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Mike Moschos's avatar

I've appreciated this series; it's been well-written, and I'd never learned anything about the towns/cities of the old German Confederation before. Thanks for writing it.

In China (some say this has been changing in recent years with Xi's centralization push, but it's unclear to me in exactly what ways it has been changing, and anyway, there appears to be a large amount of at least somewhat successful pushback to these changes, especially since the COVID Event's silly policy directives), local governments account for two-thirds of all government spending, with regions being the second highest and the national government being the smallest; this is the inverse of what we have in the USA. Crucially, the money is also raised at that level by them; it's theirs. This makes them the primary actors of fiscal policy.

Local governments there wield significant influence (sometimes near complete control) over parts of state-owned companies within their areas, giving them even further economic prerogatives (since it even includes large state banks, this extends, to a point, to monetary policy as well).

They will even engage in acts of local trade protectionism against all outside the city, so even the rest of China. This is far closer to how the old American Republic used to be for economic policy than contemporary America is. And since economic policy is the biggest and most important (for most people) sphere of public policy, well... that says something.

Your reference to the horizontal cross-pollination of "elites" is important, and I dare say a big "just don't do it" for any system that hopes to be genuinely virtuous and long-term effective.

However, your dismissal of democracy may be premature; if the world moves in a better direction, there will be different systems, some democratic ones may work. The Chinese model, in a way, also, counterintuitively, provides evidence in support of the idea that democracy can work. The local parties will make up a sizable share of the population, maybe 10% or so. Typically, over half don't have degrees; many of those that do have what we in the West would dismiss as vocational degrees (and I'm not counting the "Party School" supposed correspondence courses "degrees" many have, lol). It may be tempting to think that it's this small cadre within the local parties wielding effective total control, but that doesn't seem quite true, and it's not just that various sectors of membership are pushing for the interests of their respective societal sectors; they have legit study groups, people learn, read, and debate, and many within these parties will occasionally win debates and even rewrite the details of policy. So, I'm not sure discursiveness can be written off, or that no "shopkeeper or merchant" can "out-talk or out-conceptualize the verbally dexterous agents."

In Massachusetts in the 1980s, we had a governor (who I actually believe to be a morally decent man) who was fully elite-credentialed. He oversaw the design of a health care price control system that was very poorly designed and failed. I was reading about a guy in China, an electrician, who similarly oversaw the design of a healthcare price control system for his city and got the impression that he 1) had spent more time studying the policy area than our governor, 2) knew more about it, and 3) was likely just inherently more intelligent than our governor.

So, well, I don't know, the world's complicated...

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Archangel's avatar

Thank you Evolved Psyché for this long and detailed series on the towns of the 16th-19th century Germany. A most excellent lesson for me.

One aspect of local governance that is now pervasive in Europe is the proclaimed illegitimacy of the rule by the rich or, more softly said, the hostility to wealthy individuals being mayors, or presidents of counties and regions. It is overtly said that they would run the community in their favour and against the good of the citizenry. If a local government shows hostility to them, it is praised as being virtuous, fighting for the people. Thus the factory owners and managers, the prominent business owners, the large farmers/landowners, the most successful professionals are effectively barred from local elected office and must regularly confront "populists" that attack them for easy wins.

The consequences are simple. The local elite is separated from the local government and the community is permanently broken. The local elite is incited to stay apart and associate with the local elite of other towns or of the large cities. Staying apart has evolved into not social patterns where the elite does not see ordinary people most days. Then in good times the elite is not incited to invest in the local community; in bad times the elite has no qualms about laying people off or permanently closing down a business. This mindset has set and has deep roots by now. Most people and local elite members see the deleterious consequences but blame each other with no end in sight.

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