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It's About Power, Not Ideas

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I'll probably eventually read Matt Bai's book for the story of bloggers and billionaires interacting, but his core view of the "lack of ideas" among liberals as driving the American reality is just an excuse not to deal with the REAL DC establishment, the core of moneyed corporate power that blocks most real reforms.   Europe doesn't have a better welfare state because the French had better intellectuals on the left; they built a stronger welfare state because, unlike in the US, the corporate class in Europe was devastated by World War II, so democratic votes were not thrawted and the labor movement was stronger.

There are lots of good ideas on the progressive side, but most policies proposed are modest not because people have small minds, but because even limited reforms face filibusters and corporate lobbying. 

Yet Bai dismisses even the Center for American Progress's anti-poverty program as being just about giving poor people a money handout when it is all about supporting working families to help themselves.   

CAP's list of reforms are all about changing the “choice infrastructure” of people’s lives (to use Bai's terms), including to: 

  • Index the Minimum Wage to Inflation
  • Expand EITC to reward work
  • Strengthen labor unions
  • Provide child care so parents can work
  • Use housing money to put affordable housing in locations near available work
  • Train poor youth in high-demand fields of employment
  • Expand Pell Grants to get people into college
  • Help ex-prisoners find jobs
  • Increase access to financial loans and cut fees which are higher for the poor than everyone else
  • Encourage savings credits to support homeownership and retirement
  • Oh yeah, one last item on reforming welfare payments

Except for the last one, none of these were about money handouts, yet Bai dismisses the whole range of grassroots movements and thinking supporting each step.   These reforms haven't been blocked because there's no thinking there, but because various entrenched interests are opposed to them.

As for Bai's own example of "a mother wants to attend a parent-teacher conference, but she loses wages if she does, and so there is a reverse incentive to do what will ultimately help her child," progressive activists have been working to deal with that issue for a number of years.  In fact, a number of states already have enacted programs specifically giving parents the right to attend education activities. For example, California's Family-School Partnership Act (Labor Code Sec. 230.8) gives parents 40 hours off per year for school activities and Vermont's 21 V.S.A. 472a gives parents 4 hours off in any 30-day period for medical or school activities.

All this discussion of "establishments" and "insurgents" is really kind of bizarre, since it largely ignores the millions of people who are involved in politics through their local union local, church, PTA, enviro group out there in the hinterlands working on these issues in the states, where filibusters and vetoes don't kill every good idea.  

The problem in DC is significant bills get passed so rarely because saying "no" is in the DNA of its institutions.  But if you look at the progressive laws that states enacted just this year (see Progressive States's Taking the Lead), you see a wide ranging movement focused on everything from innovative clean energy laws to cutting the tax burden on the workiing poor to innovative health care reforms to voting reforms.

Not that the corporate power doesn't fight these bills out in the statehouses, but with fewer intellectual salons, most people understand that bills rise and fall based on raw political and economic power, not on some idea that the New Deal was won because Harvard intellectuals were smarter back then-- rather than because pension activists and union organizers fought it out in the streets and in the corridors of power with the corporate opposition and for a time the good guys won.  We'd had a few good rounds since then, but a range of factors quite apart from the quality of our think tanks has skewed political power towards corporate interests.  Hell, the fact that progressives even have to think about putting their hopes in a weird club of billionaires says a lot about how skewed political power is in modern politics. 

Ideas matter-- I won't argue that intellectual force can help in a fight -- but how to overcome the raging economic inequality that drives political inequality has to be at the core of any real discussion.  And Matt's focus on "ideas" seems to miss that fact.


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Europe doesn't have a better welfare state because the French had better intellectuals on the left; they built a stronger welfare state because, unlike in the US, the corporate class in Europe was devastated by World War II, so democratic votes were not thrawted and the labor movement was stronger.

While this may be part of the answer, it's not the full story, or even the primary reason.

The problem in DC is significant bills get passed so rarely because saying "no" is in the DNA of its institutions.

Now this is a lot closer. But it's not "DNA"; it's the Constitution and the system of separation of powers.

The House of Representatives passed a bill for increased SCHIP funding a couple of days ago. In most Western European democracies, that would be it; the bill would already have become law. In the U.S., the bill must then face the undemocratic Senate, where it then faces a filibuster from an even smaller minority. (The filibuster provision is not in the Constitution, and the Senate ought to get rid of it.) Then, after passing both the House and Senate (plus arcane conference committees between both houses) it must be signed by the President, who has, in this case, threatened to veto it. And only a 66% majority in both houses can override this.

We have a weaker government and social infrastructure than European nations because our Constitution was written in the 18th century when the dangers of government power was well known and feared but the danger of modern corporate power was not yet understood.

The UK's system may look superficially similar to ours, but it's really not. The House of Lords can only delay legislation, not kill it; and it is generally very reluctant to do even that. And it would be completely unheard-of for the Queen to refuse Royal Assent; that hasn't happened in centuries.

Bai might argue with you about the importance of having an overall narrative, and I think this may dovetail with the idea of framing to a certain extent.

Practically speaking, if we get 60 votes in the Senate and a Democrat elected President, a lot of good ideas will be implemented. If we don't get 60 in the Senate, however, we won't be able to implement many big ideas, so things will only improve a smaller amount.

With a Dem prez, foreign policy, the quality of the federal bureaucracy, and judicial nominations improve overnight, but we still won't pass important legislation without some Senate GOP support. Olympia Snowe becomes the new center of gravity.

Joshua, you have a very good argument there. One thing that continues to frustrate me is that we talk a great game about democracy, even calling ourselves a democracy, but we are deathly afraid to actually try democracy. In a democracy the voters elect the president - we don't get that privilege. In a democracy, everyone's vote is equal - we refuse to even try that. In a democracy, a majority of the votes passes legislation - we require the minority to give assent to that, or we require a super majority to pass the legislation. In California, we require a 2/3 vote just to approve a state budget. I think it is time to put up or shut up for America.

Hoppy in Sacramento

In a better world, if we Democrats have a 60 vote majority in the senate we can pass some really great reform laws. But, we don't live in such a world. The only laws we can pass, no matter what our majority is, are laws that are seen as benign by big business, are seen as favoring Israel's interests, and that don't restrict the profits of the armaments industry. That greatly restricts what can be done, no matter what majority we get.

Before anything will change we need to engage a super majority of our voters to get informed, interested, and to vote. (Not possible in my remaining lifetime). We need to reverse the attitude that taxes are an unreasonable burden on citizens. (Not possible in my remaining lifetime.) We need to convince the majority in all states that we are all equal citizens, all equally human, and all needing to be treated with respect. (Probably not possible in this century.)

I support our efforts 100%, but I have no illusions about what can be accomplished.

Hoppy in Sacramento

I'm going to be writing more about this in coming weeks, but we don't have to wait for sixty votes in the Senate.

Most states operate on majority rule, so many good ideas are being implemented at the state level and many more could be if more energy by many DC-oriented activists was instead focused on our statehouses.    The rightwing is far more powerful at the federal level precisely because they only need a minority of votes to block everything.  At the state level, they need a majority which is very hard when the public is mobilized.

So no need to wait for the magic 60 Senate seats.

It is true that our system of government seems built to make all sorts of legislation difficult. However, the Senate and the President would not block progressive legislation if the Senate and the Presidency were progressive institutions. But they are not progressive institutions. They are conservative institutions. And they are conservative institutions because they are the servants of the corporate class on whom they depend for the elevation to their positions.

Corporate lobbyists write legislation all the time. And their legislation frequently sails through, the Senate and Presidency notwithstanding.

Two points:

1. We don't get more progressive legislators because only the rich and those in thrall to them can afford to run for office. If you want more progressive policies enacted then you need electoral reform as a first step. I don't see this happening. The powerful like the present arrangement and so does the media, the consultants and pollsters and the rest of the permanent campaign industry.

2. Matt Bai likes to maintain that he is a neutral observer, but this is disingenuous. He gets defensive when this is pointed out. One cannot offer "advice" (even indirectly by asking "questions") without revealing one's biases. In his case we have a long series of slanted articles in the NY Times Magazine as evidence. Much of what he has written has been dissected elsewhere in the blogosphere. From my perspective he belongs to that group that is offering "friendly" advice. No thanks. Take you neo-liberal position elsewhere.

I don't think it is necessary to invoke European history to show why conditions are more equitable there than here. One only has to look at the deliberate (and successful) effort to eliminate union power in this country to explain the shift in political strength. As I always say "might makes right".

I have some graphs illustrating the correlation between the degree of unionization and the condition of working people as part of this short essay:

Does Unionization Matter?

--- Policies not Politics
Daily Landscape

Why do people treat the Bais of the world other than with dismissal is beyond me. I haven't read the book and don't intend to. Bai's book sounds to me, from the multitude of comments about it, as close to gossip as one can get without writing about divorces and affairs.

There is way too much noise around us, let the Bais try to reduce the amount of noise by keeping quiet.

"Why do people treat the Bais of the world other than with dismissal is beyond me." One word: influence.

John 

http://www.haberarts.com/

Re: Europe doesn't have a better welfare state because the French had better intellectuals on the left; they built a stronger welfare state because, unlike in the US, the corporate class in Europe was devastated by World War II, so democratic votes were not thrawted and the labor movement was stronger.

I disagree with this. The European welfare state was a work in progress well before WWII. And your explanation does not account for its progress in countries like Sweden which suffered no damage at all in WWII.

Re: We don't get more progressive legislators because only the rich and those in thrall to them can afford to run for office.

I don't know that that is the problenm. It's pretty much true everywhere that you have to have a substantial financial cushion to afford to run for major office. Certainly no one who lives paycheck to paycheck (most people, both here and abroad) could do so. And there have been wealthy liberals: think of FDR and JFK. Moroever some of the most reactionary people in the country are found in the lower and lower middle class.

Bravo Nathan! You're right on the money man!

It would be interesting to see some stats on the relative wealth of legislators in various countries compared with the median for the same place.

In the mean time you can look up the GINI coefficient. The US is the most unequal of all industrial countries in terms of wealth distribution. I claim this gives the wealthy too much influence and is fundamentally anti-democratic.

Several countries in the EU have been drifting in the same way, notably the UK and Italy and the average person has been doing poorly in these places as well.

--- Policies not Politics
Daily Landscape

I too question that assertion. I think I learned in history that a lot more of Europe than "the corporate class" got killed in WWII. I think an awful lot of its democratic votes died on its battlefields. I also think socialism was always more of an elite movement in Europe than a mass movement. Is there some data to back this up? I suspect a better answer is simply that (a) socialism originated in Europe and adherence to it was far more advanced among the elites in Europe than the US for much of the time since then, and (b) economic growth has been stronger in the US than Europe for most of the time, dampening the cry for socialist intervention.

You just wrote one of the best and most insightful comments I've seen on this very good board.

You wrote that in the 18th century, the power of government was understood while the power of corporations was not.

A funny aside, Adam Smith did understand the power of corporations and what they could become. And he warned against them, wanting them to die when the people who founded them did, lest they become more powerful than people.

We didn't listen. To the guy who most people call laissez faire but, were he alive today, would regulate the heck out of what's going on.


thosethingswesay.blogspot.com

Sorry, but in California we need a 2/3 majority to do much of anything - the small Repub minority in the state legislature holds the power, not the big Democratic majority.

Hoppy in Sacramento

The Democrats won a majority to get out of Iraq. They will use their majority to freely fund anothet $190B to be totally wasted in Iraq. Yet, they whine that they can't pass SCHIP because the big, bad Republicans will fillibuster a much smaller amount of money to be spent on our own children right here at home.

The American people are going to be stuck with two candidates who just can't wait to go to war with Iran and and who will not end the war in Iraq even by 2013. That's the "super majority" -- two candidates for more war is a super majority for war.

There will be no money for anything else.

The narrative that dominates american polity in our time is that capitalism = democracy. It is sold to the american people every day by the media in advertising and much entertainment. Of course democracy - in which the people serve in the government (not just royalty or "gods" (divine right of kings)) - evolved in ancient greece. capitalism is the child of the enlightenment - at least - smith published wealth of nations in 1776.

supporting corporations is not one of democracy's jobs as the american people will realize as they forfeit more rights to companies. just look at the bankruptcy law of 2005.

Corvid

Maybe we should begin to develop the narrative (which would have the advantage of truth) that capitalism is antithetical, even hostile, to democracy. What's compatible with capitalism is law and order, not giving voice to people through a genuine democratic setup. Look at China. Or the United States.

I hope he is right. I hope liberals are now for power instead of "new ideas".

Liberals have always had great ideas. There are tons of ideas sitting on shelves about everything from energy independece to health care.

Problem is liberals have been losing elections. They are not good at playing the power game. The GOP has perfected the game. If they have to swiftboat, steal, to win elections they will do it. And without winning elections policy ideas are useless. They just sit in shelves.

The Republican party's corporate backers and leaders see, and relate to, the rank and file as a market to sell to, more than as a constituency to represent. And they use all the sales, marketing, public relations methods they use to sell their products to consumers to sell their political interest to voters. The party's ideas come from the top, and are intended to serve those at the top, and then are sold to those down the line.

The Democrats have a harder job. Because they really are bottom up and have much broader constituencies to represent. Those constituencies must first convince the party leadership to support their interests before they can have any chance to convince the broader field of voters that they share and support their interests too.

Re: Yet, they whine that they can't pass SCHIP because the big, bad Republicans will fillibuster a much smaller amount of money to be spent on our own children right here at home.

Not only did the GOP not filibuster SCHIP, they voted for it in surprisingly large numbers. But not quite enough to override King George's veto. This is not the fault of the Democratic party. It is the fault of George w Bush who is kowtowing to the insurance industry and pandering to the far extremes of the GOP in this matter.

Europe doesn't have a better welfare state because the French had better intellectuals on the left; they built a stronger welfare state because, unlike in the US, the corporate class in Europe was devastated by World War II, so democratic votes were not thrawted and the labor movement was stronger.

 

Europe also has a bigger (I wouldn't say "better") welfare state because it is far more racially homogenous than the U.S.  The fact that welfare of all sorts would go disproportionately to racial minorities is a big reason why it hasn't the same popularity in the U.S. as in Europe.  People don't mind supporting their own, but white people have a much more difficult time supporting welfare when they see it as a program for taking stuff from whites and giving it to blacks.

 

"You say I'm a dreamer.  We're two of a kind.  Looking for some perfect world that we both know that we'll never find." - Thompson Twins, "Hold Me Now"

It's also the fact that socialism and communism, in many ways, conflict with core American values. This is, and always has been, an individualistic society -- given the diversity of the population in some ways it needs to be. Individualism tends to directly conflict with the communal values that underly socialism and communism, and to a lesser extent even liberalism.

John,

Exactly what are you accusing him of here? Is his "influence" somehow nefariously obtained?

I can't speak for others, but my reason is that I don't believe in treating ANYONE with dismissal, except perhaps in very rare cases. Instead, we are called upon to respond to the arguments and evidence presented rather than trying to deflect to the question of who's saying it.

These kind of statements are just an attempt to shut down discussions and arguments that the person making such a statement doesn't like.

You're lucky in California. Here in Texas the Republican Party dominates all the state-wide political institutions, and the Republican Party itself is dominated by the religious fundamentalists and evangelists.

That's because we have a caucus system of selecting delegates to the county and state party conventions, and the state convention elects the party leaders and writes the party platform. The Republican Party platform is a collection of extremist statements, with a provision that no candidate in Texas can run without signing a pledge to support the Republican Party platform.

Also, the Texas Senate uses a 2/3rd rule to pass anything. It is sold to the public as a method of forcing consensus, but like in California or the U.S. Senate, it empowers the minority when they want to say "NO!"

The result is that Texas politicians, when looking at the social statistics for Texas ranked by state (per capita income, student drop-out rate, teen pregnancy, Life expectancy, whatever) will always be heard to say "Thank God for Mississippi!" since Mississippi usually is the bottom of the 50 states and Texas is usually number 49, right above Mississippi.

There is hope for Texas though. This year, for the first time 50% of all children entering first grade come from Spanish-speaking homes. That means that 11 out of every 22 children in each first grade class are Hispanic. Statistically 10 of those eleven are born American citizens, too.

Do New York state and Florida have these 2/3rds laws or practices also?

The unions in the U.S. have been destroyed partly because they eschewed creating a political party they way unions in Europe did. The result was that big Businesses and banks here were able to dominate labor in the political arena by co-opting too many Democratic politicians.

When unions focus only on wages and benefits, they lose everything to those who focus on political power. That's because both big business and unions are a creation of those who use power to gain wealth. Most importantly, government determines the balance of power between labor and management.

It is difficult for banks and corporations in Germany to practice union-busting when they have several representatives of Labor sitting on their Boards of Directors. That is required by German Law. The result is better distribution of the profits of the business between capital and labor, with more recognition that health-care, housing, transportation and education for workers in is the interest of the economy as well as national society.

our Constitution was written in the 18th century when the dangers of government power was well known and feared but the danger of modern corporate power was not yet understood.

Perhaps, but as the last few years should have taught everyone here -- but apparently hasn't -- the dangers of government power are still quite real.

And the notion that these powers are less dangerous under majority rule is just a falacy. They are only less dangerous to the majority. And in a country as diverse and as complicated as ours, you can trust that there will come a day when that does not include you. Let's not forget that the MAJORITY of United States citizens supported Bush's war up until the last year or two. Let's remember that in the last Congress, the fillibuster was the only tool we had.

And exactly how would adopting a pure majority rule government fix the problem of corporate influence. Corporate influence in government is the result of bribery and politicians needing huge amounts of money to win elections, which corporations then provide. How does eviscerating the nation's checks and balances fix that problem?

People always seem to the think the answer to everything is power. If only we had the power to force things to our way, everything would be different. This is an emotionalistic fantasy, and I trust those spouting it with the wielding of power no more than I trust George Bush because like him, they don't understand power's limits or its tendency to unintended consequences or the blindness that even its pursuit tends to engender in them.

1. Power corrupts.
2. Concentrated, centralized power shuts down real discussion of issues.
3. Power, once created, can never be held forever so you better be able to live with the powers you create coming into the hands of those you hate.
4. Concentrated, centralized power attracts the worst kind of meglomaniacs and opportunists.
5. Concentrated, centralized power makes changes entirely dependent on that power, which tends to make change harder and harder to make.
6. Concentrated, centralized power tends to seek its own continuation for its own sake rather than the sake of the country.

Divided power means that everyone has to talk and debate to get things done and that essentially nothing can get done until a strong consensus has been reached -- not just a majority approval -- but a consensus. It ensures that the minority must be listened to as well.

This is, of course, frustrating to those who are so convinced that they're right and the other side is wrong that they feel they should be able to impose their will right now. Certainly, the far right feels this way. That's why, when they controled Congress, they shut Democrats out of virtually every decision -- because the Dems were in the minority.

Now, liberals think they are in the majority -- a debatable point I think -- and so right now they want a pure democracy instead of the representative republic that the country has always been. I wonder if these same people will stick to that argument if they find the majority turning against them. Somehow I doubt it because I think they are only thinking of the moment, blithely talking about trashing the very foundations of the American community -- which is what the Constitution is -- to deal with short term problems.

The truth is, in better and more representative hands, American government has done a fair job of being a check on corporate power over the decades. Things have gotten steadily better, at least until recently. And with a stronger majority, more gains will be made in the future unless liberals lose their minds and start attacking the foundational beliefs of the country, thereby proving every GOP attack against the left ever made.

CommonDreamer: "Exactly what are you accusing him of here? Is his "influence" somehow nefariously obtained?" Not at all. Well, I could argue that he has disproportionate influence because he plays into the politics of the Sunday magazine or because it reflects a kind of Peter Principle in which good reporters get elevated to become bad pundits. But I didn't mean even that.

Someone had simply asked why we paid attention to him, given what we found to be poorly thought out ideas. I was just explaining it's worth replying when he has such disproportionate influence. And I think the replies really did get substantive. I realize my own got more shrill (not that one, but others). But frankly I just lost patience. I wanted to like him, since I'm not a fan myself of the "Democrats are traitors" theme of the blogosphere. But he simply convinced me he's got a lot of lousy ideas and straw men.

John

http://www.haberarts.com/

Connski, you got it exactly right.

The U.S. has gone topsy-turvy. Instead of government, society and business that all exist to benefit individuals and families, we have individuals and their families who exist to benefit business and government (and with Bush in office, to support organized religion also.)

That's because the guys at the top in both business and government (including most Democratic politicians, especially Senators) are like the old absolute monarchs. They see that society exists to benefit them, not vice versa.

Too much of what passes for political thought is based on old economic ideas. The discipline of Economics just doesn't describe what it important. The discipline economics is the study of sales transactions using money as a measure. Those transactions happen right down at the level of two theoretically independent individuals. The power that results from such transactions exists at the level of an independent buyer and an independent seller.

The discipline of Economics limits itself to the study of power from that source and assumes that a business itself is simply another individual with full knowledge of the decisions he makes. Power in society that results from other sources besides economic transactions (and there is a lot of such power) is ignored.

Small businesses exist entirely on what they buy, produce and sell. Buying and selling are the most important part of small business operations. Economics best describes small businesses and family farms, the primary economic engines that existed during the American Revolution.

Big business is very different. as a result of the Industrial Revolution, some production processes are so large that they require a great deal of internal bureaucratic control of internal power to make them work. (Railroads, Factories, the telegraph, etc.) That internal bureaucratic control of power is centrally controlled by whoever signs the budget document or hands out the money, just like the forms of power used in government are controlled. In an auto manufacturing company, only the sales and buying staff are involved in economic transactions. Everyone else is part of a bureaucratic organization, and the larger it gets, the more power the guys at the top have to control. Even the Buyers and sales staff in a large organization are subject to the same bureaucratic controls from top managers as the bureaucrats in government are. Power in big business (as in any large organization) belongs to the top managers who determine the budgets.

[As an aside, the study of economics is limited by its source data to the study of the transactions at the beginning and end of the production process and ignores the bureaucratic and power processes in between. Since Libertarianism assumes that everything in society is controlled by economic transactions, the set of Libertarian 'ideas' is worthless to overall society. It is this unsupported assumption that leads to the theory of a free market with extremely limited government.]

Modern government is a bureaucratic organization designed to apply power to individuals and control their behavior. It is centrally controlled, like big businesses, and unlike them is not limited or restricted by market transactions that occur at the beginning and end of a production process. Because of its police power it can raise taxes and is not as limited by economic transactions.

The key point to remember is that top managers in big business are power managers just like top managers in government. The difference is that government, being older, went through the theory of the divine right of kings and then moved slowly - with the kings kicking and screaming - towards democracy. [Magna Carta - Glorious Revolution (1688) - American Revolution - French Revolution - etc.]

Top managers in big businesses have been able to isolate themselves from most outside influences and are currently operating in the absolute monarch manner, except when government forces them not to. Then they, like earlier kings, kick and scream and in the case here in America, co-opt government to the extent they can with their wealth. Why not? Like the kings of yore, they control their own paychecks. (That's only one example of the atrocities on society by big businesses.)

That's why more government regulation is required to protect customers and society from big business. That would substitute for the democracy that big business will never permit to its shareholders, suppliers and its labor. But it requires open, transparent government that allows everyone to know how the regulations are made and how the regulators are trained and chosen.

[This is the core argument. Any full argument would require at least a book.]

I very much agree that supporting corporations is not democracy's - or government's - job. Government exists to provide the needed protection and social measures (especially health-care and education) needed to support individuals and families. Corporations and business exist to provide jobs with income, and good and services for those individuals and families.

It's time for a bit of attitude correction in both the top managers of big businesses and in government.

The discipline economics is the study of sales transactions using money as a measure.

No it's not. The Economics 101 class I had in college defined it as the study of how a society distributes goods and resources. Trade with money is one way. Direct trade of goods or services is another and some economists do spend their time examining barter systems.

The discipline of Economics limits itself to the study of power from that source and assumes that a business itself is simply another individual with full knowledge of the decisions he makes.

Economics doesn't study the "power that results .. from transactions" at all. It's not concerned with power except in how it might affect the distribution of goods and services. It is true that wealth and ownership can be and often are sources of power for the individuals who hold them and can be sources of power when people combine their wealth, but this is a byproduct of an economic system, not its chief focus.

Since Libertarianism assumes that everything in society is controlled by economic transactions, the set of Libertarian 'ideas' is worthless to overall society.

Libertarianism doesn't believe in control at all generally speaking. And Marxists are just as enamoured of economic determinism as they are.


The key point to remember is that top managers in big business are power managers just like top managers in government. The difference is that government, being older, went through the theory of the divine right of kings and then moved slowly - with the kings kicking and screaming - towards democracy. [Magna Carta - Glorious Revolution (1688) - American Revolution - French Revolution - etc.]

Top managers in big businesses have been able to isolate themselves from most outside influences and are currently operating in the absolute monarch manner, except when government forces them not to. Then they, like earlier kings, kick and scream and in the case here in America, co-opt government to the extent they can with their wealth. Why not? Like the kings of yore, they control their own paychecks.

This is pretty over the top. Corporations respond to public pressure all the time.

I agree that we need government regulation, but at the same time, the interests of corporations and businesspeople SHOULD be represented in our government because what's in their interest is often in the interest of the economy, their workers, and technological advancement. As you state, corporations and businesses provide jobs, services and income, but the mass of people -- and especially and disappointingly it seems Democrats -- are so woefully ignorant of what it takes to do that, that I fear they would run the country's economy right into the ground if corporate interests had no power in the process at all.

Our goal should simply be to make sure that those businesses that choose to do the right thing like taking measures to protect the environment, or workers, or whatever at least have a fighting chance in the marketplace against those who take shortcuts.

But this kind of demonization of corporate America is really not helpful.

Great comment, well presented. Makes me think about a lot of things, not the least of which why so many still seem to want to chase opposing viewpoints off of political blogs (especially the wonk variety, not the political action variety, though a reality check from time to time might help those, too) and to get the majority of their news and information from those of their own viewpoint.

Economics purports to study the distribution of goods and services, but look at the data they use to do it. Goods and services are distributed to the highest value use. How is value determined?

In economics the value of a good or service is the dollar equivalent of that good or service as determined by an arms-length transaction between a buyer and a seller. (As you say, economics 101. It is clearer to accountants, however, and they provide the basic economic data being used. Still, check the money & banking course in economics or finance for more details.) You may also remember from that economics course that money (among other things) is a unit of value. That economic transaction converts the values of all types of goods and services into a single unit of value that can be compared to the value of totally unrelated goods and services. It only becomes such a unit of comparable value in an economic transaction.

How else could a guy compare the value of twenty dollars of copper or pvc pipe with the value of a twenty-dollar lap dance? Yet sale of each adds twenty dollars to the GDP through the magic of an economic transaction. [How do you determine which is the higher value good or service? How bad did you really want that lap dance? Which did you buy?]

Markets then take this value as determined in uncountable economic transactions and accumulated those transactions in financial reports, to determine the economic value of entire companies. That's the kind of data that financial markets run on.

Barter systems are negligible in the numbers used by the Federal Reserve, the Bureau of Labor statistics, the Commerce Department or the Treasury Department - or any of the financial markets.

Economics doesn't study the "power that results .. from transactions" at all. It's not concerned with power except in how it might affect the distribution of goods and services.
My point exactly. Society does not run on economics. It runs on power. But there is no convenient method of converting power transactions into some unit of power measure. There simply is no single unit of value that directly compares economic value with power, because there is no unit of power value.

The result is that we get a lot of outstanding equations that describe economic transactions at a macro level, but nothing comparable to compare power transactions. The result is that there are massive amounts of quantitative data describing economic transactions, while power transactions are essentially ignored. Management theorists who have studied management decision-making have proven that decision-makers give a lot more weight to quantitative data than to qualitative data in making decisions, and I think it is fair to extrapolate that the general public similarly gives greater weight to quantitative data over qualitative data. To day that another way, what an economist says counts more than what a political scientist or historian says because the Economist can provide better charts.

Libertarianism doesn't believe in control at all generally speaking.
Anyone who doesn't believe in control is ignoring power.

No organization exists without control. Society in general requires control to maintain stability. Control is required in families, especially with children, and the apparent lack of control in towns and cities is the main reasons why members of agricultural societies tend to detest "townies." The existence of different classes (Aristocrats and Plebeians) in towns is a form of social control. Urban areas can't exist without it, and agricultural people can't stand it.

Libertarianism ignores social control and attempts to replace it with totally personal goal-oriented behavior. Yet there will always be a small number of individuals who do not consider the social reactions to the actions they take and thus have to be controlled. One in 500 individuals who do not live by the rules can destroy a society if not controlled. The result is that no one can be trusted to live without social controls, which require power. So the application of Libertarianism demands lead in the paint on children's toys from China.

Gotta have control - that is, power - to make society work. On that fact Libertarianism totally fails. Sorry. No one needs to control ME. Why am I controlled? Because the uncontrolled one moves around or does his antisocial behavior in secrecy. The other side, though is that the methods of control must themselves be controlled or they become methods of oppression on the other 499 individual. Again, you can't ignore power. It has to be applied and it has to be restricted in its application.

So how does economic determinism apply? Marxist-Hegelian determinism is interesting, but not very significant to anything here.

Corporations respond to public pressure all the time.
So do most individuals. But look at my point regarding one in 500 individuals who for one reason or another do not act in a socially responsible manner.

Corporations cannot be trusted to act in a socially responsible manner, especially when you have an extremely long production/sales chain like that of toys from China. What was it one Astronaut said? He was sitting on the launching pad realizing that his life depended on the reliability of 500,000 parts, each made my the lowest bidder? The final product depends on an awful lot of things being done satisfactorily, and failure is not an option. Control is an absolute requirement.

In private business they act to avoid transparency unless they are forced to expose their internal processes. There is an entire branch of economics based on how the buyer and seller act when one has more information about the product than the other does.

Granted that public pressure does cause businesses to react, but how often does it require then to act responsibly? Go look at how Enron operated. Or SunBeam. Or WorldCom. Those are the most well-known. The Auditing literature shows an awful lot more. Each and everyone avoided transparency and when it was demanded, they lied. A local food supplier sold a large batch of chile to a restaurant, who returned it because it smelled bad. The manager of the food supplier then refroze and resold it to a supermarket. Over a dozen people were hospitalized. The food supplier was saving money by not checking out the returned item before reselling it. The supermarket went out of business.

Quality control directly impacts the bottom line and does so immediately. A change in management, an incompetent manager, or a crooked manager can kill people. The food supplier wanted the final settlement sealed, but the judge was better than that. The cost of such behavior needs to be publicized so that others will spend the money on quality control. Was that demonizing business? I don't think so. Failures have to be publicized so that the cost of avoiding them can be justified to the bean counters.

I don't say that the needs of business should be ignored by Government, but the idea that Democrats don't understand the needs of business is a bunch of crap. I'm a Democrat, and I have a pretty good idea what the needs of business are, and sometimes the top managers of some businesses aren't going to agree with me. [But like the Enron Managers, they don't like Auditors either.]

To suggest that the needs of business might not be represented in government is applying the logical fallacy of the excluded middle. I'll focus on the crooks and watch the rest for crookedness, but I'll also support those businesses that are doing a great job.

Consider what Reed Hundt wrote recently about cellular phones. South Korea and Japan have much better technology that America does. Why? Inadequate American government regulation. Every phone sold needs to be able to use every network in the business. That would eliminate restrictive multi-year contracts and phones which are technologically crippled so that they can't work with other networks.

My kid tells me that Apple just applied a software patch that prevents the use of their iPod with other networks, because of the patch a hacker kid developed that opened it up. The fact that the Apple patch also disabled some iPods that did not have the hacker kid's patch was a surprise to Apple.

The real problem is that Apple is crippling its iPod in the first place rather than innovating in phone services. This is a failure of proper government regulation. The market needs to be designed to encourage better equipment rather than tying phones up under legal contracts and crippled software. No one uses a contract to talk or communicate. Innovation in contracts is not useful innovation. Yet this is a failure that Libertarianism and the free market philosophy causes. [Show me an innovative civil or tax lawyer and I will bet I am looking at a total economic parasite. Odds are on my side.]

I fail to see how demanding that businesses tell us whether they use lead paint on children's toys or cripple their cell phones is "demonizing corporate America." You are defending the indefensible. [Want to buy some Enron stock?]

Just thinking about the relative value of copper or PVC pipe to a lap dance, each for $20. From Intermediate Economics that could be described using indifference curves. I must admit that until this moment, except to pass a test in intermediate economics, I had never considered the theory of indifference curves of any real value at all.

That in spite of the fact that one of my professors was proud of the fact that he received Sen. William Proxmire's Golden Fleece Award for research in which he published a study of pigeons who pecked out indifference curves as the relative supply of water and food provided to them was varied.

I wonder how I could vary the available PVC pipe in relation to lap dances? Is there a grant in this? Anyone want to be a test subject?

Forgive me. I think this counts as academic economic humor.

Re: Do New York state and Florida have these 2/3rds laws or practices also?

I don't know about New York, but as far as I know Florida (where I live) has no such laws. The Florida state legislature however is one of the most incompetent legislatures in the country-- the Larry, Moe and Curly of legislatures. It is dominated by the GOP, but the Florida GOP is badly fractured between the Far Right and the Not So Far Right and the two sides fight more bitterly than either fights with the Democrats. We now have a governor who is astonishingly moderate for a Republican and he is trying to corral the legislature into accomplishing worthwhile things, though this seems mainly to be through endless (and expensive) "special sessions" since the legislature cannot seem to pass anything during the normal session and so must wait until their inaction breeds a crisis and they are forced to act (and then in their haste they are likely to make mistakes, or sneak through truly bad legislation they wouldn't dare advance except in a crisis). Case in point: at the behest of the insurance industry several Far Righters (including then-Gov Jeb Bush) held up any action for the last two years on our No Fault auto insurance law, which is due to expire Oct 1. As a result the state may not have any enforceable insurance law, and will be unable to require people to carry auto insurance at all. There's rumors of a compromise in the works, to be enacted at, yes, a special session, this coming week. But stay tuned: they may very well pass something that lets the insurers triple their rates too.

In economics the value of a good or service is the dollar equivalent of that good or service as determined by an arms-length transaction between a buyer and a seller.

Value is determined by supply and demand, although it's true that in a single individual transaction value merely consists of what one buyer is willing to pay one seller, which could vary widely from the norm.

Determing value on the basis of supply and demand, in theory and often in practice, means that when people want more of something and it's hard to get, the value of it goes up, which encourages producers to create more of it until they are producing at a rate equal to that of the rate of demand. In this way, people's wants and needs get met. That's what makes it a good system.

Now when you talk about the value of corporations on the stock exchange or even in private sales, there I agree that the value ascribed to them makes it no sense. I can't see that it has much basis in anything real.

Society does not run on economics. It runs on power.

Bull. I have this computer I'm typing on because of the corporation Dell. I have gas to heat my house because of the gas company. I have a house to live in because of a construction company and the realtor who helped me find it. And I could go on and on. And all these transaction are taxed, providing the funds that make government and government projects possible. Without them, government power doesn't exist. Society runs on the day to day activities of ordinary people, some of those activities being economic others being social and very few being about power.

Free markets, in fact, work well precisely because they constitute a system based on incentives and desires rather than the punishing use of coercive power. Nor do free markets depend on the expectation or demand that people be saints.

Power is necessary to form the structure of society and to set the rules of the game, but it doesn't run anything. It inhibits. It directs or redirects. It second guesses. It judges. It destroys. But power CONTRIBUTES nothing.

Yes, we need government regulation of corporations, and requiring all cell phone networks to work with each other might make sense, but you're ignoring the history of why it occurred the way it did in comparison to other countries. If you had required this from the start in our country, the cell phone networks that exist today would never have been built because the companies building them would have seen that whatever they built they would have to share with their competitors, thus making it much harder for them to recoup their money and gain a profit, especially with the existence of established phone companies with land lines.

Failure to consider possible consequences of regulation such as this, is why I fear that Democrats who don't understand business or economics would run the country into the ground. Regulations are necessary, but in forming them we need to consider how they affect the incentive systems that make the economy run.

And as far as why I said you were demonizing business, it's because you didn't mention any specific issues like lead or crippling cell phones, you just went on an on in a very general and broad way about the evils of corporate power.

Thanks, and to answer your question, I think it's because people become so emotionally attached to a viewpoint -- or even more potent, they have an actual personal interest in a viewpoint -- that they simply cannot hear that viewpoint contradicted without feeling pained by it.

Sometimes I feel this way too. It's taken me a long time to learn to seek out opposing opinions, but over time I've come to see that it is those who I disagree with that teach me the most.

Wash U?

Anyway, in theory economists study utility not money. But in practice they admit they can't measure utility and that monetary transactions serve as a proxy for utility maximization. The problem (as you have noted) is that the value of a view of a woods and creek to a community cannot be monitized, whereas the value of that land to a housing developer can be. So economics tends to the study of the monetary transaction and then to policy recommendations that justify the elevation of the monetary over everything else[1]. It doesn't _have_ to be that way, but as Max Swickly documented a few months ago anyone who takes the non-monetary view is driven out of the economics profession.

sPh

[1] For example, if the aforementioned homeowners band together to buy the woods and creek for money, the housing developer will simply induce the local government to use eminent domain to take the property stating that his project has a higher monetary value.

.> Bull. I have this computer I'm typing on
> because of the corporation Dell.

Personally, I would say you have your Dell due to (1) the efforts of a number of university electrical engineers in the 1930s, when doing university research was the equivalent of working for charity today (2) the needs of World War II, which drove NCR, IBM, Sperry, and their equivalents in England to become providers of high-speed computing devices (3) the needs of the hydrogen bomb race; see 2 (4) the needs of the space race, which again drove the development of solid state computers in the 1960s. Lots of power there - not too much market.

sPh

There are those with opposing viewpoints that are articulate, and perfectly willing to compare and contrast with mine, who are joys. The trollish sort that shuts down any discussion is depressing.

As I've become wiser through experiencing my own and other stupidities, I've also learned to stop and reexamine differences. For example, someone who is now a very good friend originally lectured me with religious quotations, seemed overly accepting of authority, and was generically annoying. We started discovering, much to our mutual surprise, that while we might arrive at our conclusion through completely different paths, we often concluded that we wanted the same result. It's always nice to discover your enemy is a friend in drag, or something like that. (I do have a friend who is both a transvestite and a drag racer, but never together).

--
Howard

*equal opportunity offense to both extremes*

"Those who cannot remember the past are condemned to repeat it" [George Santayana]

I was going to point out that value and price are not the same thing, but sphealy beat me to it. I think economists stopped talking about "value" and started to use the term "utility" because no one can precisely define value, and utility does not have a lot of competing common definitions that confuse the issue.

Price is not the same thing as value. It is a proxy measure of social value at a specific moment in time and in a specific place, and is established in an economic exchange measured in some unit of exchange.

For it to become useful to society, there has to be a market where everyone making a similar exchange knows the monetary price of the prior exchanges. The first monetary exchange sets a starting price, and then the following exchanges rather rapidly converge on a socially recognized price.

This price is merely a proxy measure of value or utility. The 5,000 year-old corpse found frozen in the Alps a few years ago was a man who had a bow, arrows, clothes, and even (I think) some decorative items, all of which surely had value to him. But they had no price, since money did not exist then. Without a price, society had no way of measuring what the value those items had for others, just as today there is no proxy measure for power relations between people.

All the economics theories you got in Eco 101 are based on price, not value.

As for power, I forget that many people consider it a negative term. Actually, power is the ability to get someone else to do something different from what they otherwise would do had someone not exerted power. I rather like the French and Raven descriptions of the sources of power. Those are listed at the link right above.

If you work for a company, and the boss tells you to do something specific, you do it because he has power to tell you to do it, not because he is paying you to do that specific thing. If you work on an assembly line, you are given the parts needed and you follow instructions regarding how to assemble them. You don't exchange anything for those parts. Someone with legitimate power based on his position told someone else to get those parts to you.

A productive organization is built around a Value Chain. That value chain consists of the whole series of actions designed to add value to raw materials and end in a finished product. There are usually some market transactions along the chain, particularly at the end when the product is sold, that set market values for the goods and services, but most of the activities between the various market transactions are allocations of resources and behavior directed by individuals using their power to give such instructions.

If you look at the various bases of power you will notice that two of them, reward power and coercive power, can result from promising or withholding wealth. Both of those and the other types of power have both positive and negative applications, but the power itself is neutral. It depends on how it is used.

I've recently been studying the neurological functions that are unique to human beings, and apparently "exchange" is one of them. Power is older. The leader of a troop of apes gets what he wants through the power he has earned when he defeated the other contenders for the position, and ceases to get what he wants from other troop members when he loses that position.

The price mechanism is a cultural development which works on the already natural human function of exchange. "Price" requires an economic exchange, measured in units of exchange, and is not socially of much value until the markets the exchanges occur in are large enough to become somewhat efficient. As a result, the price function operates only in money economies, something that most of the world outside Europe and North America did not have until after the spread of the Industrial Revolution.

A subsistence farm is, by definition, outside the money economy. Power is a lot more important than market exchanges, both outside the money economy and within economic and government organizations even in the money economy. The problem is, there is no convenient proxy measure for power that resembles the proxy measure, money, in economic matters.

[I always wondered how Hari Seldon quantified power in his equations in Asimov's Foundation Series. He had to if his equations were to have any predictive power regarding the future of the Empire.]

To your excellent list, I would like to add the demands of the Social Security system during the 50's and 60's to efficiently print out and mail accurate social security checks each month. SSA had the largest single computer complex in the world during the 60's and 70's, and I am not sure anything yet surpasses it. The IBM 360 was specifically designed for the needs of Social Security. Accuracy, high volume data requirements and low cost. And of course COBOL was designed for the Navy by Admiral Grace Hopper.

Oh, and the original IBM card (the Hollerith card) was designed by IBM for the 1940 census.

Like the Internet and commercial aviation, it all started from government research and subsidies before it got predictable enough for private enterprise to be willing to risk investment money for it.

Basic research is almost always performed by government. Bell Labs was an exception because the monopoly phone company was trying to convince the justice department that they shouldn't be broken up.

I always wondered how Hari Seldon quantified power in his equations in Asimov's Foundation Series. He had to if his equations were to have any predictive power regarding the future of the Empire.
That triggered some thoughts, although they may not be quite what you are considering power -- or perhaps there are. Several of the examples I have in mind are military, but arguably information-theoretic as well. From the military standpoint, many are of the "force multiplier" category.
John Boyd's work on OODA (Observe, Orient, Decide, Act) loops, which, as long as the enemy is not playing information warfare against them, are closed-loop control system. Boyd originally developed these as air combat models, but their greater applicability became obvious, including any activity where one can "get inside the opponent's OODA loop". The idea of "momentum" both in team sports and politics strikes me as along Boyd's lines.
Trevor Dupuy's quantitative modeling of warfare sometimes struck me as a bit contrived, and also dependent on linear equations when various determinants of military power can be exponential. His models included an "elite troops" factor that tended to be anecdotal, but I suspect often tied into the Boyd model, with elite troops either able to act quickly, or perhaps maintain discipline against attacks on their information subsystems.
It's interesting to look at the changes in the US Army's combat structure as they reorganize around the Brigade Combat Team rather than the Division. The proportion of information-collecting resources, ranging from scouts to UAVs to tactical electronic intelligence, has increased radically, perhaps to complement the increased effectiveness of a smaller number of precision-guided weapons.

--
Howard

*equal opportunity offense to both extremes*

"Those who cannot remember the past are condemned to repeat it" [George Santayana]

I'd heard of "Getting inside the enemy's decision loop," but not the theory behind it. But information is a part of the decision process, whereas the different forms of power make up the social structure (or at least part of it) that holds the organizations together and makes them function as a coherent unit.

That reminds me of two different but related items I am aware of. One way to describe an organization is as a social decision-making organism, designed to take in relevant information and route appropriate parts of the information to specially designed departments which are set up and identified to receive and process those types of data. The invention of bureaucracy with trained specialists, identified jobs to be filled by individuals with specific training for those jobs and jobs that have restricted powers, was a great social advance in creating larger organizations. (I suspect the conservative disdain for bureaucracy is a major reason why the Bush administration is so incompetent at actually running a government.)

The second item is historical. Karen Armstrong has written a fascinating book about what the German philosopher, Karl Jaspers, called the "Axial Age." (Armstrong's book is called "The Great Transformation.") The Axial Age was the period between roughly 900 BC and 200 BC that saw the creation of Monotheism in Israel, Hinduism and Buddhism in India, Taoism and Confucianism in China, and philosophical rationalism in Greece.

These religions, I think, were the first great social move towards making the human individual more important than the human family. For significant and self-identified groups of individuals to exist separate from the protection of the family unit required greater individual mobility, new social institutions, and a lot more information than could be obtained by someone restricted to one small valley for their entire life. This was not yet widespread, however. In William Manchester's outstanding book "A World Lit only by Fire." he points out that during the Middle Ages most people never once traveled more than about 20 to 30 miles from the place they were born, in part because the languages spoken in the next valley or town was unintelligible. Only armies, the governments that fielded the armies and religions moved further than that on land. The sea-faring nations of Europe were, of course, more mobile, but still that was only a small part of the population.

In all four areas there was a massive time-of-troubles during which the older religions ceased to be effective and were replaced by the newer philosophies. The older religions, appropriate to settled agricultural societies, involved having mostly hereditary priests who led rituals designed to maintain the stability of the recurring patterns of life, such as the seasons, the weather, the crops, etc. Those groups rituals were used to maintain social stability.

The times-of-troubles were based in the growth and increased power of a new class of town-based merchants along with recurring wars and banditry at a level not previously seen. The new philosophies/religions shifted focus from group rituals to individual morality and in each case a form of the Golden Rule. but what caused the times-of-troubles?

The Axial Period immediately followed the domestication of the horse by the Aryan peoples who filled the plains in the center of the Eurasian land mass. This is right in the middle between Greece, the Mid East, India and China. For the first time human beings could travel long distances quickly. Trade, banditry and war all became possible on a much larger scale than previously.

Travel long distances became much easier and faster. And like modern warfare, the available information had become much greater and more easily collectible. Whether cause or effect, each of the new philosophies early on were provided with written texts of their beliefs during this same period. These written religious documents allowed individual students to be exposed to much larger sets and more reliable forms of data to study. (Armstrong alludes to these social changes. I give them more emphasis than I think she does.)

It also intrigues me that standardized coinage was invented by the Hellenic civilization in roughly 750 BC. This led to innovations in banking and trade and no doubt also contributed to the times-of-troubles. Money is itself a highly compressed form of data.

Then jump forward to the next great jump in social and economic change. The Industrial Revolution was a period in which the information gathering and processing capabilities of bankers and mostly sea-borne traders were combined with the older methods of repetitive routine work through application of the factory system to production. Bankers, financiers and sales people are all information workers. Production workers used to to routine type work, much like growing crops.

The new production capacity and need for raw materials and labor greatly expanded the money economy since money is the premier form of economic information. I have long wondered why the modern public factory school system for children grew up in the last 150 years, but this sharply increased demand for trained information processing people would explain it.

The Industrial age was a hybrid, though, using both routine workers and information workers. Routine jobs are currently being automated out, leaving only the information jobs. NPR radio had a segment on a book about the post WW II GI Bill. America spent $10 billion giving returning GI's a college eduction, vastly expanding the university system and the educated work force. (The increased earning power of these college trained workers are estimated to have returned $70 billion in income taxes.) This group, together with the fact that the U.S. was the only industrial nation whose infrastructure was not destroyed by the war, are the major reason why America led the world economically for three decades after the War.

But we quit spending public money on college training of our children while the rest of the world has increased their spending on such training, and the conservatives can't understand why other parts of the world are passing America up economically.

But this is history rather than power or economics. It goes back to what I said in an earlier comment. America has put building corporations above building workers and their families, and that is a topsy-turvy way of looking at the world. Businesses and government exist to serve individuals and families, not the reverse.

Re: Only armies, the governments that fielded the armies and religions moved further than that on land.

But religious pilgrimages were very popular in the Middle Ages and while I don't know if a majority of people made a pilgrimmage, certainly if was a big enough business so that towns sometimes faked miracles and even invented fictitious saints to draw pilgrims and the equivalent of today's tourist dollars. Remember too that a major reason for the Crusades was the disruption of pilgrimmages in the Middle East by the Turks. Rome and Jeruslaem (and Constantinople for the Orthodox) were the major pilgrimmage sites. But there were lots of lesser ones, inclduing Canterbury in England and Compostela in Spain. So I think some skepticism about the lack of travel in the Middle Ages is in order. Also, languages were hardly as fragmented as your post suggests. Yes, dialects were stronger then than they are now, and the Plattedeutsch and Hochdeutsch or the Langue d'Oeil and Langue d'Oc speakers would have found each other's tongues incomprehensible. (They would today aswell if they did not have a written and media-imposed standard tongue in common) But merchant activity, monasteries and the practice of exoagmy (marrying into surrounding communities rather than one's own) kept things from getting so fragmented that there might be a language barrier in any given locality except where completely different languages abutted against one another. By the way. I've seen it claimed that if today you traveled on foot from Lisbon north to Galicia, then east through Castile to Catalonia, then northward across France and back south over the Alps to Italy, you would never find a place where the spoken dialects would be incomprehenisble between adjoining localities so smoothly do the Romance languages blend into one another (and there are similar claims for German and Dutch; the Scandivanian languages, and some of the Slavic languages).

So you're saying that the university engineers did their research because power forced them to? Someone came in and said you will research this?

I don't think so. I think they individually chose to research things that interested them because the academic environment provided them a place a free inquiry that allowed them to study things that interested them and provided the resources to do so. Granted, the perish or publish nature of university jobs provided a push, but as you state -- given the pay -- it wasn't much of a push.

It is utterly false to say that human activity and inquisitiveness would cease unless there was a power to push people, to make them do things.

Some random comments that I hope apply to power. Walter Goelitz wrote The History of the German General Staff, 1345-1945, but for much of that time, it wasn't a general staff by modern (to be defined shortly) standards. What it did do was institutionalize military history, so officers could learn from the past.

While I forget the original source, it was said that Napoleon was the last of the pure generals, who would have been beaten by an army with a "true" general staff. Napoleon did have staff officers who carried his messages to and fro, brought back reports, and arranged for food, campgrounds, etc. What Napoleon did not delegate was the actual planning of military operations, especially having contingency plans in place for enemy moves. Under Sir Francis Walsingham, Britain had a recognizable intelligence agency in the early 16th century, but it dealt with diplomatic rather than military matters.

The idea of contingency planning, combined with continual intelligence collection, the latter not necessarily superspies but maps, came together with a third component of modern power, electrical communications, in the mid to late 19th century. Much of what we think of today as a communications enabled society started with the electrical telegraph circa 1845, although there had been fixed semaphore stations around the turn of the 18th century.

As you suggest, bureaucracy is also a means of division of labor and development of specialization, and military planning staffs are one example. Secret police organizations certainly existed into antiquity, but, as population grew, you couldn't "round up the usual suspects" without knowing who they were. Biographical intelligence -- political opposition research -- probably was a British development in the late 19th or early 20th century.

While there were other factors, I suspect one reason that the Czarist secret police, the Okhrana, had with the Bolsheviks is that there were too many subversives, with even more code names, to track without better methods. Ironically, quite a few Okhrana agents were taken into Lenin's Cheka. A major Cheka mission was identifying deserters, then enemies of the state, and, given the scale of the Soviet security organs, they required a bureaucracy.

--
Howard

*equal opportunity offense to both extremes*

"Those who cannot remember the past are condemned to repeat it" [George Santayana]

I'm not saying that no one traveled, but those who did were not a large part of the population. Also, farmers were much less likely to travel than townies or burghers.

As to the incomprehensibility of local languages, the printing press made a massive difference. Yet the French Revolution caused many regional French dialects to become less mutually incomprehensible. And farmers both were less likely to travel and certainly unlikely to read and write before the printing press. They made up the majority of the population. Certainly farmers had much smaller vocabularies than townies and shop keepers.

Along your route in Spain, Castilian Spanish, Basque and Catalan are, in fact, even today mutually incomprehensible. Also, I have been told that one of the major problems of unifying Italy in the late 19th Century is the fact that what we today call "Italian" was a language spoken only by about 2% of of the population of the peninsula, and that was quite recent. Then there is the fact that each place you tried to stop and communicate, the first thing you would normally do is find someone who spoke something that was mutually intelligible. It's very different if there are only two of you and you have only the language skills and vocabulary each of you brought to the conversation. (I won't count the south Tyroleans who still speak German less than two hours drive north of
Venice and to my personal knowledge were even as late as the late 60's organizing and arming small groups for armed revolt against the hated Italian government, hoping to rejoin Austria from which they were stolen after WW I.)

Much of northern Europe was covered with trackless forest, even as late as the Reformation. If you didn't live on a river or in a port city, you did not travel. The Romans learned how dense that forest was when they lost -- what was it, Three legions? - in it to the locals. The story of Robin Hood over a millennium later is incomprehensible without the existence of such trackless forest.

It is possible that I overstated William Manchester's claims since I last read his book about six years ago. It may have been 50 miles rather than 30, but certainly from valley to valley their was little travel and communication. Unfortunately I have since loaned out my copy to God-knows who and can't recheck what I remember.

If you haven't read Manchester's "A World lit only by Fire" I very strongly recommend it for it's description of Martin Luthur, Henry VIII, the period of the Reformation and Magellan's first trip around the world. It turns over rapidly at the local used book store. Someone at the University may be assigning it as reading. It's also a great read.

Interesting. Actually I have a working thesis going at the moment that the development of the modern world - at least in Europe - is the development in size, complexity and reliability of permanent organizations. [I think that there are also some unique human neurological functions that are developing to support this. Functions like the instinct to recognize patterns, to build verbal narratives, and to mentally imagine alternative future states, recognize cause and event chains that lead to them and choose the preferred future. Human evolution appears to have originally been driven by rapid climate changes, but then when society was created mental evolution became also driven by social and sexual pressures. Nicholas Wade, a science writer for the New York Times, has written a fascinating book called "Before the Dawn" which traces much of purely human evolution as determined recently by studies of DNA.]

The Thirty Years War demonstrated that a full time professionally trained army would regularly defeat mercenaries. The next lesson was that the larger army would beat the smaller one. The big problem was how to pay for such full-time professional armies.

That led the Kings to tax the merchants so as to support the central army. The Baronial levy's were less professional and invariably smaller, and too often the Barons themselves were revolting against the King. So armies were centralized and nations got bigger because bigger nations could field bigger armies.

Bigger nations needed bigger governments, especially the tax collection part, and since the merchants supported the king over the local Barons, that government had to also support the merchants. National security, you see.

Interestingly, this appeared to be the process in landlocked nations. Northwestern Europe and the British Isles were seafaring (Littoral) nations and depended on navies rather than armies, so the centralization of government did not occur as much. But they still had to centralize somewhat to beat off the larger French and Spanish governments.

After an army gets just so big, it has to institutionalize its management functions, which is what you describe in the development of General Staffs. Clauswitz fought with the Prussians, who Napoleon defeated rather handily. Clauswitz spent the rest of his life running military schools and improving the German military institutions, and Prussian society was built around that military model that resulted.

Bismark used that military and the Prussian militarized society to unify what became the German Empire under Kaiser Wilhelm, and then around the turn of the century the great German sociologist Max Weber first described the governmental bureaucracy that had developed to institutionalize those much larger organizations.

It appears to me that the formalized General Staff was designed as a reaction to Napoleon's conquest of Europe, so it should be no surprise that he probably would have been defeated if he had ever faced an army with such a General Staff.

Napoleon certainly was not the last General to fight that way, though. I recall from a fascinating biography of British General Charles George Gordon (also known as Chinese Gordon and Gordon of Khartoum.) who commanded the Chinese government forces against rebels in 1862. He did all the military planning himself and wrote orders as well as instructions to issue weapons and ammunition on scraps of paper to be carried by couriers to the recipients.

Then there was a friend of mine who had personally commanded a two-battalion air assault in Vietnam who would later (repeatedly) remark as we were writing multi-page five-paragraph orders that he had commanded that attack with nothing more than a pocket notebook and two ball-point pens. Of course, he was a helicopter pilot and could view the entire battle from the air. Who needed a staff?

Re: Along your route in Spain, Castilian Spanish, Basque and Catalan are, in fact, even today mutually incomprehensible.

Basque certainly is, since it is not even Indo-European, or obviously related to anything else. (The Basques like to claim even the Devil could not learn their tongue.) The Iberian Romance languages are all closely related and blend smoothly into one another as I mentioned. Standard Spanish, Portugese, and Catalan (Galician is essentially an aberrant Portguese dialect) are incomprehnsible to one another, but the spoken languages in adjoining localities are not. And anyone with fluent reading skills in one can puzzle out the others in written form without too much difficulty. Also, biligualism is, and long has been, rather common in Europe, and in fact in much of the world. The USA tends to the world's biggest bastion of stubborn monoligualism.

I agree that peasants (the bulk of the population) were less likely to travel than townsfolk. Still, the fact that there was big money to made in pilgrimmages and that wars were launched ostneibly to defend pilgrims does suggest that lots of people did travel of that purpose at least.

Re: It may have been 50 miles rather than 30, but certainly from valley to valley their was little travel and communication.

Merchants, religious emissaries and preachers, itinerant craftsmen and artisans (including musicians, and various charlatans) did travel. Yes, they were a minority of the population, but there was enough such rousting-about that few areas were completely isolated from the outside world. The farther parts of Scandinavia, of Scotland and Ireland, and perhaps some valleys in the Pyrenees and Alps were the most likely to be so isolated. And those "trackless forests" were being quickly felled in the Middle Ages so that by the 1500s not much was left except some some very deliberately preserved hunting lands owned by the kings or major nobles, where the penalty was death to intrude. (One such area on the Polish-Russian border has managed to last down to our own time, the last virgin woodland in all Europe).

If you work for a company, and the boss tells you to do something specific, you do it because he has power to tell you to do it, not because he is paying you to do that specific thing.

No. You have it backwards. I respect my boss' wishes, I listen to what he says, because he's paying me, and I do not for one moment accept that he has some intrinsic power over me merely based on his position. I provide a service to him as an equal for which he pays me. The moment he isn't paying me, he has no power over me.

But even to the extent he has power over me, that's not my primary motivator. Mostly I want to do a good job because I take pride in my work. My boss has never had to threaten me with firing -- he's never had to exert power -- because he's never asked me to do anything that I didn't want to do or was at least quite willing to do.

Your definition of power is getting someone to do something they wouldn't do if power was not exerted. That assumes that the two individuals in question -- the one exerting power and the one exerted upon -- are in conflict over how the exerted upon is going to use his time and energy. But that is simply not the case in most group endeavors where people are working together toward a common goal. In fact, show me an organization that depends on the constant exertion of any kind of power to run and I'll show you a disfunctional, inefficient organization.

I'll agree that power may be involved in determining the goal, but that's not the same as it running things, and I would argue that people actually do often determine goals and make decisions without the involvement of power, even in groups.

Your original statement in your first post was that society runs on power. Given your definition, that statement depends on the notion that people won't do anything to further society or I suppose even themselves unless they are told to. That is demonstratably false.

Ben Franklin did experiments that led to the discovery of electricity. Did he do that because he was told to? No. He didn't even do it for the money. He did it because he was interested in it. He wanted to.

People every year give millions to charity. No one tells them to. People even give millions to political campaigns and causes for which they get no tax break.

Every time there's a disaster, all kinds of people step forward to help. No one tells them to. They just do it.

Civic organizations like Kiwanis or the Rotary Club have existed in the United States for generations. They didn't come about because someone exerted power. They came about because of the natural tendency of human beings to come together in communities. And since they are volunteer based, the don't run on the exertion of power.

Everyone who runs campaigns know they run on volunteers -- people the campaigns have no power over to make do anything they don't want to do. Granted, the campaign provides DIRECTION, but that's not the same as an exertion of power because the people volunteering have CHOSEN to be directed.

By your definition, a society that is run on power is one in which those wielding power constantly make decisions about what all the rest will do in contravention to what those people would otherwise do. To believe that is a good system, one has to believe that those in power can make better decisions about what individuals do with their time, energy and resources then they themselves can make. I think that's a hard case to make.

The basic libertarian argument -- indeed the basic American argument for individual freedom -- is that the things that people would do on their own, the choices that individuals would make are as good or better than the choices that would be made for them by those in power.

Even in your ape society, I would guess there's a lot of activities -- every day activities -- such as gathering food that constitute the really important work that makes the ape society run and which occur without any assertion of authority or power by the lead ape.

There are and have been societies run on the basis of power. Such societies establish a noble class that has power and rules the lower class. Or there's a priest class that runs people using what I would guess you would call information power by keeping people afraid of some superstition.

The American Revolution overthrew all that. The essense of America is that it doesn't run on power. It runs primarily on the free choices of individuals. If you don't understand that, then IMO you understand nothing about this country or its culture.

Then there was a friend of mine who had personally commanded a two-battalion air assault in Vietnam who would later (repeatedly) remark as we were writing multi-page five-paragraph orders that he had commanded that attack with nothing more than a pocket notebook and two ball-point pens. Of course, he was a helicopter pilot and could view the entire battle from the air. Who needed a staff?
Of course, your friend, probably a brigade commander, directed battalion commanders who had their own helicopters, perhaps with company commanders and scouts in their own helicopters.
Flying above the brigade, if the action was interesting or critical, might be the division commander, and, above him, the Field Force (corps equivalent) commander. Even the head of US forces was known to get into the air.
Enornous discipline as well as managing different frequency networks were essential for the command not to break into total chaos. During the Mayaguez incident, Henry Kissinger was shouting German-accented commands to very confused Marines, who should have been listening to their immediate commanders.
Not for nothing was it said "In Vietnam, never have so few been commanded by so many".
When real-time imagery of the battlefield first became available in Afghanistan, the regional commander made the wise decision to forbid its transmission, in real time, to Washington, and even to subordinate headquarters that did not have units that could directly influence the battle.
Entirely new military communications paradigms are developing in what is called network-centric warfare. The traditional rule of thumb was that subordinate units kept their commanders notified of their actions, and senior commanders would give orders to units directly reporting to them, but keep units one echelon below plotted on their maps.
With the danger of oxymoronic "friendly fire" among fast-moving units, there is now a requirement not just to keep the vertical chain of command notified, but also to keep informed peer units that are adjacent, but in other chains of command. Only in that manner can a unit, seeing an opportunity outside its immediate sector, can move onto that target and be confident that the unit next to it will not assume it to be the enemy and take it under fire. Radio, computers, and established procedures, with much practice, are essential to give this a chance of working.
Of course, these are techniques most relevant to mobile conventional warfare. Still, even in small-unit urban patrols, losing track of troops near you can lead to friendly fire incidents.

--
Howard

*equal opportunity offense to both extremes*

"Those who cannot remember the past are condemned to repeat it" [George Santayana]

Right - but that activity at that time wasn't to any great extent market-driven.

sPh

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