2009. An economic crisis that begins to cut very deep, violence in the Middle East, a resurgent Russia flexes its natural gas muscles, hatred in Europe. The end of eight years of economic, environmental, civic, and martial wrecking under the Bush administration and four decades of conservative irresponsibility and divisiveness. A new American president positioned to change the ethos of the land. A questioning of the racist and elitist underpinning of conservative political values and economic dogmas — in parts of the West at least. Doubts as to consumerism, exurbia, and much-touted miracle trends such as the “flat world” about which the likes of columnist and author Thomas Friedman cranked out thick volumes.
A few years ago, on my alter-ego site Bubkes.Org, I posted a New Year’s entry about Dutch-Jewish cabaret singer Louis Davids that contained a link to a humorous and touchingly dated newsreel musical clip he presented for New Years Day 1936. In the clip, Davids sang an ode to a world stilled scarred by the Great Depression and in which Hitler flexed his muscles, Mussolini invaded Abyssinia, the tax man hovered menacingly, forecasts of sun yielded rain, and aspirins cured hangovers. For 2009, I offer (to the very many among you who understand Dutch, know history and have links to interwar Holland!) the very same song and (to all of you regardless of language or fields of interests or ethnic or social ties) its wishes for Well-Being and Blessedness in the year to come.
On Bubkes.Org, I also start the year by turning to the past, taking a few medium-format and 35mm black and white photos I shot more than a decade ago as starting points and as metaphors for considering recent economic and politic trends and their parallels with past events in obscure places. I begin with a photo of an obscene mural in a Bulgarian housing estate and the lessons it offers for understanding economic crises, individual morality, and the history of western art, and continue with a photograph of a Turkish sidewalk weighing scale operator as an occasion to ask whether small enterprises and ordinary people will some day qualify for bail-outs or “pump-priming” infusions of capital. The next pieces will consider face-lifts — architectural and politica — and gangsters, graveyard iconography and under-reporting by the New York Times
As to “pump-priming,” the collapse of four-decades of Republic economics and the Republican’s self-serving denigration of the New Deal and “socialism” has brought a resurgence of Keynesian thought and maybe even of Keynesian practice, which did its job well in America during the 1930s as an economic tonic, a symbol of action and unity, and, maybe, as the very last alternative to revolution.
As readers may have gathered, I believe not only that we’re living in a new era of depression economics, but also that John Maynard Keynes—the economist who made sense of the Great Depression—is now more relevant than ever. Keynes concluded his masterwork, The General Theory of Employment, Interest and Money, with a famous disquisition on the importance of economic ideas: “Soon or late, it is ideas, not vested interests, which are dangerous for good or evil.”
We can argue about whether that’s always true, but in times like these, it definitely is. The quintessential economic sentence is supposed to be “There is no free lunch”; it says that there are limited resources, that to have more of one thing you must accept less of another, that there is no gain without pain. Depression economics, however, is the study of situations where there is a free lunch, if we can only figure out how to get our hands on it, because there are unemployed resources that could be put to work. The true scarcity in Keynes’s world—and ours—was therefore not of resources, or even of virtue, but of understanding.
We will not achieve the understanding we need, however, unless we are willing to think clearly about our problems and to follow those thoughts wherever they lead. Some people say that our economic problems are structural, with no quick cure available; but I believe that the only important structural obstacles to world prosperity are the obsolete doctrines that clutter the minds of men.