by Charles Hugh Smith, Of Two Minds:
Our society has a legal structure of self-rule and ownership of capital, but in reality it is a Neofeudal Oligarchy.
The Inheritance of Rome: Illuminating the Dark Ages 400-1000 is not an easy, breezy read; its length and detail are daunting.
The effort is well worth it, as the book helps us understand how the power structures of societies change over time in ways that may be largely invisible to those living through the changes.
The Inheritance of Rome focuses on the lasting influence of Rome’s centralized social and political structures even as centralized economic power and trade routes dissolved.
This legacy of centralized power and loyalty to a central authority manifested 324 years after the end of the Western Roman Empire circa 476 A.D. in Charlemagne, who united much of western Europe as the head of the Holy Roman Empire. (Recall that the Eastern Roman (Byzantine) Empire endured another 1,000 years until 1453 A.D.)
But thereafter, the social and political strands tying far-flung villages and fiefdoms to a central authority frayed and were replaced by a decentralized feudalism in which peasants were largely stripped of the right to own land and became the chattel of independent nobles.
In this disintegrative phase, the central authority invested in the monarchy of kings and queens was weak to non-existent.
In the long sweep of history, it took several hundred years beyond 1000 A.D. for central authority to re-assert itself in the form of monarchy, and several hundred additional years for the rights of commoners to be established.
Indeed, it can be argued that it was not until the 1600s and 1700s–and only in the northern European strongholds of commoners’ rights, The Netherlands and England–that the rights of ownership and political influence enjoyed by commoners in the Roman Empire were matched.
It can even be argued that the rights of Roman citizenship granted to every resident of the late Empire were only matched in the 19th and 20th centuries.
The rights of commoners were slowly chipped away by civil authorities and transferred to the feudal nobility. As the book explains, these rights included limited self-rule within village councils and ownership of land. These rights were extinguished by feudalism.
The connections between these civil society/legal freedoms (of self-rule and ownership of land/capital), the Protestant Reformation and the birth of modern Capitalism are explained by historian Fernand Braudel’s masterful 3-volume history Civilization and Capitalism, 15th-18th Century, a series I have long recommended:
The self-reinforcing dynamics of religious, civil and economic freedoms are key to understanding the transition from feudalism/monarchy to the world systems of today, in which some form of self-rule or political influence and economic freedom are expected of every civil authority.
Let’s fast-forward to today and ask what relevance these histories have in the present era.
There are two points worth discussing. One is the acceleration of change; what took 300 years now takes 30, or perhaps less.
The second is the slow erosion of commoners’ self-rule and ownership of meaningful, productive capital.
This gradual, almost imperceptible erosion is what I call neofeudalism, a process of transferring political and economic power from commoners to a new Financial Aristocracy/Nobility.
If we examine the “wealth” of the middle class/working class (however you define them, the defining characteristic of both is the reliance on labor for income, as opposed to living off the income earned by capital), we find the primary capital asset is the family home, which as I have explained many times, is unproductive–in essence, a form of consumption rather than a source of income.
Ultimately, all pensions, public and private, are controlled by central authorities, even though “ownership” is nominally held by commoners. (Ask middle class Venezuelans what their pensions are worth once central authorities debauch the nation’s currency.)
In a globalized, financialized economy, the only capital worth owning is mobile capital, capital that can be shifted by a keystroke to avoid devaluation or earn a a higher return.
Housing and pensions are “stranded capital,” forms of capital that are not mobile unless they are liquidated before crises or expropriations occur.
I am also struck by the ever-rising barriers to starting or even operating small businesses, a core form of capital, as enterprises generate income and (potentially) capital gains.
The capital and managerial expertise required to launch and grow a legal enterprise is extraordinarily high, which is at least partly why a nation of self-employed farmers, shopkeepers, artisans and traders is now a nation of employees of government and large corporations.
What sort of capital can be acquired by the average commoner now? Enough to match the wealth and political power of financial Nobility? This is the source of our fascination with tech millionaires and billionaires: a few commoners have leveraged technology to join the Nobility.
As for political influence: a recent study found that voters had very little power in the U.S., which is effectively an oligarchy: Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens.
Summary: “The U.S. government does not represent the interests of the majority of the country’s citizens, but is instead ruled by those of the rich and powerful, a new study from Princeton and Northwestern universities has concluded.”
Neofeudalism is not a re-run of feudalism. It’s a new and improved, state-corporate version of indentured servitude. The process of devolving from central political power to feudalism required the erosion of peasants’ rights to own productive assets, which in an agrarian economy meant ownership of land.