By Pete Kofod
Much attention has been paid to the
"disappearing middle class" and the "vanishing American
Dream." While the observations are largely accurate, they are also
misleading. The traditional three-tier model of the upper, middle and lower
class broadly categorizes people according to income and net worth. One
significant problem with this model is that membership in any particular class
is very much in the eye of the beholder. One man's "scraping by" is
another man's "opulent living." This subjective and arbitrary
grouping and boundary assessment inevitably gives rise to the simmering class
warfare that is starting to rear its ugly head in many Western countries. Such
categorization is therefore meaningless at best, if not outright deceptive as
it conflates a variety of economic actors.
The chief fallacy of this model rests in the
fact that it focuses on how
much those actors are compensated, as opposed to how and why they are
compensated. A far better perspective is perhaps gained using two classes, the
Political Class and the Economic Class, with a third class emerging.
The Butcher, the Baker, the
Candlestick Maker - The Economic Class
The Economic Class, at least in the United
States, has historically been the numerically dominant group, although in
recent decades its dominance has noticeably waned. The economic class would
traditionally be called the Private Sector, but even that term has become
misleading for reasons we will delve into later in this article.
Members of the Economic Class provide goods
and services that are voluntarily sought by consumers and paid at rates that
the market will bear. In an unfettered environment, the economic class would
count farmers, engineers, coal miners, artists, physicians, janitorial staff,
security guards, merchants and company executives among its membership. They
participate freely and competitively in the market place, using the economic
principles of Division of Labor and the Law of Comparative Advantage to
increase the wealth of society as well as improve their personal position.
Capital, entrepreneurial and human resources are brought together
collaboratively to meet the needs of the market place. This is standard
Economics 101 fare and hopefully generates little controversy among the
readership. The important factor defining Economic Class membership is not the
amount of money a person earns but rather their participation in the free and
open market.
The Lazy Highwaymen - The
Political Class
Like the Economic Class, members of the
Political Class are not properly defined by their wealth but rather by how they
exert influence in the market place. Whereas members of the Economic Class
engage the market openly and voluntarily, members of the Political Class employ
coercion and deceit to achieve their economic objectives. The coercion and
deceit may either be exerted directly or, as is increasingly observed, through
a variety of proxy agents. The most obvious members of the Political Class are,
unsurprisingly, politicians. This group includes elected individuals at every
level of government as well as various appointed officials.
In addition to this primary membership
category, a second distinct group exists within the Political Class. It
consists of various advocates including lobbyists, influence peddlers and
miscellaneous other supplicants of government cheese. These creatures exist to
serve as envoys for the third distinct group, which is made up of a patchwork
of commercial entities that have learned that employing a politically
well-connected pitch man replaces the need for an effective sales and marketing
organization and in some cases even the requirement to have a desirable product.
Furthermore, it is commonly observed that
members of the Political Class routinely migrate between the three
aforementioned groups. An unfortunate consequence of allowing these economic
actors to "cut in line" is that the rewarded event becomes the prevailing
trend. Because of that, there is virtually no industry that has opted out of
the rent-seeking game. From the military-industrial complex to agricultural
subsidies, to the utterly corrupt banking system, the Political Class is
inexorably claiming an increasing share of the world's economic activity, a
highly disturbing trend indeed.
Subsidized inefficiency, intentional
destruction of productive assets and confiscation of property are but some of
the effects that are observed when the Political Class employs force to serve
those that are "more equal than others." The arrangement can be
summed up by saying that economic activity within the Economic Class places the
bargaining power in the hands of the buyer whereas the economic activity within
the Political Class places the bargaining power in the hand of the seller. This
gives rise to dislocations in the free exchange of goods and services as well
as widespread misallocations of capital as businesses adjust their practices
based not on the normal mechanics of supply and demand but rather based on the
dictates of the Political Class. Over the years, the scale of the intrusions of
the Political Class into economies around the world, and very definitely here
in the United States, has grown to the point where truly free markets are now
the exception and not t he norm.
Because the Economic Class operates in the
realm of voluntary exchange whereas the Political Class employs force to
achieve its objectives, many of which are anathema to the Economic Class, it
follows that a significant amount of resources must be dedicated by the
Political Class to the enforcement of their objectives. This role has
traditionally fallen on the wide array of military and law enforcement
organizations as well as numerous regulatory agencies and departments.
From the US military's role in protecting the
Political Class's global interests and the IRS keeping the Treasury full, to
the FDA serving "Big Pharma" and various law enforcement agencies
maintaining a low-level chronic fear in the populace, the level of physical
control that the Political Class needs to extend over productive resources is
staggering. And in lockstep with the virtually unchecked growth in the
Political Class, so has grown the size and scope of the enforcement branch
deployed to protect its interests.
Paradoxically, for reasons I'll touch on
momentarily, the allegiance of this enforcement branch belongs to neither the
Political Class whom they serve nor the Economic Class whom they
"service." In time, their level of influence grows to the point in
which they become a class of their own. They are the Praetorian Class.
Legions and Lictors - the
Praetorian Class
The Praetorian Class includes members of the
Armed Services, federal, state and local law enforcement personnel as well as
numerous militarized officials including agents from the DEA, Immigrations,
Customs Enforcement, Air Marshalls, US Marshalls, and more. It also includes,
although to a lesser extent, various stage actors in the expanding security
theater such as TSA personnel. The main mission of the Praetorian Class is to
keep the order of the day. This requires displaying an intimidating presence in
their interactions with the Economic Class.
As the Praetorian Class ascends, the clear,
albeit unstated, message that emerges is that actions and events in the
Economic Class only occur with its tacit consent. Whether driving on roads,
traveling in the air, visiting public land, walking down the street or even
living in your own home, every action you take is predicated on its permission.
By preconditioning the populace to enforcement of its edicts, most of which are
completely arbitrary, the Praetorian Class sets itself up for a high degree of
autonomy in its actions. This is confirmed by the fact that consequences for
malfeasance within the Praetorian Class are almost never observed, and when it happens,
it typically becomes a grotesque spectacle in which one of their own is
sacrificed as an example, so as to keep appearances of effective internal
controls.
Members of the Praetorian Class are typically
recruited from the Economic Class and usually from the lower socio-economic
spectrum, which offers them an opportunity for personal and professional gain
that otherwise might be out of their reach. Early on in the training and
indoctrination process, a strong emphasis is placed on teamwork and advancing
the welfare of the team above the individual. While independent thought is
never overtly discouraged, the fact is that questioning authority and failing
to display complete loyalty to the team results in censure, shunning and even
expulsion. Naturally, the recruit learns in short order which behavior is
rewarded and responds accordingly. This forges a lifelong, unbreakable bond
between the brothers-in-arms. This bond can be observed when people proudly
display unit insignia and decorations decades after their departure from
service.
As they serve in their martial role, members
of the Praetorian Class learn to despise members of the Political Class and to
view the plight of the Economic Class with detachment or even contempt. Law
enforcement and military personnel will converse behind closed doors about the
most horrific injustices and brutalities with cavalier amusement. While perhaps
natural, their training for violence and teamwork is a fundamental cause for
why members of the Praetorian Class abandon their roots and in time come to
view their peers "back on the farm" with contempt. Likewise, the
steady displays of the craven and treacherous character of the Political Class
causes the Praetorian Class to privately disavow emotional allegiance to their
masters, usually early in their service.
Naturally, as the members of the Praetorian
Class socially distance themselves from both their origins and their masters,
even though they are paid to do their bidding, a new group identity among them
emerges. Adoption of this group identity, forged by the training,
indoctrination and work, defines membership in the Praetorian Class. Some of
the characteristics of this identity include:
- Viewing everything and everyone according to a perceived threat posture. The members' thought processes, beliefs and actions center on viewing the world through a paradigm of a graduated conflict spectrum and how to posture themselves accordingly. Even in the most mundane settings, their conversations tend to be awkward if not centered on their martial duties.
- Tight internal socialization. Because they view life through a martial paradigm, members tend to socialize almost exclusively amongst themselves. Immediate family members are expected to do the same, which naturally occurs anyway as they can share experiences that external relationships simply are unable to address.
- Loyalty is the highest honor. Whether referred to as the blue wall of silence or the brotherhood in arms, even the most egregious transgressions are buried. If the misdeeds are internal, meaning member versus member, the justice is handled internally. On the other hand, external missteps are typically swept under the rug and significant chicane is experienced by outsiders who seek to learn the truth.
In a relatively free and peaceful society,
members of the communities that form the Praetorian Class lead a discrete
existence. Members of the military commute to and from their place of work and
are largely invisible to both the Political and Economic Class, certainly in
communities that are not "Praetorian" communities. Attendance at
cultural events in uniform is frowned upon, if not explicitly forbidden. During
these times, members of the military and law enforcement are expected to live
and operate outside the perception of other members of society, their purpose
and function regarded with a sense of detachment and perhaps even subtle
curiosity.
As the Political Class increasingly calls upon
the Praetorian Class to ensure their order, however, their martial nature
becomes more visible in the fabric of day-to-day life. This serves several
purposes. For one, it allows the Political Class to demonstrate its willingness
to use unlimited force to achieve its objectives, something that was always the
case but is now made publicly visible. Rationalizing the increased public
profile, a stream of honorifics is bestowed upon the Praetorian Class so that
they may be presented as defenders of the Economic Class. This is accomplished
through the time-tested use of pageantry, pomp and circumstance.
Over time, additional perquisites are bestowed
upon the Praetorian Class including preferential treatment in both private and
public facilities. Preferred air travel accommodations for uniformed personnel,
including dedicated lines at TSA checkpoints and preferential boarding, have
recently emerged as cultural standards that further distance the Praetorian
Class from the masses.
Another clear change is the physical appearance of members of
the Praetorian Class. The uniforms transition from relatively inconspicuous
attire to "battle uniforms" such are those now standard issue to both
the military and law enforcement personnel. These optics reinforce the position
of the Praetorian Class as maintainers of public order, convey a message of physical
dominance and establish chronic low-level fear among the masses. Sometimes
referred to as the militarization of the police force, this characterization
traditionally refers to the increasing firepower in even municipal police
departments. Frequently lost in this observation, however, is the psychological
impact that such a heavily armed police presence has on the
"civilian" population - specifically that it further separates the
Praetorian Class from the Economic Class.
As the influence of the Praetorian Class grows,
so do the resources it consumes. This is manifested in the form of continuous
"equipment" upgrades, training budgets and costly "interagency
collaboration" in addition to the usual staff augmentation. This, of
course, has the ancillary benefit of directing resources to equipment and
service providers that are favored by the Political Class and in some cases may
in fact be the primary purpose.
Perhaps less obvious is the need to constantly
keep the Praetorian Class on the march. A bored Praetorian is a dangerous
creature that will start looking for things to do. In order to keep the
Praetorian Class engaged, they must be fed a continuous source of adversaries
that they in turn actively engage. In "peace time," actual engagement
is replaced by training and rehearsing the defeat of the adversaries.
While the Praetorian Class emerges as its own
entity, with allegiance only to the members' peers, the most senior of the
Praetorians are eventually invited to join the Political Class. Prior to that
occurring, they are vetted for suitability, after which they become "made
men." Consider the long list of senior military officers and police chiefs
that joined the ranks of the political elite. It is a sight to behold, their
new-found support of the Political Class, a class they had silently held in
contempt until their recent assumption. Metropolitan police chiefs, district
attorneys and joint chiefs of staff are selected for political compatibility,
not conviction of character.
How Does It Play Out?
History does not keep a flattering record of
societies that allowed the Praetorian Class to rise. The Roman Empire's decline
from splendor to squalor extended for two centuries whereas the Nazi Third
Reich collapsed in less than two decades. The continuous drain on productive
resources, continuous warfare against new foes, abrogation of human rights and
liberties and a pervasive culture of fear inevitably send the society into a
tail spin. Some societies are able to observe the retreat of the Praetorian Class,
but it is usually a function of economic necessity and often after a great
price has been paid by the general population.
Unfortunately, as the tragedy unfolds, the
Economic Class often tries to ride out the calamity. This is understandable,
since people have a limited capacity to internalize long-term trends. In fact,
because people adjust to new circumstances relatively quickly, it is almost
impossible for them to compare the condition of life in the present versus the
past. The common vernacular for this concept is "the new normal",
which upon the slightest reflection represents an obvious paradox, since the
word normal implies a historically stable trend.
The Third Reich as a
Textbook Example
History books are filled with examples of
societies that have seen the rise of the Praetorian Class, followed by their
own subsequent collapse, ranging from the Roman Empire to the Soviet Union. Of
all the examples, however, none seems more instructive than the rise and fall
of the Nazi Third Reich in Germany.
Over a period of two decades, starting with
the collapse of the Weimar Republic and the end of World War II, Germany saw
the rise of a charismatic demagogue, the rise of police and paramilitary
forces, the development of a military-industrial complex, the assumption of
industry by the State, the demonization and persecution of scapegoats finally
resulting in widespread warfare and societal ruin. Because the timeline is
relatively compressed compared to other historical examples, spanning a single
generation, the Third Reich serves as an excellent example of the broader
consequences a society experiences when we observe the rise of the Praetorian
Class. Furthermore, by virtue of its recent occurrence, many cultural and
technological parallels serve as clear milestones.
Call to Action for the
Economic Class
In order to evade the inexorable path to ruin,
two critical actions must be taken. First, it is imperative to understand
historically how events play out, identifying key milestones along the process.
Some milestones may include the level of military spending, such as the $700
billion that the United States spends annually on defense. Consider the
escalating threat propaganda. Leading up to the war with Iraq in 2003, a common
justification heard was "We gotta fight them there, so we don't have to
fight them here." Apparently that strategy didn't work, since the 2012
National Defense Authorization Act declared the United States part of the
global battlefield. Is it the increasing monitoring and control exerted over
the media, including the subpoena and detention of free-speech activists? Or
perhaps it is the tortuous argument that the private minting of silver coins
bearing no resemblance to US legal tender currency represents domestic
terrorism.
As the saying goes, "History does not
repeat, but it does rhyme", which is to say there are events that have
played out universally in the past and are likely to do so again. An implied
task that emerges is the need to be an avid student of history. Usurpations of
power observed today have historical precedents in some form or another and
therefore serve in some instances as predictable milestones.
Second, identify the milestone that defines
the "point of no return," at which point taking no action is likely
to have very adverse consequences. This is a very difficult task emotionally as
it usually requires taking drastic action before circumstances clearly warrant
it. It may involve winding down business and social commitments while
conditions on the surface still seem fine. This, of course, represents a
personal balancing act. While there is merit in the saying that it is better to
be a month early than a minute late, there is a practical limit to the value of
that axiom. Predicting a financial collapse twenty years early, and making
adjustments accordingly, results in significant opportunities lost, both
personally and professionally.
In Summary
The emergence and rise of the Praetorian Class
is a common observation in societies that have transitioned from market-based
meritocracies to societies governed by coercive syndicates formed by the
Political Class. The Praetorian Class is formed and grown to defend the
Political Class and in time becomes the dragon that rules its master. It
represents a highly disturbing trend because it foretells the decline, not the
advance, of a society. In some instances, the decline is peaceful, clearing the
path for an improved future. Unfortunately, in many instances that is not the
case. The Political Class leverages the full force of the Praetorian Class
representing significant loss in wealth, personal freedom and, in many cases,
human life. For this reason, it is critical that productive members of society
take steps to protect themselves.
Pete Kofod is the
founder and president of Datasages (www.datasages.com), a technology services firm that offers
cloud computing and strategic technology services to various private
organizations. Before entering the technology sector, Pete served with the US
Military, both in the United States and abroad, where he forged many close
friendships that still thrive today.
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