Tuesday, June 29, 2021

SIZE MATERS

Human beings fear failure and seek security. The smaller the social group the more conservative the group is. It is the radical, the one who will question the status quo, and risks failure who advances the group and the human race.

Socialism as an economic system is an example of the former. Capitalism as an economic system is an example of the latter. The former is the society of conservatives. The latter is the society of the radicals. Yet, we seem to confuse the two. We call Socialists, left wingers radicals. And we can Capitalists, right wingers and conservatives. As anthropologists, we should be more careful in our use of these terms. When we look at human history we find that there is a constant pushing and pulling between the individual and society, between the fear of failure and the desire to take risks in order to win. 

The Socialist wants security by insuring winning and by avoiding all risks. The Capitalist is willing to lose everything in order to win something new. The larger the society, the greater and more intense the struggle between the forces of the fear of failure and the forces willing to take risks. This is the world today.

We are in the Twilight Zones and the New and Old Normal are at war.

It is time for INVESTMENT and that means GOVERNMENT must think in terms of INVESTING IN THE FUTURE rather than worrying about maintaining the past with minimum investment and by cutting taxes.

The one of the first great Constitutional Issue faced by the Supreme Court, was McCulloch v Marshall in 1819. It dealt with the right of the Federal Government to form a National Bank in addition to the State's right to establish and manage a banking system. (See https://en.wikipedia.org/wiki/McCulloch_v._Maryland)

It is an has been the evolution of the Federal Government's role as the Investor of first and last resort that has built America and made it possible for the Nation to grow. The Government has become the underwriter that makes Capitalism successful. Not what the Greedy beneficiaries of these investments would have taxpayers believe. 

Individual taxpayers benefitted by the Louisiana Purchase from France by opening up the Mississippi Valley and the Mid-west to settlement and investment by ordinary citizens. The purchase of northern California from Russia put America on both Coasts and created a Continental Power in the 19th Century.

In the 20th Century, Federal Investment during the Great Depression helped to save the country and instituted a tremendous investment in Capital projects through the New Deal. (see https://www.history.com/news/new-deal-infrastructure-projects-fdr). The Cold War was a major driving force through DARPA (the Defense Advanced Research Project) and later ARPA in the civilian sectors.

The Federal bailout of the Savings and Loans in the 20th Century and the Mortgage Crisis of the 2007 point to the importance of the Federal Government investment to save the Capitalist System. It is Federal Investment through the Tax System that enables the Rich to risk their wealth in new ventures.

It is our Government, that takes the risk of failures that WE, as citizens, are afraid to take. Government in Capitalistic society is the Investment BANK and Not the Savings and Loan in a Socialistic society. This is the difference between the Left and the Right. The Left would risk failure to win the long game. The Right is afraid of losing any gain from the past if it means risking the future.

As Anthropologists,and social scientist, we should know that civilization advances when the resources of society expand. And that civilizations collapse and die when the voice of capitalism at the highest level becomes to afraid of taking chances. 

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