(Long thread)
When it is pretended that values determine foreign policy (a propos of the forthcoming "Summit of Democracies").
At the Versailles Peace Conference one among young & idealistic British diplomats was Harold Nicolson. 3y younger than Keynes, he shared his unbounded
enthusiasm & believed the conference would bring the rule of law (based on general principles) in international affairs. He idolized Wilson. But as conference went on & those who pretended to be guided by principles began to break each and every one of them...
(like the self-determination that did not apply to Africans and Asians, equality of races that was found abhorrent by Wilson) his mood, like Keynes', soured. Keynes wrote The Economic Consequences, a devastating portrait of the main protagonists and Wilson in particular.
Nicolson wrote a more political book ("Peace Making") equally bitter & full of disappointment. Most sordid political interests were dressed up in the language of rights and values. An atmosphere of mendacity and hypocrisy pervaded the colloquy.
When Europeans were pressed by Wilson and the US they were quick to see under these solemn Wilsonian principles an entirely different reality.
Nicolson writes:
"It was this divergence of habit, this gap between reason and emotion, which induced the Latins [the French and the Italians] to reexamine the revelations of Woodrow Wilson in a manner more scientific, and therefore more critical, than we did ourselves.
They observed, for instance, that the United States in the course of their short but highly imperialistic history had constantly proclaimed the highest virtue while as constantly violating their professions and resorting to the grossest materialism.
They observed that all Americans liked to feel in terms of Thomas Jefferson but to act in terms of Alexander Hamilton. They observed that such principles as the equality of man were not applied either to the yellow man or to the black.
They observed that the doctrine of self-determination had not been extended either to the Red Indians or to the Southern States. They were apt to examine American principles and American tendencies not in terms of the Philadelphia declaration but in terms of the Mexican war,
of Louisiana, of these innumerable treaties with the Indian tribes which had been violated shamelessly before the ink was dry. They observed that, almost within living memory, the great American empire had been won by ruthless force."
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Every couple of years, a fundamental misunderstanding between the East and the West of Europe reappears re. the WW2. In the occupied Western parts, life went on as before. Sartre continued writing & his plays were shown in theaters. Simone kept on sipping coffee at Les deux magots. Literary soirees were celebrated. People went to their jobs. Some food items became unavailable, and people listened to Radio London. Life in Paris, Brussels, Copenhagen, Amsterdam went on as before except for occasional raids on Jewish people.
In countries that were Nazi allies, things were even better: Italy, Austria (Anschluss), Finland, Croatia, Hungary, Bulgaria, Slovakia, Vichy France: things were broadly normal. Many more joined Nazi militia and Waffen SS than resistance.
In countries, that were neutral but in realty pro-Nazi (Sweden, Switzerland, Spain) life went on normally too. In a really neutral Portugal, even more so. My favorites are restaurants in Barcelona that opened up in 1943.
So that was the war in the West.
In the East, it was entirely different. It was a war of extermination. Not only because of the Holocaust (esp. in Poland & USSR), but also because of 3 million Soviet POW who were starved to death in iron cages...
A strange disease has taken hold of the left: to bemoan loss of wealth of billionaires, The billionaires' commander-in-chief has decided to cut to size other billionaires. He has driven the stock market down. It is understandable that other billionaire and their think-tanks decry such a policy. But why should the left do the it?
Esp. if you know that in the US and other advanced economies 60% of households have 0 or trivial amount of income from financial wealth. Moreover, financial income for the other 40% is so heavily concentrated that the losers are only 3-4% of the population--the richest ones. The measure is clearly super progressive.
(My next Substack on this theme.)
Percentage of country’s population that has zero or negligible annual income from capital ownership
What were the great revolutions I witnessed in my life?
The first & really big was the Iranian revolution. I had many Iranian friends. They were all anti-Pahlavi. But quickly they split into two or three camps. The revolution had global resonance: I remember that my father disagreed with my mother over it. In Belgrade! They had no dog in the fight. But it was big.
Reagan's revolution was also big. He upended things. Pushed back against the USSR that foolishly invaded Afghanistan the year before & not only went into a war it could not win, but challenged the basis of the Cold War order. Reagan was a Cold Warrior who wished for peace.
The third was Solidarnosc & Walesa. They not only came suddenly from nowhere but created a 10-milkon strong workers' movement in opposition to a (seemingly) workers' state. It reshuffled all ideological stereotypes. It was impossible to classify as left or right.
Consider income composition in socialism and developed capitalism. They are fairly similar. The differences are in the lack of income from K, greater family-related transfers, and quasi-absence of direct taxes (other than proportional flat wage taxes) in socialism.
Then extremely low skill premium of 3-5% vs 18-70% for West European countries (and even more in the US).
Then, much less redistributive social transfers. While UK/Ireland had very pro-poor transfers, socialist countries had flat transfers. Thransfers depended on family composition and were about the same regardless of underlying income.
This is the second year that in my teaching I spend two hours discussing income inequality under socialism, the way it was, not normative stuff. The most important thing is to tell students that socialism is not capitalism with less inequality. The logic of the system was entirely different.
The salient points.
Nationalization of capital & end of incomes from K reduces inequality directly.
Wage compression: very low skill premium. Explained both by free schooling and ideological preference for less skilled workers.
Relatively large (but not larger than in modern capitalism) social transfers directed toward families and old-age persons.
Large but almost totally flat direct taxes, mostly in the for of a wage tax.
After reading @pseudoerasmus excellent thread on the evolution of devt thinking and the role of institutions and @ingridharvold, Kesar, Dutt paper on the same topic (both published within the past 48 hours) I asked myself the following Q: Why did I like AJR early work so much & then lost interest?
I liked both their "Origins.." and "Reversal..". The reason is that I found in these papers the themes with which I was already familiar from reading neo-Marxist literature, including S Amin and G Arrighi. But I always felt dissatisfaction with that literature's "sporadic" use of empirical evidence.
What AJR provided was the same story with much more data and modern methodology. So it was a big step forward.
The problems started afterwards: their inability to explain communism (political inequality but economic equality), and the turn away from understanding of capitalism