In the first part of this series, I expanded on a first-rate Den Beste posting, Mercurial America, and in the second, responded to a rather profound and conceptually rich comment in that post, Dishonorable America, by Scott Harris.
Recalling that in the first post, I asserted that the source of much the misunderstanding of America is Americans' self-defining, self-determining natures, and in the second, that, it is not different or mutually exclusive ideas of honor that separate the world and Americans, but instead it is the archontic principle of our society is troublesome (if not downright sociopathic) in their eyes: we are not organized about the herd instinct (although it remains strong), rather, our community embraces creative destruction.
This term was first coined in 1942 by Joseph Schumpeter's, "Capitalism, Socialism, and Democracy" means to describe the:
"process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."
Within the paradigm of a general economy, and more precisely, a market economy, we find the principle configured accordingly in the following article from Fredrick B. Taylor, entitled, Capitalism's Forces of Creative Destruction Unleash Opportunities for Investors.
At the root of the creative destruction process are individual companies. They are the agents of change that develop new products, new technology, new production or distribution methods, new markets and new types of organization that will revolutionize the economy. Companies that change the business model for their industry or develop a new paradigm significantly alter the competitive landscape. As Schumpeter says, "competition which commands a decisive cost or quality advantage…strikes not at the margins of the profits and the outputs of the existing firms but at their foundations and their very lives."
We want to own companies that benefit from creative destruction. Good businesses that are constantly adapting to their changing environment and establish a decided competitive advantage will generate strong returns for their shareholders over a long period of time. We search industries throughout the world to find those companies that are transforming the terms of competition in their field. The forces of creative destruction in capitalism are not only the engine of economic growth; they also generate unparalleled investment opportunities for astute investors.
And, as we all know well, the business of America is business.
Still, I find this principle at work in more than just the private sector. If we strip this concept down further, into plain language, as does Investopedia.com, what we find is:
In other words, creative destruction occurs when something new kills an old thing.
Now, that sounds more like the America that I know and love. And, this might grate on some fellow Americans' finer sensibilities. This is not surprising; America is big enough, bad enough (not-bad-meaning-bad-but-bad-meaning-good), and so thoroughly contradictory that very often Americans misunderstand America.
This misunderstanding manifests itself most concretely in one of the "hot button" issues of the day, protectionism, advanced by trade unions and a sacred cow of (an increasingly) bigoted Left. If that weren't bad enough, their misunderstanding of America is so great, that this position, as currently configured, is actually un-American
I know what you're thinking: "Ah, wait, no way, you're kidding, he didn't just say what I think he did, did he?"
Well, let me reassure you, not only do I know the unfortunate and sordid history of that phrase in American politics, but I use it purposefully, or in other words, it's not the case that I "Didn't know what I was doin' but did it anyway!" But in case you didn't hear me in the back, let me say it again:
Protectionism and Unions are un-American.
First the protectionism, and they're main proponents, left and their paymasters, the trade unions. Scott Harris, said in his comment, Dishonorable America, some things which I didn't quite agree with, but on this point, we're on the same page:
The political left has ceased being liberal in the classical sense. Individualism and property rights must give way to group imperatives. You see this illiberality exposed in the Socialistic anti-American, anti-capitalist, anti-globalization movements. In group think, if you belong to an over achieving class of people, then your personal level of success is immaterial. Those belonging to “lesser” classes must be given greater rights, and your rights must be limited so that the classes become more equal. Your personal situation is therefore defined according to your class membership, not your personal integrity, effort, and achievements, or even your lack thereof.
I would expand this to include identity politics, but we're all about the economics right now, so....
Capitalists exist outside this class system, and are assumed bad because they transcend the traditional honor system. Rather than examine the merits of someone's success, and emulate their behavior, people in class-based societies are encouraged to forgo self-examination and vilify those who achieve and even those who attempt to do so. Instead of personal justice, the concept of collective or “social justice” is emphasized.
I confess that I had never entertained the idea of social justice as being tied to traditional honor systems, because the honorable always get the lion's share of the prizes (and the booty), but the insight is profound -- social justice is "justice" for those that forgo self-examination, forgo absolute responsibility over their actions and seek, instead, to ameliorate their mediocrity,
In Socialism, [where] the working class is awarded status by being "underprivileged." This begs the question of just who awards the status. To try to achieve would be a tacit admission that their current position is less than honorable. This cannot be admitted, therefore they embrace Socialism - honor bestowed by being a member of a class. This allows the ruling elite and the privileged class to maintain their elevated positions insulated from popular revolt.
Notice the use of this word: "class". I dare say that Scott would agree with me that "class" is a fiction, invented by small, feverish minds, and abetted by small, petty people.
Which is why the language, rhetoric, and soporific fantasy of "economic classes" is something that is perpetuated by the ruling elites in Europe, as well as the Democrats and their trade union paymasters here at home. That's because trade unions are the children of an ideology which posits some kind of labor as better, or more noble, than another and, in a great, cosmic injustice, this self-evident (and redemptive) fact is lost on an evil, crass, commerical society -- which must be destroyed.
Granted, you won't find many trade union members in the United States talking about the tenets of scientific socialism anymore, but that doesn't mean that it didn't find its origin in the anti-liberal backlash of 1848 and their feet in the late 1800's and early 1900's. First organized in Europe, and then, by European immigrants to the United States, these organizations sought to limit the social distress and fallout that accompanies creative destruction. And, in nearly all literature concerning unions, this is always accepted uncritically: that unions are good for workers. Well, they're not. They're not even good for Jimmy Hoffa.
Wait, you say incredulously, aren't they? I mean, the world used to be, like, some totally horrible Dickens novel, right? Maybe. But that was fiction, after all. Fiction carries within its narrative its own, particular validity, proper to the story, which does not necessarily describe our world -- a world of becoming -- choosing instead to frame a dynamic world into a stasis, and one usually predicated upon by a moral order. Which is what unions and their able propagandists tell you -- the story of the labor union is about the strong, courageous underdog, made noble by his labor against the enfeebled, cowardly capitalist, made wicked by his property. To wit: Norma Rae, F.I.S.T., Roger & Me et.al.
Here's the problem with that narrative: it's bullsh!t. It's true, Americans like winners, and they like underdog winners who "move on up" (and then it's even better when, after having "arrived" they get their "comeuppance"). The 2 hour movie ends after the heroic union organizer triumphs over wicked suits -- but never shows their dreary existence afterward. Because heroes don't stand still, they are never content to stay within fixed boundaries, the exceed them, and if there's one thing that a union likes to do, is limit: limit competition, limit business, limit legislation, limit work hours, limit ambition, limit talent, limit drive, etc., and often, this is accomplished at the expense of and in direct opposition to their membership, to whom they are not accountable!
Let me explain. I have a cousin (who shall remain nameless, and hence, blameless) who is currently working in one of the Central California school districts. She is a conservative Catholic. But, when she get her teaching position, she was forced to join the teacher's union under the federal "Open-Shop Agreement" rules. The dues are taken out of her paycheck! And, much to her chagrin, her dues are spent on radio advertising bought by the California Teachers Association to express their solidarity with the United Food and Commercial Workers Union. Moreover, there is no accounting of her money, no checks and balances on the union, and this, remember, is supposed to be for her benefit! I'm sorry, come again?
Let us once and for all end the notion that America has so-called business unionism, directed only at improving the wages of working stiffs everywhere. AFSCME, AFL-CIO, NEA, and other public sector employee unions are proof that labor unions are political entities -- nothing more. No wonder organized crime and organized labor got so cozy together: labor unions are really nothing more than elaborate protection rackets. Pay us dues, and we'll look after you. Never mind that we aren't accountable to you, or that you disagree politically with us, but we know what's best for you, silly worker. They prey on those that they ostensibly protect, just like the Mafia.
But what does this have to do with creative destruction? Simple. Unions do everything they can by fiat and intimidation to ameliorate if not countermand its effects. Protectionism, minimum wage, smaller work week, etc. That's because unions are a desire for stability, not opportunityy. They are a desire for calm, not anxiety. They are a desire for repose, not activity. They are a desire for death, not life.
Wha?!?! That's going to far, you say. No, it's not. Not only do unions seek to restrain the spontaneous growth and destruction of enterprises through political manipulation but ultimately they inhibit the ability and potential for America to grow by colluding to provide artificial and unsustainable stability for workers. I mean, really, who's responsible for promising people a job for life? And just what the hell is a living wage, and who gets to decide it? The guy getting paid $20 an hour to bag groceries?
Combine the populist need for security with irrational fear of foreigners, and you will see that it is why it is not surprising to find that the rhetoric of the trade union and their supporters, is almost always a bigoted demogogery.
But, as it turns out, the competition and the exposure to challenge and opportunity that know-nothing unions run kicking and screaming from, are actually goodfor all of us.
"Any way you slice it, the world is creating or transferring more jobs to the U.S. than we are doing to the rest of the world," said Daniel T. Griswold, a trade specialist at the Cato Institute, a research organization in Washington.
...
While reliable figures aren't available for the last two years, the Commerce Department estimated on March 18 that the number of Americans employed by U.S. affiliates of majority non-U.S. companies grew by 4.7 million from 1997 through 2001. In the same period, the number of non-Americans working at affiliates of majority-U.S. companies abroad rose by 2.8 million.
Then, there's this:
WASHINGTON — The "jobless" economic recovery finally created a significant number of new jobs in March: 308,000, according to data released Friday.
That's because when we are exposed, when we struggle, when we compete, we become stronger. This is most certainly not a zero-sum-game-socialist logic, rather, we can see it demonstrated in resistance training. Lifting weights makes someone stronger, period. The weights don't get weaker at an other's expense. From the resistance, the lifting, one becomes stronger.
The logic of protectionism, of outrage at outsourcing, is based on not on an economic need, rather it stems from a psychological need for a stable, threat-free, blissfully ignorant existence. This existence is a static, sleepwalking, know-nothing, save-me-from-my-own-stupid-mistakes-and-give-me-benefits-while-you're-at-it waste of human potential. But I guess some people are content to cease growing, to cease moving forward, and instead, react to their own life of quiet desperation by seeking, in an ignorant and boorish fashion, to impose limits and constrain others' growth. If the sky is the limit, unionist protectionism is based on a logic that necessitates a low sky and mandates narrow horizons, even as, we Americans dare to "slip the surly bonds of Earth" and reach to the heavens.
What protectionists, out of their fear, out of their desire for repose and stillness forget is that, struggle is life. And, as Nietzsche reminds us,
All great things bring about their own destruction through an act of self-overcoming: thus the law of life will have it, the law of the necessity of “self-overcoming” in the nature of life.
And, if there is one thing that is certain about America, it's that We Shall Overcome
For a more professional treatment of the intersection of Nietzsche, Schumpeter, and Creative Destruction, check this paper by Erik and Hugo Reinert.