The Occupy Wall Street movement is a result of the confluence of two powerful influences. Firstly, there is a deep disquiet about the credibility of the Western model. Public money has been used in vast quantities to bail our commercial organisations, mostly banks, in a manner that undermines the whole rationale of the model. In theory, people take risks and if they fail they reap the consequences just as when they succeed. There is a kind of perceivable fairness in this and it goes someway to justifying the fact that some people do reap huge rewards. The fact that they do so is rationalised by our being able to say to ourselves that they are the people who took the risks and if they had failed they would have faced the consequences. However, now, it seems, that it is, for some at least, a one way game. This cuts away the rationale of the whole system. The "American Dream" has mutated into a racket.
Secondly, there has been the phenomenon of the Middle Eastern "spring", the over-throwing of rich dictators by popular up-risings. Western leaders initially regarded these Middle Eastern movements with great suspicion. The fact is that they preferred doing business with the old dictators - and still do in many cases. However, when it became apparent that, in some cases at least, the rebels were going to win, there was a shift of attitude. If you can't beat tham, join them. Western leaders rolled out a string of much used rhetoric about freedom and democrasy. The demonstrations in far away countries were praised and those who suppressed them vilified. This, however, led many to ask - why not here?
So now we have a growing popular movement demanding "real democracy" and the overthrow of the power of corporations. But what does real democracy look like and is it any good? Could it run the economy and deliver the goods? There are many reasons to doubt it, but the status quo is looking in creasingly fragile.
The trouble is that nobody has any idea what could really replace the current system. Until about 1990 the world seemed to have a choice of systems. There was communism and there was capitalism. Then communism fell, consummed by its internal contradictions. Capitalists gloated believing that this meant that they had won the argument. However, there are now many signs that capitalism may be about to go the same way, consummed by contradictions that are every bit as crazy as those that afflicted the other system. So where now?
Is there any system other than these two that can feed, house, and clothe the vast population of planet earth, let alone deliver all the superfluous luxury that humans like to indulge in and play with?
How would it be for instance if corporations did not have limited liability and were actually allowed to fail when they fail? There would then be a much more severe break upon the growth of the kinds of bubbles that we have seen. There would also be a lot more people who went bankrupt. The pain would be spread around more and the accumulations would not get so enormous. This direction of development would take the morality of risk more seriously. Thinking about such ideas makes one realise that a more honest system would not necessarily be a kinder one. Dilemma.
Or, what about localism? How would it be if communities ran their own affairs, including their economic affairs, to a much greater extent than they now do. In Italy, for instance, in many areas, you cannot own a business there unless you live there - so no chains. What if real estate were not freehold, but leased from a locally elected body? This would impede labout migration and lead to communities that were internally more homogenious, but, perhaps, more different from one another. Power would devolve from central government to localities. There might be just as much conflict and corruption, but it would be differently distributed and the whole system might be more stable.
How about if one went the other way and created powerful international institutions. The European Union is currently in the thick of fighting out this possibility. What will those institutions be? Ironically, the primary candidates in Europe at the moment are the Central European Bank and the Stabilization Fund. Is the future a super-bank? Perhaps. What will happen if a sizeable number of countries do actually go bankrupt? Already many business corporations are wealthier than many countries. Are corporations going to run the world? Some say they do already, but we have not yet reached the point where governments completely cease to function. Perhaps the first world government will be a bank.
The fact is that we are getting into uncharted territory in which we do not even have much in the way of speculative ideology to go on. We are not going to go back to feudalism nor to anciant Athens. A paradigm shift may be forcing itself upon us and we have no idea what it is going to look like. The people occupying Wall Street know something is wrong - the system is sick - but they do not know where we are going. Nor do the people in government, nor those in board rooms. All are like corks floating in a torrent that is close to breaking its banks. The present system is sick because it has, in perfectly understandable ways, led ordinary people into increasingly compromised positions. We live in houses we do not really own, on loans taken from organisations that do not really have the money they loaned us, who pretend to be risk taking enterprises, regulated by government organisations that are not really independent of those they supposedly regulate, overseen by bodies, the members of whom are elected by supposedly democratic processes in which only those with access to vast amounts of money can contemplate participation, and who, once elected, find themselves enmeshed in a situation in which so many compromises of fact and principle have already been made that it would be super-human not to succomb to cynicism and manipulation.
This has all the hallmarks of civilisation in decay. History has seen this before: the decline and fall of.... (fill in the blank with any number of former systems). Something new will emerge, but there may well be quite a heap of ashes before it does so.
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