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Monday, October 5, 2009

Fire the Bodyguard, Part Two

Lies were not the only bodyguard which capitalism had had to employ to defend itself against socialism. We turn our attention from ideology to sociology.

It is time to recognize that the once-honorable professions, medicine, law, accountancy and education, have been converted into sinecures for the protection of middle-class privilege. Their remuneration and status has grown in inverse proportion to their actual social contributions. Instead of autonomous, self-governing guilds of highly-trained professionals, rightfully claiming exemption from certain of the economic and legal rules governing normal business activity on account of their unique services, they have metastasized into powerful labor syndicates, exploiting their privileged status to exact more and more tribute from the economy for ever-dwindling social benefits.

Within each of these institutions there remains (one hopes) a core of valid professionalism which it is in the interests of society to preserve. But surrounding this putative core is a husk of opportunism, incompetence, bureaucratic string-pulling, politicking, and plain hucksterism reminiscent of established religion at its worst. Gresham’s Law operates: when professionalism is replaced by its counterfeit, the true professionals are suffocated and dumped out, replaced by ever-greater numbers of cocky frauds.

All of this would merely be an unpleasant sidelight of modern life were it not for the sheer scale which professional bloat has achieved. Professions, after all, are part of the service economy. Their job is to render the productive side society more efficient and productive, through disease suppression and lifespan extension, crime and violence reduction, maintenance of financial rationality, and education of the young. Instead, they have become ends in themselves, drowning out the real producers in our society with wave after wave of middlemen, regulators, and certificate-awarders.

And so we get a health-care system touting itself as “the finest in the world,” but which is actually one of the worst in terms of measurable health benefits to the public weighed against its cost of maintenance. And a legal system in which simple everyday justice dwindles in direct proportion to the legions of Yuppie Law and Order fans graduated from law schools. CPAs live in morbid fear of a simplified tax code which would put three-fourths of them out of business. And the academic world charges America’s parents ridiculous fees for the privilege of indoctrinating their children in the latest frivolities of the Modern Language Association and its interdisciplinary equivalents.

Who pays for this waste? In the short run, of course, we do, whenever we visit the doctor or pay a tuition bill. But from an economic standpoint, it is not the consumer who pays but the business economy. For all of this is financial overhead, part of the cost of doing business in America. The businesses which actually produce value must pay their employees enough, either in the form of higher wages or higher benefits, to feed the voracious appetite of parasitic professionalism. They must subtract this cost from the profits which their enterprises yield. This subtraction reduces their competitiveness because it lowers the amount of retained profit which they can convert into investment capital to maintain and upgrade their operations.

The major source of this nasty situation was political: capitalism’s fear of socialism. Leftist agitation of the working classes against so-called capitalist exploitation frightened our business classes into believing that they needed to tolerate the growth of a vast middle class to buffer themselves against the specter of social revolution. The middle class was therefore allowed to play the role of mediator between labor radicalism and business conservatism. Their sociology changed from its old shopkeeper base to the professions, and the vast numbers of support staff which professionals claim to need. This new middle class was granted economic sustenance to finance its numerical increase on a scale sufficient to play its buffer role. Of course, once assigned this mediator status, the new middle class acquired a stranglehold (known as the Democratic party) over the political process which became extremely difficult to break.

The business world’s fear of polarization between working class and bourgeoisie could have been largely perceptual. We may never know. But one of the tools used to shield us from ever having to find out was the creation of today’s bloated middle class. Now that the notion of a class-conscious proletariat has joined its progenitors – Marxism, socialism, and communism – as just another abandoned storefront on the boulevard of mankind’s broken dreams, it’s time for capitalism to audit the price it pays to subsidize professional bloat, and the efficiencies that could be achieved from the “liquidation of the middle as a class” (apologies to a certain notorious historical figure).

Abolition of the middle class would require major reforms of the so-called professions that lie at its core. These reforms are not difficult to envision, since the normal operation of the business economy has already introduced most of them, although in forms distorted by the featherbedding of the current professionals whom they threaten. Medicine, for example, needs to fully abandon the sentimental Marcus Welby model of the independent, entrepreneurial practitioner in favor of a more rational, assembly-line method of delivering therapy. Diagnostic procedures should be more fully automated. “Heroic” interventions need to be minimized, in favor of prevention and disease-management techniques. Rigorous cost-efficiency models must be applied to all therapeutic modalities. The status of health care providers should be drastically reduced, to the level of well-trained mechanics. The MD degree should probably be eliminated.

In all of the professions, computerization, and reorganization based on computerization, will lend itself to a sharp reduction in the ranks of the middle class by converting “professionals” into ordinary workers, in much the same way that airline pilots are now being declassed into train drivers as a result of the computerized cockpit. As this process advances, enormous fiscal savings will accrue to the economy, making possible faster rates of growth and greater productivity across the board.

The middle class will emit thick clouds of rhetoric bewailing these reforms. Incipient fascism will be predicted, resurgent Dark Ages will be announced. Since this class is not capable of generating much in the way of real resistance, reformers ought not to be deterred. Instead, they should bear in mind what Leon Trotsky, an expert on classes headed for the “ashcan of history,” said about an opponent’s speeches: that they worked, not on the heart, nor on the mind, but on the nerves. So also with the rhetoric of the middle class.

Abolish the middle class. It will pay dividends. And it will clear the air!