Immigration, Migration, and Imbalances

The current fracas with regard to immigration through the southern border of the United States will die down in time, and another issue will replace it in the headlines, in breaking news announcements, in round-table discussions. There will not be a resolution any time soon. But what is important is to understand the underlying issues involved. The context is what we need to get a better idea of how to judge necessarily ephemeral events.

The first thing to understand is that at bottom, the motivation for these people movements is economic. For this reason, we can start our analysis by eliminating the category of refugees seeking asylum. The latter is not a function of economics but of justice and compassion. While this is important, it is dwarfed by the scale of economics-inspired movement.

We also need to distinguish immigration and migration. In the sense I intend, immigration concerns people going to the country of destination with the mindset of assimilating into that country. For example, hitherto when immigrants moved to the United States, they moved with the intention of becoming Americans, of leaving their home countries behind and entering into the civic compact that has defined the United States from its inception. Migration, on the other hand, is no so much concerned with assimilation, but rather with the maintenance of the original culture and religion in the midst of the new environment – the establishment of enclaves within a foreign culture, that while engaged, is not entirely received, and indeed is held at arm’s length. In this sense, migration is a form of colonialism. And indeed, contemporary migrations are looked upon, approvingly or otherwise, as a form of retribution for the centuries of colonial relations the West imposed upon the rest of the world: these foreign peoples are now returning the favor, colonizing, and extracting wealth from, the host nations.

In the current climate, and in this analysis, it is migration with which we are concerned.

Some economic principles to guide the discussion

Migration, then, is an aspect of a global confluence of factors mainly economic in character.

Certain basic economic concepts have to be grasped in order to get a proper view of this phenomenon.

First: the economy, whether viewed locally, nationally, or globally, is a circular flow of the production and consumption of goods and services. This is a reflection of Say’s Law: supply creates its own demand. Say’s Law, which was most effectively employed in the work of Joseph Schumpeter, from whom the phrase “circular flow” comes, helps us understand how economies function.

The circular flow of goods and services concerns is the so-called real economy.

Second: not only is there a circular flow of goods and services, there is also a circular flow of payment, credit and debt, which is generated together with the other circular flow. It is both the result of that flow, and affects that flow. This is the so-called financial economy.

The two impinge on each other and determine each other. They cannot be viewed in isolation but as two parts of the same coin. The trouble with much of modern economics is that it does not do that, but treats them in abstract separation.

These circular flows are firstly local, comprising a local economy. A larger economy is a composite of smaller economies, and so comprises a confluence of circular flows. For this reason the economy, especially in other languages like French, is also called the conjuncture. The broader economy is a conjuncture of smaller economies operating more or less in sync with each other.

The component sub-economies do not move in lockstep. Rather, they develop at varying paces, some experiencing boom periods, others bust periods, others more or less stagnating.

What happens, then, is that factors of production flow towards areas of greater productivity: that is where the jobs are, that is, where capital receives a better return.

Borders and exchange rates

Within a political unit, these flows can occur unhindered. Between political units, they are obstructed by borders. These borders are the product of law. Laws set up obstructions to the crossing of boundaries. Furthermore, currencies, which are the product of law, form hidden barriers. Because they fluctuate, they make it more difficult to judge relative values, such as wages, keeping investors and workers from making the move, especially if the move looks to be from a more valuable to a less valuable currency. But beyond all of this, language and culture form boundaries, so that even in the absence of legal or monetary hindrances, people are hindered from moving because of the difficulty in adapting to foreign conditions.

So how do adjustments occur between economies separated by boundaries? By adjustments in the exchange rate of the countries’ currencies, so that areas with expanding economic activity see their currencies appreciate, while those with relatively contracting activity see their currencies depreciate. This is reflected in the current account, which is the sum of a country’s economic activity as far as production of goods and services is concerned, as it relates to other countries. The current account is in surplus when exports exceed imports, and vice versa. And a current account surplus should result in an appreciating currency.

In a perfect world, this mechanism would proceed unhindered, and the balance between nations would be maintained, with current account surpluses and deficits continually issuing forth into currency shifts that automatically lead to their reversals. Outperforming countries would have more money to buy foreign goods and services, and underperforming countries would have relatively cheaper goods and services to offer. This would result in a reversal of flows, with the more expensive countries importing more (and producing less) and the less expensive countries exporting more (and consuming less). Wages would increase in step with the currency, allowing them to import more. This is not a static condition. Currency exchange rates would continue to shift, balancing flows through the fluctuations and reversals of economic conditions over time.

Short-circuiting the feedback mechanism

But here is where problems arise. Particular interests are favored at any particular time, on both sides of the equation. On the side of the exporting country, there is the interest of the export industry, while on the side of the importing country there is the interest of consumers. Or at least, consumers can be led to believe that it is in their interest to have cheap goods available, although there is a hidden cost to this, which we will discuss shortly.

This is the situation in our current regime of globalism. Cheap-production countries are looking to lock themselves into exchange-rate and regulatory conditions favorable to their continued exports, even though such a regime is unfavorable to their own domestic economies. In those countries, domestic consumers face high prices on imports and production geared to foreign markets; workers see their wages artificially suppressed, rather than automatically rising vis-à-vis foreign competitors, as they would if currency exchange rates moved in step.

The gainers in such a situation are mainly multinational corporations which have relocated to low-wage countries and use their former home markets as dumping grounds for cheaper production. Other gainers are governments in the exporting countries, which book revenues from those corporations and their exports. Controlling elites on both sides of the equation benefit financially and politically.

The result in the importing countries is cheaper imports, but likewise a drain of production capacity, leading to an economy heavy on service-sector jobs.

Is such an economy – one lacking in production capacity – sustainable? It would seem that, given the demands and requirements of modern welfare states and the generation of revenues they require, that such an economy is not sustainable – for ultimately it is production capacity that generates wealth, while services only redistribute pre-existing wealth. Not to mention the utterly redistributionist nature of entitlement and benefit payments, which generate no wealth whatsoever, and in fact entail a form of friction which erodes wealth.

The stubborn expansion of imbalances

In the event, such a regime generates what have come to be known as imbalances. And a lot of effort is expended to counter those imbalances without resolving them. For to resolve them would lead to favored parties – e.g., multinational corporations, exporting countries – losing their lucrative advantages.

One of the important consequences is reflected in money and banking. The regime of fixed or pegged exchange rates is realized by keeping currency exchange from taking place. Normally, cross-border trade is paralleled by currency exchange, which leads to shifts in exchange rates. But to keep those exchange rates stable, currency exchange has to be headed off at the pass, as it were. This is accomplished through what is known as “sterilization.” Central banks act to keep foreign currency earnings from being released into the domestic economy. This holds down purchasing power and so eases pressure on the domestic currency to appreciate against the foreign currency. But this also leads to bloat in the currency of the importing country. Under our current regime, in which the US dollar serves as the reserve currency for international trade – and in which the US, not coincidentally, serves as the “consumer of last resort”—this has led to the buildup of massive amounts of liquidity which circulate aimlessly on financial markets without touching ground in real markets. This leads to bubbles in markets that traditionally serve as havens for excess liquidity, such as real estate markets and stock markets. Such asset “bubbles,” when they burst, lead to massive failures in the banking system, as occurred in 2008–2009.

Migration as a rectification of imbalances

This is one way in which imbalances are generated, and how they, by hook or by crook, get resolved. But capital flows comprise only one of the factors that resolve cross-border imbalances. The other mobile factor of production – labor – will likewise be drawn by the magnetic attraction of richer countries, especially where 1) those economies are lopsided toward service jobs, which cannot be exported and therefore draw low-wage labor to them rather than going to where low-wage labor is, like manufacturing capacity can; and 2) those economies maintain more or less lavish welfare and benefit regimes which ipso facto exert an attraction on citizens of less prosperous countries.

Therefore, in a world of fixed or pegged exchange rates – or especially, in the case of the European Union, a single currency – imbalances are rectified globally in the same way they are internally within a domestic economy. For the effect of the current globalist regime is to turn the entire world economy into a single domestic economy.

It would seem that this is a driving force behind current policy decisions being taken by Western nations, both in North America and in Europe. In the United States, border control lapsed and the government introduced a range of measures to accommodate inward migration, rather than making an attempt to stifle it. This is a tacit acknowledgement that a regime of floating exchange rates, the counterpart of nations able exert to effective sovereignty, has been set aside for all practical purposes, and that the great dream of cosmopolitan liberals everywhere is at hand: a global regime of universal jurisdiction, of a police rather than a military force, of a global welfare state in which ostensibly universal human rights move from the category of “ostensible” to “actual,” and the entire globe is harnessed to a redistributionist regime in which equal rights for all becomes a reality, regardless of cost.

In the meantime, what this regime of more-or-less fixed exchange rates and open borders spells is mass migration. For able-bodied labor will move if it can move, and given the technical transportational possibilities that increasingly have become available to low-wage populations everywhere, this movement will only accelerate. This is even more the case where populations are stuck not only in low-wage situations but in crime-ridden or even war-ridden, dysfunctional countries. Muslim populations in particular seem to be caught inordinately in such situations. Not surprisingly, Muslim populations are on the move.

The problem with this solution

But this points up the profound danger involved in these movements, and the misgivings they give rise to among “receiving” populations. For we are not dealing here with interchangeable parts; we are dealing with human beings, with cultures, mores, religions, in addition to whatever wealth or lack of it, health or lack of it, they may already have. Add to this the migration-orientation as opposed to immigration-orientation of these peoples, and the problem becomes all too apparent.

With migration, nationhood itself becomes problematic; instead of these groups being encouraged to assimilate, they become treated as victims of nationalistic jingoism, and encouraged to become integral parts of the grievance coalition. Patriotism really does come to be seen as the last refuge of the scoundrel, at least for the idealist. Cosmopolitanism becomes de rigueur.

But that cosmopolitanism is only a façade covering over deep divisions. For example, to what degree is Islam compatible with liberal democracy? If Muslims ever were to become a majority, would they maintain Western liberal institutions, or would they impose the institutions peculiar to Islamic countries, such as Sharia law? These are questions that not only are interesting academic exercises, but which practice will answer unequivocally, sooner or later, and of which real people will feel the effects.

Another such question: to what degree can countries like the United States sustain influxes of low-wage labor for service jobs that already are under pressure from unemployed or underemployed citizens? How can revenues be generated to counter the massive amount of pressure being put on the health, education, and welfare systems these countries have built up over the years, especially given their aging populations? Is it not a form of collective suicide to allow these migrations to take place in the hope that the gravy train will continue to flow? For looked at purely in terms of economics, these flows look to be unsustainable.

The end game?

Perhaps that is what our contemporary global elites are after. The very destabilization of nations, the undermining of national sovereignty, only plays into the hands of those desiring to establish a global regime to replace, or at least gain dominance over, sovereign nations. Nationhood itself is at stake. Politicians seem to have placed the dream of universal jurisdiction and the realization of every human being’s inalienable rights to food, accommodation, livelihood, education, health care, and the rest of it, above the exigencies of national survival. Apparently, they will pick up the pieces left in the aftermath of conclusive national failure.

Indeed, this would seem to be end game of national leaders favoring and preferring foreign interests to those of their own nations (e.g., Barack Obama, Angela Merkel). They seem to be auditioning for leadership in the regime which is yet to come, a regime to supplement or even replace our current framework of internationalist institutions such as the United Nations. Will it ever come to that? Yet another of those questions that practice will answer. But it is looking increasingly likely.

But there is an alternative. The venerable tradition of national sovereignty, of laws and currencies which are the expression of that sovereignty, of national populations that determine their own destinies rather than having them determined by unaccountable elites at transnational levels – the infrastructure for this is still there. And the top priority to this end, quite simply, is floating exchange rates and maintenance of the institutions protective of national sovereignty. This is not rocket science. It is a simple choice. Nationhood, or globalism?

The Shape of Things to Come?

The fledgling Trump administration has been greeted by an explosion of resistance on the part of the Left. The Democratic Party has shown its antipathy in various ways. For one thing, many Democratic members of Congress declined to attend the inauguration. For another, Senate Democrats have delayed the appointments of President Trump’s cabinet appointees, even though they cannot block them. On his first day of office, President Obama had seven cabinet appointments approved by the Senate; President Trump had two.

These are pinpricks. Something much more substantial, if not in terms of government processes, then at least in terms of imagery, was the Women’s March on Washington, conducted on the day after the inauguration. I must say, I had a hard time discerning what exactly this protest was about. At first glance, given the various forms of costume worn by many of the participants along with the rather graphic and potty-mouthed language flaunted by various speakers, the event was difficult to take seriously. It would seem that there was a message there for President Trump, in response to the notorious recording of his words expressive of sexual harassment. But that particular message already loses its force when one recalls that President Bill Clinton was credibly accused of multiple instances of, not words, but actual acts of sexual harassment, and that these very same forces of feminism not only did not protest his presidency, but defended it.

Indeed, there was something more substantial at stake in this protest. It will form a battleground throughout the time of the Trump administration. I speak of abortion rights. This march was a down payment on the pressure that will be brought to bear when Supreme Court nominations take front and center, as they will before long. For all intents and purposes, feminism is abortion rights; the rest is window dressing.

Be that as it may, in all of the splash coverage provided by the news media, not only of this event but also of such irrelevancies as crowd size at, and viewership of, the inauguration, some monumental events have been taking place that have not received nearly the same coverage. Perhaps this is a good thing, for if they received the attention they deserve, events like the Women’s March on Washington would fade into the background, in favor of a strategy geared more closely to actually regaining the influence that has been lost in hitherto key constituencies.

Allow me to elucidate. On Monday President Trump met with various union representatives. Now we all know that for ages, unions have supported the Democratic Party. But after this meeting, the union leadership expressed sentiments that completely confound this traditional arrangement. It seems that Donald Trump is serious about conducting business in an entirely new way, outside the traditional constraints and folkways that have governed Washington for lo these many years.

Consider the statement made by Sean McGarvey, president of North America’s Building Trades Unions and, among other things, a contributor to the Huffington Post:

We just had probably the most incredible meeting of our careers with the president and the vice president and senior staff, when the president laid out his plans about how he’s gonna handle trade, how he’s gonna invest in our infrastructure and how he’s gonna level the playing field for construction workers and all Americans across this country. And then took the time to take everyone into the Oval Office and show ’em the seat of power in the world… The respect that the president of the United States just showed us — and when he shows it to us, he shows it to three million of our members in the United States — was nothing short of incredible, and we will work with him and his administration to help him implement his plans on infrastructure, trade, and energy policy so that we really do put America back to work in the middle-class jobs that our members and all Americans are demanding.

Other union leaders’ comments echoed this sentiment. When the president announced to them that he was terminating the United States’ participation in the Trans-Pacific Partnership (TPP), they applauded. One leader even spoke favorably of President Trump’s controversial inaugural address, saying that it was “a great middle-class address… It hit home both for the people that have been hurting… it was a great moment for working men and women.”

This is stupefying. What it portends, if President Trump and the Republicans in Congress follow through on their promises and implement job-friendly policies, is a massive shift in the political landscape, as the mainly white working class abandons the Democratic Party and lines up with the Republicans. But such has been in the offing for some time; it only took someone with the, shall we say, chutzpah of Donald Trump to actual make this happen.

The focus of progressivism generally, and the Democratic Party in particular, is no longer with the class struggle, which was their original raison d’etre. The focus has shifted to identity politics with its potpourri of multiculturalism and various aggrieved groups, minority or otherwise, the attention of which is directed not so much to economic class than to the criteria of diversity and an understanding of human rights wherein government-funded consumption takes the place of the right to work.

We have documented the symbiotic relationship between neoliberal capitalism and this multiculturalist identity politics in previous posts, particularly this one. What needs to be realized is that this new coalition is incompatible with the old one, the one in which the working class formed the core constituency. In fact, this new coalition is demonizing the old working class, while the president the workers helped to elect is routinely referred to as a “fascist dictator,” perhaps because of the old-school working-class-oriented policies he is enacting. After all, they are so very industrial. You know, sooty.

The question for the new progressive coalition is, having kicked the working class to the side, what is the game plan now? Is it going to be these showy, frothy marches? If so, it reminds me of the following scene from the movie Rango:

On the Road to Elysium When fiction approaches fact

The 2013 movie Elysium depicts a dystopian future of unremitting, jarring poverty juxtaposed with serene, detached wealth. Literally detached: wealth resides in a lavishly equipped, lebensraum-furnished space station, high above an impoverished, exhausted Earth. The planet is only useful as a source of provision and maintenance for the space station; its fruits have been extracted and depleted, while the population is mainly left to its own devices, an excess labor force without the capacity to sustain a decent standard of living, the only purpose of which is to serve the elite floating high above.

It is a haunting image, as it should be. And, admittedly, an extreme one. But it resonates – because in this day and age, the gap between rich and poor has been steadily widening, bringing the Elysium scenario within the realm of the plausible. The purpose of this article is to explore how this has come about.

For starters, the problem with the world system as currently configured is that it divorces consumption from production – a recipe for disaster. For consumption needs to be funded, and there are only two ways to do that. Either produce, or borrow. The modern world has chosen – or, our betters have chosen – for the latter.

In the ideal economy, production and consumption are in a circular flow; supply creates its own demand. Production is in equilibrium with consumption, and pays for consumption. There are neither gluts nor shortfalls.

Of course, this is unrealistic. No economy is a closed loop like this. First, as discussed in the accompanying course as well as in this article, the so-called “problem of saving” makes its appearance, and complicates matters. This leads to two markets, not one – the ordinary market of production and consumption, and the financial market of credit and debt. This two-market framework is a natural outgrowth of the money economy. There is no ultimate disconnect between production and consumption here: the monies that flow into the financial market eventually flow back to the ordinary market in one way or another, closing the production-consumption loop.

But in the modern world system the circular flow of production and consumption is purposely disrupted. This is the heart of what is wrong with the world economy today. It is the issue that urgently needs to be addressed, because it is producing a time bomb that eventually must go off, with unforeseen and unfathomable results.

The disruption of production and consumption is primarily visible in the balance of trade. Nowadays, trade relations are characterized by sustained, sizeable imbalances. The inevitable byproduct of these imbalances, and what makes these imbalances so lethal, is debt. In a previous article, I wrote: “Trade imbalances have to be ‘financed’: in other words, they are paid for by debt. When trade imbalances are incurred, the countries running trade surpluses are also exporting capital: this is called a capital deficit. What they are doing is exporting demand, by exporting excess savings. To put it bluntly: they are extending the credit to the consuming countries that these countries require to buy their production.”

These countries are exporting demand. What does this mean? It means they are seeking to sell production, not to their own, domestic consumers, but to foreign ones. They are disrupting the circular flow. In a normal situation, they would not be exporting demand; domestic demand would match supply; they would be buying what they sell. Of course there are always surpluses and deficits, because no economy is entirely closed. But the sustained effort, the policy decision, to “export demand,” which means to shift consumption abroad, would not exist.

How do they do this? By suppressing domestic consumption. In other words, domestic producers are not being allowed to enjoy the fruits of their labor. The demand they otherwise would generate is being taken from them. Normally this would result in overproduction, a glut of goods and services, and prices would adjust accordingly, falling, bringing the unbalanced situation into equilibrium. But through various manipulations outlined here (under the rubric of currency manipulation), domestic production is put out of joint with domestic consumption, the producers are robbed of a portion of their earnings, and the shortfall is made up for by foreign consumption, which picks up the slack.

Why do they do this? Why engage in a conspiracy against the domestic economy in order to promote exports? Back in the late 1800s, the British economist John Hobson already had an answer. For him, British imperialism was a net loss, costing the country far more than it provided in terms of income or revenue. Not only was it prohibitively expensive, but it disadvantaged a broad swathe of domestic producers. Why engage in it then? His conclusion was that it provided an advantage to various vested interests – particular interests, as opposed to the common good – which in turn were able to influence policy in their favor. In other words, imperialism and colonialism subordinated the national interest to particular interests.

The same thing is happening today. Certain countries are pushing exports, generating massive trade surpluses year after year; while certain other countries are living beyond their means, running the mirror image of trade deficits, year after year. The usual mantra we then hear is that the exporting countries are virtuous, disciplined, hard-working, while the importing countries are lazy, decadent, improvident – but it would be more accurate to characterize each as victims of a regime, which exploits both ends of the trade equation.

The transnational capitalist class (TCC – of which more here), composed of various manifestations of “Davos Man,” is the ultimate beneficiary. By engaging in this debt-funded, imbalance-riddled economic system, it is able to funnel the surplus value generated by forced savings into its own pockets, while allowing various debt mechanisms to provide for the indispensable consumption that enables this gravy train to keep going.

In other words, a significant portion of the ever-burgeoning global debt burden is simply the flip side of an equally significant sum of profits disappearing straight into the pockets of our modern-day benefactors, the global corporate elite, along with their cronies, facilitators, and enablers in their various support roles in government, politics, academia, the entertainment industry, and the news media. The tab will be paid by future generations, when those various debt instruments come due. Après nous, le déluge.

This is the source of the widening gap between rich and poor worldwide. This is the road to Elysium.

How is this debt-funded consumption sustained? Let the reader understand: this is the key to the modern political scene. This arrangement, this racket, runs through a political system revolving around identity politics. This is what makes the gimcrack mechanism go. Identity politics, as I outline here, serves to defuse and divert opposition to the global capitalist regime. It deflects leftist agitation away from its home base, the class struggle, toward the safe – for hegemonic capitalism – alternative of identity politics. In fact, it serves as a key brick in the edifice of this hegemonic capitalism, for identity politics dovetails precisely with the culture-ideology of consumerism that locks peoples and nations into their economic roles within the system.

It turns out that identity politics provides the justification, under the guise of “human rights,” for never-ending deficit spending on entitlements. In other words, not only does it foster the ideology of consumerism, it also provides the legitimation for debt-financed consumption, which is the key to maintaining the gravy train of profits into the pockets of Davos Man.

In this age, respect for human rights is considered the sine qua non of civilized society. But what are human rights really? An understanding of their origin sheds light on their conflicted character. They came along during the “Age of Enlightenment” of the 18th century, to take the place of religion as the source of law. As I wrote back in 1995:

Religion was relegated to the privacy of one’s own conscience. It was therefore also removed from any influence on public life. What replaced it, in early liberalism, was a focus on property rights; when that produced alienation, the focus shifted to collective property redistribution. These are modernism’s first principles, and they are Epicurean, materialist, consumerist. Both foci, property and redistribution, have at their core the consumerist individual. It is consumption – appetite – which this society worships. Human rights mean that each individual has the inalienable right to satisfy those appetites. To deny one such a right is to violate one’s integrity as a human being. When a conflict of appetites arises, or when appetite conflicts with a real right (such as with abortion), the strongest (i.e., the one with the best legal representation or the most effective propaganda machine) wins.

Hence, consumerism is not simply a function of households spending beyond their means. It is also a function of entitlements, as currently defined and implemented by welfare states. In his scathing indictment of rights-as-entitlements, P.J. O’Rourke was not far from the mark: “Freedom is not … entitlement. An entitlement is what people on welfare get, and how free are they? It’s not an endlessly expanding list of rights — the ‘right’ to education, the ‘right’ to health care, the ‘right’ to food and housing. That’s not freedom, that’s dependency. Those aren’t rights, those are the rations of slavery — hay and a barn for human cattle.” If this sounds harsh and unfair, think about it. These are the rations of a peculiar form of slavery – to an unseen hegemonic power holding the nations in its sway. We are satisfied to eat the crumbs falling from the table of the TCC.

Government-financed “discretionary spending” keeps the boat floating, even when jobs are scarce and salaries are stagnant, and households have maxed out their credit cards. The economies of the consumer countries have for years had their production capacity hollowed out as with numbing regularity jobs have been shipped overseas. This has had the inevitable effect of producing a structural shortfall in purchasing power. This shortfall was first made up for with the real estate bubble of the early 2000s, but since the crash, it has been maintained by massive deficit spending on the part of the Obama administration.

How the pie is divided up, and who gets a seat at the table, now turns out to be a crucial factor behind the identity politics agenda. The government now plays the role of benefactor to various disadvantaged groups, which are encouraged to develop and maintain an identity precisely as disadvantaged groups, in order to form a consumption-based coalition to 1) maintain the power of the ruling elite (in other words, deflect and coopt the class struggle), and 2) maintain demand for below-market global production, thus keeping the gravy train going.

In the current US political constellation, African-Americans are perhaps the key members to be mollified in terms of this “coalition management.” African-Americans have been whipped up into a frenzy of anti-authoritarianism (mainly against the police, but also against the white majority generally) which seemed a bit odd to those of us who thought that the worst aspects of racism were behind us, but who now have almost been led to believe that racism has never been worse. The plot thickens when one realizes that groups like the Ford Foundation and George Soros’s Open Society Foundation have contributed tens, if not hundreds, of millions to the major front group for this movement, Black Lives Matter. Knowing what we now know, it would appear that this is yet another effort to shunt a disgruntled voting bloc away from dangerous activity (such as voting for a presidential candidate who wishes to confront the system as presently constructed, rather than maintain it) and back into the safe confines of identity politics, in which factions vie with each other for favors, rather than with the central power for justice.

The timing of the emergence of the Black Lives Matter movement lends credence to the notion that this agitation has been part of a strategy of coalition management. The death of Trayvon Martin in 2012 can be seen as a watershed in this emergence, for it was soon after that the #BlackLivesMatter hashtag first made its appearance. But it wasn’t until the death of Michael Brown in Ferguson, Missouri, in August 2014 that things became heated. This was followed by the incidents involving Freddie Gray in Baltimore and Eric Garner in New York. By now this has generated an all-out attack on policing specifically and the allegedly racist character of white society generally, with incidents of attacks on both becoming a drearily repeating spectacle.

What is curious about this, again, is the timing. For the so-called “new wave” of immigration began at roughly the same time. Reports of this “new wave” began trickling in in 2013. This new wave of immigrants, bolstered by a massive influx of children (itself spurred by Deferred Action for Childhood Arrivals, President Obama’s 2012 initiative to provide illegal immigrant minors), produced a surge in numbers of new immigrants, both legal and illegal, in 2014 and 2015.

In terms of coalition management, this influx creates problems. The two groups, illegal or unauthorized immigrants and African-Americans, compete for the same jobs and the same benefits from government. That the administration and the Democratic Party is promoting and indeed sponsoring the wave of immigration has the potential to not sit well with existing coalition members like African-Americans, or the working class generally. Therefore, it would seem entirely plausible that, to deflect attention from this conflict, the African-American community has been stoked with allegations of rampant racism, making use of every plausible such incident to reinforce a general narrative that the enemy is not a competing coalition member, viz., immigrants, but the Other, those outside the Democrat coalition, or in other words, whites, conservatives, the police, Christians. This is a matter of speculation; perhaps Wikileaks emails will shed more light on the decision-making process.

Regardless, this is what coalition management  in the age of identity politics looks like.

There is one more aspect that deserves highlighting, and it is connected with the need to maintain consumption levels in Western countries. The phenomenon of mass migration, encompassing both immigration and the influx of Middle Eastern refugees, runs contrary to the national interest of the target countries, and the widespread opposition to the scale with which it is being conducted has fed massive unrest against the ruling class. What is being missed in all of this is that these newly imported populations constitute fresh sources of consumption, regardless of whether employment and thus purchasing power is available for them or not. For in the age of human rights and the welfare state, consumption will be maintained, whether by production or, as we have learned, simply by mortgaging the future through deficit spending to maintain entitlements. All of these migrants can consume much more of that below-market production if they are ensconced in the rich Western countries than if they remained in their countries of origin. In this manner the gravy train keeps chugging along.

This is how we have embarked on the road to Elysium. Debt-funded consumption is combined with structurally low-wage, low-regulation, environmentally-unfriendly production. It is a massive engagement in transactions of decline which unchecked will lead to a situation in which the Elysium of science fiction will increasingly approach reality.