Slouching Towards Neofeudalism

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From the Huffington Post:

A most excellent article, defining our increasing serfdom.
Neofeudalism is a concept in which government policies are designed to systematically increase the wealth gap between rich and poor while increasing the power of the rich over the poor. It’s a party-neutral idea. There is no cabal pushing the plan, merely the sum effect of pressure from the wealthy elite.
Those policies can be seen today. Just look at the fact that earned income are taxed at a higher rate than unearned income, and the repeal of the inheritance tax.
Other ways are harder to measure but no less real, such as white collar criminals receiving slaps on the wrist, while the poor feel the full weight of the law. It’s a system with two sets of rules, one for the rich another one for the poor, and that is the definition of neofeudalism.
Another manifestation of neofeudalism is the growing power of corporations, that leave the poor dependent on private interests more powerful than the government, a situation resembling traditional feudal society…
Neofeudalism isn’t just about the powerful taking over everything. It’s about conditioning the poor to accept their designated role in society, even fighting to defend the ability of the wealthy to exploit them. It requires working people to do things that are against their own interests, and nowhere is this more true than in our current economic system.
Code:
How is it that we have a politico-economic system in which the government's explicitly stated goal is to entice people to take out loans for houses and cars they don't even need? 150 million cars on the road and we must keep buying new ones? Millions of vacant housing units and we need to build new ones? Homes so full of Chinese junk that half of it goes into off-site storage, and we need to shop more? For whose benefit? Ever heard of debt-slavery? How about feudalism?
Here’s an even better word: peonage. It always amazed and confused me how everyone in America is obsessed with their credit rating. It’s almost as if people don’t realize that credit equals debt. Debt is something that people have feared for thousands of years, because unlike Americans today, historically debt was always associated with another scary term - slavery. Debt bondage, indentured servitude, slavery, they all mean the same thing. Yet somehow the establishment has convinced us that the ability to “manage” our slavery is something to be proud of. They even have a rating system for it.
I’m not being facetious. Being heavily in debt means you don’t have the freedom to quit your job. People who have lost their job are unable to move because the enormous debt tied to homes they can no longer afford.
Being tied to a piece of land is the definition of serfdom.
Every once in a while our love for the wealthy elite who are exploiting us wanes. When that happens the American people need to be distracted. Perhaps it is incompetent terrorists in caves in faraway lands. Or maybe its poor immigrants who want low-paying jobs. One way or another there will always be a scapegoat, and we will need to declare war on them. As Taibbi put it:
It’s a classic peasant mentality: going into fits of groveling and bowing whenever the master’s carriage rides by, then fuming against the Turks in Crimea or the Jews in the Pale or whoever after spending fifteen hard hours in the fields. You know you’re a peasant when you worship the very people who are right now, this minute, conning you and taking your ****. Whatever the master does, you’re on board. When you get frisky, he sticks a big cross in the middle of your village, and you spend the rest of your life praying to it with big googly eyes. Or he puts out newspapers full of innuendo about this or that faraway group and you immediately salute and rush off to join the hate squad. A good peasant is loyal, simpleminded, and full of misdirected anger.
Welcome to 21st Century America.
 
Another manifestation of neofeudalism is the growing power of corporations, that leave the poor dependent on private interests more powerful than the government, a situation resembling traditional feudal society…
Big deal! Isn’t that what most of the people on CAF prefer? Most people on CAF find “big government” more scarier than “big business”, which is an implicit endorsement of neofeudalism by many members of CAF.

forums.catholic-questions.org/showthread.php?t=482788&highlight=big+government
 
Yes it is. No one said that serfs necessarily mind being serfs, or that they are even aware of being serfs.

Look at the way that our health care and retirement programs are tied to our employers. Serfdom extraordinaire.

And some banks and corporations have now been officially declared “too big to fail”. Common sense would dictate that they then be broken up, but that was not done. Instead they became hereditary rulers. They can never fail. No matter how corrupt they are, they cannot be overthrown. The new financial services bill is annoying to them, but crippling to their nimbler upstarts. Big corporations love regulation, because it kills their smaller competition.

Big corporations and big government work together to keep us all in our proper place. Underneath them.
 
I’m not being facetious. Being heavily in debt means you don’t have the freedom to quit your job. People who have lost their job are unable to move because the enormous debt tied to homes they can no longer afford.
Being tied to a piece of land is the definition of serfdom.
This is to some extent true, but of course, it was the households themselves who made themselves serfs. People just took on way too much debt and now they are paying the price.
 
This is to some extent true, but of course, it was the households themselves who made themselves serfs. People just took on way too much debt and now they are paying the price.
Yes, it is our own fault. Serfdom is generally voluntary. Whenever someone offers us a deal that sounds too good to be true, we should assume that it comes with strings attached.
 
The best lies are mostly true. This one being no less.

The author makes enormously good points on the timeless ways in which the rich and powerful bend the weak to do their bidding then goes on an unwarranted rant against christianity being simply a tool to this end. There goes the big lie. It is a big lie because the principles underpinning christianity are the only way to eventually get OUT of this cycle. To repudiate and demonize it dooms the revolutionary to merely embrace a new tyrannical master, a lesson that such people SHOULD have learned from the debacle of communism.

He fails to see that the only way out of the vicious cycle is to find way to empower the masses to acquire and operate reasonable amounts of productive assets themselves. This is the situation in which America thrived and can do so again. The opposite traps of governmental power and tyranny versus a private oligarchy of power and tyranny is just a losing cycle.
 
He fails to see that the only way out of the vicious cycle is to find way to empower the masses to acquire and operate reasonable amounts of productive assets themselves. This is the situation in which America thrived and can do so again. The opposite traps of governmental power and tyranny versus a private oligarchy of power and tyranny is just a losing cycle.
Agreed. You must have been reading some of the Social Encyclicals. 🙂

My only quibble would be that private oligarchies and governmental tyrannies are often allied.
 
The anti-Christian bent was the author’s, and I don’t agree with it, of course. But the article is still very interesting.

I think America was the country of the “small guy”. That’s what the American dream is all about. One man, working hard, applying his God-given talents and abilities, and improving his standing and comfort in life. Neo-feudalism is the opposite. It separates the “haves” from the “have nots”, and strives to keep each in their proper place. It has facist undertones, but it’s less organized and deliberate than that.

Here’s what I see that strikes me as neo-feudal:
  • 30-year mortgages. Also available as 40-year mortgages!
  • Property taxes (renting your own property from the state).
  • The explosion in cheap consumer credit, which the government encourages through low interest rates.
  • Credentialism that acts as a barrier to entry for professions. More and more education is expected for the same jobs.
  • College “financial aid” that has made college costs skyrocket and has put millions of Americans in debt while they are still young.
  • Delivering social programs through employers or schools.
  • Chaotic and insanely expensive health systems (both public and private).
  • Culture wars, legalization of porn, and decadent forms of entertainment (circuses).
  • Welfare systems, income transfers, and child support agencies (bread).
  • Corporatism and subsidies.
  • Inefficient and low-quality schools.
  • Rapid growth of regulation and beauracracy, to benefit large corporations at the expense of small ones.
  • Exploding prison populations and erosion of personal freedoms.
  • Increased legalization and militarization within the country.
  • Asset bubbles (which results in a massive wealth transfer from the serfs to the elite).
  • Government systems that foster the breakdown of families (removing men from the home makes women dependent upon the state).
 
Agreed. You must have been reading some of the Social Encyclicals. 🙂
Shhh! When I steal from the minds of the great, I get to look smart! 😛
Everybody should read Rerum Novarum. Almost as prophetic as Humanae Vitae. (Fear not non-latin speakers like me, translations are easy to find on the Vatican website and elsewhere).

I think America rose fastest during the age of “accidental distributism” in which our population and geography expanded so far, so fast that the exploitive oligrachies and government could hardly keep up! In fairness, there were some truly brilliant government policies such as the land grants that created enormous opportunity for ordinary Americans to procure a means of wealth production.

But then, as today nothing was free or easy. There still are some vestiges of this such as policies for small business loans, TIF districts to encourage renovations of blighted areas, some kinds of enterprise grants. But they always go to those who clamor loudest for them and increasingly the regulations are so Byzantine that only insiders can get them.

I disagree with GC that property taxes are repressive. Quite the opposite, a reasonable property tax level is an excellent safeguard against the rich and powerfull amassing massive property holdings and being able to choke off the supply of productive land uses artificially. By introducing a COST of doing nothing productive with land the government incentivizes land owners to dispose of unused holdings to someone who IS able and willing to make productive use of it. James Michener makes this argument better than I do in his novel Hawaii.
 
From the Huffington Post:

A most excellent article, defining our increasing serfdom.
What the article describes is not feudalism.
Under feudalism everyone had rights and obligations to those above and below. Kings, lords, serfs, guilds, the Church (at every level), all had personal obligations to others up, down and sideways in a social web.

Then along comes capitalism creating wealth but destroying social bonds like a universal solvent. Now we’re seeing the end-game where everyone is reduced to a consuming-producing unit, there are no more universal values and the family & marriage are pretty much destroyed.
 
Shhh! When I steal from the minds of the great, I get to look smart! 😛
Everybody should read Rerum Novarum. Almost as prophetic as Humanae Vitae. (Fear not non-latin speakers like me, translations are easy to find on the Vatican website and elsewhere).

I think America rose fastest during the age of “accidental distributism” in which our population and geography expanded so far, so fast that the exploitive oligrachies and government could hardly keep up! In fairness, there were some truly brilliant government policies such as the land grants that created enormous opportunity for ordinary Americans to procure a means of wealth production.

But then, as today nothing was free or easy. There still are some vestiges of this such as policies for small business loans, TIF districts to encourage renovations of blighted areas, some kinds of enterprise grants. But they always go to those who clamor loudest for them and increasingly the regulations are so Byzantine that only insiders can get them.

I disagree with GC that property taxes are repressive. Quite the opposite, a reasonable property tax level is an excellent safeguard against the rich and powerfull amassing massive property holdings and being able to choke off the supply of productive land uses artificially. By introducing a COST of doing nothing productive with land the government incentivizes land owners to dispose of unused holdings to someone who IS able and willing to make productive use of it. James Michener makes this argument better than I do in his novel Hawaii.
Perhaps interestingly, a lot of “accidental distributism” was due to a government/business deal. The government gave millions of acres of land to railroad companies to induce them to build railroads into the American hinterlands. Typically, it was every other section (one mile x one mile square) on both sides of the proposed track, for its full length. A lot of land. The government wanted the hinterlands populated and settled and productive. The railroads wanted to make money. Some of the railroad companies went broke trying to do it. Some succeeded in selling bonds to finance the construction, secured by the land, and actually got it done.

Immediately, and throughout the construction process, railroad companies advertised all over the U.S. and in Europe, extolling the virtues of cheap land in the west. And it was cheap land. In some ways it was better than some homestead land because it was along the railroad line; never more than a mile away. Many, many, many people took the deal. The railroads made some money in selling the land to settlers, but the big payoff for the railroads was in carrying cargo to and from the hinterlands. That was the real objective. The crops grown by the settlers, the machinery ordered by them. Livestock going to stockyards. Mineral resources of all kinds. And it worked exceedingly well, even though the railroad land was typically “hyped” to be more than it really was. But if you got a flyer in, say, Germany and talked to the railroad agents there, and came over with your family, you would live with it if it was even close to what it was said to be.

I acquired one of those old flyers for this part of the country and it’s really a hoot! Basically true, but full of hyperbolic, flowery descriptions.

The early schools were financed in exactly the same way. The government gave land to the states to finance the establishment of schools of all kinds, and it worked.

But one thing that has to be thought of is this. In a way, the government was asset-rich and could afford to give away land in order to develop the country. It is no longer asset-rich in that way, and the assets it has are often not well utilized. (e.g., ANWR) It’s horribly in debt, and no longer has assets to give to the populace to encourage productive enterprise. It’s more inclined to give cash assets to unproductive uses.

Still, there were times when the Roman Empire was on the skids, financially and in other ways, and pulled itself from the brink. Typically, when it rescued itself, it reformed the coinage, cut the bloated and unproductive dependencies, forced land distribution, encouraged industries and built infrastructure that served production. (irrigation projects, waterways, roads, docks)

So, while we’re more like the Roman Empire in its troubled times than we are like the U.S. in the 19th Century economically, there’s hope. Not with this government, of course, but it’s still possible to pull out of what presently seems like an economic swan dive.

Distributism is a tougher deal now than it once was; something Pope JPII acknowledged. Land and farming are no longer the primary productive assets. Still, it isn’t impossible to imagine ways in which the government (and business) could encourage the private acquisition of productive assets. They would just be different kinds of assets, and would require different policies. (and sometimes the lack thereof)

Of course, it is in the interests of both government and business (or seems so, oftentimes) to encourage dependency. A dependent person does what the government (or business) wants him to do, and often comes to think the way the government or business wants. Presently, we’re in one of those periods in which dependency is being very much promoted.
 
Rerum Novarum is great.
a reasonable property tax level is an excellent safeguard against the rich and powerfull amassing massive property holdings and being able to choke off the supply of productive land uses artificially.
There is that. But property taxes have become so high in many areas (because of severe house-price inflation) that the elderly are struggling to pay them.
 
There’s just a couple things in the list I want to comment on:
30-year mortgages. Also available as 40-year mortgages!
The stupidest idea ever. In Canada, most mortgages are underwritten by the Canadian Mortgage and Housing Corporation (a crown corp), and a couple years ago they pulled the plug on 40 year mortgages. As far as I know, the highest is now 35 years, which is still incredibly excessive, and they also require a 5% downpayment.
Credentialism that acts as a barrier to entry for professions. More and more education is expected for the same jobs.
I agree on some jobs (there are way too many jobs that require a degree that shouldn’t), but for some it is required. Medicine and engineering are two big ones that must have restricted entries for public safety reasons. An undertrained doctor could kill someone, and a bad engineer can do far greater damage (think bridge or building collapses). Those 2 are monopolistic for a reason.
 
Since the author clearly feels Keynesian economics is a neo-feudalist propaganda piece (since the policies designed to increase aggregate demand raise such ire), I assume he proposes an alternate system somewhere?
 
Still, there were times when the Roman Empire was on the skids, financially and in other ways, and pulled itself from the brink. Typically, when it rescued itself, it reformed the coinage, cut the bloated and unproductive dependencies, forced land distribution, encouraged industries and built infrastructure that served production. (irrigation projects, waterways, roads, docks)
Please elaborate on the policy of the Roman Empire during periods of crisis. I have Peter Heather’s The Fall of the Roman Empire in my vicinity, which I read at Barnes & Noble, then bought to keep as a reference since I figured out that I do not read books I bought at home. I do not recall any of these reforms being enacted in any of the histories I have read, except the reform of the coinage, where Constantine converted the empire to the “gold standard” replacing the based silver denarii with the gold solidus (and replacing gold aureus). The mid Third Century crisis and the incursion of the Visigoths, Vandals, Alans, and Huns did not seem to be dealt with by your listed measures.

The Third Century crisis was “solved” by Diocletian by deferring his administrative responsibilities, increasing bureaucracy. He formed the Tetrarchy where the Empire was divided into two administrative halves, eastern and western regions, each with an Augustus and Caesar. Diocletian increased taxes and the size of the military to defend the frontier from barbarian and Sassanid invasion. This and other reforms solved the internal problems of the Third Century Crisis where based coinage and interrupted trade routes increased prices within the Empire and a string of usurps claimed the throne, each having a time in the purple before being killed. Needless to say, the Tetrarchy dissolved after the resignation of Diocletian, eventually leading to the consolidation of power by Constantine I to be the sole Augusti of the Empire.

The Roman generals Stilicho and Constantius held off the invading Visigoths, led by Alaric, who wanted recognition and respected status from the Empire, and the Rhine invasion of 406. In early 400, the capital Rome, was moved to Ravenna which was surrounded by a swamp providing an obstacle for invasion. In 409, Alaric had Ravenna under seige and Honorius was ready to flee, but a relief force of 4,000 from the Byzantine Empire arrived right on time. Alaric was unable to successfully negotiate with the Emperor Honorus and Senate, and proceeded to order the Sack of Rome in 410. The sack was not a victory or an accomplishment for the Goths, but an admission of failure; Alaric ordered to sack to appease his followers who wanted material gain from following him as sort of a consolation prize. Eventually, in 418, an agreement was reached with the Empire that ceded land Gallia Aquitania, in southern France, to the Goths.

Flavius Aetius repelled two Hunnic invasions in 451 and 452. Ironically, like Stilicho, he was killed in 454 by the Emperor Valentinian III and his eunuch after he outlived his usefulness.

As one could see the Diocletian reforms, and competent military commanders prevented the Empire from disintegrating until it didn’t.
 
Those 2 are monopolistic for a reason.
Yeah, but even there they often overdo it.

For instance, my husband went straight from high school to a master’s program, to become an electrical engineer. The German system skips straight over any equivalent of our (aptly named) B.S. degree, and goes straight into professional training. Of course, their high schools are much better than ours.

Prospective medical students are allowed to go straight to the MCAT, or lawyers to the LSAT. But both are strongly discouraged by the professional colleges, and some states forbid it. Most professional colleges won’t accept you without a Bachelor’s, no matter how high your test score was.
 
Yeah, but even there they often overdo it.

For instance, my husband went straight from high school to a master’s program, to become an electrical engineer. The German system skips straight over any equivalent of our (aptly named) B.S. degree, and goes straight into professional training. Of course, their high schools are much better than ours.

Prospective medical students are allowed to go straight to the MCAT, or lawyers to the LSAT. But both are strongly discouraged by the professional colleges, and some states forbid it. Most professional colleges won’t accept you without a Bachelor’s, no matter how high your test score was.
Conscientiousness and general intelligence, both highly heritable traits, are not identical, and, unfortunately, cannot be augmented by current pedagogical methodology. A Bachelor’s is the signal for conscientiousness.
 
Conscientiousness and general intelligence, both highly heritable traits, are not identical, and, unfortunately, cannot be augmented by current pedagogical methodology. A Bachelor’s is the signal for conscientiousness.
Yeah, but why? Shouldn’t a high school diploma signal conscientiousness? High school is just too easy. I slept through most of my classes, and flirted through the rest, and passed with a 4.0 GPA. That shouldn’t even be possible. High school should require intense and concerted effort. You should need to study hard to pass your classes. In Germany only about 1/4 of students pass the high school exam. The rest take lower-qualifications instead.

Keeping people stuck in school for as long as possible, so that they run up enormous amounts of student debt, seems like a qualifier for neofeudalism, right? Especially as student loan debt cannot be written off in a bankruptcy (although I just saw that they have introduced legislation to change that, as student debt has now surpassed credit card debt).

Remember, intent is unimportant in judging if something is a sign of increasing neofeudalism. It might be that a rule, law, or regulation is made with good intentions, but that it has negative consequences in practice. Neofeudalism doesn’t require that people are acting in a consciously destructive manner, merely that the combined impact of many people’s actions and decisions leads to a societal structure that reduces social mobility and personal freedom.

The problem is that once such a society-structure is created, it is hard to get rid of it. Short of revolution, civil war, conquest, or currency reform.
 
Yeah, but why? Shouldn’t a high school diploma signal conscientiousness? High school is just too easy. I slept through most of my classes, and flirted through the rest, and passed with a 4.0 GPA. That shouldn’t even be possible. High school should require intense and concerted effort. You should need to study hard to pass your classes. In Germany only about 1/4 of students pass the high school exam. The rest take lower-qualifications instead.
Do you mean high school is too easy? Perhaps for you since you seem to be highly intelligent, but what about the others who are to your left on the normal distribution?
 
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