Monday, March 9, 2020

The Storm Before the Calm (Review)

George Friedman (of Geopolitical Futures) has written a timely book - The Storm Before the Calm - which makes clearcut predictions on the 2020s and beyond. He also sets up a framework which is worth examining since the predictions directly follow from it.

Friedman seems to believe in cycles. He sets up two cycles - an institutional one and a socioeconomic one - and these two dovetail to create American history. In the institutional cycle, the US government is formed around 1780, it's relationship to the states is established around 1860, it's management of the economy via unbiased expertise is set up after WWII (1940s) and this institutional era is winding down creating chaos since the next institutional framework is not yet in place. There's also a socioeconomic cycle beginning in 1780. The first cycle lasts until 1830 or so (Andrew Jackson's presidency being the transformative one); the second cycle until 1880 or so (Rutherford B. Hayes being the transformer); the third cycle until 1930 (Roosevelt) and the fourth cycle ending in 1980 (with Reagan). It's the Reagan supply side economics era that is ending right now and following this 50 year socioeconomic cycle formula, Friedman predicts the next era beginning around 2028 or 2032 (at the latest).

We've been very syntactic about all this with no intuition provided. Friedman explains that the technocratic institutional framework (in place since 1945) led to algorithmic decision making (and corresponding convoluted regulatory frameworks) in which intentions of leaders cannot be communicated or quickly carried out any longer (as they will in all likelihood violate policy). He explains that the next institutional framework (after the collapse of the present technocratic one) will be about the government's relationship to itself and in particular will address the flow of intent in institutions. This connects to the hard problem of consciousness and so we'll postpone discussion of this fascinating idea for a later post. tl;dr: In the next institutional framework, the problem of how to quickly communicate the intent of a commander (or CEO, president) in an institution and to violate policy when required will be set up in the next era.

Friedman also points out that the bottom is dropping out of the US socioeconomic structure. Student loan debt is at 1.3T and people without college degrees are hooked on drugs, are jobless, divorced and dying early. They are also the old industrial working class and will decline further in this decade from middle class to the lower middle class. No one cares about them since the Democrats are only into ethnic minorities while the Republicans practice YOYO economics (you're on your own, kid). Friedman explains that this is a consequence of the end of Reaganomics (adopted by both parties) with the next cycle abandoning identity politics and creating strange bedfellows such as Southern racists and African Americans screwed over by trickle down (which didn't). He thinks that the university system will be overhauled (with the creation of an analog to the GI bill after WWII) since the top universities now only cater to the upper middle classes (who can game the system to get their kids into good colleges). He predicts that a technocratic president will be elected in 2020 (probably Biden at this point) and will be the last failed president in this cycle since he will continue implementing failed technocratic policies without realizing the need for a new institutional framework.

All in all, this is an interesting book - despite Friedman's obvious conservative blinders. He cannot bring himself to criticize the Republican party which now comprises grifters, religious nuts and racists. Consequently, he quickly glosses over Trump's failed presidency and moves instead to the next institutional cycle in which the technocracy (comprising of mainly Democrats) is defeated by the children of the white working class (probably Generation Alpha born after 2010). This also causes him to ignore the regressive tax cut of 2017 (a classic failed supply side move by the Republicans) which added to corporate coffers in an era of declining demand. But, despite these, the book is definitely worth picking up, especially due to its positivity (about the 2030s), its clear-headedness regarding the end of the information processing era (driven by Intel etc.) and its contribution to applied consciousness studies via the "flow of intent" problem in institutions.

Update (04/05/2020): Well, the world changed since the last post. Covid-19 will have long lasting ramifications regarding US policy. Quick predictions: (i) Supply side economics is dead; (ii) we will all come together despite our differences due to this extraordinary moment in world history; (iii) there will be a reckoning on Trump's response to the pandemic (regardless of whether he gets re-elected or not); (iv) technocratic expertise is back and (v) Friedman completely misunderstood the time it will take for the problem of "intentions in a complex system" to become widely understood. This will have to wait for the next iteration of the Prophet archetype (Missionary and Boomer generations being previous examples) and probably corresponding to kids born after covid-19 (Gen Alpha?). While experts will study this problem, there won't be any communication of their efforts to the public at large since the Millennials cannot be the vanguard of a social change that champions individual agency.