The New Right has a tendency to envelope itself in the concerns of Identity and Culture at the expense of the Economic Question. Typically blathering on with one-liners and emotionally charged polemics. Here I will address the question from the perspective of a Traditionalist and attempt to best address our solutions from an informed perspective.
I will begin by stating the pillars of Traditional economics founded upon Elitism, Hierarchy and above all Realism. These are: Free Trade, Imperialism, and Free Unregulated Enterprise.
This will consist of a two post series in order to clearly present the subject matter.
To start, what is Free Trade? It is a system of exchange that prohibits nations from taxing or prohibiting the exchange of goods and services across borders.
The rhetoric goes that free trade is a mutually beneficial agreement between nations. A Truthful Conservative will tell you otherwise. Free Trade works by preventing potential Subject Nations from erecting “protective” trade barriers and tarrifs to “shelter” their industry and agriculture from foreign entities. As a result, the nation’s markets are open to the goods of another power with whom their product cannot compete in price and often, quality.
Furthermore, the nation who controls international transportation and trade routes is able to make the costs of the movement of goods negligible whereas the Subjects must pay a premium. Currency plays a rather large roll in determining who profits from Free Trade. Take the case of the Dollar’s hegemony over a significant portion of the world in exchanges, or the predominance of the Euro in the EU – to whom Germany is the benefactor at the expensive of Southern Europe and a handful of Northern Nation-States – for notable examples of deliberately imbalanced exchange via Free Trade.
The results of course are untold riches. In modern times, we saw this Economic Warfare being deployed successfully by the Virile British Empire, American society post Spanish-American War and in the EU as helmed by Germany out of Brussels.
Colonization and the creation of Subject Nations works hand in hand with Free Trade by extracting the wealth from Vassals. Historically there are two dominant methodologies: the replacement of a foreign government with leadership and institutions of the dominant power bringing the nation under direct control, and the other is the establishment of a franchise that is indirectly controlled through sympathetic governments who receive kickbacks in return for complacency.
The former is the most expensive option and the latter a cheap innovation developed on accident by America due to internal national resistance to direct colonization.
Once the empire has been established, it functions by siphoning the labor and raw materials of a vassal state and concentrating it in the imperial center. This is achieved through multiple methods:
1) Demanding tribute in the form of taxation on subject economic activity.
2) The establishment of native firms on foreigner’s soil. Multinationals, essentially.
3) Deliberately imbalanced trade agreements.
The savings on the costs of goods and services are then passed off on consumers all the way out to the periphery of the empire including its subjects markets. A significant advantage of an Empire is in its ability to offload economic externalities abroad through shifting production beyond the Imperial Nation’s own homeland.
It’s important to remember that between each Imperial model, the arrangements that allow an empire to function are backed up with the threat of military force. This is why the maintenance of a large military budget is so important to those of us on the Right. Pursuing lavish military technologies is a historical constant that runs the gamut from chariot warfare to the battleship; and from aircraft carriers to the now being tested “rail gun.” Aggressive foreign policy is a paramount doctrine. Empires must engage in shows of force via proxy conflict to inspire complacency in order to maintain the economic, institutional and cultural arrangements that an empire depends upon.
An infrequently discussed but important strategy in the economic warfare of Empire is the imposition of austerity unto Subject Nations. How this works is, a vassal over its head in debt cuts government programs and undergoes radical privatization of government assets. The prices of these assets are so low in fact that the creditor nations can buy up these assets at a steal and strip them bare. Going back to the EU example, this is precisely what the IMF intends to do to Greece and Spain. As it happens, a debtor nation is put back into complacency via austerity without the need for military incursion. Let us not be modest, a Subject Nation – like the poor – finds itself in debt to the Imperial Nation not because of exploitation or depletion of resources, but because of an internal deficiency of character that leads to the squandering of one’s wealth (financial and real) on less than essential goods and services as well as social programs which encourage the replacement of productive sectors (as well as productive persons) of their economy with parasitic entities. Thus, the need for Austerity to reign in on the decline of the vassal and to maintain the extraction of wealth so critical to an Empire.
Next week we will discuss domestic Elitist and Traditional policy.