What’s the point of
political devolution in a world of globalist economics, where democracy can’t
change a thing because there’s no world government to hold multi-nationals in
check?
A good question, to which the
answer is to reject not only over-centralised government but also
over-centralised economics.
Demand
autarky for all.
Autarky – self-sufficiency –
is a principled response to globalist economics. It’s a product of the ‘Historical’ school of
economics that arose in 19th century Germany and included such giants as
Max Weber and Joseph Schumpeter.
Adherents maintained that economics could only be understood within the
cultural context of a specific historical era, and not using standardised
formulae or theories. They were also often
concerned with the plight of the common worker.
Autarky in the form of European preference has since been defended by
the French Nobel Prize winner Maurice Allais.
Autarky is not against trade
but views it as a way to obtain only those things that can’t be produced
domestically. The reason is to subjugate
economics to politics, allowing ‘costs’ and ‘benefits’ to be expressed in
broader, especially non-monetary terms.
The aim is not to exclude imports, but to exclude dependence, especially
in terms of vital needs like energy and food that could become the subject of
foreign economic reprisals. This can be
attempted at any scale but the full effect can only be seen to work at something
approaching a continental scale, say an internal market running into the
hundreds of millions of people and thus able to support the full range of products. Any
continent will do. For example, why
should the Chinese invest their surplus in Europe
– or be allowed to do so by Europeans – when they still have unmet needs of
their own?
The result is an avoidance
of over-specialisation. It therefore
rejects many of the most sacred free market dogmas. It’s the opposite, indeed, of economism, the
idea that life is about short-term profit: always man as producer and consumer,
never as colleague and citizen. In The Wealth of Nations, Scotsman Adam Smith
famously described how the manufacture of pins could be massively increased by division
of labour. Wessexman William Barnes, in Views of Labour and Gold, pointed out
that such wonderful productivity levels have unacknowledged human costs. There’s the insecurity in the market for jobs
and wages that comes with having too narrow a skill, plus potentially the
impaired health of repetitive strain or unwholesome working conditions. Smith had largely admitted as much, and had
seen a role for the State in relieving the results, but such reservations are
rarely remembered when the story of the pin factory gets quoted today.
What’s true for the
individual can be true for society at large: ‘economic growth’ continues without
effective challenge as the supreme goal of public policy, despite the evidence
that everywhere it results in huge environmental damage and social disruption. Economics is said to be subject to ‘iron
laws’, while everything else – ecology, culture, sentiment – is judged
infinitely malleable. Globalism, by
insisting that nowhere is off-limits, that nowhere is allowed to defend itself,
because that would be a ‘distortion’, encourages this race to the bottom. Protectionism – economic protection – is
everywhere decried but neither environmental protection nor social protection
is possible without subordinating corporate actions to political will.
The United States
is equipped with a very strong political will to use regulations and subsidies
(and foreign policy) to pilot an economy that’s privately owned, though with
public ownership of utilities and other resources on a scale that would
astonish Thatcherites. Paradoxically,
the US is much better at all
of this than we are in ‘socialist’ Europe,
where we’re still over-reacting against the Cold War era in ways so accommodating
to big business that they often appear suicidal.
From a long-term
perspective, economism actually weakens economic power, because it under-values
the other factors holding vulnerability at bay, such as political independence,
assured resource availability and demographic stability (who pays the promised pensions?) Note that all of these can be just as real,
in a materialist sense, as economic factors, and in their long-term
consequences can be even more transforming.
Markets are a means, not an
end. So too are States. We currently have the worst of both worlds –
anarcho-tyranny – in which States have largely abdicated their grand political
function as governments but retained and expanded their bureaucratic power to
regulate the problems arising from that political vacuum. Ideas of sovereignty and a transcendent sense
of history have been reduced to one of ‘managing the nation’ as a sort of imagined
business: ‘UK plc’.
Western civilisation – which
aims at substituting a universal market ideology for popular sovereignty –
stands opposed to a European civilisation that values things other than
price. A European unity of purpose
therefore demands the ability to define and defend something that differs from
the familiar reality of being a protectorate of ‘the West’. Subsidiarity needs an economic as well as a
political dimension. The solution with
the lowest short-term costs attached may say ‘centralise’ but a holistic
assessment may say the opposite. Our
political institutions must be ones that enable that judgment to stick.
Generals are often
best-placed to warn politicians against militarism, against the hubris that will
ultimately lead to catastrophic defeat.
Economists likewise need to warn against taking economics any more
seriously than it deserves.
