Slouching to the Beast

The politicians and bankers will prop it up their economies, but they will be sowing the seeds that sprout into the next problem. That is fine, because political powers never want correct solutions. They cannot eliminate problems, because they need the next crisis to justify an expansion of power.

Mistakes by political leaders do not mean state power will diminish. State power will increase dramatically throughout the economy and society, as people demand political action to solve the problems their political leaders created. The main consequence of the credit crunch will be an enormous increase of state power throughout the world.

America is slowly grouching toward being the Beast. The home of market capitalism and the bastion of independence is becoming the breeding ground for state power. Faith in the state has been growing rapidly in the United States over the last few decades. The state has now made a huge series of interventions in the economy and most Americans are cheering. People who would not accept telephone number that includes the digits 666 are glad to have the state bailing out the banks and auto makers. They will never be a credible resistance against the creeping power of the state again.

The credit crunch will not destroy American power. The productive base of the United States is strong enough that after a brief hiccup its world empire will keep on expanding. The only impact of the credit crunch will be a sharp shift from freedom and independence towards state subservience and control. This radical change will happen without even a whimper of protest.