Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Sunday, March 17, 2024

Subsidiarity Economics 2024. The times more or less locally, Part I. And then the day arrived (part two).

Our lifestyle, our wildlife, our land and our water remain critical to our definition of Wyoming and to our economic future.

Dave Freudenthal, former Governor of Wyoming/

 

January 2, 2024

The Energy Information Administration’s Short Term Energy Outlook Report states that combined generation from wind and solar will overtake generation from coal by more than 90 billion kilowatt-hours this year.

US coal production will drop to its lowest amount since the 1960s, with it taking more miners per ton to produce in the 60s than it does now.

Pennsylvania's Flying Fish Brewing Co. filed for Chapter 11 bankruptcy protection.

January 11, 2024

January 17, 2024

From the Trib:

According to a report put out by the Wyoming State Geological Survey this month, the state’s oil production has not yet surpassed its 2019 high, while nationwide oil production has surpassed pre-pandemic levels.

More than 95 million barrels of oil are expected to be produced in Wyoming in 2023, which is about 3 million more barrels than in 2022. The drilling of new oil wells has helped greatly.

In the first half of 2023, a total of 110 newly drilled oil wells were completed, most of them in the Powder River Basin. This is in line with the first half of 2022, when 118 oil wells were completed.

January 22, 2024

Flying Fish Brewing has declared bankruptcy.

January 23, 2024

U.S. oil production has been holding at or near record highs since October, topping the previous peak from 2020, even though the number of active domestic oil drilling rigs is down by nearly 30% from four years ago.

New technology is the reason why there is higher production with fewer rigs.

And also:

The U.S. set a new annual oil production record on December 15, based on data from the Energy Information Administration. Although the official monthly numbers from the EIA won’t be released for a couple of months, we can calculate that a new record has been set based on the following analysis.

Prices at the pump have been declining.

January 25, 2024

In spite of repeated Republican declarations about how bad the economy is doing, the economy grew 4.9% in the third quarter of 2023, for which the latest figures are out.  This grossly exceeds expectations.

This is interesting for a lot of reasons, one of which the "bad economy" is a consistent theme of Republicans in the current election cycle, when in fact this is a classic "good economy".  It's frankly bizarre.

Some of that might reflect, however, an ongoing retention of a return to the 1945-1975 economy by Rust Belt voters, and anxiety over an inevitable decline in the fossil fuel economy in the West.  The post-war economy is of course never returning, and the change in the direction in the energy economy cannot be arrested, although it too is doing well right now.

January 28, 2024

The Administration plans on providing billions for microchip subsidies for US producers to assure production can be made in the US.

It's worth noting that with war looming with China, there's more than one reason to do this.

The Biden Administration has paused all pending export licenses for liquified national gas (LNG) to consider the climate impacts.

February 8, 2024

Getting Wall Street out of our houses

February 10, 2024

US Credit Card debt is at an all-time high.

World's Foremost Authority On Solar Sheep Advising Wyoming $500 Million Solar Farm

Jobs, Jobs, Jobs


February 11, 2024


It is estimated that over 10% of Canadian craft brewers will close this year.

February 13, 2024

The city of Gillette and BWXT have agreed to work together to look at the possibility of having nuclear facilities and operations in Gillette 

February 15, 2024

While this should be no surprise, given what we earlier reported here:


Remington, in its new form, will close its facilities in Ilion, New York, in March.

Colorado has filed suit to stop the Kroger Albertson's merger.

February 21, 2024

Japan's Nikkei stock index soared to an all-time high.

Rivian, the electric truck maker, is laying off 10% of its salaried staff.

This will cause piles of cackling from those who are convinced electric vehicles, which have taken off, will never take off.  Rivian was an automotive start-up, something that's really tough to do.  Basically, their business model depended on getting into the saturated truck market before other maker went to electric, a real gamble.

Wyoming Gets a Big Win in Court for Coal 

 

CHEYENNE, Wyo. –Wyoming’s coal industry’s earned a long-awaited legal win today, as three Ninth Circuit judges unanimously sided with Wyoming’s arguments in support of the continuation of the federal coal-leasing program. The decision vacated a lower court order that reinstated Obama-era coal-leasing restrictions and required federal officials to perform duplicative National Environmental Policy Act (NEPA) analysis. 

“This ruling is an unequivocal win for our coal industry and a reminder that the Biden Administration has to follow the law,” Governor Mark Gordon said. “The Department of Interior now has one less excuse to thwart its federal coal leasing responsibilities. I appreciate the Attorney General and her staff for their excellent work on this case.” 

The complicated case spanned seven years and involved conflicting orders issued by former Interior Secretaries, in which Secretary Jewel issued an order to cease federal coal leasing and conduct a Programmatic Environmental Statement on the entire coal leasing program. Before that review was complete, Secretary Zinke rescinded the Jewel Order so coal leasing could resume; lastly Secretary Haaland rescinded the Zinke order. The district court ruled that the Department of the Interior needed to conduct additional NEPA analysis before resuming coal leasing under its existing authorities.  Wyoming argued that the case was moot, because the Zinke order was rescinded by Secretary Haaland.

Litigation costs for Wyoming were covered by the Federal Natural Resource Policy Account as directed by Governor Gordon.   

-END-

March 15, 2024

Nippon Steel proposes to take over U.S. Steel.

March 17, 2024

Tyson, the giant chicken corporation, announced that it's closing a plant in Iowa in June which will result in 1200 people, 15% of the entire town, losing their jobs. Simultaneously, the company is working with an asylum advocate group to hire 2,500 asylum seekers who are cleared to work elsewhere.

Um. . . we've been running a series on our companion blog entitled An Agrarian Manifesto. . . might be worth reading, perhaps particularly these:

A sort of Agrarian Manifesto. What's wrong with the world (and how to fix it). Part 2. Distributism


A sort of Agrarian Manifesto. What's wrong with the world (and how to fix it). Part 5. What would that look like, and why would it fix anything, other than limiting my choices and lightening my wallet? The Distributist Impact

Last Prior Edition:

Subsidiarity Economics. The times more or less locally, Part XVI. And then the day arrived.


Recent Related Threads:



Saturday, March 16, 2024

The Agrarian's Lament: A sort of Agrarian Manifesto. What's wrong with the world (and how to fix it). Part 6. Politics

The Agrarian's Lament: A sort of Agrarian Manifesto. What's wrong with th...

A sort of Agrarian Manifesto. What's wrong with the world (and how to fix it). Part 6. Politics

James Monroe.  

And, yes, we're still not on to the Agrarian finale in this series.  That's because we have one more important topic to consider first.

Politics.

If you read distributists' social media, and you probably don't, you'll see that some people have the namby pamby idea that if we all just act locally everything will fall in line.  While people should act locally, that's a bunch of crap.

What these people don't realize is that politically, we're a corporate capitalist society, and we are where we are right now, in large part due to that.  Corporations are a creature of the state, not of nature, and exists as a legal fiction because the state says they do.  This is deemed, in our imaginations, to be necessarily because, . . . well it is.

Or rather, it's deemed to be necessary as we believe we need every more consolidation and economies of scale.  

We really don't, and in the end, it serves just itself.  We do need some large entities, particularly in manufacturing, which would actually bring us back to the original allowance for corporate structure, which was quite limited.  Early in US history, most corporations were banned from being created.

Legally, they would not need to be banned now, but simply not allowed to form except for actual needs.  And when very large, the Theodore Roosevelt proposal that they be treated like public utilities, or alternatively some percentage of their stock or membership would vest in their employees, would result in remedying much of the ills that they've created.

Likewise, eliminating the absurd idea that they can use their money for influence in politics could and should be addressed.

Which would require changes in the law.

And that takes us back to politics.

Nearly every living American, and Canadian for that matter, would agree that a major portion of the problems their nations face today are ones manufactured by politics.  The current economic order, as noted, is politically vested.

The United States has slid into a political decline of epic proportions, and its noteworthy that this came about after Ronald Reagan attacked and destroyed the post 1932 economic order which provided for an amplified type of American System in which there was, in fact, a great deal of involvement in the economy and the affairs of corporations, as well as a hefty income tax on the wealth following the country's entry into World War Two.  It's never been the case, of course, that there was a trouble free political era although interestingly, there was a political era which is recalled as The Era of Good Feelings due to its lack of political strife.  

That era lasted a mere decade, from 1815 to 1825, but it's instructive.

The Era of Good Feelings came about after the War of 1812, which was a war that not only caused internal strife, but which risked the dissolution of the nation.  Following the war the Federalist Party collapsed thereby ending the bitter disputes that had characterized its fights with the more dominant Democratic-Republican Party.. . . . huh. . . 

Anyhow, President James Monroe downplayed partisan affiliation in his nominations, with the ultimate goal of affecting national unity and eliminating political parties altogether.

Borrowing a line from the Those Were the Days theme song of All In the Family, "Mister we could use a man like James Monroe again".

Political parties have had a long and honorable history in politics. They've also had a long and destructive one.  Much of their role depends upon the era.  In our era, for a variety of reasons, they are now at the hyper destructive level.

They are, we would note, uniquely subject to the influence of money, and the fringe, which itself is savvy to the influence of money.  And money, now matter where it originates from, tends to concentrate uphill if allowed to, and it ultimately tends to disregard the local.

"All politics is local" is the phrase that's famously attached to U.S. politics, but as early as 1968, according to Andrew Gelman, that's declined, and I agree with his observation.  Nowhere is that more evident than Wyoming.

In Wyoming both the Republican and the Democratic Party used to be focused on matters that were very local, which is why both parties embraced in varying degrees, The Land Ethic, and both parties, in varying degrees, embraced agriculture.  It explains why in the politics of the 70s and 80s the major economic driver of the state, the oil and gas industry, actually had much less influence than it does now.

Things were definitely changing by the 1980s, with money, the love of which is the root of all evil, being a primary driver.  Beyond that, however, technology played a role.  The consolidation of industry meant that employers once headquartered in Casper, for instance, moved first to Denver, then to Houston, or were even located in Norway. As the love of money is the root of all evil, and the fear of being poor a major personal motivator, concern for much that was local was increasingly lost.

The increasing broad scope of the economy, moreover, meant that there were economic relocations of people who had very little connection with the land and their state.  Today's local Freedom Caucus in the legislature, heavily represented by those whose formative years were out of state, is a primary example in the state.  Malevolent politics out of the south and the Rust Belt entered the state and are battled out in our legislature even though they have little to do with local culture, lands or ethics.

Moreover, since 1968 the Democratic Party has gone increasingly leftward, driven at first by the impacts of the 1960s and then by its left leaning elements.  It in turn became anti-democratic, relying on the Supreme Court to force upon the nation unwanted social change, until it suddenly couldn't rely on the Court anymore, at which time it rediscovered democracy.  At the same time Southern and Rust Belt Populists, brought into the Republican Party by Ronald Reagan, eventually took it over and are now fanatically devoted to anti-democratic mogul, Donald Trump, whose real values, other than the love of money and a certain sort of female appearance, is unknown, none of which maters to his fanatic base as they apply the Führerprinzip to his imagined wishes and he responds.

We know, accordingly, have a Congress that's completely incapable of doing anything other than banning TikTok.

Distributism by design, and Agrarianism by social reference, both apply Catholic Social Teaching, one intentionally and one essentially as it was already doing that before Catholic Social Teaching was defined.  As we've discussed elsewhere, Catholic Social Teaching applies the doctrines of Human Dignity, Solidarity and Subsidiarity.  Solidarity, as Pope John Paul II describe it In Sollicitudo rei socialis, is not “a feeling of vague compassion or shallow distress at the misfortunes of others. It is a firm and persevering determination to commit oneself to the common good”.  Subsidiarity provides that that matters ought to be handled by the smallest, lowest or least centralized competent authority.

We are a long ways from all of that, right now.

Politically, we're in a national political era that is violently opposed to solidarity and subsidiarity.  Supposed national issues and imagined remote conspiracies, dreamt up by political parties, swamp real local issues.  Global issues, in contract, which require a competent national authority, or even international authority, to deal with, cannot get attention as the masses are distracted by buffoons acting like Howler Monkeys.

Destroying the parties would serve all of this.  And that's a lot easier to do than might be supposed.

And more difficult.

Money makes it quite difficult, in fact.  But it can be done.

The easiest way to attack this problem is to remove political parties as quasi official state agencies, which right now the GOP and Democratic Party are.  Both parties have secured, in many states, state funded elections which masquerade as "primary elections" but which are actually party elections.  There's utterly no reason whatsoever that the State of Wyoming, for example, should fund an internal Republican election, or a Democratic one.

Primary elections are quite useful, but not in the fashion that most state's have them.  A useful example is Alaska's, whose system was recently proposed for Wyoming, but which was not accepted (no surprise).  Interestingly, given as the state's two actual political parties right now are the Trumpites and the Republican remnants, this a particularly good, and perhaps uniquely opportune, time to go to this system.  And that system disregard party affiliations.

Basically, in that type of election, the top two vote getters in the primary go on to the general election irrespective of party.  There doesn't need to be any voter party affiliation. The public just weeds the number of candidates down.

That is in fact how the system works here already, and in many places for local elections. But it should be adopted for all elections.  If it was, the system would be much different.

For example, in the last House Race, Harriet Hageman defeated Lynette Grey Bull, taking 132,206 votes to Gray Bull's 47,250.  Given the nature of the race, FWIW, Gray Bull did much better than people like to imagine, taking 25% of the vote in an overwhelmingly Republican state.  Incumbent Lynn Cheney was knocked out of the race in the primary, being punished for telling the truth about Дональд "The Insurrectionist" Trump.  But an interesting thing happens if you look at the GOP primary.

In that race, Harriet Hageman took 113,079 votes, for 66% of the vote, and Cheney took 49,339, for 29%.  Some hard right candidates took the minor balance. Grey Bull won in the primary with just 4,500 votes, however.

I'd also note here that Distributism in and of itself would have an impact on elections, as it would have a levelling effect on the money aspect of politics.  Consider this article by former Speaker of the House Tom Lubnau:

Tom Lubnau: Analyzing The Anonymous Mailers Attacking Chuck Gray


A person could ask, I suppose, of how this is an example, but it is.

Back to the Gray v. Nethercott race, Ms. Nethercott is a lawyer in a regional law firm. That's not distributist as I'd have it, as I'd provide that firms really ought to be local, as I discussed in yesterday's riveting installment.   But it is a regional law firm and depending upon its business model, she's likely responsible for what she brings in individually.  Indeed, the claim made during the race that she wanted the job of Secretary of State for a raise income was likely absurd.

But the thing here is that Nethercott, as explained by Lubnau, raised a total of $369,933, of which $304,503 were from individual donations.  That's a lot to spend for that office, but it was mostly donated by her supporters.

In contrast, Jan Charles Gray, Chuck Gray's father donated a total of $700,000 to Chuck Gray’s campaign, Chuck Gray donated $10,000 to his own campaign and others donated $25,994.

$700,000 is a shocking amount for that office, but beyond that, what it shows is that Nethercott's supporters vastly out contributed Gray's, except for Gray's father.  In a distributist society, it certainly wouldn't be impossible to amass $700,000 in surplus cash for such an endeavor, but it would frankly be much more difficult.

To conclude, no political system is going to convert people into saints.  But it's hard to whip people into a frenzy who are your friends and neighbors than it does people who are remote.  And its harder to serve the interest of money if the money is more widely distributed. Put another way, it's harder to tell 50 small business owners that that Bobo down in Colorado knows what she's talking about, than 50 people who depend on somebody else for a livelihood a myth.

Last prior:

Thursday, March 14, 2024

The Agrarian's Lament: A sort of Agrarian Manifesto. What's wrong with the world (and how to fix it). Part 5. What would that look like, and why would it fix anything, other than limiting my choices and lightening my wallet? The Distributist Impact.

The Agrarian's Lament: A sort of Agrarian Manifesto. What's wrong with th...:


So, having published this screed over a period of days, and then dropping the topic, we resume with the question.

Why, exactly, do you think this would do a darn thing?

Well, here's why.

A daily example.

When I started this entry on Monday, March 4, I got up, fixed coffee and took the medication I'm now required to as I'm 60 years old, and the decades have caught up with me. The pills are from a locally owned pharmacy, I'd note, not from a national chain, so I did a distributist thing there.  It's only one block away, and I like them. Distributism.

I toasted a bagel, as in my old age the genetic "No" for adults consuming milk has caught up with me.  I got that at Albertson's and I don't know where the bagels are made.  Albertson's is a national chain that's in the process of trying to merge with another national chain. Corporate Capitalism.

The coffee was Boyers, a Colorado outfit. Quasi distributist there.

I put cream cheese on the bagel.  It was the Philadelphia brand. Definitely corporate capitalist there.

I'd already shaved (corporate capitalist, but subsidiarity makes that make sense).

I got dressed and headed to work.  My car was one I bought used, but its make is one that used to be sold by a locally owned car dealer.  No more. The manufacturers really prefer regional dealers, and that's what we have.  All the cars we have come from the dealer when it was locally owned.

I don't have that option anymore.  Corporate Capitalism.

In hitting the highway, I looked up the highway towards property owned by a major real estate developer/landlord.  A type of corporate capitalism.

I drove past some churches and the community college on the way in. Subsidiarity.

I drove past one of the surviving fraternal clubs.  Solidarity.

I drove past the major downtown churches.  Solidarity.

I drove past a collection of small stores, and locally owned restaurants adn bars, and went in the buildings.  Distributism.

I worked the day, occasionally dealing with the invading Colorado or other out of state firms.  Corporate Capitalism.

I reversed my route, and came home.

So, in this fairly average day, in a Western midsized city, I actually encountered a fair number of things that would be absolutely the same in a Distributist society.  But I encountered some that definitely ran very much counter to it.

Broadening this out.

A significant thing was just in how I ate.  And I eat a lot more agrarian than most people do.

The meat in our freezer was either taken by me in the field, or a cow of our own that was culled.  Most people cannot say that. But all the other food was store bought, and it was all bought from a gigantic national chain.  In 1924 Casper had 72 grocers, and it was less than a quarter of its present size.  In 1925, just one year later, it had 99 grocery stores.  The number fell back down to 70 in 1928.

August 1923 list of grocers in Casper that sold Butternut Coffee, which was probably every grocer.

When I was a kid, the greater Casper area had Safeway, Albertson's, Buttreys and an IGA by my recollection, in the national chains.  Locally, however, it had six local grocery stores, including one in the neighboring town of Mills.  One located right downtown, Brattis' was quite large, as was another one located in North Casper.

Now the entire area has one local grocery store and it's a specialty store.

Examples like this abound.  We have a statewide sporting goods store and a local one, but we also have a national one.  The locals are holding their own.  When I was young there was a locally owned store that had actually been bought out from a regional chain, and a national hardware store that sold sporting goods.  So this hasn't changed a lot.

And if we go to sporting goods stores that sell athletic equipment, it hasn't either. We have one locally owned one and used to have two. We have one national chain, and used to have none.

In gas stations, we have a locally owned set of gas stations and the regional chains.  At one time, we only had local stores, which were franchises. The local storefronts might be storefronts, in the case of the national chains, as well.

When I was a kid, the only restaurants that were national were the fast food franchises, which had competition from local outfits that had the same sort of fare and setting.  The locals burger joints are largely gone, save for one I've never been to and which is a "sit down" restaurant, and we have national and regional restaurant chains.  We retain local ones as well.  

We don't have any chain bars, which I understand are a thing, and local brewing, killed off by Prohibition, has come roaring back.

We used to have a local meat processing plant that was in fact a regional one, taking in cattle from the area, and packing it and distributing it back out, including locally.  There are no commercial packing plants in Wyoming now.  The closest one, I think, is in Greeley Colorado, and the packing industry is highly concentrated now.

We don't have a local creamery, either.  We had one of those at least into the 1940s, and probably well beyond that.  The milk for that establishment was supplied by a dairy that was on the south side of town.  It's no longer that and hasn't been for my entire life.

We've been invaded by the super huge law firms that are not local.

Our hospital is part of a private chain now, and there's massive discontent. That discontent took one of the county commissioners that was involved in the transfer of that entity out of county hands down in the last election.  But that hasn't arrested the trend.  My doctor, who I really like is part of a regional practice, not his own local one, anymore.  This trend is really strong.

And then there's Walmart, the destroyer of locally owned stores of every variety.

So would distribution make anything different?

The question is asked by a variant of Wendell Berry's "what are people for", but in the form of "what is an economy for?".

It's to serve people, and to serve them in their daily lives, as people.

It's not to make things as cheap as possible.

On all of the retail things I've mentioned, every single one could be served by local retail stores.  If we didn't have Albertson's, Riddleys and Smith's, we'd have a lot of John Albertson & Son's, Bill Riddley & Family, and Emiliano Smith's stores, owned by their families.  If Walmart didn't exist, and moreover couldn't exist, it would be replaced locally, probably by a half dozen family owned retailers. . . or more.

Prices would in fact be higher, although there would be competition, but the higher prices would serve families who operated them, and by extension the entire community.  And this is just one example.  

Much of the old infrastructure in fact remains.  As discussed above, numerous small businesses remain, and according to economic statistics, small business remains the number one employer in the US.  But the fact is that giant chain corporations have made a devastating impact on the country, making all local business imperiled and some practically impossible to conduct.

Reversing that would totally reorient the local economy.  Almost everyone would work for themselves, or for a locally owned business, owned by somebody they knew personally, and who knew them personally.

And with that reorientation, would come a reorientation of society.

We'll look at that a bit later.  Let's turn towards the agrarian element next.

Last Prior:

What's wrong with the world (and how to fix it). Part 4. A Well Educated Society.

Wednesday, March 6, 2024

The Agrarian's Lament: What's wrong with the world (and how to fix it). Part 3. Agrarianism.

The Agrarian's Lament: What's wrong with the world (and how to fix it). ...

What's wrong with the world (and how to fix it). Part 3. Agrarianism.


And what's this thing about Agrarianism?

I believe that this contest between industrialism and agrarianism now defines the most fundamental human difference, for it divides not just two nearly opposite concepts of agriculture and land use, but also two nearly opposite ways of understanding ourselves, our fellow creatures, and our world.

Wendell Berry.


Given the above, isn't Agrarianism simply agricultural distributism?

Well, no.

Agrarianism is an ethical perspective that privileges an agriculturally oriented political economy. At its most concise, agrarianism is “the idea that agriculture and those whose occupation involves agriculture are especially important and valuable elements of society

Bradley M. Jones, American Agrarianism.

Agrarianism is agriculture oriented on an up close and personal basis, and as such, it's family oriented, and land ethic oriented.

We have noted before:








But Agrarianism goes much further than this.  It retains something that the rest of society has tragically lost, which is that we are inseparably bound to the soil, and inseparably bound to nature.

The fact that we have lost this has been massively corrupting and is massively destructive.  Indeed, it threatens to destroy us.

Not everyone in a modern agrarian economy would be farmers, as some like to either imagine, or criticize. But society would be family farm oriented.  And it would value the land ethic.

All ethics so far evolved rest upon a single premise: that the individual is a member of a community of interdependent parts.The land ethic simply enlarges the boundaries of the community to include soils, waters, plants and animals, or collectively the land.

The Land Ethic, A Sand County Almanac.  Aldo Leopold.

Realizing that agrarianism is, whether we like it or not, and that we ignore it at our ultimate peril and destruction, is the paramount task of agrarians today.  No one thing every cures all of a society's ills, but a modern agrarian economy would come pretty darned close.

Which presumes not only a well grounded society, but a well-educated society.

We've lost that.

Tuesday, March 5, 2024

The Agrarian's Lament: A sort of Agrarian Manifesto. What's wrong with the world (and how to fix it). Part 2. Distributism

The Agrarian's Lament: A sort of Agrarian Manifesto. What's wrong with t...

Much of this, indeed the lion's share, could be fixed by reordering the economy to be Distributist.


That may seem extreme, but then, in the modern world, this is extreme, and frankly, we're in an extreme situation that we need to find a way out of or events of one kind or another will take us out of them for us.  

To be more extreme, we'd note what Cardinal Sarah has above, once again, the barbarians are alrady inside the city.

I've started off with agrarianism, and I mean it, but I'd also note that an aspect of agrarianism is distributism. All agraraians are distributists, not all distributist are agrarians.  We'll start with distributism.  

What the hecks is it, anyway.  We'll, we'll turn to an old Lex Anteinternet post, where we discussed that (we just bumped that post up here).






A Distributist economy, therefore, would discourage, or perhaps even prohibit, the concentration of the means of retail distribution in the hands of corporations in favor of family or individual enterprises.  So, rather than have a Walmart, you'd have a family owned appliance store, a family owned clothing store, a family owned grocery store, etc.  That's a pretty simple illustration the retail end of the economy, but that's a major aspect of Distributism. Distributism also has an agricultural aspect to it that's frankly agrarian, although agrarianism predates Distributism.  What that means is that farms would be owned and operated by the actual farmer.  That sounds simplistic but it stands contrary to much of what we see today, with agricultural land held by absentee owners, or by the wealthy who do not work it, or by agricultural corporations.


In short, Distributism favors the smallest economic unit possible.  And it does this on a philosophical basis, that being that small freeholders, or small businessmen, or small artisans, should hold the reins of the economy, as that concentrates wealth in their hands, those being middle class hands.  By doing that, that makes much of the middle class more or less economically independent, but not wealthy, stabilizes wealthy in the hands of the largest number of people, and strengthens the ability of the people to decide things locally.  In other words, that sort of economy "distributes" economic wealth and production to the largest number of people, and accordingly "distributes" political power to the largest number of people, on the theory that this is best for the largest number of people.



So why is that important here?

Because what people don't have, is well. . . anything.  People are consumers, and servants.  They lack something of their own, and they accordingly lack stability.  Increasingly, on certain things, including economics and science, they lack education.

And, like the ignorant and have-nots tend to be, they're unhappy and made.

The unhappy and mad masses always make for ignorant revolutions, whether it be the French Revolution, the Russian Revolution, or the revolutionary period of the Weimar Republic that concluded with the Nazis coming to power.  Not having anything, they're willing to try something, whether that something be Vladimir Lenin, Adolf Hitler, or Donald Trump.

It was Jefferson who noted that republics were grounded in yeomen farmers, for the reason that they were independent men.  Through Corporate Capitalism, we've been working on destroying the yeomanry for quite some time now.

The failure of people to have their own has been significant in creating the crisis that we face today.  People who worked for other entities, and that's most people, find themselves either adrift without them or slaves to them.  People live where they don't want to at jobs and careers they don't want to, in conditions they don't want to, even if they do not fully realize it, as their corporate masters compel them to.  It gets worse, all the time, and people are powerless against it.

Indeed, not only are they powerless, but they can be compelled to act against their own best interests, and often do.  People who love one thing as their true selves, will work to destroy the ability to do it for their corporate masters.  You don't have to look much beyond the Wyoming legislature to see this, where some advocate policies that would deprive average Wyomingites to access to public lands, for example, something that only serves the interest of the wealthy.

 What does a Distributist Economy look like?












Banks, as concentrations of economic maladies, usually only develop real problems when they are largely unregulated. When the old school Distributist formed their thoughts on the matter, that was the case. And the recent banking problems the United States has had largely flowed from the concept that regulation of banks was passe, followed by an actual effort on the part of the government to encourage banks in areas that they shouldn't go.  An overarching aspect of all of this is that an old policy of encouraging home ownership via home loans is a remaining nonsensical central American governmental goal that creates problems in and of itself.  Finally, the consolidation of banking into larger and larger remotely owned banks contributes to the problem. There still are locally owned or regionally owned banks, but not nearly as many as there once was.



Large banking has given us credit cards, an aspect of the economy wholly unknown to the original Distributist.  Of course ,they were unknown to earlier Capitalist as well, and have just sort of occurred. This too may be an area where the ship has sailed, but on the other hand, it would be one that I'd have a hard time imagining modern Distributist avoiding.  But how that would be handled in the new economy, which only saw the introduction of widespread use of credit cards starting in the 1970s, is an open question.  Credit cards now make up a huge percentage of the "money" in our economy, and they are interesting an huge unregulated sector, to a significant degree.  That is ,the percentage of interest they charge are regulated, but the creation of them is not.  It's been an amazing change in the economy.


It's an interesting topic, but one that I won't be able to address fully, which is one of the problems when discussing a modern Distributist economy (we'll get to problems in a minute). As there's been no real development of the theory in decades, and as it's never been fully implemented anywhere, some of these topics need to be completely re-thought by Distributists.

Among those topics are topics like insurance.  Americans like to complain about insurance, but by and large the insurance industry is amazingly capable and it really can't be done efficiently on a local level.  This is true of all types of insurance, to include most particularly liability insurance, which people don't think about much but which is particularly important to the economy.  Indeed, topics like banking and insurance do indeed suggest that a Distributist economy might be a bad idea.



How Distributist would handle this aspect of their economic theory is an interesting question, and I don't know the answer.  Some would borrow from Socialist examples, all of which are problematic.  Some might borrow from Theodore Roosevelt's progressive era suggestion and require public ownership of a certain percentage of large corporations, to give a voice in their affairs.  Some might restrict organizing in the corporate forum until a business reached a certain size.  All in all, I don't know how this topic would be approached.  It might be approached in the same way that modern Socialism tends to approach it, which is basically not to except by regulation and taxation, which really takes a person outside of the context of the theory in general and into something else.  What is clear is that in this area the example of Corporate Capitalism would have to largely suffice for Distributist as well.




















Before going on to Distributism, which is actually a species of capitalism, I'll note the same for Socialism. Socialism in its classic form is pretty easy to grasp, thesis wise.  Socialist argue that capitalism creates an unequal distribution of wealth favoring the owners of the means of production over the actual producers, and the solution to this is to have the state be the owner and distribute back to the worker.  As Socialism fails pretty badly in the execution, modern Socialist by and large don't actually advocate that, however, and instead focus on social activism and engineering, thereby taking themselves quite some distance from their economic theorist origins.  Indeed, many Socialist now appear to actually be some sort of capitalist, but of the state intervention variety.  The interesting thing about that is that it takes them in the direction of the "managed economy", which is basically what most western nations had, including the United States, from about 1932 through about 1980, when corporate capitalism reasserted itself.

Socialism was a reaction to early laissez faire capitalism, which was really early Corporate Capitalism.  It's undoubtedly the case that early industrialization lead to a very unequal distribution of wealth, but taking the long view, any early Capitalist economic enterprise does that.  Sure, factory owners of the 19th Century were vastly wealthy and their workers on the edge of poverty, but then the creators of electronic and internet based enterprises have become vastly wealthy in our modern age as well.  This is not to say that things were not unfair on the factory floor, but often missed in that story is that those jobs attracted a steady stream of applicants in any event, indicating that they were better than whatever they were fleeing from, which was probably rural poverty for those who did not own their own land.  At any rate, Socialism was an attempt, and a radical one, to address the ills of Corporate Capitalism of its day.  Ironically, Socialism in its real forms turned out to be worse, and the antidote to that nearly everywhere was Corporate Capitalism to at least some degree, often with a fair amount of state management in the old Communist countries.  










It would matter, if it does, because the net effect would be to push down the economy to a much more local and personal level.  To be blunt, is it better to have really cheap prices, but remote ownership, and lower wages (Corporate Capitalism) vs. higher prices and locally owned self sustaining middle class business (Distributism)?  That's pretty much what it boils down to.  Under a Distributism model, assuming that it would actually work, there'd be fewer very rich people and more middle class business owners. But even being in the middle class would be probably at least somewhat more expensive than it current is, and it'd be more the middle class of fifty years ago, which most people in the middle class were in the middle, or bottom, of the middle class back, with few in the upper areas of it.  Now, quite a few in the middle class are upper middle class, and of course we have more super wealthy than every before.  So, by getting more in the middle, on both ends, we take some out of the bottom and some out of the top.

Some would argue that the depression of economic classes from the upper end down, while taking the bottom and bringing it up, was a good collateral byproduct from a social point of view, although that really takes us out of economics, and Distributist economics, into something else.  Certainly bringing the bottom up undoubtedly has it merits, and is the point of any economic theory really.  Depressing the top down is another matter when it extends into the middle class, and very few in our economy would openly admit that. Even modern Socialist always claim to be acting on behalf of the Middle Class, when formerly they would have condemned as being bourgeois.  The arguments on that would vary, but basically it would be that there's something bad about having too much wealth in an economy, which again really gets beyond economics and into social theory. That's a problematic theory, but it is interesting to note that wealthy societies do tend to become effete. 



Well, one reason may be in that in the long history of Corporate Capitalism it seemingly goes through stages over time where it truly does concentrate vast wealth into the hands of very few, with bad results for almost everyone else.  The mid 19th Century history of Corporate Capitalism heavily featured that, which as we know gave rise to Communism and hardcore radical Socialism.  In the US, it gave rise to Progressiveness, a movement that flirted with Socialist ideas (and which flirted with some Distributist ones).  The ills of the mid 19th Century ended up being addressed, one way or another, and in most localities that ended up with labor coming out pretty well. But in our new highly global economy that does seem to be not so much the case anymore, at least if the arguments of individuals like Thomas Piketty are to be believed.  Indeed, individuals like Piketty argue that the economy is yielding to a new type of oligarchy, at the expense of everyone except the oligarchs.


As part of that, the high state of development of Corporate Capitalism like we know have has very much worked to divest people from business. That is, localism has really suffered as a result of it.  People have little connection to the stores that provide much of their goods, and for that matter the people providing them have little connection with the people they're providing them to.  In some agricultural sectors the people owning land have next to no connection with the states where they own them.  Indeed, one of hte more amusing, and at the same time sad, aspects of modern Western ranching is that sooner or later everyone doing it is going to run across a photo in some journal of a smiling wealthy man whom the journalist writes up as a "rancher", when what he really is a hobbyist with clothing that makes him look a bit absurd to locals. But that same individual keeps those locals from actually being ranchers, as they cannot compete with him economically. All of that hurts the local, and over time people become divorced form their own localities, with negative results.

For these reasons, I suspect, we're starting to see some really serious flirting with Socialism for the first time in about thirty years, which is interesting, and scary to anyone who has any passing familiarity with the history of Socialism in actual practice.  By and large, people are doing well economically but there is something they don't like about what their seeing, maybe.  Bernie Saunders now stands a real chance of being the nominee of the Democratic Party even though he's an avowed Socialist, the first time that a Socialist has advanced in Democratic politics since the late 1940s.  While none of this may have anything to do with economic thought, as earlier noted Australia and Canada have taken slight left turns in recent parliamentary elections, and Greece took a huge left turn.  Of course, some nations, like Denmark and Hungary, have taken sharp right turns.  We can assume that all of these voters don't know what they are doing, but that's not a safe assumption.  Some state of general discontent on something seems to be lurking out there, with some pretty radical solutions in the mix here and there.

And for that reason, it's to be lamented that there aren't any Distributist candidates in any party, anywhere.  Distributism is a subtle economic theory, but it's clearly more of a realistic one than Socialism is, and yet it seems to address many of the aspects of discontent that drive people into leftist economic theories.  As with our national politics, in which everyone has to be a Republican or a Democrat, no matter what they actually think, in our economy it seems you have to be a (Corporate) Capitalist or a Social Democrat, which makes very little sense.  There's no reason to believe that these two camps are the only natural ones, and taking a look at some Distributist ideas seems to be well overdue.  It's clear that no purely Distributist economy is going to come about in our day and age, but that doesn't mean that some of the ideas do not indeed have merit.  Some should be looked at.  Indeed, that's where the disappointment in a lack of such ideas being floated, except by some theorist and seemingly the Pope, is a shame.  It isn't as if any modern country is going to wholesale adopt Distributism.  But maybe some Distributist ideas are worth seriously considering, and right now they aren't getting any air.  It would be nice if they could, particularly when we see the failed theory of Socialism getting some, amazingly.

So, what about agriculture, and this agrarian thing?