Monday, August 07, 2023

Why The West Is So Weak And Russia Is So Strong

gaiusbaltar  |  The main thing to understand is that western societies and economies have been put on an ideological footing. Productivity, competitiveness, technology and science are simply not priorities anymore in the West. Explaining the consequences of this process for the West would take many articles, or a book of several hundred pages. Still, let’s mention a few examples.

The inverse competence crisis – The goal of this entire project has been to place the ideologically pure in all positions of power at all levels of society. These positions are, in a normal and competitive society, occupied by the highly competent 1.5/8 group. The process has now reached near-completion with most positions of power occupied by the ideologically pure. Some of those people have high IQs but they are neither objective nor independent thinkers. The Ideology they must subscribe to is simply incompatible with those qualities. This has some serious consequences.

Remember that positions of power and influence are more likely to demand general competence than other positions (as opposed to specific competence). The greater the power, the more the position demands general competence. The people in these positions now are selected by ideological fervor and reliability – so the higher you go, the more ideologically enthusiastic the people who hold them. This means that the least objective and independent thinking people hold the positions which require the greatest objectivity and independent thinking. Therefore, in the West incompetence becomes greater and more common the higher you go. As someone said - “a general is an incompetent colonel.” This can be seen absolutely everywhere except in some holdout private companies. Those exceptions are of course being addressed as we speak.

The second problem is that many of the irrational/subjective people holding all the power have reasonably high IQs. That may seem to be a positive thing but it has a major disadvantage. Moderate to high IQ irrational/subjective people are the easiest to brainwash of all people. The reasons for that are complicated and need to be addressed in another article – but what this means is that the top tier in the West is not only the most incompetent it can possibly be in comparison to what their jobs require – but are also the most malleable and delusional.

The cost and debt crisis – The migration of the ideologically pure into the ideological power base and positions of influence has created millions of jobs in western societies which create no value. These jobs are much more numerous and more widespread than most people realize, and I wouldn’t be surprised if something like 20%-30% of the entire labor force of the West could be fired without any adverse effect. In fact, the effect would be positive, especially if those people could be made to work the (mostly menial) real-economy jobs they are suitable for.

Deindustrialization has been blamed for the extreme debt levels and tax burdens of the West. That is, as far as it goes, true – but maintaining this giant group of incompetents in their fake jobs is also placing an extreme burden on the West. Western societies are now completely unsustainable and cannot be run without constant debt increase.

The competition crisis – This crisis can be explained by the following example: Let’s say there are three companies with combined 100% market share in some sector. There is no real competition between them and everybody can just relax because the customers can’t go anywhere else. These companies can get away with absolute incompetence on most levels, including in management. They don’t need to think about efficiency, safety, productivity or costs, except on their websites and in annual reports. However, if a competitor with competent employees manages to infiltrate the sector, those three companies will hit a wall. There will be an enormous crisis and one or more of them will most likely go under.

This is exactly the situation in the western economies now. Monopoly and oligopoly is the rule and the main objective of most large western companies is to prevent anyone from infiltrating their sector – usually by bribing regulators or by buying the competition. This is a necessity because a huge number of western companies are now run by incompetent management and staffed by incompetent people, particularly in support and management functions. The immortal words of the nameless Boeing employee about the 737 MAX apply to most large western companies; “this airplane is designed by clowns who in turn are supervised by monkeys.” Western companies are no longer competitive. They cannot compete with Chinese companies now and soon they won’t be able to compete with companies in general outside the West. They simply can’t function except inside an economic safe-space. In fact, the situation is such that the Chinese already do the real work for many of them and reshoring the work is problematic because of (surprise!) the human capital degradation in the West caused by the repurposing of its education system.

This also applies to western societies as a whole. The entire leadership and diplomatic classes of the West are no longer competitive against the rest of the world for exactly these reasons. They are being outmaneuvered by the Chinese, the Russians, the Indians, and everybody else at every turn. Even African leaders are now more competent than western leaders. They have consistently made decisions that are better for their people than leaders in the West - for the last few years anyway.

The complexity crisis – Earlier in this article I stated that the 1.5/8 group is extremely valuable for modern societies and without it complicated modern societies cannot be managed. In the West this group has been successfully sidelined to a great degree and a good part of it doesn’t even bother with university education anymore. The situation, however, is even worse than that. The reconfiguration of the education system and the break between competence and reward in the job market has fundamentally changed the decision making process behind the selection of university education. Why study engineering (which is hard) when you can get an even better paying job with a degree in psychology (which is easy nowadays)? The reconfiguration of the western education system has changed the reward structure, encouraging young people to pursue easy and useless education – simply because the “system” will provide them with jobs.

This has already caused a major crisis in western societies, particularly in the US. The “maintenance” of complex aspects of US society needs a large group of engineers and people with related education. This maintenance is faltering now, and significantly relies on foreign engineers educated in US universities. You see, why would Americans study engineering in a system which doesn’t reward it? If China and India could somehow recall their engineers and others with hard education from the US, the US system could probably not be maintained, let alone advanced. This will get progressively worse and we will soon reach a point where complex systems which underpin society cannot be kept running. That will require some kind of “reset” to a less complex society, with less prosperity of course.

There are far more crises than those four, but I wouldn’t want to sound like a doomsayer by listing more.

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