We take notice of things that threaten or excite much more than we do of things familiar and hum-drum. It's just the way people (and risk managers) are.*
There's a lot of good stuff that happens every day, so to keep the vibe, I'll hold off on posting the "What happens when a hurricane crosses over an erupting volcano" story.
From all sides, the message is coming in: the world as we know it is on the verge of something really bad. From the Right, we hear that ‘West’ and ‘Judeo-Christian Civilisation’ are in the pincers of foreign infidels and native, hooded extremists. Left-wing declinism buzzes about coups, surveillance regimes, and the inevitable – if elusive – collapse of capitalism. For Wolfgang Streeck, the prophetic German sociologist, it’s capitalism or democracy. Like many declinist postures, Streeck presents either purgatory or paradise. Like so many before him, Streeck insists that we have passed through the vestibule of the inferno. ‘Before capitalism will go to hell,’ he claims in How Will Capitalism End? (2016), ‘it will for the foreseeable future hang in limbo, dead or about to die from an overdose of itself but still very much around, as nobody will have the power to move its decaying body out of the way.’
In fact, the idea of decline is one thing the extremes of Left and Right agree upon. Julian Assange, avatar of apocalyptic populism, gets kudos from neo-Nazis and social justice crusaders alike. He noted to one reporter how American power, source of the planet’s evils, was in decline like Rome’s. ‘This could be the beginning,’ he whispered with a smile, repeating it like the mantra of an avenging angel.
Rome’s decline looms large as the precedent. So, world historians have played their part as doomsayers. At the same time as the English historian Edward Gibbon’s first volume of The History of the Decline and Fall of the Roman Empire (1776) was published, the American colonists said good-bye to their overlords; some read that as an omen. The First World War brought endism into the modern age. The most famous rendition was the German historian Oswald Spengler’s The Decline of the West (1918). The carnage of Flanders and the influenza plague of 1918 – which wiped out up to five per cent of the world’s population – made The Decline of the West more than timely. Spengler added a spin: he predicted that, by the end of the century, Western civilisation would need an all-powerful executive to rescue it, an idea that autocrats have seized upon with repeated glee ever since.
It is almost part of the modern condition to expect the party to be over sooner rather than later. What varies is how the end will come. Will it be a Biblical cataclysm, a great leveller? Or will it be more gradual, like Malthusian hunger or a moralist slump?...MUCH MORE
Our declinist age is noteworthy in one important way. It’s not just the Westerns who are in trouble; thanks to globalisation, it’s the Resterners too. In fact, we are all, as a species, in this mess; our world supply chains and climate change have ensured that we are poised before a sixth mass extinction together. We should worry less about our lifestyle and more about life itself.
Declinisms share some traits. They have more purchase in times of turmoil and uncertainty. They are also prone to thinking that the circles of hell can be avoided only with a great catharsis or a great charismatic figure.
But most of all: they ignore signs of improvement that point to less drastic ways out of trouble. Declinists have a big blindspot because they are attracted to daring, total, all-encompassing alternatives to the humdrum greyness of modest solutions. Why go for partial and piecemeal when you can overturn the whole system?
Declinists claim to see the big picture. Their portraits are grandiose, subsuming, total. Consider one of the all-time bestsellers, the Club of Rome’s The Limits to Growth (1972). With more than 30 million copies sold in 30 languages, this ‘Project on the Predicament of Mankind’ gave alarmed readers a portrait of demise, mapped out with gloomy confidence about ‘feedback loops’ and ‘interactions’. In fact, it shared much in common with the good Reverend Thomas Malthus, including the obsession with diminishing returns. Fixated with the decline of arable land, Malthus could not see sources of increasing returns – at least not at first. Some of his friends eventually convinced him that machinery and colonialism solved the problem of too little food for too many mouths; later editions of his Essay on the Principle of Population (1798) went through contortions to figure this out. In the same way, systems analysts at the Massachusetts Institute of Technology simulated the whole world, but could not admit little pictures of ingenuity, problem-solving and adaptation – some of which had the perverse effect of unlocking so many more sources of carbon that we’d begin to bake the planet several generations later!...
HT, Pethokoukis at AEI:
Why declinism, while often tempting, is usually wrong
*Plus, markets go down faster than they go up and puts and calls are priced asymmetrically and...