Category Archives: Capitalism

Strange Fears

2023 Grand Finale Tour, Capitalism, criminal Justice, Decline of the west, Environmental Apocalypse, Fear, Social democracy

 

All unreasonable fears are strange, but some are stranger than others. Some fear environmental collapse. Not such a strange fear at all.

Some of the people who put down $3 million to purchase a condo in a former missile silo in Kansas have strange fears. In the land of conspiracy theories that should not surprise. Maybe they all do. Evan Osnos interviewed Tyler Allen a real estate developer in Florida who bought a unit in the Kansas silo. He worries about future “social conflict” in America. That really is not so strange a fear.  Allen also thinks that the government will deceive the public, as it has done in the past. He even believes that Ebola was allowed into the country “in order to weaken the population.” Unsurprisingly, he is transfused with fear and conspiracy theories. But I am not putting down $3million. Of course, I can’t put down $3 million, but if I did, I would think that there must be a better way.

Allen claimed that when he started suggesting ideas like this people thought he was crazy, but they don’t anymore. He said, “my credibility has gone through the roof. Ten years ago, this just seemed crazy that all this was going to happen: the social unrest and the cultural divide in the country, the race-baiting and the hate-mongering.”

Of course, how will people get to their bunkers? The buyers don’t live next door. Tyler lived in Florida. That is a long way from Kansas. Tyler thought he would have 48 hours to make it to Kansas. Most people he believed, when the crisis came, would head to the bars while he headed towards Kansas. I guess they would be watching from “Sports bars.” Of course, if a nuclear bomb hit American, such driving would be difficult. Did you see the images of the highways around New Orleans when the people there were told to evacuate because of impending Hurricane Katrina? We would not want to be in the line-up. Pretty messy!

As I have said, all of this is driven by fears–in particular fears of the very rich. Osnos does not disagree,

“Why do our dystopian urges emerge at certain moments and not others? Doomsday—as a prophecy, a literary genre, and a business opportunity—is never static; it evolves with our anxieties. The earliest Puritan settlers saw in the awe-inspiring bounty of the American wilderness the prospect of both apocalypse and paradise. When, in May of 1780, sudden darkness settled on New England, farmers perceived it as a cataclysm heralding the return of Christ. (In fact, the darkness was caused by enormous wildfires in Ontario.) D. H. Lawrence diagnosed a specific strain of American dread. “Doom! Doom! Doom!” he wrote in 1923. “Something seems to whisper it in the very dark trees of America.”

 

Do these doomsday fears not tell us something important about the über rich? This is what they are bringing about! They have no one to blame but themselves. Can’t they do better? Their own actions are creating these fears. Their own actions could forestall them.

There must be a better way and its not being brought in by forest fires from Ontario.

Worry OK; Panic not so Much

Capitalism, Conservative, Decline of the west, Social democracy

 

A friend of mine challenged what I have been saying about the super elites buying condos in a former missile silo in Kansas by suggesting it is not reasonable  to suggest that one crazy idiot buying a condo in a missile  silo does not mean we are doomed.

 

Of course, one rich guy does not establish that we are doomed. In fact, no single act establishes that.  Even 15 crazy rich guys who have bought condos in a missile silo don’t establish that. But the accumulating actions of many people, including those “idiots,” are increasingly suggesting that western society is in a serious state of decline and perhaps even on the edge of collapse. I don’t know about you, but I am getting increasingly more pessimistic. And I am increasingly doubtful that our leaders know the way out.

 

There are also many other indices of this decline. I will be posting about some of them soon.  I know I have been going on interminably about these nuts who bought concrete condos in the former missile silo in Kansas, but I think it is interesting and significant.  These were business leaders. They were people who earned a great deal of wealth and respect. Many of them were in the financial sector or the tech sector who made fortunes.  Interestingly, it is precisely these people who panicked and starting selling their investments in the recent Silicon Valley Bank fiasco when there was no need to do so. These are the people who have now brought our financial system to the edge of collapse as a result of their unjustified fears!  All of this shows that panic is seldom a valuable tool to deal with serious problems whether it comes to buying silos or selling investments. Fear is sometimes justified; panic is never helpful.

In the US in particular, business leaders are nearly worshipped. Look at Donald Trump. I don’t know how many Americans I have met in the past 2 &1/2 months in this country who hail him as a business leader who can make the country great again. I consider him neither a great business leader nor great political leader, but many here think otherwise. Business leaders get automatic respect in America and Canada for that matter. When a group of 15 of them go so far off the mark as the condo buyers did in Kansas, it bears consideration. What is up with that?

To my mind, there are signs of the decline of western civilization all around us, but yet I admit there are also positive signs.

I am particularly encouraged by the improvement in the fortunes of the LGBTQ community in an astonishingly short time. Though I hasten to add they had to overcome the battalions of opposition from Conservatives each step of that way. Why is that? In fact, now the American conservatives seem determined to make war on transgender people who are among the most marginalized and vulnerable people in the country. They like to pick on minorities. The weaker the better.  In fact, as soon as they are not in minorities the conservatives tend to give up quickly.  I will post more on this later.

So, I don’t know whether decline or improvement will win out. We are in the midst of gigantic political changes so it is hard to predict what will happen. We will just have to wait and see, but I am worried. Not panicking, but concerned.

Things are not likely to be perfect in a Silo

2023 Grand Finale Tour, Capitalism, Decline of the west, Social democracy, Social Justice

 

How can you live in a former missile silo?

One problem is how to get away with the absence of windows. Can you imagine it? According to Osnos,

“The condo walls are fitted with L.E.D. “windows” that show a live video of the prairie above the silo. Owners can opt instead for pine forests or other vistas. One prospective resident from New York City wanted video of Central Park. “All four seasons, day and night,” Menosky said. “She wanted the sounds, the taxis and the honking horns.”

 

To me this sounds like virtual reality–with an emphasis on virtual. Will this be life behind these walls?  Hall has given some thought to how people will live there, but I wonder if he has given enough thought. It is ironic that these vistas are all part of the commons. I thought that was what they wanted to get away from. These are things the super-rich should have helped sustain, but many preferred to enhance their own private wealth instead. Now they want them?

According to Osnos,

“Hall [the developer of the missile silo] said the hardest part of the project was sustaining life underground. He studied how to avoid depression (add more lights), prevent cliques (rotate chores), and simulate life aboveground.”

Frankly I would not be satisfied with simulated life. Would you?  Or is even death preferable? This is particularly poignant when you consider that most (all?) life might outside the bunkers might perish.

Some survivalists have mocked Hall’s plan. They say they won’t pay. They will just attack when the time comes. Hall claimed that he and his “guards” could repel all forces. And if necessary, the guards would return fire. What will Hall to secure the loyalty of the guards. After the apocalypse won’t things start over? What will money be worth? Why won’t the guards switch sides? Who would persuade the hired armed guards to stick with supporting the rich people hunkered down?  Why would they stick with the rich? How long could people survive a siege?

Things are not likely to be perfect in a former missile silo. I know I am deeply skeptical.

 

A Survival Condo Project in Missile Silo

2023 Grand Finale Tour, Capitalism, Decline of the west, Social democracy

 

 

Evan Osnos in his New Yorker article, described the Kansas landscape that Chris and I  drove through on this trip to Arizona.  He drove to a place  called the Survival Condo Project near the town of Concordia and Salina Kansas which we drove through. When he arrived, he was met by a guard dressed in camouflage holding a semiautomatic rifle.  It looked impressive. The condo project was being built inside  an underground missile silo like the one Chris and I had seen a few years ago in Green Valley Arizona. That has been turned into a museum.

The facility housed nuclear warheads from 1961 to 1965–a mere 5 years. After that the site was decommissioned and a bigger and better silo was built somewhere else. I think that site is still secret as this one had been.  The  developers were building 15 luxury condos there because the site had been built with walls so thick it was supposed to survive a nuclear attack by the Russians. The site was originally built in response to a perceived threat from the Soviet Union that was engaged in a long-standing “cold war” with the United States and its allies. The developers are led by Larry Hall the CEO of the new project. As Osnos said, “Hall has erected a defense against the fears of a new era. “It’s true relaxation for the ultra-wealthy,” he said. “They can come out here, they know there are armed guards outside. The kids can run around.”

Wow is that the best the super-rich can do? Is there not more to life than being ensconced in a concrete cocoon? Presumably its better than getting incinerated in the nuclear attack. To me that sounds horribly limited. Maybe being super-rich is not all it’s cracked up to be.

Hall developed the property for which he paid $300,000 by spending another $20,000,000 for renovations. With that he created 12 private apartments that he sold for $3 million each in the case of full floor units and $1.5 in the case of half floor units. He sold them all except for one that he decided to keep for himself.

The silos in which the apartments are located are solid.  They were built by the Army Corp of Engineers to withstand a nuclear strike.  The inside has enough food and fuel for 5 years off the grid. Of course, it will require that people raise tilapia in fish tanks and hydroponic vegetables under grow lamps and supposedly renewable power that could function indefinitely, according to Hall. I am not sure how he would accomplish that.

In a crisis more drastic measures can be expected. According to Hall,

“In a crisis, his swat-team-style trucks (“the Pit-Bull VX, armored up to fifty-caliber”) will pick up any owner within four hundred miles. Residents with private planes can land in Salina, about thirty miles away. In his view, the Army Corps did the hardest work by choosing the location. “They looked at height above sea level, the seismology of an area, how close it is to large population centers.”

 

If owners of planes can’t fly them in they will need to make arrangements for a pilot and family members of the pilot. Where would they go after flying in? That does not mean that each prepper has an individual bunker. After all, hardened bunkers are expensive and complicated to construct. The complex looked and felt like a ski condo that did not have any windows. What kind of ski condo is that? But it had a central area with pool table, stone fireplace, a kitchen, and leather couches. No TVs of course. No poor people will stick around to man the TV stations.

What will life be like without poor people to do all the manual work needed to keep the place going.  Why will the people hired by Hall as security and to do necessary tasks  continue to work for the group? How will they be paid? Where will money come from? Why won’t they just take over and kick out the rich people whose wealth will no longer have any meaning? I have a lot of questions about this project.

It sounds to me like a crazy scheme for rich people that makes no sense except to the paranoid rich. Would you invest in it?

This might be the real grand finale.

 

Over valuing private goods and undervaluing public goods

2023 Grand Finale Tour, Capitalism, Decline of the west, Social democracy, Social Justice

 

 

For a long time, it has been my opinion that people under value pubic goods and over value private goods. For example, good schools, hospitals, libraries, parks and many others are really important and valuable.  One of the problems with some rich people, like those who bought condos in the missile silos of Salina Kansas, was that most of these privileged people no longer recognize the benefits–the mutual benefits–provided by the commons. They have either forgotten how important they are or they never realized it.  They really believe only private goods count. Only private goods are really good. Public goods are irrelevant.  Robert Johnson who Osnos interviewed for his  New Yorker article realized  this was not the case. He said,

“If we had a more equal distribution of income, and much more money and energy going into public school systems, parks and recreation, the arts, and health care, it could take an awful lot of sting out of society. We’ve largely dismantled those things.”

 

It is difficult to discern why the privileged are so fearful. What do these ultra-wealthy people have to fear? If money does not buy happiness, surely it buys security. If one thought that, one would be wrong. As Osnos reported,

“As public institutions deteriorate, élite anxiety has emerged as a gauge of our national predicament. “Why do people who are envied for being so powerful appear to be so afraid?” Johnson asked. “What does that really tell us about our system?” He added, “It’s a very odd thing. You’re basically seeing that the people who’ve been the best at reading the tea leaves—the ones with the most resources, because that’s how they made their money—are now the ones most preparing to pull the rip cord and jump out of the plane.”

In other words if people valued the common good as much as they valued their own private good, there might be a lot less anxiety.  When the über rich are so fearful it really make you wonder about the stability of the system. Do they know something the rest of us don’t know? Or it that guilt poisons their perception? Or do they just not understand what is important?

Sometimes the most. important things we have are the things that we share.

 

 

A Deeper Crisis

2023 Grand Finale Tour, Capitalism, Decline of the west, Social democracy, Social Justice

It is also interesting how the privileged classes have selected things to worry about.  As Evan Osnos reported in his New Yorker article:

 

“Élite anxiety cuts across political lines. Even financiers who supported Trump for President, hoping that he would cut taxes and regulations, have been unnerved at the ways his insurgent campaign seems to have hastened a collapse of respect for established institutions. Dugger said, “The media is under attack now. They wonder, Is the court system next? Do we go from ‘fake news’ to ‘fake evidence’? For people whose existence depends on enforceable contracts, this is life or death.”

 

It is also interesting how the privileged classes have selected things to worry about.  As Osnos reported

 

“Robert A. Johnson was another person that Osnos interviewed.  He saw the fear of his peers as “the symptom of a deeper crisis.”[2]  I agree with that. I too see the fear as a manifestation of fundamental unease about their place in modern society. They are unmoored and their wealth, which often is extreme wealth, is not able to fill the void. Johnson was the manager of a hedge fund. He was also the head of a think tank. He called himself “an accidental student of civic anxiety.”From my own career, I would just talk to people. More and more were saying, ‘you’ve got to have a private plane. You have to assure that the pilot’s family will be taken care of, too. They have to be on the plane.’ ”

 Johnson saw the fear of his peers as “the symptom of a deeper crisis.”  I agree with that. I too see the fear experienced by the über wealthy as a manifestation of fundamental unease about their place in modern society like those who bought condos in a concrete missile silo in Kansa. They are unmoored and their wealth, which these days often is extreme wealth, is not able to fill the void. Johnson was the manager of a hedge fund. He was also the head of a think tank. He called himself “an accidental student of civic anxiety. More and more wealthy people were telling. him, ‘you’ve got to have a private plane. You have to assure that the pilot’s family will be taken care of, too. They have to be on the plane.’ ” Escaping the apocalypse is not easy.

Osnos analyzed this situation this way,

“By January, 2015, Johnson was sounding the alarm: the tensions produced by acute income inequality were becoming so pronounced that some of the world’s wealthiest people were taking steps to protect themselves. At the World Economic Forum in Davos, Switzerland, Johnson told the audience, “I know hedge-fund managers all over the world who are buying airstrips and farms in places like New Zealand because they think they need a getaway.”

Johnson is like some other wealthy people that have not entirely lost their sense of empathy or their sense of justice. Osnos described their situation this way,

“Johnson wishes that the wealthy would adopt a greater “spirit of stewardship,” an openness to policy change that could include, for instance, a more aggressive tax on inheritance. “Twenty-five hedge-fund managers make more money than all of the kindergarten teachers in America combined,” he said. “Being one of those twenty-five doesn’t feel good. I think they’ve developed a heightened sensitivity.” The gap is widening further. In December, the National Bureau of Economic Research published a new analysis, by the economists Thomas Piketty, Emmanuel Saez, and Gabriel Zucman, which found that half of American adults have been “completely shut off from economic growth since the 1970s.” Approximately a hundred and seventeen million people earn, on average, the same income that they did in 1980, while the typical income for the top one per cent has nearly tripled. That gap is comparable to the gap between average incomes in the U.S. and the Democratic Republic of Congo, the authors wrote.”

If you are the fortunate beneficiary of such largesse, it is difficult to believe that that such extreme inequality is justified. It takes a special kind hubris. Or perhaps blindness. The result is fear that some day that injustice might be rectified.

The Rich need money; the Poor need Poverty

Capitalism, Green New Deal, Social democracy, Sociology of Knowledge

 

Although John Kenneth Galbraith pointed out how  the socialist and capitalist countries are similar, but in the west the

“controlling contentment and resulting belief is now that of the many, not just of the few.  It operates under the compelling cover of democracy, albeit a democracy not of all citizens but of those who, in defense of their social and economic  advantage, actually go to the polls.  The result is government that is accommodated not to reality or common need but to the beliefs of the contented, who are now the majority of those who vote.”

 

Galbraith points out this discrepancy of governmental treatment of the poor compared to the wealthy in amusing terms, though the consequences are far from amusing:

“The substantial role of the government in subsidizing this well-being deserves more than passing notice.  Where the impoverished are concerned — a point to which I return — government support and subsidy are seriously suspect as to need and effectiveness of administration and because of their adverse effect on morals and working morale.  This, however, is not true of government support to comparative well-being.  By Social Security pensions or their prospect no one is thought damaged, nor, as a depositor, by being rescued from a failed bank.  The comparatively affluent can withstand the adverse moral effect of being subsidized and supported by the government, not so the poor.”

 

 

Subsidies to the poor are always on a very different level than subsidies for the wealthy. The poor are always underserving, the rich always in need. Not only that but subsidies to the rich or well-off are always for the benefit of society as a whole. Subsidies to the poor are given out of the largesse of the well-off. The rich are to be complemented for permitting their money to be used on the poor. As well, the rich are to be complemented for accepting subsidies not really for themselves but in order to benefit society as a whole. The poor should be looked down on for accepting charity. It shows they are not of strong character. That is just how it works when you control the political process. As a result of such attitudes, when the Green New Deal proposes to spend money to ease inequality of incomes, we must treat the howls of protest from the affluent with careful skepticism. They might have a point, but we should not assume they have a point.

Although Galbraith was describing the United States the same things happen in Canada too.  In Canada the contented accept government subsidies through CMHC, CDIC, RRSP’s, farm supports, DREE, and numerous grants to businesses.  Particularly the oil and gas sector which has done so much to create the problem of climate change enjoys subsidies in the billions. Subsidizing clean energy or green projects is seen instead with alarm by the contented.

 

Business sees no problem in going to the public trough for itself, but not so for the poor. They are also extreme in their defence of their own privilege. Witness the recent puny attempt by the Liberal government led by Justin Trudeau in making fairly modest tax reform proposals in Canada principally around reducing the benefits of well-off Canadians in earning money through a corporation rather than personally. Those benefits of course go largely to the rich. In my practice of law it was not common to see homeless people come in to incorporate their scrounging ‘businesses.’

Even though he was a privileged Harvard economist, former Ambassador, and confidant of the rich and famous, Galbraith had similar scepticism:

 “While self-interest, as we shall see, does frequently operate under a formal cover of social concern, much social concern is genuinely and generously motivated.

Nonetheless, self-regard is, and predictably, the dominant, indeed the controlling, mood of the contented majority.  This becomes wholly evident when public action on behalf of those outside this electoral majority is the issue.  If it is to be effective, such action is invariably at public cost.  Accordingly, it is regularly resisted as a matter of high, if sometimes rather visibly contrived, principle…”

Given the power of the affluent to influence public opinion, it would be surprising if the Green New Deal were easily proven to be a rational plan to reduce climate change.

A Conservative  Wet Nightmare

Capitalism, Green New Deal, Sociology of Knowledge

 

I was hearing a lot about the New Green Deal.  Until I wasn’t hearing anything anymore. The Green New Deal drives Republicans in the US and Conservatives in Canada, apoplectic. That is why Samantha Bee has called the Green New Deal the “Republicans wet nightmare.”

 

Why  don’t we hear about it anymore. Were the criticisms of it from conservatives so radically convincing? Or did interest groups get their away (again)?

Dominant groups invariably react to anything that undermines their dominance with scorn, mockery, and howls of opposition. They think the upstart must be irrational, if not absolutely insane. Listen to their howls. They scream it; they mean it. It makes no sense. None.

This is what the dominant groups in the US did when Roosevelt introduced the original New Deal. It was completely absurd they claimed. We can’t afford it. It will bankrupt the nation. How could anyone say in a time of 25% unemployment that the country must put those people to work? It made absolutely no sense they assured us. Well–they were wrong. Entirely absolutely wrong. Roosevelt has been credited with saving capitalism from its greatest foes–the capitalists! Now they complain similarly about the Green New Deal.

Is that how it will be with the Green New Deal? We have already heard the screams and howls of laughter, mockery and pain.

Karl Mannheim, in his landmark book, Ideology and Utopia, building on an insight of Marx, first pointed out that ruling groups can in their thinking become so intensively interest-bound to a situation that they are no longer able to see certain facts which might tend to undermine their sense of domination.  The ideology of ruling groups often obscures the real condition of society from itself, and often even to those groups that dominate.  The ideology of ruling groups is self-serving.  As a consequence, such groups often do not recognize the unpleasant facts which might detract from their domination.  This is usually accomplished naturally, without conspiracy.  To them, all dissent, as Herbert Marcuse noticed, is irrational, if not insane.

No one likes to lose privileges. That is the long and short of it. In fact, groups with resources, will use those resources to protect their privileges. That does not mean that all their arguments are bogus. It just means we ought to be wary of them. We should, as John Stuart Mill made clear, always look at the other side. Are we getting the whole truth from the privileged groups or are they using their influence to influence those in power to do their bidding?

Over that past 3 decades industries in the oil and gas sector, including some of the richest corporations in the world have spent enormous sums of money to convince political leaders, and even us the mere peons, that what is good for ExxonMobil is good for us too.  Is it?  Is the Green New Deal really that radically subversive? Or are we being sold another bill of goods? As the Sergeant on the television series, Hill Street Blues used to warn the police before they went out on their beat each morning: ‘Be careful out there.”

That was wise advice to the beat cops. That would be wise advice to us peons.