Week-end Wrap – Political Economy – March 31, 2024

Week-end Wrap – Political Economy – March 31, 2024

by Tony Wikrent

Strategic Political Economy

There Are Four Postelection Scenarios, and Not One Is Good 

Brynn Tannehill, March 22, 2024 [The New Republic]

Secret RCMP report warns Canadians may revolt once they realize how broke they are 

[National Post, via Naked Capitalism 03-24-2024]

“The coming period of recession will … accelerate the decline in living standards that the younger generations have already witnessed compared to earlier generations,” reads the report, entitled Whole-of-Government Five-Year Trends for Canada.

“For example, many Canadians under 35 are unlikely ever to be able to buy a place to live,” it adds.

The report, labelled secret, is intended as a piece of “special operational information” to be distributed only within the RCMP and among “decision-makers” in the federal government.

Global power shift

This is the way the West ends 

[Asia Times, via Naked Capitalism 03-30-2024]

With the United States entangled in conflicts in Ukraine and Gaza and the threat of a war with China looming large, Professor Michael Brenner’s insights and views on the state of the US-led liberal order are arguably as timely and important as ever….

MB: The entire foreign policy community in the United States now shares the basic tenets of neoconservatives. Actually, the scripture is Paul Wolfowitz’s notorious memorandum of March 1991 wherein he laid out a comprehensive, detailed strategy for systematizing American global dominance. Everything that Washington is doing, and thinking, now is derivative of that plan.

Its core principles: the United States should use all the means at its disposal to establish American global dominance; to that end, it must be ready to act preventively to stymie the emergence of any power that could challenge our hegemony; and to maintain full spectrum dominance in every region of the globe. Ideals and values are relegated to an auxiliary role as a veneer on the application of power and as a stick with which to beat others. Classic diplomacy is disparaged as inappropriate to this scheme of things.

For Biden himself, a confident, assertive, hard-edged approach to dealing with others derives naturally from belief in Americanism as a Unified Field Theory that explains, interprets and justifies whatever the US thinks and does. Were Biden reelected, this outlook will remain unchanged. And were he to be replaced by Kamala Harris mid-term, which is likely, inertia will keep everything on the fixed course.

Week-end Wrap – Political Economy – March 24, 2024

Week-end Wrap – Political Economy – March 24, 2024

by Tony Wikrent

Strategic Political Economy

Global Population Set To Fall For First Time In 700 Years 

[Modernity, via Naked Capitalism 03-23-2024]

Delayed Gratification – Why Are Global Birth Rates Falling, and Does It Matter? 

[Alpha Sources, via Naked Capitalism 03-18-2024]

[TW: It is astonishing how upset many people are about the prospect of shrinking populations. The political economic vision of civic republicans should be emphasizing that the entire aim of developing and employing technology that replaces human labor, is to diminish the need for human labor. But the benefits of new technologies must be shared equitably. ]

The Keys to a Long Life Are Sleep and a Better Diet—and Money [ 

[Wired, via Naked Capitalism Water Cooler 03-21-2024]

“The top 10 percent in both the UK and the US live over a decade more than the bottom 10 percent. It’s not even that they live more, they live more healthy lives. Why is that? Well the poor often don’t have the chance to exercise, their diets are often poor, and they work multiple jobs and have problems with sleep. All these things we think we can do, they’re harder if you’re poor and have to juggle jobs, child care, et cetera. One worry I have is that if we discover sophisticated interventions—like turning on stem cells and so on, or having to give transcription factors to people intravenously—depending on the sophistication of the intervention only the rich might be able to afford them. That would make the disparity even worse. Not only are the rich living longer, they’re going to live even longer and healthier.” 

Week-end Wrap – Political Economy – March 17, 2024

Week-end Wrap – Political Economy – March 17, 2024

by Tony Wikrent

Strategic Political Economy

 “‘If something requires us to cease production, we will do that:’ FAA  

[Leeham News & Analysis, via Naked Capitalism Water Cooler 03-13-2024]

“The Federal Aviation Administration (FAA) is considering whether to suspend the Production Certificate of Boeing Commercial Airplanes (BCA) if it’s not satisfied changes to its safety culture are sufficient, LNA has learned. It’s the “nuclear option” LNA has written about on previous occasions following the Jan. 5 in-flight accident/explosive decompression of a Boeing 737-9 MAX operated by Alaska Airlines. Already under heightened scrutiny by the FAA, Boeing took yet another in a series of safety blows when a special panel of experts appointed by the FAA to independently review Boeing’s safety culture issued a scathing report on Feb. 26.” Lambert Strether: “See Water Cooler here; document is now readable.] More: “The FAA levied fines—and suspended some of them—for previous safety violations 36 times, according to a tracking website. And despite pledges and actions taken to improve safety following the 2018-2019 MAX crisis, Boeing still has fallen short.” FAA’s leverage: “So, what’s the ultimate hammer the FAA has? It’s suspending the PC 700 certificate, and this is under consideration, LNA is told…. Boeing holds what’s known as a Production Certificate, named PC 700. This allows Boeing Commercial Airplanes to produce commercial airlines and military aircraft that are based on airliners…. If the FAA imposed a full suspension of PC 700, all 7-Series airliners would be affected. So would the commercially-based P-8 and KC-46A. Deliveries of the inventoried aircraft likely would be suspended. The FAA could choose to segregate the PC 700 more narrowly.” And: “It’s an election year. There is bipartisan Congressional criticism of Boeing, including from Congressional members from Washington State where the 737, 767, KC-46A, P-8A, and 777 are built. Despite the bipartisan nature, if the FAA suspended the PC 700 authority, the damage to Boeing and the affected supply chains would undoubtedly be subject to criticisms of President Joe Biden by Republicans.”

Airplanes and engineering: The way we were  

[Star-Tribune, via Naked Capitalism Water Cooler 03-12-2024]

When it changed: “Working for Honeywell in Minneapolis, I was involved in product developments for several Boeing aircraft: new platforms B-757, B-767, B-777 and B-787, and revisions on older designs, including the B-737. Each of these developments involved an intimate relationship between Boeing and Honeywell across multiple levels of organization. At the heart of the work were the customers’ requirements. Meeting these drove daily decisions in the project planning…. One afternoon, we started calling our contacts in Boeing Engineering. Engineering had prioritized the bidders and assured us Honeywell was their first choice. However, they would not confirm that Boeing management had signed off on the selection. We still believed we would win the program. In the past, Boeing always selected the highest technical bidder then renegotiated the price as the program phased into volume production. It was the best process to meet Boeing’s and the passengers’ quality demands… we were notified we were not selected for the program. Through several discussions with the Boeing engineering managers, we later found out that Boeing’s procurement process had changed. Boeing supply management downgraded the engineering assessment from prioritized capability to either meeting or not meeting the requirements. Then, procurement would select the lowest bidder from this pool of suppliers meeting the requirements. Engineering was no longer needed to sign off on the selection. (We heard that Boeing engineers wore a black armband for a month protesting the selection for this program.) The selection process could now be done in a spreadsheet with no account for the uncertainty that engineering often expected and hoped to have some insurance against. This would become a fundamental change in the aircraft industry.”

Week-end Wrap – Political Economy – March 10, 2024

Week-end Wrap – Political Economy – March 10, 2024

by Tony Wikrent

Global power shift

[X-Twitter, via Naked Capitalism 03-06-2024]

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Ukraine war and Western system’s fatal flaw 

Alex Krainer, Marck 6, 2024 [substack]

One of the talking points that has been making rounds among the West’s true believers, is that we can outspend Russia by a factor of 10 in military expenditures….

As the New York Times reported last September, Russia is producing at least seven times more ammunition than the US and its Western allies combined, and she is producing it at about 1/10th of the cost of western manufacturers. For example, while the cost per round for a Russian 152 mm round is about $600, NATO must budget between $6,000 and $8,000 per each 155 mm round.

Not only is Russia vastly ahead in terms of sheer production volumes but also in terms of innovation, quality and overall effectiveness. Her arsenal spans a very large array of weaponry from ultra-sophisticated hypersonic precision-guided missiles, world's most effective air-defense complexes and cheap but deadly drones, to the basic stuff like field artillery and ample ammunition to keep it firing 24/7 for months on end. At the same time, the United States and NATO still rely on legacy weapons systems that were state-of-the art in the 1990s, but are in large part obsolete today.

Purpose-driven vs. profit-driven systems: it’s no match

In a superb and important piece of analysis referencing the recent US Department of Defense National Defense Industrial Strategy (NDIS), former Marine and military affairs analyst Brian Berletic dissected many of the reasons why the combined West is now clearly losing the arms race, not only against Russia but also against China. He points out the key differentiator: while Russia's defense industry is purpose-driven, that of the West is profit-driven....

The undiagnosed malignancy

... Even as it endeavors to maintain a dominant geostrategic position in the world, Western powers have cannibalized their own capability to enforce and defend that position. The inescapable conclusion is that there is a deep, systemic flaw in the Western model of governance.

For generations, we'd all been educated to worship at the altar of private capital's unrestrained pursuit of profit for the greatest benefit of its shareholders, as Milton Friedman argued in his 1970 essay entitled “The Social Responsibility of Business is to Increase its Profits” (PDF). No other considerations can shape the development of production and distribution of goods and services in our economies, else someone will shriek, SOCIALISM! Worse, we’ve even allowed ourselves to become convinced that individuals’ unrestrained pursuit of their own interests can somehow automagically lead to the best possible outcome for the whole society.

As it turns out, those ideas were the owner class’s self-serving delusions that incubated the fatal flaw within their system, rendering it fragile and weak. The flaw has festered as an undiagnosed malignancy because it enabled the interests who own our Military Industrial Complex and other key industries (the big banks, big tech, big ag, and big pharma) to become extremely wealthy. They also became deeply entrenched in society’s power networks. As such they’ve grown and wholly resistant to any curtailment of their extraordinary privileges, even when it becomes clear that they are driving their nations to destruction….

China and Russia, the industrial production superpowers that could win a war 

[bne Intellinews, via Naked Capitalism 03-03-2024]

Week-end Wrap – Political Economy – March 3, 2024

Week-end Wrap – Political Economy – March 3, 2024

by Tony Wikrent

Strategic Political Economy

Amitav Ghosh’s Reckoning With Opium.

Alexander Zaitchik, March 1, 2024 [The New Republic]

His new book, Smoke and Ashes, traces the ravages of British opium on India from the eighteenth century to the present.

[TW: I April 2016 I posted an excerpt from Commerce, Christianity, and Civilization, Versus British Free Trade. Letters in Reply to the London Times, by Henry C. Carey. Philadelphia, Collins, 1876. Though Carey today is rarely mentioned in economics textbooks, he was the leading USA economist of the mid-nineteenth century, a staunch protectionist who was probably the single greatest proponent of what was then called the American School of Political Economy. 

[American protectionism was much more than simply a rejection of the concept of comparative advantage. Michael Hudson explains in the Preface to his 2010 book America’s Protectionist Takeoff: The Neglected American School of Political Economy:

The protectionist doctrine that shaped America's industry and agriculture... went beyond the narrow boundaries of today's economics discipline by deeming public policy and technology central to economic theorizing, not "exogenous." Analyzing what was needed to increase productivity, the American School emphasized that wages and prices had to be high enough to sustain rising living and educational standards for labor, and investment in rising energy mobilization by capital."

[But the American School even went beyond that. Carey and other American School economists always kept in view the ultimate goal of economic policies: the establishment and enhancement of civilization. And unlike the competing British School of Adams, Ricardo, and Mill, a central element of the American School was morality. Note the heavy tone of scorn and sarcasm Carey uses in his fifth letter to the editors of the Times of London, as he reviews and condemns the British opium trade and its disastrous consequences for China. -TW]

Japan’s new births fall to record low as demographic woes worsen 

[ABC Australia, via Naked Capitalism 02-28-2024]

Power in the shadows

CIA, Ukraine Exchange Pre-Divorce Propaganda 

Matt Taibbi, via Naked Capitalism 02-28-2024] Important

The CIA in Ukraine — The NY Times Gets a Guided Tour 

[ScheerPost, via Naked Capitalism 03-02-2024]