The Rise of Corporate–State Tyranny

In explaining his shift away from Maoist economics, Deng Xiao Ping, chairman of the Chinese Communist Party, described his market-oriented changes as “socialism with Chinese characteristics.” Today, American businesses, as well as the media and academic establishments that serve them, increasingly embrace what can best be described as “Chinese capitalism with American characteristics.”

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How America Turned Into the EU

For many liberal Americans, the European Union is the perfect elite model: a non-elected, highly credentialed bureaucracy that embraces and seeks to enforce the environmental, social and cultural zeitgeist of the urban upper classes. It is, as the establishment Council on Foreign Relations puts it, a “model for regional integration”.

Now that “progressives” have returned to the White House, aping the EU has become a national policy. Taking his cue from his party’s Left, President Joe Biden has already sought to federalise many functions — from zoning to labour laws to education — that historically have been under local control.

But while Biden’s administration has been embraced by the Eurocrats, Americans would do well to consider the EU’s remarkable record of turning Europe into the developed world’s economic and technological laggard. Overall, nearly a third of Europeans consider Brussels an utter failure; half admit the EU’s pandemic response was inadequate. Indeed, while the American media was busy denouncing the US response to Covid under Trump as the “worst” in the world, the EU was showing them how it was done: of the 15 countries suffering the highest fatality rates, 13 are European, of which nine are in the EU — all worse than the US.

The US may always have had a “Federal Government”, but the notion of dispersed power gained approval from many on the Left only after President Trump’s election, as many Democrats looked to local government as a means of fighting back. Cheerleaders for Barack Obama’s imperial presidency, such as The New Yorker, started to embrace states’ rights with an almost Confederate enthusiasm.

But once the Democrats won back the House in 2018, the appeal of total central power became irresistible, with leading Democrats competing for who could most expand DC’s remit. Kamala Harris, now Vice President, demanded Washington give teachers across the country a federally funded five-figure pay rise, while Beto O’Rourke and Julian Castro sought to hand over local planning and zoning powers to the DC bureaucrats.

President Trump, for what it’s worth, had little interest in such issues — though even he made a point of trying to overturn states’ laws when it suited his agenda, particularly with the border wall and his attempts to crack down on radical education policies. In many ways, Trump’s authoritarian brand of Republicanism was always going to express an interest in an expanded federal role.

Yet in looking to expand federal power, Biden is picking up the mantle of President Obama, regarded by Republicans as one of the most prolific authors of executive power in US history. During its first six years, the Obama administration put forward more than twice as many major rules as George W. Bush’s government during the same period, focusing largely on issues such as climate change and immigration.

Of course, the notion of decentralised control — and the benefits associated with it — predates America. Ancient Roman cities enjoyed particular autonomy from central control, while the great Italian and Dutch cities of the early modern period developed extensive forms of self-government and, in some cases, functioned as independent states. Indeed, born out of Enlightenment ideals about limited government, the US Constitution lays out a system of dispersed power, creating in localities “the habits of self-government”.

In some cases, however, federal action was necessary; for example, to end the abomination of slavery and keep the Republic safe from European encroachments. And of course, some local governments continued to pass detestable laws, such as Jim Crow segregation in the South — though states also innovated in a more positive direction, providing models for other jurisdictions. For example, western states less tied to parochial ways of thinking — such as Wyoming, Utah, Idaho, Washington and California — introduced female suffrage well before the federal government. New York built the earliest welfare state, while my adopted home of California invested heavily in roads, schools, universities and technical training, leading to its remarkable boom in the late 20th Century.

States, as progressive Supreme Court Judge Louis Brandeis noted, were “laboratories of democracy”, places that experimented with policies that, when they were successful, would be adopted by others, and sometimes the federal government. In contrast, Europe’s bureaucratic meddling has served to keep wealth concentrated, as it has been for centuries, in places like Germany, the Netherlands and Scandinavia, while the south and east lag perpetually behind.

Read the rest of this piece at UnHerd.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Homepage photo: European Parliament via Flickr, under CC 2.0 License.

Feudal Future Podcast — Biden’s Tax Plan

On this episode of Feudal Future, hosts Joel Kotkin and Marshall Toplansky are joined by Hank Adler, Associate Professor of Accounting for Chapman University, and Steven Malanga, City Journal’s senior editor, to discuss Biden’s new tax plan.

America’s First Infantada

We are here to guide public opinion, not to discuss it.
Emperor Napoleon Bonaparte, 1804

By the calendar, the American republic is mature, but it’s becoming rapidly ever more infantilized. In everything from schooling to Covid-19 to race and global warming, we seem to be looking for simple, easy answers that a toddler might appreciate but healthy adults know are too pat to be true. Read more

The Green New Deal will Impoverish America

‘The interesting thing about the Green New Deal is it wasn’t originally a climate thing at all… Do you guys think of it as a climate thing? Because we really think of it as a how-do-you-change-the-entire-economy thing.’ So said Saikat Chakrabarti, former chief of staff for Alexandria Ocasio-Cortez, and generally acknowledged author of the Green New Deal.

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The Looming Democrat Civil War

The Democratic Party has always been a loose confederation of outsiders — poor farmers, union members, populists, European immigrants and southern segregationists. As the actor Will Rogers said in 1924: “I am not a member of any organised political party. I am a Democrat.” Yet despite being unwieldy, it was often effective, and usually beat the more homogeneous country-club-led Republicans.

Today, the Democratic Party seems more united, still glowing in the aftermath of the defeat of Trump. But that is just an illusion: Joe Biden’s first hundred days in office are almost up — and the internal conflicts of his party are bound to surface soon.

These divisions are not petty, or merely personal, but based on demands from a number of incompatible constituencies and ideologies. Take the Democrats’s newest supporters: America’s tech oligarchs, Wall Street financiers and urban real estate speculators. They may act “woke” on issues surrounding gender, race and the environment. But such “virtue signalling” is no substitute for the drastic policies pushed by the party’s Left: the confiscation of vast wealth, the break-up of monopolies and the introduction of ever-higher taxes. Big business, after all, is the clear winner in the status quo that the Left, with good reason, despises.

But the impending Democratic civil war is more than, as some conservatives see it, a two-dimensional conflict between “the establishment and the radicals”. Largely ignored in this narrative is the most unappreciated, least articulate yet arguably the largest Democrat-voting bloc: middle and working-class moderates who make up roughly 50% of the party. These voters may often favour populist economics, but remain threatened by the cultural, economic and environmental policies pushed by the other two factions.

All of which leaves Biden in an unenviable position: if he seeks to placate both the corporate woke and the activist Left, the Democrats could sever their last connections with the vast majority of the country, and allow the GOP, even in the wake of the Trump disaster, to recover political momentum.

For what it’s worth, Biden has often been associated with this largely neglected group of what might be called FDR Democrats. His reputation as a moderate “reasonable guy” helped secure the votes of older Democrats, Independents and African-Americans in the recent election. In the primaries, it gave him an edge over both the radical Sanders, whose program frightened many older voters, and the candidates of the corporate elite, notably the well-financed former Mayor of New York, Michael Bloomberg. These voters may be fading in the numbers, but still constitute up to 44% of the total electorate, easily the largest identifiable class constituency.

Certainly, parts of Biden’s program — expanding health coverage as well as investments in basic infrastructure and manufacturing — could appeal to these voters, who are now generally supportive of an activist government. But Biden has also backed measures on cultural and environmental issues that are unlikely to win over the traditional working and middle classes. For example, fracking bans, already endorsed by Vice President Harris, could, according to the US Chamber of Commerce, cost 14 million jobs, far more than the eight million lost in the Great Recession.

Belying his regular guy image, Biden has also expressed support for programmes that would force suburban areas to densify. It is likely few suburbanites, the majority of all Americans, would welcome federal overseers deciding how their communities should be changed. Meanwhile, attempts to force residents out of their cars and into transit, something they were abandoning well before Covid, seems quixotic as well as politically stupid. The President’s Transportation Secretary has even suggested a tax on “vehicle miles” travelled, a measure almost calculated to alienate middle and working-class families outside a few dense urban cores.

Read the rest of this piece at Unherd.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Homepage photo: Official White House Photo by Adam Schultz via Flickr under U.S. Government Work.

Who Will Control the 21st Century? Whoever Controls Space

It’s impossible to predict the future. But one thing you can be sure of: few things will be more important to the lives of our children than who wins the emerging, epoch-defining struggle for control of space.

This is a battle just beginning over who will control the communication satellites so central to our economy, as well as the vast resources of other planets. But ultimately, the new space battle represents a war over opportunities for colonization, for an increasingly resource-stretched and crowded earth.

This may sound like apocalyptic sci-fi. But space is already becoming big business, and it’s certain to get much bigger. Boosted by a huge surge of investment, space-industry global revenues are up more than twofold since the early 2000s, from $175 billion in 2005 to almost $424 billion in 2019. By 2040, Morgan Stanley projects annual global space-industry revenues to reach $1.2 trillion.

Today the big money—$271 billion of it—is in communications satellites and launch services. Soon enough, there may be a market for things like space tourism, manufacturing in space and even, eventually, the old dream of colonization.

But in the long run, the key struggle will be over military applications, and, perhaps even more critical, control of valuable resources. The monetary potential in mining key resources like lithium, cobalt and gold has been estimated to be as high as 27 quintillion dollars.

But the space war is not just about money. It’s also about power. And America faces a challenge on the galactic front from China, Russia, the European Union, Japan, and even Israel. And as Brandon Weichert notes in his book Winning Space: How America Remains a Superpower, America’s claim to being the world’s superpower rests to a large degree on winning the space front.

Right now, military advantage clearly remains a prime motivator. Control of satellites is crucial to any future conflict, as militaries depend on satellite communications for both surveillance and battlefield operations. The winner of future “star wars” will be those who can control access to space.

Unfortunately for the U.S., China is very aware of this. Ye Penjiang, the head of its moon program, views space from an imperial perspective, comparing it to the islands China is occupying or creating in the South Seas. Penjiang has gone so far as to suggest that China’s “descendants” would never forgive them for giving up this new realm.

So it’s not surprising that Chinese young people now dream of being astronauts, like Americans in the 1960s, while most of our young people seem more interested in becoming social media influencers, more like Justin Bieber than Buzz Aldrin as Weichert archly put it.

Read the rest of this piece at Newsweek.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Marshall Toplansky is a clinical assistant professor of management science at the Argyros School of Business and Economics at Chapman University. He is a research fellow at the university’s Hoag Center for Real Estate and Finance and at the Center for Demographics and Policy.

Homepage photo credit: SpaceX, via Flickr used under CC 2.0 License.

Hope and Fear: Can We Avoid a Racial Apocalypse?

Jamil Ford still recalls the disorders of late May. ‘It was like Baghdad’, he recalls, even as jurors listen to the arguments during the trial of Derek Chauvin, the police officer accused of killing George Floyd. ‘I constantly think about it. The past history does not go away’, the African-American architect recalls, noting with trepidation possible National Guard deployments. ‘The mental part is still there.’

I know how he feels. In 1992 we went through this same process in Los Angeles when the police were exonerated in the beating of Rodney King. This unleashed a three-day explosion of often violent protests, resulting in $1 billion in damages and over 50 fatalities. In the end, the disorder led to some necessary shifts in police procedures but ultimately left the area relatively poorer and considerably less black than before.

Will things be different this time around? No politician in American history owes more to African-American leadership and voters than Joe Biden. His flailing campaign was rescued from the respirator by South Carolina’s heavily black Democratic electorate. African Americans sustained his path through states such as Texas. Since taking office, Biden’s commitment to battling the ‘sting of systemic racism’ and encroaching ‘white supremacy’ has accompanied his early actions and seems to have shaped many of his appointments.

The left’s and the media’s embrace of racial apocalypse, both in the US and in Britain, remains sadly selective. The recent Atlanta murders, given exhaustive coverage, appear to be the product not of Trumpista brownshirts but a singular, screwed-up madman. Meanwhile, attacks on Asians historically have come in large measure from minorities, largely African Americans. The most recent attack on Capitol Hill came not from Trumpistas but a follower of the ultimate anti-white, Louis Farrakhan.

The same media that hypes anti-Asian violence by whites usually ignores that by other ‘people of colour’. When the perpetrator is a Muslim jihadi, as was the case in Colorado, coverage has been less, even if the body count was twice as high. The ‘people of colour’ solidarity that bleeds over the pages of mainstream media has little room for nuance. It tends to ignore the fact that many Asians, and many Hispanics, oppose such things as quotas to selective high schools and colleges.

Similarly, most minorities seem not to share common ground with posturing politicians, and progressive intellectuals, who have excused looting as a form of racial redress. Minority business people generally don’t regard random violence as justice; the impact on business enterprises is felt particularly keenly in Minneapolis. A focus on police abuse is clearly needed, but the vast majority of Americans – including millennials and minorities – do not favour defunding law enforcement. They may be more concerned with the resurgence of violent and other crime in our core cities, even though it is often downplayed in the media.

The impending threat of violence in Minneapolis and elsewhere, offers manna from heaven for some but disaster for most. The racial-protest industry, perfected by the openly neo-Marxist Black Lives Matter, has raised a reported $90million, much of it from corporate largesse. What civil-rights activist Bob Woodson calls ‘race-grievance predators’ – like Ibrahim Kendi – are being bankrolled by oligarchs, like Twitter’s Jack Dorsey.

Read the rest of this piece at Spiked.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Photo credit: Ted Eytan via Flickr under CC0 2.0 License.

The California Economy vs. Sacramento

Over the past few years California’s plight has taken on mythic proportions — a cautionary tale of progressive woe among conservatives, but a beacon for a future enlightened capitalism among its woke supporters. The current battle over the potential recall of the preening governor, Gavin Newsom, likely will enhance these extreme interpretations on both sides, but likely will not be sufficient to make the changes needed to restore the state’s legendary promise.

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Battlefield ‘Burbs

America’s political culture has been shaped by its rural and urban environments, each of which tends to be dominated by one party. Urban Republicans are now as rare as rural Democrats.

Yet the political future of the country lies in the suburban and exurban rings that dominate every metropolitan region. These voters are made up predominately neither of woke city hipsters nor gun-toting rubes, the stereotypes that dominate our competing cultural memes. The suburbs are the last contestable geography in the country. Read more