Capitalism’s End

(With apologies to Arthur C. Clarke)

The mythology of capitalism has been established as pervasively as was the divine right of kings at the close of the middle ages. Capitalism, claims the dogma, makes society healthy, wealthy and wise. No other human system works as well and never will.

Things change. Those kings were deposed, beheaded, or shackled with constitutional oversight. New forms of government arose, sweeping away kingly beliefs in mercantilism, aristocratic rule, religious social control. Many alternatives have been tried, capitalism emerged as one of the successful ones.

Things change. Clearly we have reached the end of the industrial revolution. Machines produce everything, including other machines. Humans remain in the economic mix, directing and inventing machines, filling niche services, and toiling in leftover areas like agriculture where machines are only gradually replacing them.

Things change. If current trends continue, machines will have taken over all the production, no need for human intervention at any stage. We need new ideas, but fanatic “capitalists” have become the ignorant priests and destructive luddites of our age, unable to imagine any other system, fearful of what they do not know.

Things change. Like kings, capitalistic corporations may be in their final moments, as those rulers once were.

Things change.

Are you ready?

1913

In autumn of 1913, the European-American world was content, fat, and happy. Europeans controlled the only areas of the globe and culture that they thought mattered. Americans led an exceptional city on a hill advancing to a perfected future. Both felt they were chosen, the rightful rulers of all others, and the guardians of civilization itself.

Intellectuals agreed. Countries were either stable or subdued. Logic and science were taming human irrationality, commercial interconnection made major war impossible. Henry Ford and others were demonstrating just how affluent modern mass production could make everyone. If anything, the rulers and masses were a little too complacently optimistic about the future.

Even the social unrest of the previous 50 years seemed to have settled down. Fiery socialist, communist labor agitators were more conciliatory. Gigantic strikes and revolutionary ideas were confined to a few backwaters. Even those short in duration. Most folks were fed, housed, and felt better off than they had ever been, expecting ever greater things to come.

Who could have predicted the next 40 years? What happened?

Even now, it’s hard to comprehend. One thing just led to another. At the end of it all, many smoking ruins, millions dead, politics unrecognizable. The very divisions of the political globe massively reshaped. And in spite of it all, massive technological industrial advance.

Yes, I do feel that September 2026 feels a lot like that autumn over 100 years ago. And, although I think some people feel the same way, I am pretty sure once again nobody has a clue what will come, or how to affect it.

Work is Meaning

There have been many answers to the ancient question “what is the meaning and purpose of life”. I am sure, unless you are a dedicated fanatic, that you can come up with many. Possibly the silliest – currently ruling American society – is that the answer is “work”.

Supposedly that can be traced to the country’s “Protestant ethic” heritage, but as a modest student of history I know that for masses of people – and the common attitude – this was rarely so. There was religion, morality, social progress, and a lot of other noble stuff, as well as less articulated hedonism, happiness, and just getting by.

But today the Orwellian elites have not only seized control of the means of production, but also dictate mythology. Now “work” as they define it is the only virtue. Lack of such work is evil and should be wiped out. Even mindless sanctified work is SO much better than meditation or playing a flute in a tree (unless of course you don’t much want to meditate or toot that flute – work is defined as “forced to do something you don’t want to do”.)

So, madly, we are driven to consider exercise, happiness, consumption, existence itself as meaningless useless wastes of time unless they involve “work”. “Work”, anyway as defined by the myth makers, which somehow always involves coercion and money to yield a spiritual result.

I suspect in the long run alternative answers might be better.

Social Donations

Any society must do two big things: protect itself from other societies, and maintain internal order. Even the most rabid libertarian agrees there must be a military and an internal police force with systems to protect property, secure persons, and enforce contracts. That means bureaucracies that must be paid.

How to pay has varied tremendously. Small tribes were based on family obligation. Agricultural civilizations used payment in kind. Many empires simply looted. And, of course, there were taxes (for the military king) and tithes (for the social service priests).

After the industrial revolution, things have become very complicated. How to pay for necessary bureaucracy (and what is truly necessary to maintain that society) is uncharted territory in current civilizations. Everyone hates taxes and fees unless they fall on someone else. Hidden taxes and fees are hard to enforce and rarely bring in enough. Nobody is quite sure how to tax capital to retain meritocracy and production.

Two other methods have been tried. One is to simply let rulers buy their way to power and then loot and extort to get even richer. It worked for the Romans and it’s close to the democratic election system today (with elections bankrolled by corporations and special interests).

The other is donations as in religious tithes or today’s non profit gifts or internet pleas.

Purchase of power inevitably becomes unbearably corrupt and destroys the social fabric. Donations tend to clump into smaller and smaller cliques (such as immediate family) which also shatters society.

Perhaps there is a solution out there somewhere, or maybe simple evolution will provide a working methodology. It’s worked so far.

Mad King Ludwig

Some rulers such as Caligula or Vlad the Impaler are known for their cruelty. Some such as Hitler are remembered as evil. Others such as Louis XIV marked spendthrifts. And then there is mad King Ludwig of Bavaria.

His fantasy castle is famously the prototype of Disneyland palaces. His fairy tale caricature is as a vain, extravagant, impulsive, out of control sybarite. He did not so much ruin his country as ignore its true needs to pursue his own odd selfish ends.

Naming no names, America now has its own mad King Ludwig. His court is composed of spineless couriers, who desperately fear that if they fail to please him they will be dismissed into outer darkness. Most of them to remain unemployable or harassed by the law for the rest of their lives.

The king is fickle. Each day or night brings forth a few new massive directives, often contradictory, often reversed or ignored in a few days. Subjects ignore or laugh at them to their extreme peril. The king cackles into the darkness.

Unlike the old mad king, this one is quite vindictive and easily angered. Perhaps the new castles abuilding will be magnificent, attracting tourists; models for future theme parks. Or the plaster may all crumble away in time and rain, like most of the other directives.

Nevertheless, it’s surely very entertaining, especially if you are far enough away from the action.

Rochester NY

Rochester, NY

We just returned from a week-long excursion to Rochester. Our son and his wife recently purchased a small, solid home built before 1900, in “Swillberg”, a city neighborhood once covered by an extensive farm exporting pork via the Erie Canal.

We visited fairly often since 2000 or so. I’ve always liked Western New York, possibly because of my fascination with American history. There is a lot in the region – Seneca Indians, Dutch colonization, the Erie canal, boom and bust, the heyday of “rust belt”, giants Kodak, Xerox, Bosch and Lomb, all long gone. Current industrial revival based on education, medicine, science, and technology.

Parts of the city are still in hard times but much is well maintained and recovering well, the near suburbs are thriving. I enjoy small city ambience, which I consider “true America” as much as small town culture. Rural mythology is dead – food is mostly produced by automation and industrial giants. Big cities are a weird global culture unto themselves.

But places like Rochester are deep America to the core. So much history. Much of it built long ago, layers of prosperity and decline. Parks and sidewalks. The Genesee River and its magnificent falls. And – yes – still the Erie canal. I’m always contented and happy after I’ve refreshed memories there.

Once again, by the way, I noticed during the (extremely) long drive up from Long Island just how vast and green the state is, almost more wilderness than cultivation. Magnificent and hopeful spaces.

Holy Writ

Fundamentally, I believe most people are just like me – pretty smart and dumb at the same time. In general, I think small groups of people construct sane outlooks most of the time. There are exceptions. A few people are brilliant in certain areas, a few groups turn into insane cults.

I do not accept that gods directly write anything. All words are formed by other humans. And so I have a skeptical opinion of anything taken as “holy writ”, immutable and perfect from the moment marks are made on a surface.

No need to get directly into religion. What I most detest at the present moment is the “conservative originalist” interpretation of the US Constitution as not only inviolate and perfect, but also the result of a brilliant gathering of minds whose choices can never be questioned nor seriously modified.

The problems go beyond the obvious – that some of it may be wrong or have become irrelevant. Anything stiffly frozen is in some ways fragile, and in others just an obstacle to be destroyed. And there is a nearly nonsensical position taken by some specialists that they alone can determine what the folks who wrote it were “really” thinking and what they “really” meant.

It is simple madness, usually twisted to make words seem to say or mean exactly what interpreters and their cronies have decided. Sad times for our country.

Risky “Makers”

The smug justifying fable of the wealthy these days is that they “make” things, while the peons just take them away in order to exist. The poor are thus all morally thieves, and the virtuous rich sweat and labor to keep civilization staggering along.

In our capitalistic system, of course, most of the hyper affluent don’t know the difference between a hawk and a handsaw. They take risks (in other words, gamble) mostly with other people’s money on things that might turn a profit. Only a few of these “investments” work out, and of those that do a lot are straightforward manipulation of financial assets with no “making” involved .

I admire free enterprise. These are generally small time entrepreneurs who risk their own time and money to truly make something or provide a necessary service. They rarely climb into the ranks of the hyper-affluent, but they often do well enough and truly provide the frameworks of civilization. To keep them striving, the myth of makers is endlessly proclaimed .

I do not mind the billionaire class, whose equivalent has always been with us. I do prefer the old desire of this class to be “patrons” doing public works to show off. Our current set of selfish “makers” tend to think they should use their assets as “takers” to buy islands and other fantasies that are hidden and private, hence of no use to anyone. “Grabbers” might be a better term .

The current real dream of grabbers is to become immortal and omnipotent rulers of space and time. Individual private “glory” with no connection nor responsibility to anyone else .

Spoiled, dangerous, and increasingly in control .

Missing Middle

Since the rise of agricultural civilization, wealth has always been unequal. A small rich elite floated over the “masses”. Admittedly, in both groups, there were variations, sometimes major. But to speak of the rulers and the ruled pretty much said it all .

For a while during the turmoil of world exploration and industrial revolution, there came to be a myth of a “middle class”, neither rich nor poor, in control of their lives but not lording it over everyone. American economists continue to focus on this fairy tale which is no longer even partially true .

In the scientific, automated, predatory modern economy there is truly only a normal curve of wealth distribution. Sure, there is still a middle, but it is not defined by the endpoints. Most people in first world economies are affluent beyond the dreams of their ancestors. Even if “poor” they have food, shelter, clothing, dignity, and hope. Even if “rich” they fear they may lose a gamble once too often and drop out of the top percentile .

More importantly, from the economists’ viewpoint, it is impossible to define what “middle class” means. The marker once taken for granted – the suburban nuclear family with one man the breadwinner – no longer exists as a reliable guidepost .

The point is that we should abandon any desire to fortify a non-existent “middle class”. We need to concentrate on basic minimum living standards for all, and how to pay for them. “Work”, for example, may or may not be involved. We need fresh new viewpoints, and strategies as old certainties mutate or vanish .

Handcrafted

Not so long ago, “untouched by human hands” was a source of pride and a selling point. No low-class laborer had touched and possibly corrupted your product. New technology and machines were glamorous, shiny marvels, heralding a better life .

“Handcrafted” has now made a comeback. Like “bespoke”, it signifies that one is wealthy enough to rise above the common. A handcrafted candle or sweater or any artisan artifact is just SO much better than mindless cookie cutter productions .

Of course, the two currents intermix. Lately food service workers are required to wear latex gloves. There is still glamor in acquiring a machine like a cleaning robot ahead of everyone else. And we truly take for granted that most stuff is NOT touched by human hands, even though it may be the result of sweatshop conditions in distant lands .

Both viewpoints have their virtues, depending on time and place. Machine products are often elegant, functional, and inexpensive. Handcrafted articles contain a human element of thoughtful construction, a touch of true artisanship. We appreciate the basic abundance even though we may sometimes highly value the unique .

Like the rest of our lives, complicated but basically a very good change to human culture .