Review: Is the ‘post-industrial economy’ just radical social entrepreneurship?

Review:
No Straight Lines: Making Sense of our Non-Linear World
by Alan Moore, Bloodstone Books (UK) 2011

Alan Moore

What’s the economy of the future? For designer and SMLXL founder Alan Moore it’s ‘open-sourced’, ‘bottom-up managed’, ‘co-created’, ‘mass-customized’, ‘adaptive’, and ‘human-scale’. Don’t be put off by the jargon, Moore’s argument in No Straight Lines is simple and compelling.

The world has changed and our major institutions from markets to politics are splitting at the seams in a struggle to adapt.

Much of Moore’s book is a straight-forward survey of modern ideas about what he calls the ‘post-industrial economy.’

In the post-industrial world agility and creativity reign supreme. In business, firms can no longer afford to be rigid hierarchies. Their employees can no longer count on a 30-year career in only one area, for only one employer. One-size-fits-all education can’t prepare us to thrive in this new world.

Unaccountable, opaque bureaucracies can’t solve social problems without local knowledge of the communities they govern. Communities themselves are suburban wastelands with no public spaces for togetherness or merrymaking.

Moore goes deeper still, arguing that this structural mismatch is making people feel alienated. Our yearnings for authenticity, human connection, and true community reveal themselves in our behavior on and offline. Think Burning Man and World of Warcraft guilds.

People without a community and without a sense of pride in their craft turn to rampant consumerism for fulfillment. Culture becomes the decadence of conspicuous consumption rather than a search for meaning.

Fair enough. RSE is all about addressing these disparities.

The diagnosis of No Straight Lines is spot-on, with one serious problem.

Many theorists of the ‘post-industrial economy’, Moore included, position themselves as enemies of the industrial revolution and capitalism as a whole. Moore makes liberal use of a caricature of supporters of open markets.

These ‘market fundamentalists’, as he terms them, are reactionaries. They oppose the impending post-industrial world because of their allegiance or financial interest in ‘hypercapitalism’.

Leaving aside the mixed-blessings of how industrialization came to be, Moore seems to think that today we are suffering the bitter fruit of laissez-faire capitalism.

This is false.

“What vitiates capitalism,” said an earlier writer on human social evolution, “is not its growth but its immaturity; that the use of [private] capital … has not been properly extended to community goods.”

Moore’s chief examples of today’s dysfunction are precisely in the areas run by power, coercion, and bureaucracy. These areas are dominated by politics, not entrepreneurial markets.

Education in the West is almost entirely controlled by top-down bureaucratic standards. By and large, schools are not created by entrepreneurs, but by political will. Is it surprising that they fail to create the innovative learning that people need for ‘post-industry’?

Zoning and assorted other top-down regulations restrict the shape and function of communities. Discriminatory tax codes prevent holistic communities with a single land title from forming (think common interest developments like resorts, hotels, or universities).

Instead, politics favors dispersed suburban subdivisions, where all residents must rely on the municipal bureaucracy to solve their collective problems. Poor management of public funds leaves little money behind for the common spaces that Moore craves.

Suburbia

Indeed, the area most clearly disrupted by major changes in technology are the markets least dominated by political bureaucracy.

Moore refers continuously to the innovation and creativity of the tech sector. This should be no surprise. But it is inconvenient for his thesis.

The tech sector is not yet fully a ward of nation-state legal and regulatory machinery. With some serious exceptions, it is a closer approximation to laissez-faire than markets like manufacturing, which were long ago captured by special interests and had their structure distorted in favor of established interests.

As the case of San Francisco’s ride-sharing start-ups shows, even clean, community-enhancing innovations of the sort that Moore would love find their biggest challenges in politics, not laissez-faire.

In the end, Moore calls for a ‘new operating system’ for humanity – one based on mutuality, openness, free-participation, trial and error, and decentralization. I couldn’t agree more.

But Moore’s new operating system sounds suspiciously like entrepreneurial markets stripped of some of their more corporatist features.

If we are heading into the post-industrial world, we should strip ourselves of the biases and sloppy language of the past. If capitalism just means a decentralized structure of open, entirely consensual and peaceful exchange then how does this oppose the radical leveling tendency of modern technology?

Capitalism, defined strictly as consensual exchange and entrepreneurship, is the driving force of the innovations lionized by Moore.

To view the post-industrial economy as, in essence, capitalistic does not mean embracing consumerism or defending the public and private abuses by corporations.

The best way we can fight the meaninglessness of consumerism is by allowing people to band together entrepreneurially and create new firms with new philosophies, new schools with new methods, and entirely new communities with new creative ethics.

Misguided regulation crushes the start-up school or the small artisan of Moore’s post-industrial world first and foremost.

The true mismatch is between Moore’s optimistic and compelling sketch of our shared future and the cynicism and sclerosis of politics. That is, politics in the abstract. If we believe all things are in upheaval, then rearranging political parties or piecemeal reform simply won’t work.

This is not an expression of ‘market fundamentalism’ or ‘hypercapitalism’. It’s the sober acceptance that political institutions are also a technology. And they’re long overdue for some of the creative destruction that Moore has sketched so beautifully.

RSE is pushing for exactly this: to take the enterprising spirit that has worked wonders in technology into politics, education, and culture. Is the post-industrial economy just RSE, writ large? Recommended.

Post comment as twitter logo facebook logo
Sort: Newest | Oldest
deepthings 5 pts

The worry with unbridled capitalism however, is that smart companies understand how to monopolize and seize power in a way that representative politics is supposed to protect from (regulate). This is one of the findings of late capitalist, corporate society.

 

The tech sector amply illustrates these dangers. Facebook, Google and others are the historically pre-eminent examples of monopoly, to the detriment of competitive markets among other things. They have the power to define and redefine the character and norms of society and humanity due to this position.

 

That's troubling and we seek structures representative of the people and public discourse to bring them into line. Markets are insufficient for this.

rse 5 pts moderator

 deepthings There may indeed be plenty to worry about from the likes of Google and Facebook. Although of course IBM, Netscape, Myspace etc. for instance, passed quietly into the night in their respective 'monopoly' positions. The same may eventually be said for Facebook and Google. Who knows.But your bigger point is important. The real challenge is whether or not political structures (e.g. nation-state level regulatory systems) are the proper response to ensuring competition and fighting monopoly. I think the evidence shouts a resounding NO -- because regulatory bodies and the law have been the preeminent tools for firms to hold themselves in power.

 

It's not as simple as saying 'well, markets are failing here and therefore politics will do better.' It is possible that politics may make things worse, or even be the ultimate source of the abuse in the market to start out with (since the legal system is structuring the market).

 

For example, anti-trust suits by established firms against incumbents, or intellectual property laws that protect the biggest firms all harm start-ups the most. A similar point can be made about labor regulation, which incentivizes the selling of start-ups to large corporations (who can better cope with the cost of HR departments and other compliance requirements).Ultimately we are faced with "Which of these solutions is the LEAST BAD, given all the constraints." A system of polycentric law (see the RSE theory page under the same name) helps contain the damage caused by monopolies using the legal system. This is the extension of entrepreneurship into law.

deepthings 5 pts

 rse Interesting stuff. As for the first point about monopolistic companies passing into the night, it's true, but everything changes, from legal systems and governments, to small startups, etc. The point is that, in their day, they obtain disproportionate power which they exercise with enormous social effect. We still live in a world partly, historically defined by the effects of IBM, Netscape, etc. Today's monopolies are even more powerful and formative.

 

You make fascinating points about poly-centric legal systems, but I'm not clear what, if not democratic government, will bring desirable versions of these about. My fear is that, given the power of corporations and large actors, such arrangements would be co-opted by the powerful once more. Such an entrepreneurial moment would likely be seized by the companies with the resources to create such zones and systems within them. I'm keen to hear counter-examples, but what I'm seeing more of at the moment is corporations exchanging investment for municipal power e.g. http://www.guardian.co.uk/commentisfree/2012/jun/11/public-spaces-undemocratic-land-ownership http://www.independent.co.uk/news/uk/home-news/londons-newest-development-the-rise-of-the-ikea-city-8196429.html I use these examples as a loose comparison, I hope you see the relevance.

 

Like you, I'm pessimistic about government's ability to bring monopolies into line, to let radical, useful startups flourish, etc. and I agree that the corporate takeover of government is to blame for much, but I can't see a democratic vacuum opening with favourable results.

 

However, my mind is open and I'm keen to see more examples and visions for alternative systems, regulatory landscapes, etc. Perhaps the best hope lies in some online projects like Bitcoin that harness new technologies in hard-to-regulate ways, forcing new realities.