Wednesday, May 17, 2023

"Polarization"

From Economic Harmonies by Frédéric Bastiat (1850) at the Online Library of Liberty:

As great as is the difference between the plowshare that feeds and the sword that kills, so great must be the difference between a nation of workers and a nation of plunderers. It is not possible for there to be any common ground between these two. They cannot have the same ideas, the same standards, the same tastes, the same character, the same customs, the same laws, the same morality, or the same religion.

 

1850 was part of the period that Keynes called 'the greatest age of the inducement to investment". It was around to the peak of the Cycle of Civilization, as I see it. From that lofty point, Bastiat could see great differences  between societies.

We also can see such differences. But we are beyond the peak and near to what no one dares call a "dark age". So we don't have to imagine those differences. We see them every day, as we are in transition from the high of the cycle to the low.

If you stand at the North Pole and I stand at the South, we both stand on our feet. But if I could see you, I would see that you look upside-down, as you would me. Each of us thinks ourself rightly positioned on top of the world, and the other guy all wrong.

 

The problem is economic decline. When we cannot get right by righting the economy, we lean into it, we become disoriented, and  we find ourselves  we find the other guy not only wrong but inexplicable.

The only solution that I can see is to improve the economy to the point that everyone wants to be part of it. Only when the economy is good can we see eye-to-eye.

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