Monday, July 13, 2020

This Is How a Society Dies

I've been thinking for some time that the US and Britain are locked into a death spiral of their own making. This article, from the Before Times*, expresses my thoughts in more detail than I've been able to. 
We are caught in a death spiral now. A vicious cycle from which there is probably no escape. The average person is too poor to fund the very things — the only things — which can offer him a better life: healthcare, education, childcare, healthcare, and so on. The average person is too poor to fund public goods and social systems. The average person is too poor now to able to give anything to anyone else, to invest anything in anyone else. He lives and dies in debt to begin with — so what does he have left over to give back, put back, invest?
A more technical, formal way to put all that is this. Europeans distributed their social surplus more fairly than we did. They didn’t give all the winnings to idiot billionaires like Zucks and con men like Trump. They kept middle and working classes better off than us. As a result, those middle and working classes were able to invest in expansive public goods and social systems. Those things — good healthcare, education, transport, media — kept life improving for everyone. That virtuous circle of investing a fairly distributed social surplus created a true economic miracle over just one human lifetime: Europe rose from the ashes of war to enjoy history’s highest living standards, ever, period.
Sadly, it seems like Europeans may be heading down the same path as the United States, if recent developments in Poland and Hungary are any indication. 

* December 2019.

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