The Unaccountability Machine— Dan Davies

Part 1: The Nature of the Crisis

1.Something’s Up

““Capitalism is disappearing, but Socialism is not replacing it. What is now arising is a new kind of planned, centralised society which will be neither capitalist nor, in any accepted sense of the word, democratic. The rulers of this new society will be the people who effectively control the means of production: that is, business executives, technicians, bureaucrats and soldiers.”

George Orwell, ‘James Burnham and the Managerial Revolution’,1946

Even in the early stages when Beer was first retained as a consultant, people had been warning the Allende government that it was nationalising things too fast, without regard for the capacity to manage them, and seemingly without much in the way of an overall industrial plan. They had introduced a system of ‘intervenors’ who sat in the factories and passed on orders from central government; this was unpopular, and contributed to the impression of central technocratic control rather than devolved autonomous production.

Governments were also subject to the same cognitive pressures of a world that was becoming more complicated, so they also needed solutions to attenuate information.

The imposition of Friedmanism and the debt burden in the corporate sector gave a clear signal about the new priorities, but the equivalent processes in the public sector just added a lot of noise. The system was calling for ‘reform’ and revolution, but not giving any clues as what specifically ought to be done.

And so the progress of outsourcing and decerebration ended up being even more intense, and the public sector became as big a fee pool as the private sector for the consultancy industry. This had the effect of closing off the other possible way in which the working class might have insured themselves against volatility — through the policies of governments that they elected.

You can’t say how much information a human being is taking in and reacting to at any given time, but you can easily observe the difference between a human being that is coping and one that is overloaded. That’s my diagnosis of what led to the series of connected political eruptions between the financial crisis and the pandemic. The hypothesis set out as early as 1970 by Alvin Toffler in his book Future Shock turned out to be correct: the number of people who were no longer able to cope with the modern world reached a critical mass.