When I was living in and reporting from China, I spent a lot of time trying to hammer this point home: whatever you might say about China — good or bad, friendly or hostile — there was some place in the country where it was true, and also some place where its opposite was true. Thus embracing China’s contradictory realities was not some minor fine-tuning detail but a starting-point necessity in thinking about the place. In case you haven’t read China Airborne, a further riff on this theme comes after the jump.*
Today’s America is not quite as contradictory as China. Yes, the U.S. has extreme poverty and growing inequality; but no, we don’t have a peasant population in the hundreds of millions. But America is complex and contradictory enough. Thus the message of my current cover story involves this superficially contradictory sequence:
- The United States is suffering the ills of the Second Gilded Age, as it is distorted by the same pressures toward inequality and dislocation that affect virtually every society today.
- Despite point #1, America’s overall prospects remain better than any other major country’s. That’s because of scale, resources, adaptability, geographic advantage, education (yes), research-and-entrepreneurship culture, “soft power,” openness to immigration, and lots more.
- Despite point #2, the main American weakness, in both relative and absolute terms, is that our system of national government is at a historic ebb in effectiveness. That’s particularly troublesome now, because adapting to the turbulence of this era would be so much easier and less destructive with some national policies, like those that accompanied the adjustment to the previous Gilded Age. Then it was: worker-safety and child-labor laws, the minimum wage, unionization. Now: portability of health care, pensions, lifelong training, and other benefits as the “gig economy” replaces the long-term one-company career.
- Despite point #3, lots of American families, organizations, and communities are figuring out their own responses to this era’s opportunities and problems. These are worth noticing in their own right; and as they accumulate, they can provide a guide for national action — if such a thing should become possible again.
With that, bring on Warren Buffett! Today’s NYT has a story about Buffett’s annual shareholder letter for Berkshire Hathaway. The Times headline conveys the contrast with today’s political rhetoric.