lack of structural reform has meant that the unprecedented excess liquidity that central banks injected into their economies was not allocated to its most efficient uses. Instead, it raised global asset prices to levels even higher than those prevailing before 2008.
In the United States, housing prices are now 8% higher than they were at the peak of the property bubble in 2006, according to the property website Zillow. The price-to-earnings (CAPE) ratio, which measures whether stock-market prices are within a reasonable range, is now higher than it was both in 2008 and at the start of the Great Depression in 1929.
As monetary tightening reveals the vulnerabilities in the real economy, the collapse of asset-price bubbles will trigger another economic crisis – one that could be even more severe than the last, because we have built up a tolerance to our strongest macroeconomic medications. A decade of regular adrenaline shots, in the form of ultra-low interest rates and unconventional monetary policies, has severely depleted their power to stabilize and stimulate the economy.
If history is any guide, the consequences of this mistake could extend far beyond the economy. According to Harvard’s Benjamin Friedman, prolonged periods of economic distress have been characterized also by public antipathy toward minority groups or foreign countries – attitudes that can help to fuel unrest, terrorism, or even war.
For example, during the Great Depression, US President Herbert Hoover signed the 1930 Smoot-Hawley Tariff Act, intended to protect American workers and farmers from foreign competition. In the subsequent five years, global trade shrank by two-thirds. Within a decade, World War II had begun.
To be sure, WWII, like World War I, was caused by a multitude of factors; there is no standard path to war. But there is reason to believe that high levels of inequality can play a significant role in stoking conflict.
According to research by the economist Thomas Piketty, a spike in income inequality is often followed by a great crisis. Income inequality then declines for a while, before rising again, until a new peak – and a new disaster.
This is all the more worrying in view of the numerous other factors stoking social unrest and diplomatic tension, including
- technological disruption, a
- record-breaking migration crisis,
- anxiety over globalization,
- political polarization, and
- rising nationalism.
All are symptoms of failed policies that could turn out to be trigger points for a future crisis.
.. Voters have good reason to be frustrated, but the emotionally appealing populists to whom they are increasingly giving their support are offering ill-advised solutions that will only make matters worse. For example, despite the world’s unprecedented interconnectedness, multilateralism is increasingly being eschewed, as countries – most notably, Donald Trump’s US – pursue unilateral, isolationist policies. Meanwhile, proxy wars are raging in Syria and Yemen.
Against this background, we must take seriously the possibility that the next economic crisis could lead to a large-scale military confrontation. By the logicof the political scientist Samuel Huntington , considering such a scenario could help us avoid it, because it would force us to take action. In this case, the key will be for policymakers to pursue the structural reforms that they have long promised, while replacing finger-pointing and antagonism with a sensible and respectful global dialogue. The alternative may well be global conflagration.
It is hard to overestimate the storm that is brewing. Only penance and a complete housecleaning can restore credibility and trust.
I hope our bishops, especially the highest ranking and those closest to the epicenter of the Archbishop McCarrick case, hear just how angry the faithful are. I think it is hard to overestimate the storm that is brewing.
.. If any of our prelates think this latest storm will soon pass, they should ponder the more likely case that these are merely the outer bands of a Category 5 hurricane that is closing in and will likely make landfall in Baltimore at the November meeting of the United States Conference of Catholic Bishops (USCCB).
.. I have never seen people so serious and determined to take actions of their own. Frankly, as the faithful often remind us, their real power is the power of the purse—that and voting with their feet. I have usually dismissed plans to refuse to give to the Annual Bishop’s Appeal or other such collections as the threats of a few on the fringes, but I am now hearing such things from far more mainstream sources who say that it is the only way to get the bishops’ attention.
.. I have learned from Church history that reform almost never comes from the top; it comes from religious life and from the grass roots, from among God’s people. Please stay faithful to the Lord and His Body the Church. Pray as never before. Realize that the devil would like nothing more than for you to walk away from the sacraments.
.. feel freer than ever to confront Church leadership and insist upon reform
.. I encourage each of you to write personally to your bishop. It is not enough to sound off on social media or in comments sections on the internet. Be old-fashioned: write a physical letter to your bishop and request a written reply, at least acknowledging receipt. Be brief and charitable, but also be clear about the crisis of trust in episcopal and clerical authority and your deepening concerns over what this means if trust cannot be restored.
.. Remember, too, not every bishop or priest is equally to blame. Some are suffering as much as you are. However, no one, clergy or lay, should exempt himself from the task of summoning the Church to reform and greater holiness.
.. To those who are inclined to use financial withholding as an expression of concern, I ask that you remember that much of these collections go to help the poor. Please consider such a method as a kind of last recourse. Use it only if you must, and as a medicine not an expression of vengeance. I ask that you consider giving an equal amount directly to those who help the poor. Also, if you choose to do this, write to your bishop explaining what you are doing and why.
.. I am grateful that many lay faithful love the Church enough to be angry. Sometimes one must be angry enough to be willing to act for change and to persevere in that work. I hope you will honor your anger and use it to creative ends: to tirelessly demand real reform in all the ways God gives you to see. Be careful to target your anger and speak it in love and for the good of all.