“People perish for cold metal”

The interrogators did not write up charge sheets because no one needed their papers. And whether or not a [prison] sentence would be pasted on was of very little interest. Only one thing was important: Give up your gold, viper! The state needs gold and you don’t.

This is all from Aleksandr Solzhenitsyn’s Gulag Archipelago. There’s more:

If you in fact had no gold, then your situation was hopeless. You would be beaten, burned, tortured, and steamed to the point of death or until they finally came to believe you. But if you had gold, you could determine the extent of your torture, the limits of your endurance, and your own fate.

It’s a good book, so far, but trying to compare the Soviet Union after World War I and a brief civil war to the present-day United States is a bridge too far. The only Americans today who might share the Gulag experience are the black ones, and even then their situation is less of a gulag archipelago and more of a traditional oppressed ethnic minority.

How the populists came to power

Jair Bolsonaro was elected president in Brazil. Donald Trump in the US. In other countries, similar politicians are gaining popular support. Some are calling these politicians “populists”. I don’t really know what they mean by this term. The populists that I know better are Getúlio Vargas, Brazil’s president for almost 20 years in the mid-20th century and Juan Peron, a leading political figure in Argentina in the same time period. What they had in common? Both fought the communist influence in Latin America, favored the labor movement and were anti-liberal. They were also extremely personalist, leading to something that could be understood as a cult of personality. I completely fail to see important similarities between Trump and Bolsonaro on the one hand and Vargas and Peron on the other. But I can see some similarities between Trump and Bolsonaro. The latter two both came to power against what the left became in the last few decades.

Once upon a time, there was a young German philosopher called Karl Marx. He was very well read but wasn’t very bright on economics. Anyway, he decided that he would correct the classical liberal economic theory of Adam Smith. The result was that Marx concluded that in the center of the economy, and actually in the center of history itself, was the class struggle between the workforce and the bourgeoisie. Of course, although appealing on the surface, Marx’s economic theory is pure nonsense. Maybe Marx himself knew it, for at the end of his life he was more interested in living a peaceful life in London than in leading a revolution. But this didn’t stop Marxists from starting Revolutions throughout the world, beginning in Russia.

Ludwig Von Mises brilliant pointed out that Marxism would never work as the economic foundation of a country, for it ignored private property. Without private property, there is no price formation and without prices economic calculation is impossible. In doing so, Mises founded the Austrian School of Economics. The economic debate between Austrians and Marxists ensued, but arguing with a Marxist is like playing chess with a pigeon. He will climb on the board, knock down the pieces and believe that he won. Regardless, facts don’t care about your feelings, and reality proved again and again that Mises was right.

However, at the same time, something else was happening. In Italy, a Marxist named Antonio Gramsci concluded that armed revolution was not the best way to power. He believed that a cultural approach would be better. Some German scholars in Frankfurt concluded pretty much the same. Their question was “why the proletariat will not follow us?”. The answer was that they were too alienated by capitalist culture.

Following Gramsci and the Frankfurt School, Marxists all over the world gave up studying economics and decided to study culture. They concluded that everyone can feel oppressed. The class struggle seized to be between factory workers and factory owners and turned into a fight between man and woman, black and white, gay and straight. Identity politics was born.

And that’s how the “populists” came to power. It is not so much that the common people (and especially conservatives and libertarians) are crazily in love with Bolsonaro or Trump. It is just that people eventually get tired of being called oppressors. The left, once legitimately concerned with the conditions of the poor, ignored that the best solution for poverty is the free market. Instead, they decided they would crush the common people they swore to protect, calling them homophobic, misogynists and so on. Common people answered by voting for whoever was on the other side of the political spectrum.