Tag Archives: #neoliberalism

Portland

1. VIII 2020

There is a distinct feeling of déjà vu behind the government response to civil unrests across the country in the last month. Political demagoguery, heated emotions, faux patriotism, us & them, “law & order” BS, enemies of the people, antagonism of the press, gratuitous violence, racial supremacy, misogyny, secret police, and the entire spectacle of identitarian package, all of this comes from the same tired and worn out playbook — same type of theatre, same scriptwriter, and the same mindset seen so many times before.

The spurious similarity between the populism of segregated and fractured post-2016 America and single-voice Germany of the 1930s — the two countries a century apart with no socioeconomic overlap — can be traced to the fact that their respective leaders have been engaged in the same ritual practices. Their respective ideologies – unconditional subordination to either national or oligarchic interests — and representative parties, National Socialist German Workers’ Party and National Capitalist MAGA, run in parallel.

In both cases, social marginalization triggered and shaped the rituals that followed. The 1930s was an uprising against the marginalization of Germany as a cultural, industrial and military power of the time. The rise of Nazism was a result of discontent due to the loss of a privileged position in the global context and the rising precarity at home. As a consequence, the entire country spoke in a single voice.

In 21st century prosperous America, which has not had a war on its territory for more than 150 years, it was marginalization of an entire social class and a reaction to the loss of white male privilege of the old days. The consequence was an unprecedented polyvocality as an expression of the social divide along cultural, racial and ethnic lines — a class war in a displaced mode, with the entire marginalized class speaking in a single voice only they could understand.

Camouflaging ritual as an escape route from marginality in today’s America has the sole purpose of forcing the alignment of interests of billionaires with those of the marginalized sector of its population. It is an effort to compactify an otherwise fractured political landscape and, by ignoring facts, laws of physics, economic, logic and common sense, connect the two opposite, and logically opposing, ends of the social spectrum and forge political alliances along artificial cultural divides between victims and their executioners.

As systematic violence, which for decades enabled the smooth functioning of the system and its repressive apparatus, has been on the rise, so has subjective and random violence. Throughout those times, sales of weapons were breaking new highs. The number of mass shootings and the score of victims recorded an unprecedented rise that transcends any historical extrapolations.

For years we have been bombarded with excuses and narratives arguing that all the innocent victims of mass shootings — this uniquely American phenomenon, a product of country’s obsession with guns, and militant opposition to any semblance of their regulation — had to die in order to preserve the 2nd amendment in its most insane form. While 90% of the American population has been unequivocally in favor of more stringent gun control, the NRA has persisted in their cynical and sadistic non-consensus stance against it, insisting, against all evidence, that such high concentration of unregulated gun ownership will keep us all safe and protected in case a rogue government turns on their citizens. According to them, even more guns are needed to make the society even safer. Leaving alone shear idiocy of that argument for a moment, the time to test the validity of that narrative and intentions of gun lobby has finally arrived.

This year, the rise of violence gained a new dimension. The failing and increasingly desperate and lonely president, who has practically abdicated his position and duties, who is already functioning as a lame duck, cleaning up his shop and trying to deliver in the next three months what was originally planned for him to do in the subsequent four years of his presidency (which by now is practically certain that will not happen), is bringing the vestiges of medieval spectacle of violence and power to the city center.

While unidentified paramilitary troops — the actual government secret police, the present-day incarnation of Gestapo — are terrorizing the citizens of Portland, including unarmed women, veterans, and elderly, and are preparing to spread their activity to other big cities, the NRA and their members and supporters are nowhere to be found; their silence has been deafening. In fact, if one were to wager where their sympathy would be, there is an unmistakable feeling that it is most likely to be on the side of the aggressor, rather than the people.

The uncovering of the falsity of the ideological mindfuck behind the 2nd amendment is the terminal bankruptcy of the old and persistent narrative, a fairy-tale for angry citizens, which, against any reason, continues to permeate and contaminate the American culture. Disguised as a rationalization of the faux “cultural” alignment between executioners and their victims, it never really had any other meaning and value beyond laundering blood money from arms sales.

The ecstasy and the agony of power (carousing with Baudrillard, pt. 1)

2. VI 2019

Without ever leaving, we are already no longer there (Nikolai Gogol)

More than two years have passed since the political septic shock of 2016, but its metastatic aftershocks continue with unrestrained intensity. I often wonder, if Jean Baudrillard were around to see the unfolding of his script, what would he think. And I can’t make up my mind whether he would be pleased, amused or just plain bored by how predictable everything turned out to be.

From collapse to prolapse: Capitalism in a coma

The past decade, falling somewhere between strange and outright bizarre, is best described as capitalism in a state of clinically induced coma (after its capitulation to the years of self-intoxication and the near-death experience in 2008). But instead of helping the system heal, this state of suspension only made things worse. The longer the protective coma remained in place, the bigger capitalism’s excesses grew and the more stress it put on its already compromised immune system. The most robust and, at the same time, the most troubling post-2008 realization has been the system’s inability to heal. Underneath this sobering conclusion resides the accumulation of profound social deficits of various kinds.

In the same way it creates conditions for its own demise, capitalism spontaneously creates demand for social change. This is a structural problem of capitalism, its second nature, best summarized by Robert Nisbet: Because of the easy convertibility of all qualitative values and status relationships into fluid relationships of contract, based on money, modern capitalism has had a leveling and fragmenting effect upon context of status and membership[1]. These erosive effects, while always present to a certain degree, have been pushed into overdrive over the last decades. Decay of established structures and persistent social stratification, when pushed too far, begin to distort social relations. When a population loses the sense of social and moral participation in society, and its disenfranchised segment reaches a critical size, these factors lead to spontaneous mutation of free capitalism into authoritarian rule. Democracy becomes a perversion of itself and this transformation so natural and seamless that it remains utterly unnoticed.

These are dynamics that had been identified as the stylized facts of capitalism more than a century ago. According to Hilaire Belloc, whose book Servile State appeared in 1912, Capitalism is either a system of social and moral allegiances, resting securely in institutions and voluntary associations, or it is a sand heap of disconnected particles of humanity. If it is, or is allowed to become, the latter, there is nothing that can prevent the rise of centralized omnicompetent political process. Lacking sense of participation in economic society, men will seek it. Today, the crisis of democracy and the search for authority is going strong in large part as a reaction to the vacuum of power that dominated last five decades.

The agony of power

Power itself is an embarrassment and there is no one to assume it truly. Power itself must be abolished and not solely because of a refusal to be dominated, but also in the refusal to dominate[2].

Neoliberalism appropriated democracy and denounced force as an inefficient way of governing. By outlining new ways of conducting individuals, which satisfies aspiration to freedom in every sphere of human activity, it introduced the idea of governing through, not against, freedom. While 1968 was a reaction to the acute crisis of dominant forms of power at the time, 2016 is the response to the second crisis of power, a quest for power in a powerless world — it is a return of the 1968 in reverse, its mirror image and its unwind.

In contrast to the neoliberal West, in the emerging post-socialist East, force has never been relinquished, its value and utility was recognized and cultivated instead. In the eyes of a large segment of the Western population, democracy was perceived as weak and flabby and the post-socialist (and generally authoritarian) East respected and admired for preserving the power. As neoliberalism is getting unwound, the omnipresent contempt for centrism’s all-out permissiveness has become synonymous with the embrace of power and (implicit) denouncement of freedom. The quick-sand landscape — “No one seems to be in charge”– is perceived to be at the root of the problem and the quest for the strong man, someone who will take the ownership of power, becomes an expression of the mode of change.

And that is exactly how it is being played out. We have now made the full circle and, as the saying goes, there is no circus without a circle: Half a century after 1968, the world is again fascinated with power. The announcement of social change has arrived, unsurprisingly, as the quest for authoritarian rule. 2016 — the big bang of the right wing populism — was a septic shock to the system with compromised immunity. And what started as a shock has quickly turned into a large-scale ritual where the order of things has been fully suspended.

However, unlike market crashes and economic downturns, social change itself doesn’t arrive with a bang. It is a gradual adaptation of the mind to persistence and normalization of systematic transgressions. Social change appears only when the results of such process are incorporated, however confusedly or reluctantly, in the life organizations of individuals and thus come to exert a demonstrable influence upon the purposive and meaningful nature of their consciousness[3].

While this process is well underway, it is not settling in without resistance; no victory has been declared yet. This is the most complicating aspect of the current political mutation. The autoimmune reaction is resisting its own correction – the attack of the immune system onto its host is rejecting the efforts to stop its own self-destruction, and the more it is resisting, the weaker the immune system is becoming.

The theatre of cruelty: The politics of social change

When the present and future are deep-frozen, all excrement rises from the past. As it functions now, history can only be an exercise in recycling and waste management. Failed ideologies, obsolescent utopias, out-moded concepts and fossilized ideas persist in our polluted mentality[4].

What kind of social change is ahead and what sets the template for change at the current political moment? Or, as Baudrillard would put it: Who will rid us of the sedimentation of centuries of stupidity? There are two distinct paths that lead to social change: emancipatory and regressive. The regressive road (currently very much in vogue) is the disappearance-by-proliferation approach – it consists in recycling of the historical waste and adding more stupidity until it becomes invisible. Thus, although the last decade is an utterly new chapter in our history, the political response is an all too familiar mish-mash of worn out, long ago tried and discarded ideas.

The society of the spectacle is turning into a soft version of the theatre of cruelty, a burlesque of death with the globe as its stage. The system acts as the exterminator, yet no one is paying attention[5].

At some point history stopped being real. Today, it plays against a very different backdrop than ever before. It appears too immediate — the events that should constitute history have no time to develop outside of the media[6]. What now accounts for history is a result of careful staging of a play, rather than a spontaneous play of events.

Organizing political movements has become like producing a theater play, but no longer as an imitation of the actual reality, but the creation of a new one, with political leaders as puppet masters in (kind of) a ritualistic puppet theatre. This also is taken from the repository of historical excrement. Any documentary about NSDAP gatherings in 1930s Germany would confirm the validity of this parallel. Despite its improv appearance, the staging has a rigid backbone and follows strict rules. To paraphrase the musings of the SS Standardführer, Heinrich Steinbrecher[7], the first principle in this play is to make theater out of everything. This was the standard practice of the SS and it comes straight out of Hitler’s playbook — things he used to do so successfully, his rise to power based primarily, if not exclusively, on the theatrics of his speeches. Second: carefully choose the genre in which each particular piece will be played. Critique, investigations, attempts at oversight, or accusations of the leadership produce as an antique tragedy. Disputes with political opponents, competitors or dismissal of appointees who you disagree with – i.e. political skirmishes and assassinations, in general — as a marionette farce. Third: Occupy the center stage — insert yourself into political discourse at each point of time and into every issue, no matter how mundane, trivial, and insignificant. Fourth: Plan and supervise everything carefully.

When this play is staged against the backdrop of capitalist hardship and social marginalization of the populist constituents, political events and gatherings turn into performance of the theater of cruelty. The main objective of this early 20th century theatrical form, pioneered by Antonin Artaud, is to unleash subconscious responses in audiences and performers that were normally inaccessible. Audiences find in it not an area for escape from the world, but the realization of their worst nightmares and deepest fears. The play aims to provoke conditions that would face the release of primitive instincts that are hidden beneath the civilized social veneer masking all human behavior. This is achieved by recreating strong and dark imagery and rejecting rational interpretations. Irrational impulses, stimulated by suffering and pain, are employed to increase a sense of danger, violence and disorientation in the audience. The concept of cruelty is not sadistic, but is an access to what is honest and true, and the cruelty required a rigor and determination that was necessary if performers and audiences were to confront and experience the dark terrifying corners that lay at the heart of each human being.

So, in this age of reproduction of self-deception, are we approaching the end of history when nothing new happens any more outside of the recycling of the old narratives from the historical waste bin? In all likelihood, no. At least not in a conventional sense. However, as we seek to find absolution in the past and history reduces to waste management, its flow will change. Irreversibly. The narrowing down of history to current events transforms history into the real time of the news. The event, which is measured neither by its own causes nor its consequences but creates its own stage and its own dramatic effect no longer exists[8].

There will be no end to anything, all these things will continue to unfold slowly, tediously, recurrently, like nails and hair which continue to grow after death[9].

[1] Robert A. Nisbet, The Quest for Community, ICS Press (1990)

[2] Jean Baudrillard, The Agony of Power,

[3] Robert A. Nisbet, The Quest for Community, ICS Press (1990)

[4] Jean Baudrillard, The Illusion of the End, Stanford University Press (1994)

[5] Jean Baudrillard and Sylvère Lotringer (Editor), The conspiracy of Art, Semiotext(e) (2005)

[6] Jean Baudrillard, The Illusion of the End

[7] Borislav Pekic, How to Quiet a Vampire: A Sotie, Northwestern University Press (2003)

[8] Jean Baudrillard, ibid.

[9] Jean Baudrillard, ibid.

The genesis of governmentality and the great flood of arbitrariness

(A homage to a great book)

28.XII 2018

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Hieronymus Bosch: Last Judgment Triptych

Human freedom is a hell of alternatives, dilemmas and choices. True freedom is having no choices. Hell is nothing other than absolute freedom and the devil has been its champion since his rebellion against God… Just look at what kind of image we have of heaven. Whenever some painter attempts to reveal the Powers and Glory of God, we feel like we’re attending an SS parade at the Luipold Arena in Nuremberg… Phalanxes of identical, expressionless and blond angels and archangels, cherubim and seraphim, surround the Throne as specified in most brutal visions of an authoritarian state… Take the Bosch’s Last Judgment as an example. Successive necessities, realizing paradisiacal freedom are transformed along the vertical axes of the composition into chaos and true freedom of hell. High up, in the golden nimbus, symmetry reigns as in the Wehrmacht barracks; there’s still a humble order and a system in the falling of the angels, but further down… my god! Further down an absolute oriental chaos reigns! Each abusing each as he pleases! Each does as he likes! Everything is in total confusion! An insane chaos attains the freedom and beauty of the ideal democratic state. (Borislav Pekic)

Collective free will is a paradoxical social configuration. It is a highly disruptive force that interrupts the normal run of things and creates conditions for its own demise — it shows up every once in a while, but it never stays. The last time free will made its brief appearance in 1968, it frightened everyone, sounding alarms and prompting the urgent response of governments across the entire western hemisphere. Ironically, it was in the West, the champion of freedom and emancipation, where panic registered the highest levels. The developments that led to 1968, and those that followed, represent the crossroads of political history at the moment of an acute crisis of governmentality. The tensions of 1968 are defined by two contradictory realizations: that force is an inefficient way of governing and that true freedom is not governable.

In a discursive ideological competition that followed as a consequence of the crisis, neoliberalism offered the most “successful” (not necessarily the best) resolution of the underlying contradictions. By outlining a new way of conducting individuals, which satisfies aspirations to freedom in every sphere of human activity, it set the new initial conditions of modern governmentality. Behind these abstract statements lies a simple and, at the same time profound, observation about our ambivalence regarding freedom. People are both attracted and frightened by it — they like to wear it as an ornament, but don’t know what to do with it. This was the major political and cognitive innovation shaped by the factual constraint of the times.

Begin from the middle: From free choice to free selection

However, there was a twist, a detail without which none of it would have worked out. It consisted in the displacement of free choice with free selection. As long as selection was abundant, this subtle, but profound, shift of perspective remained largely unnoticed and the essence of control consisted of dialing the selections. But, when free choice is replaced with free selection and when selection is reduced to only two options, things begin to get interesting. People are given an illusion that, at each point of their life, they stand at the crossroads where one path leads to destruction and the other to redemption, that their future depends on every decision they make along the way. The ideological core of this binary choice consists in packaging it as the principle of one’s own choice. One constantly has to choose. Left or Right. With time, this dilemma becomes an engine which drives a continuous cognitive process that never switches off; it dictates how people live, how they experience reality, and how their sub-consciousness functions. For something like this, people need to mobilize considerable intellectual energy — totally preoccupied with the fear of not making a mistake, they have no time to reflect on anything else. Surrender to this reality — the ubiquitous and perpetual dilemma, Left or Right, when it would be normal to resist either direction — is an expression of acceptance of one’s (inevitable) destiny, supported by the hope of redemption, although real redemption is not waiting for us in either direction.

Labor camps as the birthplace of modern governmentality

The principle of one’s own choice of destiny is not a neoliberal invention. So reassuring at first sight, it was a tried and perfected modus operandi in Jewish Ghettos during World War II. It was invented there with a particular purpose to squash any possibility of resistance. This is how SS Standardführer Heinrich Steinbrecher[1] described the logic of its functioning in the Vilna Ghetto (city of Vilnius, in the territory of Nazi-administered Reichskommissariat Ostland), where, within less than two years from its establishment in 1941, the Ghetto’s population was reduced from an estimated 40,000 to zero.

In the Ghetto, the principle of choice of your destiny was perfected by issuing various kinds of certificates. Those who worked for the German industry received them, the others did not. At first, raids would target only those without certificates, so everybody tried to get one. The thought was now exclusively occupied with this goal. There was no time for any kind of resistance. The main objective was to obtain a work certificate before the next raid. However, the raid did not happen. In the meantime, a change in the rules was announced. Now, there were two kinds of certificates being issued — with and without an identification photo. It was up to you to choose with which kind of certificate you would face the next “manhunt”. The principle Left or Right was active again. Raid now hits those with passport without a picture. Everyone tries to exchange them. Administration announces that it is introducing a third id: a blank card with a stamp mark from the labor bureau in Ponar. However, hardly anyone decides to get it. Miserable piece of paper does not present any reassurance in terms of security. Next night, they arrest many of those with old id’s, with or without photos, in proportion to those without any documents. Everyone rushes to get a blank id. In the meantime, administration arrives at a conclusion that this division/distinction is impractical. It replaces it with partition on qualified and non-qualified workers. They do not ask for any proof. Only personal statement/declaration. Right or Left? Majority decides for some qualification. They reason that one who is considered useful will be spared. In principle, that conclusion is correct. Soon, it is discovered that “qualified” documents were taken also by those who have no rights for that. As a punishment, raid hits everyone, without discrimination. Both, those with and without documents. Jews realize they can only blame themselves: “They (Germans) trusted us, and we deceived them”. When someone reaches this level of reasoning, you can do anything with them. Selections on the basis of identification papers were continued. Left of right was permanently in effect/play. And before the last Jew was liquidated, their i.d.’s changed all colors: from red to white. Thought was constantly occupied. One always had to choose. Left or right?

Do you understand the genius of this idea? It could come only from a speculative mind like German. Only people who gave the world Kant and Hegel. However, to be fair, one has to give credit to those Jews. Only their Talmudic intelligence could get fully and wholeheartedly immersed into this game. Primitive Anglo-Saxons, without imagination and intellectual combinatorics, as soon as they would notice that the rules of game are changing whenever they are on the way to winning, they would exit/abandon the game. Jews continued the play it. With ever growing passion, as the game selection would get more complicated, and their count continued to shrink[2].

In what must be one of the greatest moments of cultural introspection, Steinbrecher’s summary outlines the contours of future struggles of governmentality in a broader ideological context and, at the same time, reveals a disturbing natural link, a straight line, that connects the western cultural tradition with the Holocaust and the final solution. The logic of that strait path leads beyond mere physical; it penetrates deeply cognitive and intellectual horizons and ties them together. It identifies Evil as an intellectual need of the mind, which meditates about the good –a logical necessity of any effort that funds the idea about a better world[3].

Triumph of unfree will: New governmentality at work

The fundamental challenge of any capitalist ideology is how to convince people to voluntarily make stupid decisions, and how to do that systematically. This is a complicated problem of constrained optimization with multiple horizons to which neoliberalism offered the simplest solution. Instead of inventing a new ideology for the emerging socioeconomic system, neoliberalism concentrated on reshaping the political subjects and manufacturing docile bodies. It introduced a series of social apparatuses that gradually transformed society to conform to the old methods of control, using Ghettos as a blueprint.

For the labor camp model work outside of the context of extreme oppression, it was necessary to condition the modern political subjects and reduce their thinking process to that of the residents of the 1940s Ghettos. How? Neoliberalism adopted a simple approach. It disseminated market values into every sphere of human activity. Cooperation is replaced by competition, which is elevated to the level of a supreme principle and a criterion that trumps everything else. It inserts a war machine into each pore of human activity – a fascisization of everyday life. The continued cult of wage labor merely replaces Arbeit macht frei, and, as “fences” become narrower and the “voltage” approaches lethal levels, every mistake becomes potentially irreversible and the fatality of mistakes self-fulfilling.

To persuade the Westerners, and, in particular, Anglo-Saxons with their practical empiricism, to play this game, the rules have to be complicated to the point of becoming ungraspable. And, of course, to make sure people continue to make stupid decisions, efforts have to be made to keep them stupid: Critical (or any systematic) thinking is undermined and discouraged; ignorance is promoted and cultivating as a cultural virtue while access to education is continuously reduced.

As selection gets reduced to binary, the contours of the Ghetto gradually emerge. The Left or Right dilemma gets a cultural dimension. One path is more inclusive, it leads to more welfare, but less god and guns, while on the other end, one is lured by the promise of “greater coherence”, with all the regressive ornaments surrounding a neo-patriarchal, unenlightened society – a gay-free zone where everyone carries a bible and a gun. However, both paths lead to the same destination of social self-destruction defined by the systematic devastation of everything that doesn’t submit to the profit of the strongest.

So, at the end, it is down to a binary choice between two alternatives, neither one of which would have been found acceptable if they had been subjected to free (and/or intelligent) choice. This is the neoliberal parallax gap defined by the confrontation of two closely linked perspectives with no common ground. The free will has been taken out of the decision process altogether, ex ante! However, the cultural division, embedded in the two selections on offer, has an important stabilizing role: make the pain across different cultural divides mutually unintelligible and mutually exclusive. As the rules of the game become more complicated and the size of excess population grows, those who had been played – the game’s main victims – continue to play with ever growing passion. Everything looks perfect. But, reality refuses to be fooled by it.

2018: The great flood of arbitrariness

After decades of accumulated social deficit, neoliberalism came to a halt by the end of the first decade of the century. Although it became clear that the existing ideological framework had run its course, there was no alternative that could replace it. 2016 was a referendum on free will, the year when the West finally rejected freedom and the capital voiced an open quest for an authoritarian state. In many ways, 2016 was an anti-1968 — the triumph of unfree will — a directionless step forward and a stepping into political quicksand.

In the two subsequent years, the initial conditions of 2016 set the stage for the great flood of arbitrariness: A chaotic dissolution of all frames of reference, the established social structures, institutions and rules, and an all-out assault on truth. The new political narrative envisions the great deluge of arbitrariness as an act of “divine” retribution aimed at washing away the sins of the West: the sin of rationality, logic, restraint, mediocrity, and compromise — a systemic purge of the social body from the existing rules in preparation for its rebirth.

This is another round of discursive ideological competition where the modern-day transposition of the biblical narrative is served to the properly prepared segment of excess population, while the insane wing of the right populism is energizing their base – the unsuspected victims of their con jobs — and subcontracting their rage to build, on their behalf, the Ark on which they will secure the spot for a selected few.

The great flood of arbitrariness creates its own rules. It is an escalation of neoliberal maneuver of selection reduction extended to intellectual and cognitive horizons, beyond physical survival. Instead of the Left or Right dilemma, it is now between drowning in the flood of arbitrariness or getting on board of the Ark of fools. People subjected to this principle of choice resemble a person who considers an outstanding privilege and benefit a permission to choose whether he will jump through the window from the third floor or wait for the fifth[4].

2016 marks the beginning of the end of the Hegelian historical continuum where History is seen as the realization of freedom by means of a series of successive enslavements to different kinds of necessity. Free selection is now being reduced down to one option and we are free to embrace it or reject it. This is the highest act of freedom — freely assuming what is otherwise necessary. It is also the end of history. We have finally achieved true freedom because true freedom is having no choice. And so, history doesn’t end with a fairytale of global liberal democracy, but with an authoritarian state.

[1] Borislav Pekic, How to Quiet a Vampire, Northwestern University Press (2003)

[2] ibid.

[3] ibid.

[4] ibid.

The age of unreason

25. VII 2018

The village of Hollywood was planned according to the notion

 people in these parts have of heaven. In these parts

 they have come to the conclusion that God

 requiring a heaven and a hell, didn’t need to

 plan two establishments but

 just the one: heaven. It

 serves the unprosperous, unsuccessful

 as hell.

(Bertolt Brecht, Hollywood Elegies)

According to Foucault, the basis for civil society is the idea of a redistribution/recentering of the governmental reason. In pre-modernity, the idea of regulating, measuring, and so limiting the indefinite exercise of power was sought in the wisdom of the person who would govern. Wisdom implied governing in accordance with the order of things, with the knowledge of human and divine laws. But, as modernity entered the historical scene, roughly from XVI century on, exercise of power was no longer adjusted in accordance with wisdom, but according to calculation of force, relations, wealth and factors of strength. The modern forms of government technology could be described as control of government by pegging it to rationality.[1] Modernity, since the nineteenth century, is marked by the emergence of four modes of governmental rationalities, which in subsequent two centuries overlap, lean on each other, challenge each other, and struggle with each other. They represent art of government according to: 1) truth, 2) rationality of the sovereign state, 3) rationality of economic agents and 4) rationality of the governed[2].

It is the fourth mode — the rationality of the governed as the regulating principle of the rationality of the government – that was responsible for the rise of neoliberalism and Homo Oeconomicus as the new political subject and, with it, the emergence of economics as the ideological metalanguage in the second half of the twentieth century.

The trap of rationality and the search for unwisdom

Neoliberalism disseminates market values into every sphere of human activity. People are seen as specs of human capital which needs to appreciate and get reinvested by making proper choices (mate, education, job,…). It provides direction without meaning in directionless environment of postmodernity. (Wendy Brown)

Rationality is a wonderful thing. However, when coupled with competition and when the two are elevated to the highest principle of human existence – when everything in life is reduced to rational decisions in a competitive environment – it becomes a spectacularly efficient mechanism of exclusion. Sooner or later, the symbiosis of the two create a winner-takes-all environment where every failure to make a right decision has dire consequences.

With competition, the number of right paths is shrinking and the number of wrong ones proliferates. Every wrong turn is punitive and potentially fatal. In the kingdom of rationality, bad decisions become self-reinforcing. One wrong turn reduces subsequent maneuvering space and forces another suboptimal choice until there are only wrong choices, all the good and rational ones had been taken by competitors.

The number of those who have failed rationality test grows exponentially with time. They are the excess of population. They hate rationality passionately and resent reality they have been served. The real problem is the unforgiving aspect of progress, the persistent depletion of the safety net and the ultimate absence of cushion. Yet, the excluded are lured into an ideological trap that supports the narrative of systematic removal of that very safety net and, in that process, they continuously undermine themselves. They prefer anything, any alternative to what they have now, not matter how elusive, dubious, and unpalatable the reasoning behind it.

This self-sabotage is at the base of the frustration of a large segment of the population. From the political side this is perceived as an irresistible source of rage capital that is begging to be deployed and reinvested. For the excluded, refusal to yield to the forces of reason is the ultimate act of resistance, a sign of desire to liberate themselves from the tyranny of rationality.

The great U-turn and the politics of performative speech acts

Performative utterances are sentences which not only describe a given reality, but also change the social reality once they are pronounced, like “I pronounce you husband and wife”, or “The court finds the defendant guilty”.

When the number of those who have failed the rationality test is so large that there is no more place for them in the enclosure of prosperity and when they begin to present a significant political body whose voice can be heard in the ballot box, rationality, as a way of governing, has already exhausted itself – its toxic effects have taken over. At that point, the excluded will seek to abandon reason and, with a dash of nostalgia and a help of identity politics, elect a new prince. And this prince will be unlike any other before him. He will govern with unwisdom, and will have the courage to wear his unreason unabashedly as an ultimate virtue. He will create a new order of things, define new reality, and construct the world of unreason with rules that only he and his base will understand. The new fictions will become their articles of faith. Facts and truth will no longer have their old values and the wish for a coherent fictitious world will be satisfied.

In the kingdom of unreason, power will derive from a way of using language rather than from a system of ideas[3]. The first phase of the uprising will consist of a linguistic revolution. Performative speech acts — the pronouncements that change reality by their mere utterance — will enter the vernacular and shape political and social reality. This is where self-intoxication begins. By repeating and ritually solidifying lies, those who tell them and hear them may, after a while, embrace them as articles of faith. As soon as falsehood has become part of a group identity, it generates new obligations which can be neglected only at risk of showing weakness or, worse still, a treasonous attitude. [4]

Slide2

Unwind of enlightenment and the great U-turn

In a strange twist of fate, emancipation, which marks transition from wisdom to rationality and gives rise to enlightenment as the public use of reason, in the late stage of neoliberalism, it creates conditions for its own demise that lead to its forced unwind and a historical U-turn. With the rise of unreason, populism takes over and becomes neoliberalism’s counterpart in its afterlife.

Unreasonable people cannot be governed by reason. They require a leader who appeals to their irrational side and who, therefore, has to display unreason himself. A different principle is required for governing such masses, a mirror image of neoliberalism’s “governing through freedom”. Unreasonable people are governed through unfreedom.

But this, like any other, detachment from reality cannot be anything but short-lived. The question is not if, but when. The leader will sit in his big car, get on a highway and drive against the traffic. His car will have only one pedal: gas. Like his followers, he believes that everyone else is driving in the wrong direction. Many drivers will move to the shoulders to avoid the collision, but, as he continues to accelerate, there will be a slow-moving trailer trucks that will not be able to maneuver fast enough and, at the end, the fanaticism and the speed will consume their creator. There ain’t no way around it.

 

[1] Michele Foucault, The Birth of Biopolitics: Lectures at the Collège de France, 1978—1979, Picador (2010)

[2] Ibid.

[3] Albrecht Koschorke, Adolf Hitlers “Mein Kampf”: Zur Poetik des Nationalsozialismus, Berlin (2016)

[4] Ibid.

One hundred years of solitude (in hindsight): 1917 — 2017

7. XI 2017

In Andersen’s fairy-tale “The Red Shoes”, an orphan girl is given a pair of magical shoes by her rich adoptive mother. She wears them to church where she pays no attention to the service and, when her mother becomes ill, the girl deserts her, preferring to attend a party and dance in hear red shows. An angel appears to her and, to punish her vanity, condemns her to dance even after she dies. The shoes begin to move by themselves, but they can’t come off.  The girl finds an executioner and asks him to chop off her feet. He does so and the girl receives a pair of wooden feet and crutches. However, the shoes continue to dance even with her amputated feet inside them. The red shoes are embodiment of an undead partial object, a pure libido which goes beyond persistence, not an interpolation between the living and the dead, but more vigorously alive than ordinary mortals — it insists on repetitive movement of dancing irrespective of the well being of the host to which it is attached[1].

Communism had to die twice. The first, symbolic, death occurred after the fall of the Berlin wall. Its second, material, death was announced after the first Iraq war when the Soviet military machine was outclassed and rendered obsolete by the far superior western war technology. But, communism could not die yet. Symbolically dead while “biologically” alive, communism still inhabits the world of undead. Although it was eventually buried in the countries where, after their initial breakup, states got reconstituted — in many places the red shoes continue to dance on.

What went wrong with the communist idea and how did liberté, egalité, fraternité become a totalitarian nightmare? Communism’s biggest sin was its vanity — an obsessive conviction that it could take uncertainty out of life as such. To accomplish and maintain that task requires an extraordinary amount of violence. Both excessive determinism and excessive force compromise system’s robustness and deprives it of valuable information, which prevents formation of adaptive mechanisms necessary for its survival.

Nomenclature of the early communist state saw their ideas as having strong scientific legitimation and maintained their conviction that loss of political power even temporarily would have been a betrayal of their historical mission. Thus, any opposition had to be inhibited and gradually eradicated. The suppression of unofficial organizing, and information that such process generally provides, left the leadership essentially blind to whatever was happening in their back yard. The red shoes began to dance. While sciences, engineering and technology had to remain competitive in order to keep up militarily with the West, communism completely neglected social sciences. A vocabulary for describing social and political conditions and adequate description of social reality never properly developed. In the face of perpetual conflict with reality communism fostered a continued state of cognitive dissonance. It erected its own boundaries to protect itself from contamination from the outside and in extreme cases morphed into a cult following. The accumulation of its shortcomings, which remained undiagnosed for a very long time, was allowed to self-reinforce. Like most other totalitarian ideologies communism remained non-adaptive, not allowing any feedback to penetrate its boundaries. It lacked a corrective and when the end came, it was unable to transform or defend itself.

Eradication of uncertainty breads ignorance which leads to paranoia and escalates oppression. These inhibit risk taking and creativity and negatively impacts economic growth with a loss of competitive edge in global marketplace. In the long-run, the system becomes fragile. As it tries to adjust to such environment, change takes the form of positive feedback. Oppression mobilizes enormous resources to keep control of its allies and political subjects and effectively turns them into its hostages. Attempts to express growing discontent require a heavy hand rule which in turn reinforces the hostage syndrome and brings about further escalation of discontent and additional loss of competitive edge. At that point, legitimation becomes the system’s biggest problem and requires mobilization of all resources, primarily aimed at glorification of the system. But, by then the oppression is the only thing the system knows how to deliver. It is the only strategy, and very expensive one — only extremely resources-rich countries can truly afford them. When existing resources are fully exhausted, the system collapses.

Because of its shortcomings, communism in its mutated form was indefensible. It required enormous resources and force to keep it alive and that was in no one’s interest. At the end, it did not work for anyone and in most places it was dissolved practically overnight. Although most communist states, one by one, declared themselves as capitalist, the transition period, after the formal breakdown of communism, appeared as building of capitalism without capitalists, at least on the surface. In an essay that could be considered as a sociological version of Orwell’s Animal Farm, Immanuel Wallerstein[2] compared the communist states to factories seized by a labor union during a strike. If the workers try to operate the factory themselves, they inevitably have to follow the rules of capitalist markets. The narrow circle of those making managerial decisions would cut themselves off from the larger group and evolve into new ruling elite and it was only a matter of time when they would no longer feel compelled to disguise the reality. This is “the iron law of oligarchy”. The factory would then revert to being a normal capitalist enterprise.

The communist supernova exploded in the center of the global geopolitical landscape. In countries where it took place, collapse of communism unfolded according to four scenarios, not two, contrary to the still dominant one-dimensional, cold-war view, which divides contemporary political systems into totalitarian and democratic. The evolution of the Soviet Union, socialist north (Poland, Czechoslovakia, Hungary and DDR) and the Balkans went in four different directions. The four underlying trajectories that marked the transition period highlight the four attraction centers of the general political landscape and outline the corresponding oligarchic modes.

Comparative politics of social change and coordinates of wealth preservation

Traditional approach to problematic of geopolitical change relies on the assumptions that the dominant dimension of country’s political actions is geographically conditioned. However, recent contributions to this view are based on the observation that there is another, complementary determinant defined by different modes of wealth protection which has been the central force behind political changes throughout history. This is the orthogonal dimension of political change; it assumes the wealth concentration and its defense as the fundamental ingredients, often independent of geography. Thus, oligarchy as the politics of wealth defense emerges as a candidate for a unifying framework for describing different modes of political structures and geopolitical flows, especially during their formative stages. Different political systems and forms of social organization are efficiently summarizable in terms of simple oligarchic structures.

Two aspects define the building blocks of oligarchic landscape: Oligarchs & Oligarchies, wealth defense & their means. Oligarchs, in the generalized sense used here, are defined as individuals endowed by enormous wealth which both empowers and exposes them to threats. Because to that, wealth defense becomes their primary objective for which they can mobilize considerable resources. Oligarchy represents different modes of wealth defense. The interplay between oligarchic coercive power and their organization defines the four corners assigned to underlying political systems within which all political structures reside. In general, extreme concentration of power or material inequality result in political inequality and particular oligarchic structures describe different modes of wealth and power defense. Property claims and rights can never be separated from coercion and some kind of violence. Variations across oligarchies are two-dimensional with main axes defined by how oligarchs impose their will (e.g. are they armed or disarmed) and their mode of rule (e.g. individualitstic, collective or institutionalized). This results in four possible structures, the four oligarchic corners that represent cognitive coordinates of our framework (Figure). All historically known political structures reside within these four corners[3].

Oligarchy Simple

From: Jeffrey A Winters, Oligarchy

Starting with the origin (lower left corner), in warring oligarchies a connection between violence and property defense is most direct. The illustrative examples are African warlords or medieval Europe. Oligarchs are individually involved with unstable transient alliances. The mechanism between wealth and power is circular — coercive capacities exist for wealth defense and wealth is deployed to sustain coercive capacities.

In a ruling oligarchy (upper left corner), individual oligarchs surrender a major part of their power to a collectivity of oligarchs. Oligarchs as a group are more powerful than any single oligarchs (examples: mafia, ancient Rome, State cities).

In contrast, in a sultanic oligarchy (lower right corner), oligarchs surrender a major part of their power to a single individual. One oligarch is more powerful than the rest (e.g. Suhartos Indonesia or the Philippines under Marcos).

Civil oligarchies (upper right corner) represent the most significant political innovation, never seen in history before creation of the modern state. Here, oligarchs surrender a major part of their power to an impersonal and institutionalized government in which the rule of law is stronger than all individuals. While this protects property, wealth defense does not stop there; its focus merely shifts to income defense – the effort to deflect the potentially redistributive predations of an anonymous state – where all resources are now mobilized. Electoral democracies fall at the end of the oligarchic spectrum. While their activity remains heavily constrained by the law and by the democratic process — they do not control the law, but obey it — in most cases different sectors of income defense industry give access to various modes of oligarchic actions. There is, however, no necessity for a civil oligarchy to be electorally democratic (e.g. Singapore or Malaysia)[4].

Saying goodbye to all that: Anatomy of the perverse unwind

The partial downfall of communism has been both celebrated and mourned. The most puzzling aspect of this process was its largely peaceful character and swift resolution in the hardline centers and violent and protracted unwind in states where communism saw its most liberal and flexible implementations. In Europe alone its departure from the political scene caused tectonic changes that made all theoretically informed models crumble. Former Soviet Union, Czechoslovakia and Yugoslavia are now 28 different countries (24 legitimate; 4 with limited international recognition) and a fluctuating number of statelets constantly changing number of territories seeking the status of sovereign state or trying to be attached to another already legitimate entity. Ten poorest countries and failed states all emerged from the former communist block. In Poland, Hungary and DDR state was not dissolved. These countries were absorbed by Europe and transformed along the lines of civil oligarchies. In USSR, Czechoslovakia and Yugoslavia, dissolution of the state caused variable outcomes and defined radically different trajectories.

Oligarchy Breakup

North: Civil oligarchies

To a large degree, each country of the north had something different going on, which made it interesting for the West and an easy candidate for integration into EU. Poland, with its large population, was a big labor force and consumer. Czechoslovakia, in its pre-communist days, was already a well developed country with considerable economic potential that could be relatively easily revived given their mentality and habits. The course of the last 50 years, a historical digression, could have been reversed. DDR was really never fully separated from the West Germany and in addition, it was ready to be absorbed and subsidized during the transition. Euro zone recognized strategic significance of the periphery and rushed to bring in Rumania and Bulgaria. In terms of nominal GDP per capita[5], north post-communist countries are ranked close to peripheral Europe together with Baltic States with Estonia, Czech Republic slightly below $19,000, and Poland near $13,500 defining the upper and lower bounds of the range. In the last ten years, north post communist and former Baltic states almost all have recorded a steady double digit annualized increase in GDP per capita, with Slovak Republic growing from $6,187 in 2003 to $17,706 in 2013 at an average annualized rate of 11%, Poland at 9%, Czech Republic at 7% and Hungary at 5%, while Baltics grew faster than 10%.

The main diagonal: Soviet Union between ruling & sultanic oligarchies

The rationale behind vastly different character of the breakup of different socialist regimes and the dissolution of the corresponding states can be understood by highlighting the difference between the underlying structures of those states. In empire different sectors of periphery do not interact with each other, only with the center. In a federation, they do. In confederation there is no center. The main characteristic of the dissolution of the Soviet Union was that the breakup was amicable. It was a consensual dissolution of the state, but relationship between the center and periphery was preserved. Prior to that, the state was preserved, but obsolete – couldn’t function under existing conditions but ethnically and historically was unambiguous. Gorbachev accelerated the process and to a large extend defined the direction of its change. Yeltsin settled for less state, but by shedding the periphery, gained more reform and more power. It was a compromise, the second best solution after the Soviet Union entering the capitalism as a big, unified player[6]. Yeltsin vs. Gorbachev clash was confined to the center, while periphery remained untouched. Unlike the Balkans where new states (with exception of Slovenia) didn’t have control of their territory – states fell apart while borders were unspecified. For a time Soviet internal borders swelled into sovereign state borders (structures of power) and it seemed they will remain untouched.

Officially never recognized structure of political power relations defined the rules of game when it came to the grabbing of reach resources (“privatization”). The net result was that an enormous state owned wealth had ended in the hands of a few who commended the decision making process. What happens with the secret police and ideological inquisition when the state falls apart? They have to become some form of organized crime force. The crime infiltrated in the vacuum. Army, whose primary mandate was external, defined through the Warsaw pact membership, remained on the sidelines. It was not a political force during the transition.

Majority of Asian Soviet states remained like satellite states with ties to Russia. While some still function like communist, pseudo-totalitarian systems or electoral dictatorships, resources rich states have shaped themselves along the lines of sultanic oligarchies with high number of Russians still there. The consensual breakup was orchestrated in such a way that formal sovereignty was respected in exchange for military and economic dependence on Russia and comfortable position of Russian minorities there. When after a while this dependence was questioned (Armenia, Ukraine) it automatically entailed revoking of recognition of sovereignty and Russian army more or less openly intervening in formally internal clashes.

At nominal GDP per capita of $14,591 and annualized growth rate of 17% in the last ten years, Russia sits above the rest of the southern European and post-Soviet states, but below the Baltics and post-communist north. Within the group of Asian former Soviet states, there has been a significant bifurcation between the resources rich states and the rest. Kazakhstan has been the best success story with GDP at $13,509 and the most aggressive growth of 21% in the last ten years, followed by Azerbaijan at $7,900 and 24%. Turkmenistan remains in the middle with $7,157 and 12%, while Uzbekistan at $1,878 and Tajikistan at $1,045 remain on the other side of the spectrum and below any of their European counterparts.

The Balkans: Warring oligarchies

Unlike the Soviet Union where the structure of the empire de facto remained preserved, in the Balkans there was no clear breakup scenario, especially in Yugolsavia which functioned as a confederation. Another dimension made the breakup problematic for it. For example, while in Czechoslovakia the primary target was socialism, in Yugoslavia it was the territory, which remained ambiguously defined. As a confederation of equal republics, without a clearly specified center, it lacked incentives to identify common ground. The state fell apart. Historical and demographic parameters were mixed and ambiguous except in the two westernmost republics. The breakaway states had only partial sovereignty with incomplete control of their territory and at the same time ambitions for territorial enlargement.

Conflicts over future borders escalated into the game of dismemberment followed by territorial disputes. Breakaway republics were more or less ethnically mixed and had not had full sovereignty of their territory after the breakup. As a counterweight to the army, whose main mandate was internal, basically around defending the constitution and, therefore, the integrity of the Federation, local militias were organized by the new republics. The stakes were high as state assets were offered on fire sale to a few privileged who had an access to power and information, which defined highly parcelized sovereignties and set terrain for formation of warring oligarchies with territorial claims as the main agenda together with all the side effects of that environment, instability, shifting alliances, extreme violence and ethnic purges. What followed was the mode of land-grabbing and property claims with multiple warlords and local militias going against each other, the landscape akin to warlords of medieval Europe.

Except for Slovenia with GDP per capita at $23,317, but slow growth of 4.6%, characteristic only for highly developed European countries, which has done slightly better than Czech Republic in this metric (and ahead of peripheral Europe), all other former Yugoslav republics are on the list of 10 poorest European countries with GDP per capita below $6,000. Their GDP ranges from $2,200 to $5,900 accompanied with persistently slow growth in the past ten years. In all of them the state still remains the “only business” – no new market venture is possible without consent and some form of the pay-off to the political elite.

What next?

Contemporary geopolitical discourse still views the world as us & them, free and totalitarian systems, a division largely a legacy of the cold war and everything that happens on that landscape is seen as a result of tensions between these two “extremes”. According to that narrative, dictatorship is the worst outcome of social evolution and all societies should strive towards democracy while progressive forces should be united in unconditionally supporting every effort to topple dictators. The post-communist experience, 25 years after its symbolic downfall, demonstrate that such a simplified framework is a poor approximation of reality. It shows rather unambiguously that there are far more extreme alternatives to dictatorships and that, in some cases, their dismantling could be a turn for worse or much worse.

Communism fell apart because it didn’t work for anyone and no one wanted to defend it. This is a qualitatively different situation from what late capitalism (and Western democracies) is currently facing. Extrapolation of the capitalist experience so far indicates that it is working for a progressively smaller segment of its population. At some point, its main problem will have to become its legitimation in the context of liberal democratic mode of social organization. The powerful minority, however, has the means to defend the system as long as it works for them and that will require a heavier hand as the discontent of the excluded rises. The only peaceful consensual transformation could happen if capitalism stops functioning for capitalists (e.g. inability to externalize the costs further).

The same way communism could have been a nominally well conceived idea that went wrong (in practice), democracy could be drifting away from its basic principles and gradually evolving into its antithesis. It has been largely recognized by the Western democracies that force is an inefficient form of rule. Power is an embarrassment – no one wants to claim it and it refuses to dominate. That is why advanced societies do not rely on force, but governmentality. Ideological innovations will be needed for their survival with a search for new forms of power.

In the meantime, as discontent of the excluded grows, capitalism could begin to move against democracy. This means that there could be a growing need for adjustment of either democracy or capitalism (or, most likely, both). What makes exact prediction regarding the new forms of social organizing especially difficult is that resilience towards redistribution of wealth remains firm in place with revolutions becoming obsolete as wealth is no longer only material.

There are several logical directions along which this transformation process can take place. The four corners define a rich set of possibilities; there is a vast territory that they inscribe. The four attraction centers are not necessarily the only stable configurations. In principle, civil oligarchies could begin to move looking for a new domicile in the field. It is reasonable to expect that some lessons from the breakdown of communism will be absorbed in that process. After all, capitalism owes its vitality to its adaptability. While the final destination is a long- or very-long-term project, the underlying direction and trajectory should have significant impact on the immediate future.

If there is one lesson to draw from a century of communist experience, it is that ignorance by design is the trap any hegemonic ideology faces. In its search for legitimacy, late-stage capitalism is committing the same mistakes that communism did in its early days. And every time history repeats itself, the price goes up. The spectacular display of systematic anti-scientific bias, war on facts and knowledge in general, together with eroticization of stupidity, which in the last decades has reached alarming proportions, have all created a Sachzwang – a factual constraint residing in the nature of things that leaves no choice but to perpetuate the existing conditions that are spreading throughout the neoliberal West. This desperate move to engineer legitimacy for an indefensible order of things, which consists of choosing to adjust reality to the underlying ideology, instead of the other way around, boils down to deliberately giving up adaptability of the system – its most valuable strength. That alone is bound to become the main source of positive feedback, which compromises the system’s robustness and undermines its long-term stability. This inherently suboptimal strategy is a one-way street, the same one that led to communism’s ultimate demise. After all, facts always matter, even if we don’t like them.

 

[1] S. Zizek, Less than Nothing, p.548, Verso (2013)

[2] Immanuel Wallerstein, (1973)“The Rise and Future Demise of the World Capitalist System” reprinted in the Essential Wallerstein (New York: New Press, 2000).

[3] Jeffrey A. Winters, Oligarchy, Cambridge (2011)

[4] Ibid, Ch. 1

[5] All numbers refer to the 2013 IMF WEO data measured in units of 2013 USD

[6] Instead of rationally bargaining on superpower advantages for a more honorable collective inclusion in the world capitalist hierarchy, the nomenklatura squandered and cannibalized Soviet assets in a panicked rush to protect the individual oligarchic positions against Gorbachev’s purging and the prospect of popular rebellions. It was an embarrassing political failure of Soviet elites to act together in the pursuit of their best historical opportunity. G. Deruluigan, (2013), p.123. in Does Capitalism Have a Future?, Oxford University Press ( 2013)

 

Pregnant widow: A brief history of the next 30 years

5.I 2017

Turning and turning in the widening gyre
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.

(W.B. Yeats, The Second Coming)

Capitalism is disintegrating, but it is not giving way to a better alternative, it is collapsing under its own weight[1]. In the last 40 years, economic progress has been financed largely by social deficits. At the end, we found ourselves trapped in the stalemate of status quo because we agreed to let the market set prices and all other values. Things and services were sold for less than it cost to make them. The actual costs were externalized, their burden not bore by the profit centers, but by the state and increasingly more by the citizens.  However, these are actual costs somebody had to pay. So, at the end, things could not add up. Everyone was running some kind of deficit, and the game had to come to an end. Occasional hiccups during the transfer of those deficits from one side to the other were interpreted as market failures. But, in reality, there were actually no market failures per se; the market itself is the failure[2]. Eventually, this had to be recognized, and we have now come to the point where this realization can no longer be ignored: Capitalism no longer works for capitalists.

From the current standpoint, future looks anything but unambiguous. No decision has been made about the direction the future is taking. This moment of history represents what Alexander Herzen had identified as the Pregnant Widow: The old system has given way and the new one hasn’t been born yet. Does the future bring a normal infant or a Rosemarie’s baby?

We are approaching the final stages of unwind of the 500 years of history. During the 2016 Presidential campaign, we had a glimpse of the future — the three main candidates represented three distinct economic, political and social paths: Status quo (Clinton), regressive populism (Trump), and emancipatory transformation (Sanders). In the past, we had rarely had an opportunity to see such radically different visions getting such a large-scale representation and response — elections had always been about two “infinitesimally” different interpretations of a single path.

The preview of the three paths into the future might very well be a prelude to the most radical and, at the same time, the most significant transformation of capitalism after the industrial revolution. It is an announcement of the socioeconomic blowback, the arrival of times where social deficits will have to be reconciled and managed. The three paths should be seen as the three attraction centers which will define the dynamics of socio-economic developments in the next decades[3]: Democratic fascism, Decentralized egalitarian “utopia”, and Neo Feudalism. The figure shows the three futures in the context of social and political changes after 1968.

cascading-bifurcations

Democratic fascism

A semi-inclusive, cast-like division into two strata: Top 20% with highly egalitarian distribution & 80% of totally disarmed working “precariat”. The key is the balance in size (in the past, similar projects failed because the top was too small).

Legitimation: The dogma of progress & neo-liberal ideology.

Alliances: Military force, Think tanks, Semi-progressive corporate conglomerates, Educational institutions.

Means: Pseudo-progressive politics, Immigration policy, Advanced media and technology, Control of food and water, military technology. To the western mind this mode is the most palatable alternative for the existing system. Favored by Neo liberals.

Decentralized egalitarian “utopia”

Inclusive, achievable through political sophistication and technology; requires accepting certain real limitations in consumption expenditures. Does not mean merely a socialization of poverty. Needs to reconcile with adverse effects of progress, e.g. creation of wealth causes destruction of value.

Legitimation: Evidence that short-termism leads to undesirable long-term outcomes

Alliances: Think tanks, Influential individuals, Technological and networking wealth, New industrial sector based on the commons.

Means: Progressive emancipatory politics, Technological and political innovations and networking. Favored by Western intellectuals (and Hipsters).

Neo Feudalism

An exclusive, highly inegalitarian world of parcelized sovereignties (an equilibrated form of the current “times of trouble”). Consolidation of fractionalized structures into bigger entities with highly vertical structure, e.g. multinational corporations, global crime syndicates…, but without endless capital accumulation as the mainspring.

Legitimation: return to a belief in natural hierarchies.

Alliances: Right wing militias, religious and other fringe elements.

Means: Paramilitary Force, Populism, Regressive non-emancipatory politics, Drugs, Authoritarian propaganda. A glimpse of this mode is seen in post socialist oligarchic systems (China, Russia, Myanmar, Mexico). Favored by Western right wing political organizations. 

We are nowhere near the new equilibrium; the developments of the last decade present just an announcement of a lengthy transformation process ahead of us, expected to take the center stage in the next 30-40 years.

The next 30 years

2016: Baby has six toes

The enthusiastic support enjoyed so far by the non-centrist parties in the developed world outline the unconscious desire for destruction of the system that has imprisoned almost everyone. More than anything, populist victories reflect a defeat of the centrist politics, a departure from what has been looking more and more like the path of democratic fascism. Trump’s victory pointed out the lines of fracture in the centrist narrative and capitalized on its symbolic insolvency. About 17% of those who voted for Donald Trump believe that he is not qualified to perform the duty of the President of the United States. It is difficult to imagine a more eloquent expression of unconditional discontent with status quo than this. Trump’s movement is de-facto a rise of the neo- feudal America. The core of its platform represents the unbundling of the neoliberalism and rebranding it as an anti-global movement. It sees the future as highly inegalitarian world of parcelized sovereignties with highly vertical structure.

By no means does this represent the end of the transformation. It is just the beginning of a troubling unwind. Pregnant widow is only in the second trimester of her complicated pregnancy.

Beyond 2016: Times of Trouble

In the next 2-3 decades, social disorder could take new dimension as demographic transformations continue to weaken state structures further. This could be expressed through two different modes. Either the discontent of ethnically excluded spreads to absorb and articulate the sentiments of other exclusions or, alternatively, discontent of the permanently excluded provokes a reaction of the redundant natives and trigger their uprising and backlash. Civil warfare, initially misdiagnosed as increase in crime, would escalate[4].

The scramble for protection (which has already begun) assumes a new form as the states cannot provide it due to lack of funding and legitimation. The state’s monopoly on violence is breached and reorganized through the expansion of private protection armies and police structure. This process had already been accomplished in the post-socialist countries about 25 years ago and is likely to serve as a blueprint for a similar transformation in the western world.

Western democratic states where these transformations take place will gradually converge towards failed states. Contours of this program are already inscribed in the Trump’s cabinet nominations. Combined with the other side-effects of globalization and the underlying social fragmentation, these developments will lead to further criminalization of societies and polarization of distribution with escalation of corruption and dismantling of the institutions of the democratic state as a natural consequence, implying further instabilities. Organized crime will blossom and reinforce its legitimacy, while developed countries will converge closer towards criminal oligarchies or other authoritarian structures.

The fourth future: A lullaby for Rosemary’s baby

Symbolically dead (from an overdose of itself) while still very much physically alive, unable to either transform by replacing itself with something else or adapt and restore itself to equilibrium, capitalism is exiting the historical scene. However, before it disappears, capitalism will continue to inhabit the world of undead. It will remain inscribed into the system in the guise of a wound which makes the social subject undead, depriving it of the capacity to die — only when this wound is healed, can the capitalist society die in peace and transform itself into something else.

As an economic system, capitalism (at this point) is showing an advanced decline in capacity to underwrite a stable society. What follows after such a disintegration of a system is a prolonged period of social entropy and disorder. For a significant length of time, a society would slip into less than a society – a society-lite — until it may or may not recover and again become a society in the full meaning of the term[5].

Out of all possible paths, this is the most radical outcome, one that is without a historical precedent and one we seem to be least prepared for. It corresponds to what Wolfgang Streeck calls the Interregnum, disintegration of society as such, a perpetual anotherhood – pregnancy without childbirth — a trajectory where the times of trouble continue indefinitely.

Neoliberal narrative which identifies the absence of structure as an ultimate expression of freedom will find new legs in the post-social phase. This is the phase of undead capitalism, the times when the best lack all conviction while the worst are full of passionate intensity

[1] Wolfgang Streeck, How will capitalism end?, Verso 2016

[2] Kim Stanley Robinson, in An American Utopia (S. Zizek ed.), Verso 2016

[3] I. Wallerstine, Historical Capitalism, Verso 2011

[4] I. Wallerstine, ibid.

[5] Wolfgang Streeck, How will capitalism end?, Verso 2016

Heroin & non-consensual capitalism: As the rich get richer, the poor get higher

29. X 2016

Heroin consolidates all your problems into one big one. No more worrying about aggression, repression, poverty, futility, and frustration – just heroin and how to get a hold of it.

The street price of heroin has dropped below $100 per gram. A disturbing development. For a novice, about 10-20 mg provides a decent high. Simply put, one can get high on heroin for the price of a chocolate bar. The most addictive drug is now also the cheapest, cheaper than cigarettes. Its 20-fold price decline, from $2000 in the 1980s, is unlike any other commodity or product. This is not a result of a more efficient production process or technological advances, but a curious cooperation between the forces of geopolitical and ideological makeup. Three decades of heroin price history parallel the transformation of the neoliberal state and society. It tells an interesting story of business, politics, economics, globalization, and governmentality.

heroin-prices

Heroin price history as experienced by wholesale, small dealers, and drug users

  • Pull back. The blood rushes in. Slowly push the plunger. I want this to last. Pull it back out again, the blood swirls back in. Now, squeeze! It rushes up my arm in tingles. Then it hits. It is like a mini explosion of pure pleasure. Everything is blissful and beautiful. It is pure joy to be alive, to have a body. Depending on the quantity and quality this is there for hours. It is sensual. All your nerves are on fire and just having someone run their fingers along your skin feels delicious. It isn’t really sexual. It is simply that the intensity of the experience lends itself to being described that way. This is when you are “high” on heroin.

In 1980 a wholesale dealer (if he had $1 million) could buy 1kg of heroin from the supplier at $1000/g (red line) and sold it to hoppers (street dealers) at $1700/g (blue line). In this transaction, he would have made $700/g profit ($700K for a kilo). In comparison, a hopper buys at $1700/g and sells to the users at $2000. His profit is $300/g, i.e. $3000 for a 10g package.

Since then, the price continues to decline at an annual rate of 9% — it drops to 1/3 of its value every 12 years. In the 1990s the wholesale price of heroin was $300/g. Dealers had to work harder (sell more heroin) to earn the same money as before. However, risks associated with drug dealing were lower and the money was still good, especially on a risk adjusted basis and when compared to the available alternatives. The business was booming.

Another decade and a half later and another threefold drop in prices: Heroin in the new century is selling for near $100. No longer is just the first hit free, but all subsequent hits are practically free as well. This changes the business model completely. Post-90s is the period of major consolidation and systematization of drug business. The dealers are no longer interested in quick profit from one-time sales to occasional users. They are now after lifetime subscribers. And the system continues to deliver them in numbers like never before. Drug businesses began to think and operate like any legal profit center, which sets in motion the true market forces.

Globalization has played a key role in these developments. It has achieved this effect in two ways. 1) Efficiency of the distribution of drugs: Lower transport costs, the use of the new IT and the enhanced worldwide competition have dramatically improved the efficiency of drug business. At the same time, the greater efficiency of the distribution process, made it easier to conceal the transport and the stock management of drugs. 2) Risk premium effect: Globalization has opened the borders of many countries with a surplus of poor and low-skilled workers. Millions of havenots who have little to lose have been attracted by the fantastic intermediation margins provided by the drug market[1].

Inelasticity of demand has defined the background as one of the main economic drivers. For heroin addicts, nothing is more frightening than being without heroin. No one who has gone through heroin withdrawal wants to repeat this experience. So, no matter how high the price, they will find the way to pay for it.

The Breakdown of communism has created new markets and sustained demand. Post-socialist countries, which have largely been sheltered from the influence of hard drugs in the past, suddenly opened up as a new untapped market. Erosion of local state institutions, and general hopelessness that ensued after its fall, were directly responsible for the surge in drug users.

The war on drugs became its own antithesis from inception. It supported high margins, which guaranteed that drug business remains more attractive, and therefore more competitive, than any other business[2]. Wholesale dealers held the racket. They effectively lowered their own risk by transferring their exposure to street dealers and were happy to accept lower margins as this increased their business longevity. What was lost on tighter margins was made up by the volume of the business. Bigger volumes and increasing profit gave access to the benefits of the legal system, attorneys and corrupt government officials, which provided an additional protective layer and reduced risks further, while elaborate money laundering schemes opened the doors to legitimate investment opportunities and further wealth accumulation. So, although margins were lower, on a risk adjusted basis, drug business never looked better.

Ideological mainlining: Biopolitical penetration of the American brain

One of the most extensive by-products of globalization is a surplus of humanity that is unwanted, inconvenient, and ultimately displaced. The volume of humans made redundant by capitalism’s global triumph grows unstoppably and comes close now to exceeding the managerial capacity of the planet; there is a plausible prospect of capitalist modernity choking on its own waste products which it can neither reassimilate or annihilate, nor detoxify. (Z. Bauman)

This is one of the biggest and the most acute problems today. The need to address this issue has shaped the transformation of the neoliberal state in the last decades from the welfare to the penal modality of its functioning. While neoliberalism produces social and economic vulnerability, criminalization produces ways to capitalize on that vulnerability. The criminalization of illicit drugs accomplishes three things at once. First, it reinforces socioeconomic vulnerability through a steady flow of pre-trial detainees, prisoners, parolees and families disrupted by harshly punitive sanctions. Second, it makes the economic viability of hard drugs dependent on a willingness to assume risk, especially as entry-level narco-labor. This willingness is a condition clearly associated with the socioeconomically marginalized – those who have little to lose but their “freedom” [3]. Third, it guarantees accessibility of hard drugs to the disenfranchised segment of the population. In this way, the very victims of global capitalism are trapped in the spider web of the carceral state and the more they struggle to survive in it, the more precarious their position becomes.

In the past, drug addiction existed as an expensive “luxury” for a small minority. Democratization of heavy drugs has been embraced by the ideological apparatus as a way of managing exclusion, poverty and discontent in general. Within the neoliberal project, the war on drugs has become synonymous to the war on poverty. And so, as poverty grew, so did the heroin usage.

heroin-and-gini

As the rich get richer, the poor get higher: Decline in heroin prices vs. inequality

  • Gini coefficients are often used as a measure of wealth inequality and, as such, they are an indirect measure of poverty. Developed/civilized societies, like the most advanced West European countries, have Gini’s typically in the mid 20s. Among developed countries, the United States has the highest levels of inequality, the only one in the western hemisphere with Gini above 40. In that metric, it is on par with China, the Dominican Republic, Nepal and Ecuador for income. The Figure shows the history of the (wholesale) heroin price against Gini coefficients (on inverted axis) since 1980. The two histories, both having exponential trend, show high degree of commonality. Declining price of heroin goes hand in hand with growth of poverty: As rich get richer, poor get higher.

State as enabler of self-destruction

I bought a gun and chose drugs instead (Kurt Cobain)

While global capitalism is the engine of production of socioeconomic vulnerability, the state is the main architect of subjects and spaces of exclusion, e.g. the black American male and the post-industrial ghetto, whose political and economic exclusion catalyzes participation in illicit economies as well as vulnerability to policing. The objective of criminal justice in the neoliberal state is no longer to correct behaviors that are socially harmful, but to identify the bodies that must be excluded from the population and justify this exclusion by labeling their behaviors as abnormal. In this context, heroin has been recognized (and embraced) as a powerful tool of self-destruction, capable of turning any resisting individual into a perfectly docile social subject, eminently manageable by its dependency.

The evolution of the heroin business reveals the inner logic of the massive consolidation of the state’s repressive apparatus in the post-1968 era. When viewed in this context, the war on drugs emerges as but one of many neoliberal strategies of governing, a technique for identifying populations that must be governed in other ways. The essence of these strategies is that they do not use force to destroy dissent, but push it to self-destruct. They stay as a constant reminder that power has been deemed as a highly ineffective tool of governing. Outside of its repressive apparatus, the state no longer represents the ability to engineer change, but has become an enabler. The war on drugs is an ideological answer to the problem of surplus population, and heroin an instrument of drainage of wasted lives.

[1] C. Costa Storti, P. De Grauwe, Int. J. Drug Policy, 20 (2009) 488

[2] In the 1990s, assuming a hopper sells 10g every day, he could make $2000 a day ($250 an hour or 50 times the minimum wage commensurate with qualifications of most of the drug dealers), which, translates into $500K a year (untaxed), equivalent to an $800K of taxable annual income. This is a full-blown Wall Street salary. In most cases, they pay “tax” to the wholesale distributors who “own” the territory hold the racket.

[3] D. Corva, Political Geography, 27 (2008) 176

There is something wrong with the future

28.VIII 2016

Give me back the Berlin wall
Give me Stalin and St. Paul
Give me Christ
Or give me Hiroshima
Destroy another fetus now
We don’t like children anyhow
I’ve seen the future, baby:
It is murder[1]

After getting accustomed to low crime rate since its peak in the 1990s, the world is once again entering a phase of accelerated crime growth. The rise of crime is palpable –- from rapes and robberies to homicides, from blue to white collar, from individual to mass murders, from random to organized and terrorist — although one cannot point to a single reason why. Crime is now at the inflection point. Its presence is felt everywhere, from info-sphere, media, entertainment and schools, to corporations, streets and politics. And the more efforts and resources are deployed to fight it, the more pervasive and out of control it gets. However, it would be a mistake to misidentify this trend as an aberration, an unwarranted side-effect of the post-industrial era. This state of affairs is an inevitable outcome of the neoliberal project at the core of which lies the idea of competition, a highly polarizing concept, which upsets the basic functioning of both society and the economy.

Neoliberalism was born at the intersection of the two crises, the crisis of governmentality and of dominant forms of power during the general contestation of the 60s. The emerging ideology outlined new forms of self-conduct, which satisfy aspiration to freedom in every sphere of existence, while the economic science was conceived as the newest technological invention through which new social reality revealed itself.

At the core of the neoliberal project lays the program of submission of human relationship to one single goal, competition, which has become a general political principle that governs reforms in all areas. This is an extension of market rationality to existence in its entirety. Its unprecedented systematization has profoundly shaped subsequent social reality, as a system of economic production became also a system of anthropological production[2].

So, how did we get here? What kind of reality has neoliberalism created and what is its future?

As the competent constituents of the past (e.g. bourgeoisie of industrial capitalism) gave way to the managerial class that turned competition into the only rule and virtue, the concept of competition gradually replaced that of competence. Only those who had become skilled in managerial functions could become wealthy through their labor. The decisions about production are more influenced by managers than experts as those decisions accounted for the reduction of costs and realization of profits. But, a managerial function detached from intellectual competence consists ultimately of fabrication, trickery, lies and fraudulent accounting, tax evasion and, if necessary, the physical removal of competitors[3].

Competition, once a guarantee of output’s quality, has undergone a major transformation. It has moved closer to the physical removal of competitors, ultimately leading to the systematic devastation of everything that does not submit to the profit of the strongest. Who competes better than those who eliminate their competitors? Mergers are just one form of physical elimination. Profit centers have used their considerable wealth to influence legislative process that removes all barriers for such activity. The state has become both an accomplice and a catalyst in this game. When was the last time government said no to a large merger?

Competition has become a reinforcing mechanism that provides a validation process for the legitimation of crime. Crime is no longer a hidden activity but the alpha & omega of every business, not just a marginal function, but the only way to stay in the game, and often the decisive winning factor in deregulated markets. Crime has disappeared thorough its proliferation. It cannot be eliminated, but it must be embraced. Its total and unconditional acceptance leads ultimately to its invisibility. Permissiveness has become the ultimate form of tyranny and capitalism has turned into a criminal system. Its survival in its present form is predicated on violence, because only violence is decisive.

Re-contextualization of murder: Society and human nature

Neoliberal government requires liberty as its condition of possibility: To govern is not to govern against liberty, or despite it; it is to govern through liberty to actively exploit the freedom allowed individuals so that they end up conforming to certain norms of their own accord[4].

Politics ultimately becomes the tool of social alignment with human nature and consists of the systematic removal of inhibitory mechanisms that allow us to come out as we actually are. Emergence of crime as a paradigm, its omnipresence, is the ultimate consequence of this political struggle. The modalities of resulting social structures have a deep resonance with who we really are.

This is the core problem of neoliberalism, the main reason why it is an anti-social project and why ultimately it either has to self-destruct or society as such has to disintegrate.

Designing a system of social organization which is in harmony with human nature is not something we should aspire to. It is generally a bad idea. A very bad one, actually. Without a considerable amount of inhibition, human nature is socially toxic. In fact, in order to become social, we have to abandon our true nature. The entire process of growing up, of becoming socially integrated – what is referred to as civility – is all about inhibiting our true impulses (e.g. toilette training, selfishness, lack of empathy, aggression, ability to engage in a dialogue,…). These inhibitory skills define us as social beings. Without them there is no society. We are born without those skills and we spend a considerable portion of our lives learning how to acquire and use them.

So, we are the real problem. Violence is inscribed in our genetic code and, as such, it becomes the essential component of neoliberalism. Killing as a (predominantly male) strategy of attaining the status position of dominant power has been adaptive. It is installed in the human brain because it worked. Murder has been a remarkably effective method of achieving evolutionary success (at least in the game of reproductive competition). Modern humans are descendants of those who succeeded in evolution. They are wired in the same way as their ancestors as dominant factors of success propagated[5]. Murder is inscribed deep into our genetic code; it only needs to be set free. The question is then, how close are we to the grand convergence when all barriers are removed and ideology becomes a true representation of ourselves. How far are we from setting free the murder? Well, we may not be there yet, but it is in the cards.

Life in neoliberal utopia. Who has the right to kill whom?

If utopia represents the impossible (imaginary places where social relations are represented, contested, and inverted), and developed society has reached the point where (almost) everything is possible, than the problem of finding our way is no longer the problem of disappearing utopia, but the problem of vision and politics. So what is the neoliberal utopia really like? What is a logical extrapolation of the neoliberal experience and what could be the next frontier for its all-around permissiveness?

Of all the issues that have emerged in the last years, murder has been the most divisive. From police brutality, to vigilante killings, mass murders, shooting of cops and terror attacks. All these cases were really about who has the right to kill whom, and at what price. Black lives matter, terrorism, the OJ Simpson trial, … they have all been about the same theme: Is it ok for the whites to kill blacks, for Muslims to kill Christians, for rich to kill poor, or even for the rich blacks to kill poor whites etc.? There has always been some implicit hierarchy of rules in that space.

Issues that have played a similar divisive role in the past have been alcohol prohibition, abortion (right to life), legality of drugs, prostitution, gay marriage, speed limits, etc. In many countries where these issues have been put to rest, tensions and problems associated with the issue have disappeared.

It is common sense to assume that removing an aura of taboo reduces the appeal of the vice. By legalizing something, one eliminates the challenge and reduces the abuse. For example, incidence of teenage drinking, drunken driving etc. are much lower in countries which have no minimum drinking age, and similarly in the case of car accidents vs. speed limit. In the same manner, one can argue, that legalization of drugs could lead to lower incidence of drug abuse and reduction of crimes associated with illegal drug trafficking. Same holds for prostitution. The upside of legalizing these activities is that society becomes less polarized – people get along better with each other – and, once divisive aspects are removed, politics becomes more constructive.

By analogy with these well-know cases, it makes sense to ask the same question regarding the murder. First, there is an insane number of murders every year. Obviously, the fact that murder is a capital offense is no detractor for killers; the rate of killing (individual/random/mass) keeps increasing. We now have more than one mass murder for each day in the year. The legitimate question to ask then is would the number of murders increase if they become legal. Most likely, there would be an initial surge, but then the trend would gradually subside and new lower murder rate equilibrium reached.

Death by shooting would gradually be accepted as a consequence of our freedoms, in the same way as death caused by traffic accidents, plane crashes, fire, or natural disasters have.

The benefits are immediately visible. First, guns would get the status of a regular appliance, like car or TV — everyone would own (at least) one. This would be plain common sense. All debates about the second amendment would become obsolete and with them the polarizing effects would go away. There would be no justification for the existence of the gun lobby. The NRA would be rendered politically irrelevant and politics, free of its influences, would be able to focus on issues that matter. Without polarization around the second amendment, republicans and democrats could even merge into a single party.

Smart guns would become the new technological innovation. Apple would produce first iGun, synchronizable with iPhone and iWatch, and Teslas would come with special road rage software and appropriate smart guns usable in such situations.

Compulsive killing would be frowned upon. It would be deemed uncool, along the lines people treat obesity. There would be awareness groups that provide counseling and talk shows where compulsive killers would be subject to shaming.

The US would enter its post-political phase (given the current political developments, this could be a blessing). There would be less need for police; private protection would be the new area of economic expansion. There would be far fewer people in prisons, both private and state run. No debates about death penalty or life sentence? All these would free the federal budget for more constructive projects. People would be much more considerate and respectful of each other’s feelings. Conflicts would tend to be avoided. Everyone would be nice to each other (assholes would have a very low chance of survival). Generally, people would get along much better. Right?

This is the face of neoliberal utopia. At the end, it is every man for himself, or in the words of Margaret Thatcher: There is no such thing as society. There are individual men and women, and there are families.

[1] Leonard Cohen, The Future

[2] Pierre Dardot and Christian Laval, The New Way of the World: On Neoliberal Society

[3] Franco Berardi, After the Future

[4] Dardot & Laval

[5] David Buss, The Murderer Next Door