Posts tagged ‘good’

October 15, 2011

Adam Smith vs. Neoliberalism: The Rise and Rise of Greed

Adam Smith is something of a saint for right-wingers. The big grand-daddy of liberal political economy, Adam Smith literally wrote the book on how people can, through “truck, barter and exchange” unintentionally create the best conditions for human happiness. He’s even had his name stamped all over one of the biggest, baddest right-wing think-tanks in the UK – The Adam Smith Institute. The funny thing is, though, that Smith would actually disagree markedly with most of the ASA’s recommendations, if he were alive today. In fact, the ASA practice a philosophy so far removed his own, Smith’s cadaver must currently have greater RPM than a washing machine in spin cycle.

Here’s why: According to most liberals, a (perhaps the) key function of the state is to defend liberty. In economic terms, this means a responsibility to defend the freedom of the market. Both classical liberals (Smith) and neoliberals (the ASA, Thatcher, Reagan… in fact, most mainstream politicians and economists) agree on this. But unlike Smith, neoliberals envision the free market as a world of do-as-you-please – where, to quote Gordon Gekko (and the ASA), greed is good. For Smith, by contrast, it is not the greed for profit that creates prosperity; it is the freedom itself. Greed (defined as self-interest without restraint via empathy) is actually seen by him as dangerous.

In the elegantly liberal formulation of Smith’s thought in The Wealth of Nations, it becomes rapidly apparent why he believes greed to be so dangerous.

  1. The market, as the free circulation of goods and services by competing merchants, is a valuable and powerful institution for securing the common good. It must be protected from monopolistic interests that distort beneficial market forces.
  2. However, markets have a natural tendency towards monopoly.
  3. Here we have the central problem. Markets are victims of their own success – the good businesses created by the market eventually stifle the freedom of the market itself. How can this be solved?
  4. Answer: Within the market, monopolies are forbidden. This is enforced by the state by strengthening economic actors’ freedom from other, more powerful actors (via anti-trust legislation, civil liberties) and freedom to act themselves (via a welfare state, affordable start-up loans).
  5. But in order to achieve the power necessary to put in place these provisions, how does the state avoid the worst excesses of monopoly itself?
  6. Answer: By developing an internal market of ideas (a true democracy), the state benefits from the insights of independent citizens, but nonetheless retains the power that comes with being big.

Though it sounds paradoxical, in order to create a truly free space for commerce, you need to restrict the freedoms of some for the benefit of all. Think of it like a garden – if you want to grow a wide variety of plants, you don’t just neglect the garden completely. If you do, all you’ll get is nettles.

At this stage, sadly, we don’t have this arrangement. Anti-trust legislation is not strict enough, nor is the welfare state efficient enough. Big corporations are able to use their financial muscle to influence policy makers, town planners and consumers in ways that benefit their own business models, but are detrimental to the common good. Worse, their huge market share means that big corporations are “too big to fail” – as if they did go under, vast numbers of employees and consumers would be affected. The welfare state (where it exists), though insulating people from the worst excesses of poverty, makes the poor reliant upon the state taxation of big business, creating resentment and class warfare, and making the state even more reliant upon large corporations.  What we are left with is neither fish nor fowl – a system that necessitates state interference in the market and collusion between huge monopolistic interests rather than the liberation of real people.

There’s one final question here – qui bono? It’s obvious – the rich. They get to make vast profits, while the rest of us reap the whirlwind of a dysfunctional and decidedly un-free market. Having twisted the liberating ideas of Smith into giving carte-blanche for greed, supported by the ideologues at the ASA, the rich have once again used ideology to fox ordinary people. And because they are at the top of a monopoly, they are able to lobby the government to legitimate even greater concentrations of wealth and even greater distortions of the market to suit their ends; keeping an unfair system limping on that bit longer, to they can squeeze that bit more blood from our stones.

June 17, 2011

The Long Defeat?

Is Evil destined to defeat Good?

In my last blog post I made a brief allusion to The Lord of the Rings by J.R.R. Tolkien – describing how the possible responses to an evil and morally bankrupt social context are two-fold; one represented by the character of Boromir, the other by Faramir, his younger brother. Boromir shows how easily one can fall from grace – rather than accept the broader, ethically loaded aspects of the situation in which he finds himself, Boromir views the One Ring solely in terms of his own, narrow frame of reference (i.e. as a Weapon which could be used to defeat Sauron and thus save Gondor), ignoring its deeper significance as something that destroys all who touch it. This, in my view, is similar to a person in this day and age who, while working for large corporates, makes “pragmatic” justifications of the global free market and hierarchy; ignoring political debates and claiming that the current system is the best of all possible worlds. To take this tack neglects the fact that the imperial logics of domination and exploitation are eminently destructive – causing social problems and environmental degradation that threaten the survival of all of humanity. As Gandalf might have said, these things are “altogether evil”. Just like Boromir, millions of people around the world today compromise their principles to support a “pragmatic” approach. There is nothing wrong with compromising in principle – such moderated efforts are often neccessary – the problem is compromising with something that will not itself compromise.

Faramir, on the other hand, takes a better stance. Although he is also tempted by the ring, he eventually lets Frodo go, in the hope that his quest will be completed. This approach, despite seeming idealistic (especially seeing as it puts Faramir’s life in jeopardy by angering his father), is actually more pragmatic, as the situation in Lord of the Rings (like ours) is something of a zero-sum game. Structural inequality and greedy industry just aren’t sustainable. The environmental devastation, decline in social values and over-reliance on advanced technology that such a system will eventually create are certain to strip away from us what little moral fibre we still possess. Faramir takes a wiser, broader view of the situation, and sees the fallacy of Boromir’s false pragmatism. Even though Faramir believes he is probably dooming himself and his people, he still makes his choice, because to commute his judgement and take the ring for himself to use against the Enemy would end up in total defeat anyway. As I said in my last post, I think this attitude is a good one to carry with you in life – you may be forced or tempted to participate in an evil world, but it is ultimately up to you to respond wisely and virtuously.

I personally feel that this little Aesop is also a starting point for thinking about a moral challenge that Tolkien left Pagans with in LotR. Because that book, despite being very popular within our community, is nonetheless hugely Catholic, as this blog entry by Loren Rosson III describes. It presents a view of history that is inherently negative – seeing the search for moral life as inherently self-defeating unless the Judeo-Christian God is involved. The world is doomed to ever spiral downwards into greater depravity without the redemptive power of Christ. “The long defeat” of the Elves is a masterful piece of Catholic historiography – it doesn’t matter how wise, or powerful, or beautiful or kind you are; without Jesus, you’re screwed.

But what might surprise some people is that the notion of the noble defeat is not a Christian trope – but a Pagan one. The literature that has come down to us from our Pagan ancestors is full of tragic heroes, doomed to die but battling for honour anyway. Ragnarok is perhaps the best example, although I have been told that its world-ending grandeur could have been a later Christian imposition. In this mode, both Boromir and Faramir are tragic heroes for different reasons – Boromir because of his weakness, Faramir because of his noble ceding of the key to victory (much like Freyr giving his sword Skirnir) and thus making his defeat seem inevitable. Supposedly it is this sort of fatalism that Christianity “cures” – Pagans were fatalistic and lacked hope; the Christians gave them something to hope for.

But ultimately, I think Paganism has had the last laugh. While Christians have been counselling us to put our trust in a land of silver glass beyond the sea, people have nonetheless been working away at fighting the manifold troubles and evils that the world contains. Scientists, philosophers and other people inspired by the work of the Classical World have managed to bring us closer and closer to a better, loving world in which nobody goes hungry or thirsty. The depressive historical narrative that Tolkien offers is now being questioned – not in favour of some naively whiggish idea of “progress”, but rather of a good world where people can, in theory at least, lead the good life. This optimistic cosmology – of a world where death and life are just part of a single, great round; where it is our duty and our priviledge to make things better for everyone, not because it suits us but because it is right – is profoundly Pagan. Tolkien’s representation of Pagan theodicy was incomplete – rather than a world of fatalists waiting to become Christians, as the hagiographies might have it, the Pagans were world-loving optimists. We are told of the Celts making legally binding loans to be paid back in the Otherworld, and charging through life with no fear of death. And why? Because the world they lived in was a good one. El Mundo Beuno.  Tragedies do happen, but the overall rightness of things will endure. Life goes on.

The Long Defeat was only ever half the story.

May 24, 2011

Battling the Bankers

Bankers are human beings like anyone else – but that doesn’t neccessarily make the banking system itself a moral enterprise.

I had an argument with somebody in college yesterday. A group of my friends and I were sitting in the Graduate Common Room after dinner and we were chatting amongst ourselves when we were joined by another grad – someone who I’ve only spoken to in passing before, whose name I (still) don’t know. She engaged us in conversation as she made some tea, and after a while conversation touched on a topic that has become increasingly popular recently – banking. I took the view that banking was, and I use this word carefully, “evil”. By that, I don’t mean that bankers are cruel, heartless individuals with no moral or ethical compass – far from it. I know people who either have or intend on going into banking, and like everybody else, some of them are warm, friendly, moral people, while some of them aren’t.  For me, the good vs. evil dichotomy isn’t a commentary on personal behaviour – it’s about social structure.

Let me explain. It’s a ridiculous Hollywood stereotype of morality that all evil is perpetuated by cruel, heartless, WASPish men in velvet cloaks or black fedoras. Of course, it’s nice and tidy that way. All the people you’d like to be friends with in life can’t possibly be involved in anything morally reprehensible – after all, you like them, but you dislike things like fundamentalism, genocide and poverty. The circles of the venn diagram of your moral universe are kept thoroughly seperate. But the problem is, that history (and life) tell us that good (read “nice”) people do evil things all the time. The majority of the population of Germany were complicit, to varying degrees, in the excesses of Nazism, but that doesn’t mean that Germans have some intrinsic personality flaw.

JRR Tolkein had quite a bit to say on precisely this topic. When you look at most of the “bad” characters in his fiction, they actually started off as perfectly nice people. Smeagol was a fisherman. The Ringwraiths were kings of men. Sauron was a minor deity. All of them assuredly had friends, pets, children, doting mothers and primary school teachers who loved them as dearly as anyone. But, and here’s the thing, they were caught up in affairs beyond their control. All of them were ensnared in wider, structural factors in their universe, that forced them to behave in ways that were aligned with a deeper darkness, until, eventually, that darkness consumed them. Now of course, in real life the darkness doesn’t consume people utterly. Most people, even the worst, remain “nice enough” despite their involvement in bigger, badder things – as illustrated by an incredible documentary by the BBC. In it, a young man visits his brother who has converted to an extreme version of Islam. Despite his odious views, there are several touching scenes where it is clear that, despite everything, these fundamentalist bullies are still human beings. They eat, they joke, they laugh.  Even Hitler was a vegetarian.

Which brings us back to bankers. I stand by my assertion that banking is “evil”. Bankers, however, are not. The world financial system as it currently stands breeds as much want, suffering and exploitation as any evil empire. By working in a merchant bank, or indeed, by working anywhere, you are unfortunately contributing to that system. On a personal level, implication is therefore almost unavoidable. But you can, however, make sure your personal subjectivity is not complicit with that system. You can construct your subjectivity in a way that doesn’t “let you off the hook” and permit you to lead your own little life, without opposing the wider structural inequalities that situate it. You can either be Faramir or Boromir.

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