Collapse Step by Step, Part 7: More on Political Realities, Continued

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Published on The Easiest Person to Fool October 13, 2017

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This post is just a continuation of Part 6 of this series. If you haven't read Part 6 it would make a lot of sense to do so now.

In Part 6, I addressed some of the comments a reader (BK) had made on Parts 4 and 5, explaining my thoughts on a slow and uneven collapse. And how while modern politics is trapped in a growth at all costs paradigm and cannot acknowledge the limits of growth, there are still varieties of politics that will do a better or worse job of navigating collapse in the age of scarcity.

(BK and I have quite a conversation going in the comments. Now that the initial misunderstandings have been cleared up, I think some real communication has happened.)

If you are new here, following the discussion below would be facilitated by going back and having a look at the last few posts in my Collapse Step by Step series.

In Collapse Step by Step, Part 3, I introduced the idea of laying out a spectrum of opinions about a particular aspect of politics, with the two ends representing opposing extremes, and most peoples' positions falling somewhere in between.

An example of something like this is the Political Compass, a website that takes two such spectrums (economic and authouritarian) and defines a plane on which there will be a point that defines your political position. For me that point is somewhere in the lower left, making me a "anarcho-communist" of some sort.

In order to gain an more nuanced understanding of politics, I have suggested using not just two, but six different spectrums to give a sufficiently nuanced view of that field.

In Collapse Step by Step, Part 4 I considered each of those six spectrums and identified what I believe to be the position on each of them best suited to coping with the challenges that face us over the next few decades.

In Collapse Step by Step, Part 5, after looking at today's political realities (growth must continue), I took a close look at how two different types of politics may fare during collapse. One of these might be called Right Wing Capitalism— an extreme version of the United States under a Republican government. The other I called Social Democracy—an idealized version of the northern European democracies when a left wing government is in power. And as you may be able to guess, I think the Social Democracies have a much better chance in the age of scarcity.

After reading that post, BK responded with, "you are stuck on the viewpoint that socialism will solve our ills. But what is the point of a viewpoint if adopting it requires jettisoning reason and deliberation at the first sign or trouble?" So, thinking positively about socialism requires jettisoning reason and deliberation? I really think not. But, in any case, a closer look at what I was saying shows I wasn't actually talking about socialism. The point I was making about Social Democracy versus Right Wing Capitalism wasn't to any great extent based on their positions on the Communist<—>Capitalist economic spectrum.

Communism (or socialism, same thing really), at the left end of this spectrum, has never actually been tried in the modern world, and probably wouldn't work on the large scale of most modern countries, or at least we currently have no idea of how to make it work. The so called communist regimes of the twentieth century ended up being just dictatorships practicing state capitalism. The people who started them (Lenin, Mao, etc.) were incredibly inept. Perhaps better men could have achieved more, or perhaps the challenge was just too great.

Social democracies occupy the space somewhat to the left of center on this spectrum, practicing a well regulated form of capitalism, with much of their vital infrastructure state owned for the sake of efficiency.

Countries which practiced ideal free market capitalism would be over at the very right end of the spectrum, but of course there really aren't any of them either. Some regulation is necessary to make a country work at all. Beyond that, capitalists don't like real competition and large capitalist concerns have power enough to avoid it. Even small businesses often voluntarily avoid getting into the kind of price wars that a free market can lead to. So Right Wing Capitalism occupies the space somewhat to the right of center on this spectrum.

What I am really doing here is comparing two political positions that both practice capitalism, just somewhat different types of it. The policies that really distinguish them are on a couple of other political spectrums altogether: Inclusive<—>Exclusive, and Fiscal Liberal<—>Fiscal Conservative. The Communist<—>Capitalist spectrum is a factor but the least important of the three.

OK, so how do these three aspects of politics work together to determine how a country manages during the age of scarcity? First let's consider the early stages of this period when there is still enough economic activity to support the operation of national and state (provincial) governments.

BK comments, "Northern European democracies lucked out in the historical roulette, with a combination of low population, resources and cheap energy/labour subsidising their particular version of overconsumption." The same could be said of many areas in the "new world" including Canada, Australia, New Zealand and the US. And I would agree that this was true in the age of abundance, when all these countries prospered through relentless growth fueled by cheap fossil fuels, regardless of whether their politics was a little to the left or right of center. But that's not the time period we're considering here.

The age of scarcity began for the US in the 1970s, when oil production in the continental states peaked and the economy began a long, bumpy slow down. And really, from then until the present day has been a troubled time for economic growth throughout much of the developed world. Recessions, bubbles, crashes, and growing debt have become commonplace.

OK, how does extreme right wing capitalism cope with these conditions? Its political position is "exclusivist", so its strategies are intended to benefit the rich and powerful—maintaining growth and funneling wealth to them, with little concern for the rest of the population. In the age of abundance this worked reasonably well for everyone, since workers were needed in large numbers and it wasn't too hard to get a job. This is no longer the case. When growth can't be maintained, the fall back is to ensure the rich receive a larger share of whatever surplus there is, with the rest of us left to get by on the ever shrinking leavings.

This political position is also fiscally conservative, so its main strategy has been to lower taxes on the rich and large corporations and to cut social programs and infrastructure spending. This has been justified by claiming that lowering taxes create jobs for the working man, who will then need less help. It's not true, of course. The only thing that makes a business hire more workers is increasing demand for their product, and to increase demand you have to get money into the hands of consumers. Leaving money in the hands of the rich essentially takes it out of circulation, since most of it will be invested in financial instruments that are not part of the "main street" economy where jobs are created.

Because of those tax reductions, funding for government is reduced, rendering it less effective at the work it needs to do. As is always the case for fiscal conservatives, tax reduction is much easier than cost cutting, so budget deficits increase and interest costs for carrying the accumulated deficit increase along with them, using up more of what little revue the government has.

All this results in many dissatisfied people, looking for someone to blame, and creates an opportunity for populist politicians. They claim to be on the side of the common man in order to get votes, while pursing many policies that actually hurt working class people. Dissatisfaction with the state of the country is blamed on immigrants, and religious and racial minorities, focusing attention away from the rich and powerful.

The right wing version of capitalism not as well regulated as those further left, and regulations are frequently relaxed even further with the excuse that it will stimulate growth.

The result of all this over the last several decades in the US has been increases in poverty, inequality, homelessness, self destructive drug use by demoralized people, distrust of the elite and social unrest. Educational, health care and infrastructure systems have been allowed to deteriorate due to lack of funds. In many ways, the US is now little better than a third world country. Unfortunately there is more to come, as economic contraction and climate change continue to pound away.

As the economy contracts still further and even the rich begin to feel the squeeze, governments in these societies will become more forthright about their attitude toward the lower classes, which is best characterized by the term "exterminism" (root word: exterminate). People who are not actively needed are simply cast aside, with no concern as to what their fate might be, as long as they stay out of the way. In the US, this works so well because many Americans, who are not in fact rich, feel they that are just temporarily embarrassed millionaires, and are distrustful of the other poor people around them, rather than feeling any solidarity with them.

BK says, "You accused me of believing that poverty is the fault of the poor, yet that isn't true. You also claim that this idea is leading America in a bad direction, yet the majority of Americans – including the elites, both liberal and conservative – don't seem to share it. All of them say they want to help the poor; they just differ on the method/s." Well yes, they do say that. But actions speak louder than words, and reducing taxes on the rich while cutting social programs leads me to believe the underlying intention is definitely not to help the poor. And just to be clear, that is aimed not at BK (who isn't an American), but at the Republican Party and the current President of the US.

Eventually, the government will have no choice but to abandon the worst affected areas. Parts of New Orleans have still not been built after hurricane Katrina, and a reasonable argument can be made that it would be a bad idea to do so, given the likelihood of further increases in sea level. It will be interesting to see how things go in Texas, Florida and Puerto Rico in the aftermath of hurricanes Harvey, Irma and Maria this fall. Of course, that "abandonment" will not be official, but simply a matter of quiet neglect, due to a lack of resources to support and rebuild or even enforce the rule of law. This will start with just a few isolated areas that have suffered natural disaster or extreme infrastructure decay, and grow until the remaining governed areas become isolated enclaves in the abandoned expanses.

As the economy contracts, unemployment will grow. With cutbacks on social programs, unemployment will lead quickly to homelessness for a great many people. In the capitalist system there is no commons—no way for the poor to be self sufficient, no way for them to get away from a system that wants them to go away. The homeless will seek refuge in the abandoned areas, but with very limited resources and skills, they will have a hard time of it. Their general distrustfulness of each other will make things even worse.

My prediction is that, because of the waste inherent in funneling wealth to the rich (along with many other self destructive policies), rich wing capitalist societies will decline more quickly than Social Democracies. When they reach the point where nothing is left but small local communities, people will be left with very limited resources and will be unprepared for working together to the extent that will be required. Many won't even believe it is a good idea, much less a necessity.

So, how do Social Democracies measure up against the Right Wing Capitalists in the age of scarcity? To my way of thinking, quite well.

Social Democracies are inclusive, so their policies look out for the welfare of all their citizens. They are fiscally liberal, so they don't hesitate to tax progressively to finance their social programs, and are able to resource government at a level that allows it to do its job effectively.

There is less poverty, inequality, homelessness, drug abuse, distrust of the elite and social unrest. Those who are well off are happy to pay their taxes because of this.

Social Democracies are somewhat left of center on the communist<—>capitalist economic spectrum, so under these governments capitalism is better regulated, preventing its more unpleasant excesses. Much of the infrastructure is government run, eliminating duplication of effort, and waste in the form of unnecessary competition and profits.

Because economic surpluses are redistributed to where they are needed the most and will do the most good, economic contraction will proceed more slowly than in the Right Wing Capitalist countries, and its effects will be mitigated by the social safety net. It appears to me that surplus energy will be used more effectively and these societies can probably continue to function at a lower average EROEI than the Right Wing Capitalists.

Make no mistake, energy decline and economic contraction will still continue to happen in the Social Democracies and eventually reach the point where centralized government is no longer able to function and nothing is left but small local communities. But the fabric of society at that level will be in better shape and more resources and skills will be available. People, not having been taught that the poor are the enemy, will find it be much easier to work together effectively when they find themselves reduced to poverty.

I think there is also a good chance that as this point gets nearer, social democracies will admit what is going on and set up programs to help people prepare and adapt, where Right Wing Capitalists will struggle to support growth with their dying breath.

We can look at Social Democracy<—>Right Wing Capitalism as another political spectrum with the extreme versions I've just described out at the every ends. Of course, real countries are located somewhere along the spectrum, not at the extreme ends, and their positions will vary over time as left or right wing governments come into power. There is a tendency, as times grow harder, for politics to move "right", toward the Right Wing Capitalist end of this spectrum. From my viewpoint, this is sad, because it runs counter to the best interests of the very people who are casting their votes in that direction.

Indeed, one might say that that has been the purpose of this post—to make it clear why I think that in the immediate future we should not give up on the political process. Rather, we should be striving to oppose the movement to the right and elect governments who are closer to being Social Democracies. And, if in the process, we could get them interested in emergency preparation and collapse mitigation, it would be even better.

There are some hopeful signs. In Britain the Labour party has swung away from Tony Blair's neo-liberalism to a more traditional Labour stance and they did much better in the last election. Not a win, unfortunately. Here in Canada, in the last federal election, we voted out Harper's extremely conservative Conservatives and put the Liberal Party back in power. Their politics, on the Communist<—>Capitalist spectrum, are only slightly left of the Conservatives, but they are much more inclusive and fiscally liberal. They are also more liberal socially and they are not climate change deniers….

But enough for now about party politics. The subject of my next post will be some of the specific events that will likely drive collapse forward in discrete steps and how we'll cope with them, as centralized governments wither away and local communities become the focus of survival.

And once again, BK, be patient with me, more of the points you've raised will be addressed in that post, and probably the one after it….

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