Monday, September 7, 2020

Will it be America's Capitalism or China's?

 When someone states the obvious but states it in a distorted way, is he still stating the obvious? We can have fun trying to answer this question by analyzing the Peter Skurkiss article that came under the title: “China and its apologists,” published on September 5, 2020 in The American Thinker. Or we can extract from the article a more sober set of realities that will help us determine how things work in the real world today.

 

Let's go with that second proposition. Early in his article, Skurkiss leveled the following reprimand against China: “The Chinese intend to, if not rule the world, then at the very least dominate it.” He did so, having complained that the US Chamber of Commerce and a number of leading politicians advise against decoupling the US trade practices if not the economy as a whole from China.

 

What is obvious is that the American and Chinese economies are interlinked to a high degree. What is distorted is the way that Peter Skurkiss paints the larger picture, which includes the vision that is stated by the Chinese concerning the stronger country they endeavor to build in the future. What Skurkiss fears is what their effort will entail when fully realized and heaped on the rest of the world.

 

To verify if there is substance to the Skurkiss view, we need to recall that since the start of Civilization, empires were formed and went on to dominate the world known at the time. The empires lasted thousands of years before they fell and were replaced by someone else. As the human species progressed, and life became more hectic, empires lasted only hundreds of years before they fell and were replaced by others. The last of those being the British Empire that was replaced by no one. Thus ended the first phase of the human attempt to organize itself into a stable and lasting system of governance.

 

Even though the British Empire did not fall until the middle of the Twentieth Century, the seeds of its demise were sown a century earlier when the Industrial Revolution began to transform the economics, politics and way of life that people used to enjoy, into something different. That was and remains the current systems which people have no choice but to embrace, endure, revolt against, hold their noses and accept or bask in their glory.

 

While this was happening, the method of ruling the world was also transforming. It went from what it was in the ancient era when the rulers were thought to derive legitimacy from the gods, or were themselves considered gods––to what is happening now. And what’s happening now, is what Skurkiss is distorting because he misses something important. He misses what went on in the period between that of the ruling gods and now. This knowledge, however, is crucial to fully understand how the world is run today.

 

Here is what Skurkiss needs to know. It was during the Middle Ages that the feudal lords, and later the monarchs, expanded their dominions by conquest and by intermarriage. This is how a system of governance was transferred from one province to another and from one kingdom to another. It took place regularly throughout Europe and lasted till the era when colonization began, a time when something new was added.

 

Whereas intermarriage continued in Europe, the royal families of the Continent did not intermarry with those of Africa, Asia or the new worlds they had conquered. However, they formed family-like bonds with the ruling maharajahs of India for example, as well as the pashas of Egypt and the ruling elites of the nations they conquered as well as those they did not.

 

While this helped to preserve the dynastic rule of monarchs everywhere it existed, the transformation that was brought about by the Industrial Revolution, was reaching its apogee in Europe. The principles of socialism took hold, and when they reached Russia, they made possible the rise of the first communist nation whose ambition was to export and spread the new system of governance throughout the world.

 

Whereas communism helped the Soviet Union survive the Second World War and go on to become a military superpower, it proved deficient in the economic sphere. It lost out in the competition against the capitalism that was fashioned by the British East India Company centuries earlier and had matured by the twentieth century. It was the system practiced in America, the de facto heir to the British Empire.

 

While that competition was ongoing, however, other economies, most notably Japan, that had adopted the capitalist system, were thought to be on their way to “dominate” the world. But the reality turned out to be that the capitalists of every nation, including those of Japan, were beginning to form bonds among themselves in the same way that the lords and monarchs of the Medieval era and later the colonial era, had formed bonds between them.

 

In fact, the capitalists everywhere worked hand-in-hand to benefit themselves and benefit each other rather than work to benefit the countries that made their enterprises possible. The result is that we now have several versions of one and the same economic system called capitalism, vying to rule the world.

 

Some commentators even argue that capitalism––be it the American, the Chinese or any other––has already supplanted the political systems which used to rule the world but were rejected by the wave of populist movements sweeping the globe today.