Ideologies at War

Discourse:  Formal and orderly
 and usually extended expression of thought on a subject.

Merriam-Webster

I finally figured out why there’s no discourse in economics. Or anywhere else, for that matter.

I started researching and writing about economics and the workplace three years ago. Right away, I noticed the topic was as polarized as everything else these days. I confess, I was surprised — I was a newbie, idealistic about my new course of study. I figured everybody would want to talk about it. But the pros? No. They talked past each other, nobody convincing anybody of anything they didn’t already believe.

And now I know why.

At first, I thought the divisions — right vs. left, capitalism vs. socialism, conservative vs. progressive, free market vs. Keynesian intervention, etc.  — were the result of opinions logically and studiously debated. Three years later, I can see it’s not so — those opposing positions are rationalizations after the fact, justifying prior beliefs grounded in ideology. When a topic — any topic — is dominated by competing ideologies, a fundamentalist dynamic takes over. Fundamentalism has no place for “formal and orderly and usually extended expression of thought.” Instead, it stifles discussion, damns doubt, brutalizes dissent. If you’re not with us, you’re against us — so choose sides, and the other side can talk to the hand.

We’ve seen, for example, how the Mont Pelerin Society and the Chicago School of Economics pursued their capitalist free market beliefs with fundamentalist zeal, and how the Democratic Socialists of America party has responded in kind. This, and other similar ideological standoffs have banished discourse from the field of economics.

The Berlin Wall fell because Soviet communism failed as a fundamentalist belief, leaving American capitalism the winner of the Cold War. Since then, political leadership in the U.S. and the U.K. has supercharged capitalism into its current hyper- competitive, hyper-privatized form, to the point that free market ideology has become not just economic policy but a cultural norm, and supporting it has become a patriotic duty.

Now in its fourth decade, the post-Cold War model of capitalism has failed in the same way Soviet communism failed before it:  it has neglected and alienated the “Public” — the res publica, the things that belong to the people, the things that assure citizens the basics of life and health, satisfying work, opportunity for educational, social, and economic betterment, and the sense of meaning, purpose, and well-being those things engender.

Fundamentalist ideologies wage war, and win at all costs. When free market economics became a fundamentalist ideology, it went to war. One of my daughters recently gave me a book published in 2007, at the height (depth?) of the Great Recession. The copyright date made me inclined to dismiss it as outdated. Now, as I read it, I wonder, how it is that we never knew these things, and most of us still don’t? This is from the book blurb:

“In this groundbreaking alternative history of the most dominant ideology of our time, Milton Friedman’s free-market economic revolution, Naomi Klein challenges the popular myth of this movement’s peaceful global victory. From Chile in 1973 to Iraq today, Klein shows how Friedman and his followers have repeatedly harnessed terrible shocks and violence to implement their radical policies.”

The Shock Doctrine:  The Rise of Disaster Capitalism, Naomi Klein (2007)

Pulitzer Prize winning journalist Chris Hedges wrote about the cultural dynamics of war in War is a Force That Gives Us Meaning (2014). As you read the following, substitute your ideology of choice — political, economic, religious, etc. — in place of war as armed conflict:

“War, in times of malaise and desperation, is a potent distraction.

“The cultivation of victimhood is essential fodder for any conflict. It is studiously crafted by the state. All cultural life is directed to broadcast the injustices carried out against us.

“The goal of such nationalistic rhetoric is to invoke pity for one’s own. The goal is to show the community that what they hold sacred is under threat. The enemy, we are told, seeks to destroy religious and cultural life, the very identity of the group or state.

“Patriotism, often a thinly veiled form of collective self-worship, celebrates our goodness, our ideals, our mercy and bemoans the perfidiousness of those who hate us.

“War makes the world understandable, a black and white tableau of them and us. It suspends thought, especially self-critical thought.

“Most of us willingly accept war as long as we can fold it into a belief system that paints the ensuring suffering as necessary for a higher good, for human beings seeks not only happiness but also meaning. And tragically war is sometimes the most powerful way in human society to achieve meaning.

“Before conflicts begin, the first people silenced — often with violence — are [those who] question the state’s lust and need for war. These dissidents are the most dangerous. Such voices are rarely heeded.

“Once we sign on for war’s crusade, once we see ourselves on the side of the angels, once we embrace a theological or ideological belief system that defines itself as the embodiment of goodness and light, it is only a matter of how we will carry out murder.”

Thus the Public has been “murdered” by economic policy as carried out under the current model of capitalism.

When the Public dies, so does public discourse.

It takes moral strength to dissent. The Business Roundtable recently took a step in that direction. According to its website, “Business Roundtable is an association of chief executive officers of America’s leading companies working to promote a thriving U.S. economy and expanded opportunity for all Americans through sound public policy.”

We’ll look at what the CEOs have to say next time.

Belief in the Free Market

Mammon

1909 painting The Worship of Mammon by Evelyn De Morgan.
https://en.wikipedia.org/wiki/Mammon

We saw last time that Milton Friedman and his colleagues at the Chicago School of Economics promoted the free market with fundamentalist zeal — an approach to economics that Joseph Stiglitz said was based on “religious belief.” Turns out that using religious-sounding language to talk about believing in capitalism isn’t as farfetched as it sounds on first hearing.

In the history of ideas, the “Disenchantment” refers to the idea that the Enlightenment ushered in an era when scientific knowledge would displace religious and philosophical belief. Reason, rationality, and objectivity would make the world less magical, spiritual, and subjective, and therefore “disenchanted.” You don’t need to know much history to know the Disenchantment never really played out — at least, certainly not in America.

“Each of us is on a spectrum somewhere between the poles of rational and irrational. We all have hunches we can’t prove and superstitions that make no sense. What’s problematic is going overboard—letting the subjective entirely override the objective; thinking and acting as if opinions and feelings are just as true as facts. The American experiment, the original embodiment of the great Enlightenment idea of intellectual freedom, whereby every individual is welcome to believe anything she wishes, has metastasized out of control. In America nowadays, those more exciting parts of the Enlightenment idea have swamped the sober, rational, empirical parts. Little by little for centuries, then more and more and faster and faster during the past half century, we Americans have given ourselves over to all kinds of magical thinking, anything-goes relativism, and belief in fanciful explanation—small and large fantasies that console or thrill or terrify us. And most of us haven’t realized how far-reaching our strange new normal has become.

“Why are we like this?

“The short answer is because we’re Americans—because being American means we can believe anything we want; that our beliefs are equal or superior to anyone else’s, experts be damned.

“America was created by true believers and passionate dreamers, and by hucksters and their suckers, which made America successful—but also by a people uniquely susceptible to fantasy, as epitomized by everything from Salem’s hunting witches to Joseph Smith’s creating Mormonism, from P. T. Barnum to speaking in tongues, from Hollywood to Scientology to conspiracy theories, from Walt Disney to Billy Graham to Ronald Reagan to Oprah Winfrey to Trump. In other words: Mix epic individualism with extreme religion; mix show business with everything else; let all that ferment for a few centuries; then run it through the anything-goes ’60s and the internet age. The result is the America we inhabit today, with reality and fantasy weirdly and dangerously blurred and commingled.”

Fantasyland:  How American Went Haywire, a 500-Year History, Kurt Andersen (2017)[1]

Villanova professor Eugene McCarraher makes the case that capitalism stepped up to fill the belief void created by Disenchantment enthusiasts, and became the new world religion.

Mammon book“Perhaps the grandest tale of capitalist modernity is entitled ‘The Disenchantment of the World’. Crystallised in the work of Max Weber but eloquently anticipated by Karl Marx, the story goes something like this: before the advent of capitalism, people believed that the world was enchanted, pervaded by mysterious, incalculable forces that ruled and animated the cosmos. Gods, spirits and other supernatural beings infused the material world, anchoring the most sublime and ultimate values in the ontological architecture of the Universe.

“In premodern Europe, Catholic Christianity epitomised enchantment in its sacramental cosmology and rituals, in which matter could serve as a conduit or mediator of God’s immeasurable grace. But as Calvinism, science and especially capitalism eroded this sacramental worldview, matter became nothing more than dumb, inert and manipulable stuff, disenchanted raw material open to the discovery of scientists, the mastery of technicians, and the exploitation of merchants and industrialists.

“Discredited in the course of enlightenment, the enchanted cosmos either withered into historical oblivion or went into the exile of private belief in liberal democracies…. With slight variations, ‘The Disenchantment of the World’ is the orthodox account of the birth and denouement of modernity, certified not only by secular intellectuals but by the religious intelligentsia as well.”

Mammon:  Far from representing rationality and logic, capitalism is modernity’s most beguiling and dangerous form of enchantment, Aeon Magazine (Oct. 22, 2019)

Prof. McCarraher develops his ideas further in his book The Enchantments of Mammon: How Capitalism Became the Religion of Modernity (2019). This is from the Amazon book blurb:

“If socialists and Wall Street bankers can agree on anything, it is the extreme rationalism of capital. At least since Max Weber, capitalism has been understood as part of the “disenchantment” of the world, stripping material objects and social relations of their mystery and sacredness. Ignoring the motive force of the spirit, capitalism rejects the awe-inspiring divine for the economics of supply and demand.

“Eugene McCarraher challenges this conventional view. Capitalism, he argues, is full of sacrament, whether or not it is acknowledged. Capitalist enchantment first flowered in the fields and factories of England and was brought to America by Puritans and evangelicals whose doctrine made ample room for industry and profit. Later, the corporation was mystically animated with human personhood, to preside over the Fordist endeavor to build a heavenly city of mechanized production and communion. By the twenty-first century, capitalism has become thoroughly enchanted by the neoliberal deification of ‘the market.’”

Economic theories — capitalism, Marxism, socialism — are ideologies:  they’re based on ideas that can’t be proven scientifically; they require belief. The reason thinkers like Kurt Andersen and Eugene McCarraher both use the term “dangerous” in connection with economic belief is because of the fundamentalist dynamics that invariably accompany ideological belief, secular or otherwise. We’ll look at that next time.

[1] The book is another case of American history as we never learned it. For the shorter version, see this Atlantic article.

Economic Fundamentalism

We saw last time that the goal of Chicago School free market economics was to promote “noncontaminated capitalism,” which in turn would generate societal economic utopia:

“The market, left to its own devices, would create just the right number of products at precisely the right prices, produced by workers at just the right wages to buy those products — an Eden of plentiful employment, boundless creativity and zero inflation.”

The Shock Doctrine:  The Rise of Disaster Capitalism, Naomi Klein (2017)

To the School’s free market advocates, these ideas were pure science:

“The starting premise is that the free market is a perfect scientific system, one in which individuals, acting on their own self-interested desires, create the maximum benefits for all. If follows ineluctably that if something is wrong with a free-market economy — high inflation or soaring unemployment — it has to be because the market is not truly free.”

The Shock Doctrine

Scientific method requires that theories be falsifiable:  you have to be able to objectively prove them wrong.

“The philosopher Karl Popper argued that what distinguishes a scientific theory from pseudoscience and pure metaphysics is the possibility that it might be falsified on exposure to empirical data. In other words, a theory is scientific if it has the potential to be proved wrong.”

But Is It Science? Aeon Magazine, Oct. 7, 2019.

But how do you prove an economic theory based on “uncontaminated capitalism” in an economically contaminated world?

“The challenge for Friedman and his colleagues was not to prove that a real work market could live up to their rapturous imaginings…. Friedman could not point to any living economy that proved if all ‘distortions’ were stripped away, what would be left would be a society in perfect health and bounteous, since no country in the world met the criteria for perfect laissez-faire. Unable to test their theories in central banks and ministries of trade, Friedman and his colleagues had to settle for elaborate and ingenious mathematical equations and computer models.”

The Shock Doctrine

Mathematical equations and computer models aren’t the same as empirical data collected in the real (“contaminated”) world. If falsifiability is what separates scientific knowledge from belief-based ideology, then Friedman’s free market theory is the latter. Some scientists are worried that this spin on scientific theorizing has become too prevalent nowadays:

 “In our post-truth age of casual lies, fake news and alternative facts, society is under extraordinary pressure from those pushing potentially dangerous antiscientific propaganda – ranging from climate-change denial to the anti-vaxxer movement to homeopathic medicines. I, for one, prefer a science that is rational and based on evidence, a science that is concerned with theories and empirical facts, a science that promotes the search for truth, no matter how transient or contingent. I prefer a science that does not readily admit theories so vague and slippery that empirical tests are either impossible or they mean absolutely nothing at all…. For me at least, there has to be a difference between science and pseudoscience; between science and pure metaphysics, or just plain ordinary bullshit.”

But Is It Science?

The Chicago School believed so ardently in the free market theory that its instructional approach took on the dynamics of belief-based indoctrination:

“Frank Knight, one of the founders of Chicago School economics, thought professors should ‘inculcate’ in their students the belief that economic belief is ‘a sacred feature of the system,’ not a debatable hypothesis.’”

The Shock Doctrine

This dynamic applies to every ideology that can’t be falsified — verified empirically. The ideology then becomes a fundamentalist belief system:

“Like all fundamentalist faiths, Chicago School economics is, for its true believers a closed loop. The Chicago solution is always the same:  a stricter and more complete application of the fundamentals.:

The Shock Doctrine

Journalist Chris Hedges describes the dynamics of “secular fundamentalism” in I Don’t Believe in Atheists. (The book’s title is too clever for its own good — a later version adds the subtitle “The Dangerous Rise of the Secular Fundamentalist.”)

“Fundamentalism is a mind-set. The iconography and language it employs can be either religious or secular or both, but because it dismisses all alternative viewpoints as inferior and unworthy of consideration it is anti-thought. This is part of its attraction. It fills a human desire for self-importance, for hope and the dream of finally attaining paradise. It creates a binary world of absolutes, of good and evil. It provides a comforting emotional certitude. It is used to elevate our cultural, social, and economic systems above others…. The core belief systems of these secular and religious antagonists are identical.”

Thus we have Nobel prize-winning economist Milton Friedman famously saying, “Underlying most arguments against the free market is a lack of belief in freedom itself” — a statement entirely in keeping with the Mont Pelerin  Society’s idealistic Statement of Aims, which we looked at last time.

And thus we also have Nobel prize-winning economist Joseph Stiglitz countering with his thoughts about economics in a contaminated (“pathological”) world:

“The advocates of free markets in all their versions say that crises are rare events, though they have been happening with increasing frequency as we change the rules to reflect beliefs in perfect markets. I would argue that economists, like doctors, have much to learn from pathology. We see more clearly in these unusual events how the economy really functions. In the aftermath of the Great Depression, a peculiar doctrine came to be accepted, the so-called ‘neoclassical synthesis.’ It argued that once markets were restored to full employment, neoclassical principles would apply. The economy would be efficient. We should be clear: this was not a theorem but a religious belief.”

As we also saw last time, historical socialism and communism join free market capitalism in their fundamentalist zeal. In fact, some think that economics in general has become today’s dominant cultural form of belief-based thinking. More on that next time.