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Strategies & Market Trends : The Art of Investing
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From: Sun Tzu11/13/2020 9:56:30 PM
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The Next Decade Could Be Even Worse - A historian believes he has discovered iron laws that predict the rise and fall of societies. He has bad news. In 2010, he predicted that the unrest would get serious around 2020, and that it wouldn’t let up until those social and political trends reversed. Havoc at the level of the late 1960s and early ’70s is the best-case scenario; all-out civil war is the worst.

The fundamental problems, he says, are a dark triad of social maladies: a bloated elite class, with too few elite jobs to go around; declining living standards among the general population; and a government that can’t cover its financial positions. His models, which track these factors in other societies across history, are too complicated to explain in a nontechnical publication. But they’ve succeeded in impressing writers for nontechnical publications, and have won him comparisons to other authors of “megahistories,” such as Jared Diamond and Yuval Noah Harari. The New York Times columnist Ross Douthat had once found Turchin’s historical model­ing unpersuasive, but 2020 made him a believer: “At this point,” Douthat recently admitted on a podcast, “I feel like you have to pay a little more attention to him.”

“We are almost guaranteed” five hellish years, Turchin predicts, and likely a decade or more. The problem, he says, is that there are too many people like me. “You are ruling class,” he said, with no more rancor than if he had informed me that I had brown hair, or a slightly newer iPhone than his. Of the three factors driving social violence, Turchin stresses most heavily “elite overproduction”—­the tendency of a society’s ruling classes to grow faster than the number of positions for their members to fill. One way for a ruling class to grow is biologically—think of Saudi Arabia, where princes and princesses are born faster than royal roles can be created for them. In the United States, elites over­produce themselves through economic and educational upward mobility: More and more people get rich, and more and more get educated. Neither of these sounds bad on its own. Don’t we want everyone to be rich and educated? The problems begin when money and Harvard degrees become like royal titles in Saudi Arabia. If lots of people have them, but only some have real power, the ones who don’t have power eventually turn on the ones who do.

Elite overproduction creates counter-elites, and counter-elites look for allies among the commoners. If commoners’ living standards slip—not relative to the elites, but relative to what they had before—they accept the overtures of the counter-elites and start oiling the axles of their tumbrels. Commoners’ lives grow worse, and the few who try to pull themselves onto the elite lifeboat are pushed back into the water by those already aboard. The final trigger of impending collapse, Turchin says, tends to be state insolvency. At some point rising in­security becomes expensive. The elites have to pacify unhappy citizens with handouts and freebies—and when these run out, they have to police dissent and oppress people. Eventually the state exhausts all short-term solutions, and what was heretofore a coherent civilization disintegrates.

Donald Trump, for example, may appear elite (rich father, Wharton degree, gilded commodes), but Trumpism is a counter-elite movement. His government is packed with credentialed nobodies who were shut out of previous administrations, sometimes for good reasons and sometimes because the Groton-­Yale establishment simply didn’t have any vacancies. Trump’s former adviser and chief strategist Steve Bannon, Turchin said, is a “paradigmatic example” of a counter-elite. He grew up working-class, went to Harvard Business School, and got rich as an investment banker and by owning a small stake in the syndication rights to Seinfeld. None of that translated to political power until he allied himself with the common people. “He was a counter-elite who used Trump to break through, to put the white working males back in charge,” Turchin said.Turchin’s prognostications would be easier to dismiss as barstool theorizing if the disintegration were not happening now, roughly as the Seer of Storrs foretold 10 years ago. If the next 10 years are as seismic as he says they will be, his insights will have to be accounted for by historians and social scientists—assuming, of course, that there are still universities left to employ such people.



More at Can History Predict the Future? - The Atlantic
www.theatlantic.com › magazine › archive › 2020/12
2 days ago — A historian believes he has discovered iron laws that predict the rise and fall of societies. ... The past 10 years or so have been discussion.
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