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Culture War Roundup for the week of January 27, 2025

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Trade policy has changed the composition of the domestic elites who make bad political decisions. It's caused (in part) the specialization of the American economy into one of abstract symbol manipulation. Although it turns out that's probably the highest value thing anyone can do, the winners of a symbolic economy create an unmoored society. And the issues you list are all downstream from that: real physical and safety issues have become secondary to the symbol.

I don't think Trump's tariffs are good or will do much to reverse this trend. They are, however, a strong symbolic strike against the ruling elite, which will have unfortunate side effects on the material wellbeing of Americans.

Trump's tariffs are a tax on Americans who consume imported physical goods, and American manufacturers who use imported intermediate inputs. The class who mostly consume expensive real estate and their own sense of moral superiority will be relative winners.

Could you elaborate more on the economy turning into one of abstract symbol manipulation?

You're talking about investment and the stock market, right - and the relation between unmoored, placeless capital and a lack of care for even the localized business environment?

That's a big part of it, yes. Finance is about abstracting away all the messy realities of the real world into a single self consistent symbol--money--so that humans can accurately act on knowledge of the real world without having to know any of its concrete details. Software is also a big part of it, as MadMonzer points out. And we are best in the world at both of them: there's no reason for us to make a lot of widgets when we can manipulate symbols to create information that's worth 100x as much. Trade policy has enabled us to make this tradeoff, and we do.

You can also frame higher education, law, and media as symbol manipulation industries, though I see their successes as more downstream of the symbolification of the US than a cause of it.

America's main source of competitive advantage is software*. Making software is literally symbol manipulation.

Arguably America's second-largest source of competitive advantage is logistics, which is real-world-aligned, but doesn't have the mythopoetic status of manufacturing in real-world-aligned culture, and in any case naturally encourages people towards cosmopolitanism and has done since the Age of Sail, if not earlier. (Walmart and Amazon are the leading examples of American excellence in logistics, as well as notoriously harmful to local communities.)

Compared to resource extraction, manufacturing, or even tourism (where the local sense of place is part of what you are selling), software and logistics are about unmoored, placeless economic activity. This is true both of the doing of the thing, and of the type of financial services that finance the doing of the thing - financialisation is not the problem here. When America was a physical-things country, you had community banks which were as embedded in their community as the general store, and which financed farms and factories and such-like, and you had money-centre banks like JP Morgan which financed railroads and shipping.

* America's trillion-dollar companies and their core competencies are:

  1. Apple (software, industrial design)
  2. Nvidia (designing and marketing chips which are made in Taiwan, although some insiders say the secret sauce is actually software)
  3. Microsoft (software, being evil and getting away with it)
  4. Amazon (software, logistics)
  5. Alphabet (software)
  6. Meta (software)
  7. Tesla (cars and solar panels, but the current stock market valuation assumes a pivot to software)
  8. Broadcom (designing and marketing chips which are mostly made in Taiwan)
  9. Berkshire Hathaway (insurance, arguably logistics)

None of these are going to promote rooted capitalism, and none of them would promote rooted socialism if State-owned either.

It wouldn't be wrong to say that the entire point of logistics is the abstraction away of place.