Victor Davis Hanson: “The Old Beneficiaries Are Not Going Quietly Into That Good Night”
The change coming as a result of the economic crisis will be monumental. The laws of economics are about to to overwhelm the nonsense that passed for political wisdom and leadership. Our lives are about to be altered in ways that few yet imagine.
From Monty Pelerin’s World
The change coming as a result of the economic crisis will be monumental. The laws of economics are about to to overwhelm the nonsense that passed for political wisdom and leadership. Our lives are about to be altered in ways that few yet imagine.
The so-called age of plenty was a myth and abused. This next age, which has barely begun, will exact revenge. Life is about to become hard again. No, let me more properly state that: life is about to become realistic again.
For many, realistic will seem hard, unreasonable and “unfair.” They know nothing but the Alice in Wonderland world in which they have lived. Theirs is a world of entitlements, privileges and the nanny state catering to their needs/wants. This world is filled with soap operas, American Idol, cell phones, social networking and large screen TVs. This world is about to be invaded by hard work and responsibility.
Spending more than you earned (or not earning at all) is about to end. The credit binge is no longer and the liquidation phase is here. That means spending less than you take home. It also means a tougher economic environment in terms of lower growth and job creation. And that is the best that can be hoped for!
This new world will happen only if the political elite have the courage to pursue proper economic policies rather than continuing to pretend they can add stimulus or print more money to improve the economy. All other outcomes are worse! Resistance from all beneficiaries of the existing system, politicians especially, is to be expected. This resistance could produce a worse outcome.
For an economist. it is easy to understand the current situation and future options. More perplexing, and complex are the issues subsumed in the following question: What caused us to veer so far from the path of reality? The following article, by Victor Davis Hanson, sheds some light on possible answers to this question:
Victor Davis Hanson
American reality has been turned upside down in just 20 years.
Americans no longer count on their news to be filtered and shaped by the Associated Press or the New York Times. Nor do millions have it read to them in the evening by CBS, ABC or NBC anchorpersons — not with the Internet, cable news and talk radio. Matt Drudge’s website, “The Drudge Report,” reaches far more Americans than does CBS anchor star Katie Couric.
The old notion that America’s most successful citizens are turned out by prestigious four-year universities — the more private and Ivy League, the better — overseen by disinterested professors is also nearing an end. Private for-profit trade schools and online colleges are certifying millions in particular skills.
Meanwhile, the high jobless rate among recent college graduates, who are burdened by thousands of dollars in student loans, is starting to resemble the Freddie Mac- and Fannie Mae-spawned financial bubble of 2008, in which millions of indebted and unemployed borrowers could not pay back exorbitant federally insured home loans. The notion that parents are going to keep borrowing $200,000 to certify their children with high-prestige BA degrees that don’t necessarily lead to good jobs seems about as wise as buying a sprawling house that one can’t afford. James Cameron, Bill Gates, Sean Hannity, Tom Hanks, Steve Jobs, Rush Limbaugh, Tiger Woods and Mark Zuckerberg all made a good living without earning BAs.
A therapeutic college curricula and hyphenated “studies” courses have not made graduates better-read or more skilled in math and science. For many employers, the rigor of the new BA is scarcely equivalent to that of the old high school diploma. The global warming/climate change/climate chaos “crisis” has reminded Americans that careerist university Ph.Ds can be just as likely to fudge evidence and distort research as political lobbyists. The old blanket respect for academia and academics is eroding.
After the Greek financial fraud and collapse, the European Union identity crisis, and insolvency in California, there will be no more new defined-benefit retirement programs. A shrinking and debt-ridden youth cohort cannot and will not continue to subsidize an expanding and more affluent retired generation. Soon, 65 will be the new 50. We are going to see lots more seniors working well into their 70s.
Few believe that Detroit’s problem is too few unionized autoworkers, or that the SEIU has resulted in far better public service and efficiency from government employees. A government conspiracy or an ignorant public does not explain why union membership has now fallen to 12 percent of the American workforce.
The welfare-entitlement state is likewise a relic. Only a few political dinosaurs are calling for more spending, more entitlements and more taxes. Fairly or not, most Europeans and Americans accept that the limits of redistribution have been reached. President Obama’s talk of “spread the wealth” and “fat cat” bankers has not done much to lower $1.3 trillion deficits and 9.4 percent unemployment. So he has dropped the high-tax, more-benefits, class-warfare rhetoric in favor of writing editorials in the Wall Street Journal assuring business of less regulation and more government help.
Race relations are being redefined as never before. Interracial marriage, integration and immigration have made the old rubrics — “white,” “black,” “brown” — obsolete. Rigid, half-century-old affirmative action preference programs have not caught up with everyday reality. Their overseers are likewise ossified, now that millions in an interracial America do not fit into their precise racial slots, and being white — to the degree that it can be easily defined — is not synonymous with innate privilege. The notion that Tiger Woods’ children need an admissions or employment edge over natives of Appalachia or immigrants from India is surreal.
Abroad, things are just as upside down. Russia is no longer the avatar of global communism but the world’s largest cutthroat capitalist oil producer. China’s cultural revolution is now about making tons of money and driving a luxury car. The European Union has been reduced to finger-pointing and standing in line to beg Germany for cash — a far cry from its advertised 21st century utopian brotherhood. Our old neighbor Mexico is now a near-failed narco-state, bearing a greater resemblance to Afghanistan than to its brethren North American nations.
In response to this topsy-turvy world, the traditional media, tenured professors, well-paid public employees, rigid ethnic and racial lobbies, unions, organized retirees, open-borders advocates and entrenched politicians all are understandably claiming that we live in an uncivil age.
We well may, but we also are seeing the waning of an old established order. And the resulting furor suggests that the old beneficiaries are not going quietly into that good night.
Victor Davis Hanson
Victor Davis Hanson is a classicist and historian at the Hoover Institution, Stanford University, and a recipient of the 2007 National Humanities Medal.
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