This post humbly attempts to outline as succinctly as possible the historic forces resulting in the current recession/depression and the election victory that may be a crucial turning point in a new age world war.
I am a New Zealander and a political junkie. New Zealand, (a group of three islands close to Australia) had a continual increase in government intervention and associated taxation since the mid 90s. This culminated in a massive election victory for our allegedly conservative National Party in late 2008 ousting the radical socialist Labor Party. This was like going from Obama to Bush because despite having a reform mandate National did surprisingly little. In fact in most areas they are making the matter worse.
In order to understand this political failure I have immersed myself in research and learnt the following:
In the agricultural economies prior to industrialization it was necessary to defend the land. Agricultural surpluses provided the means to do this by paying for the services of specialist warriors. From this came the justification for royalty and nobility.
Industrialization with its mass production produced greater surpluses resulting in mass conscription first practiced in France after the revolution, then the other major 19th and 20th century wars. These wars also accelerated the use of mass production with assembly line practices, standardization and the interchangeability of parts. From this a social system arose that linked mass production, mass education, mass communication, mass welfare, mass media and mass consumption.
In the current IT brain based economies mass production is outmoded. The IT economy is characterized by short runs of customized products, robotized manufacturing, target marketing, increased importance of human capital, frontline innovation and the dismantling of bureaucratic industrial structures. Big businesses are getting smaller and small businesses are multiplying. Economies of scale are outweighed by economies of complexity.
The world economies now collectively stagnate under political regimes paralyzed by the entrenchment of political and bureaucratic elites fighting tooth and nail to protect their privileged industrial economy status. These top-down authoritarians in the context of the modern IT economy can be accurately described as fascist. Their power base is industry and institutions that require government support and the democratic process itself. All of which is characterized by gross incompetence and waste.
Let us hope that that these fascist elites can be defeated without recourse to another French style revolution. The US midterm elections represent a major victory in this world war of freedom verse fascism. A bankrupt US is the last thing the world needs and the promise of these elections is genuine hope and change. Once the US economic powerhouse gets going again the recession will truly be over.
So the question is how quickly and how likely is this? My understanding is that without control of Congress Obama is no longer be able to tax, borrow and spend the US into bankruptcy. Confidence could be restored and genuine job creating investment could occur. This could happen very quickly as vast amounts of capital are looking for safe homes.
Foreign interest in the election results is also piqued by the spectacle of the grass roots tea party movement, its influence on the established political elite and most of all its sheer success.
Be assured that we in New Zealand (and presumable the rest of the world) are looking at ways to build similar movements based on our own traditions of freedom.
The recession/depression (caused and prolonged by the industrial economy elite) shows no sign of abating. Our politicians dither with irrelevances despite a mandate to implement genuine reforms. Churchill said it best in the 30s when the government vacillated in its path to appeasement. “The government simply can not make up their mind, or they can not get the prime minister to make up his mind. So they go in a strange paradox, decided only to be undecided, resolved to be irresolute, adamant for drift, solid for fluidity, all powerful to be impotent.”