History after the Cold War (final installment in my history series)

Karl Marx insisted that history is shaped by economics and by conflict between classes. He predicted a revolution led by working classes, beginning in those countries where the Industrial Revolution had begun and spreading through the entire world, first creating a socialist economy managed by the government, then followed by a communist economy in which social classes had been abolished and the government had withered and disappeared.

Marx’ predictions did not come true. Highly industrialized countries preserved capitalism by placing some regulations on industry and production, by allowing workers to be represented through labor unions, and by raising the standard of living of all people—working class as well as ruling class—so the desire for revolutionary change was diminished. Marxism was attempted in less industrialized nations, beginning with Russia, spreading to China and other east Asian countries, and also appearing in Cuba, Ethiopia, and other so-called “third world” countries. In the 1980s, China abandoned its socialist economy and returned to capitalism, and in 1991 the Soviet Union collapsed. As a historian and an economist, Marx was revealed to be a failure.

Ironically, many historians continue to view the world with Marxist ideas and Marxist terms. Great emphasis is still placed upon the distinction between classes. Marxist terms—such as capitalism, socialism, and communism—are still widely used. The end of the Cold War revealed the failure of Marxist thought, yet historians often view the years following the Cold War through the lens of economic struggle and the disparity of wealth.

One key term used to discuss the world since the end of the Cold War is “globalization.” The economies of various countries and civilizations are so intertwined that a change in one part of the world affects the rest of the world as well. The spread of industrialization has linked the nations of the world in such a way that military and political power seem less relevant than they were before and economic success seems to be the most important way of measuring a country’s power and influence in the world. The importance of globalization was illustrated by an adage that was true until 2008: “There has never been a war between two countries that both had McDonald’s restaurants.” (Vladimir Putin’s Russia ended that interesting truth when it invaded the former Soviet Republic of Georgia.)

People worried about globalization point to the homogenization of culture around the world. McDonald’s and Walmart and Disney reach into the lives of people everywhere in the world, and they are the same wherever they are found. Remnants of indigenous cultures sometimes are swallowed up by the spread of this overwhelming culture. Critics of globalization worry about pollution, especially in countries trying to catch up to Europe and North America’s industrial successes. They worry about the concentration of wealth in the hands of a few successful inventors and marketers. They worry about government being replaced by a hidden conspiracy of wealthy plutocrats who decide what will happen in the world without being held accountable for the results of their decisions.

Globalization also brings many benefits to people around the world. Awareness of events elsewhere in the world is higher than ever before. People experience other cultures without leaving their hometowns: they watch movies set in other lands, they hear music representing other cultures, and they eat food from many different cultures. Many jobs rely on the fact that items produced in one place are transported and sold in many other places. Political leaders hesitate to begin wars because they measure the cost of warfare, not only to their own governments, but to the economic exchanges that benefit their systems and provide tax revenue to their governments.

In Europe, the Benelux trade cooperation expanded into the Common Market, which then became the European Economic Community. Similar trade agreements were made in other parts of the world including the North American Free Trade Agreement, which linked the economy of the United States with those of Canada and Mexico. Trade agreements had several benefits: they increased jobs, they provided more products for consumers, they lessened the likelihood of wars, and they offered opportunities for some governments to shape the values of their neighbors regarding environmental concerns, education, working conditions, and other issues.

If the Era of Globalization began around 1990 with the end of the Cold War, then it perhaps came to an end around 2015 when powerful countries began to back away from full-scale globalization. First the voters of the United Kingdom chose to end their country’s participation in the European Economic Community. The next year, voters of the United States elected Donald Trump, a President who vowed to “make America great again” by cutting back on trade agreements and focusing on government policies that favored American workers and investors. Putin’s Russia also seems to have backed away from globalization, as his government has used military force to threaten its neighbors, trying to reestablish Russian hegemony in that part of the world. The attempts of President Biden and other leaders to stifle Russian expansion through economic sanctions strikes many observers as weak and ineffective. Military power and deterrence (having enough military strength to prevent aggressive behavior on the part of other nations) are still important in 2022; history still is not shaped by economic factors alone.

What new Era will follow the Era of Globalization? Answers are not yet available. Older objectives—including nationalism and the drive for freedom—continue to be important to many, perhaps most, of the world’s citizens. Religion also has not disappeared, as historians have been predicting ever since the so-called Enlightenment of the seventeenth century. This final truth allows Christians to say with confidence that the world still belongs to God and that His plans still outweigh all the schemes and efforts of mere mortals, even the most powerful among us. J.

The Victorian Age, part two

The Victorian Age was, in some ways, an idyllic time in human history. Science and technology were providing many benefits, including improving nutrition and health. The Gospel of Jesus Christ was finally being preached in all nations. Courtesy and good manners were routine.  Fine arts were available to more people than ever before, from museums and public libraries to pianos in the average home. The average standard of living was improving. Hope was widespread that, in a few more generations, war and poverty and disease would be abolished around the world.

But the Victorian Age had a dark side. Part of that dark side was racism. Many educated Europeans interpreted Darwin’s theory of evolution, survival of the fittest, to mean that some humans are fitter than others and should rule over others. Even as slavery was abolished, a new wave of colonialism put much of the world under European control. Otto von Bismarck hosted a meeting in Berlin in which representatives of European nations divided Africa among themselves, leaving independence only to the Kingdom of Ethiopia and to Liberia—a country created by the United States to contain former slaves. India, Indochina, and Indonesia were similarly claimed by European powers, while native governments in Siam and China were tolerated so long as they did not interfere with European interests. Indeed, before Victoria became queen, the British had already fought a war in China to maintain their right to sell opium to Chinese people. (Imagine Mexico fighting and winning a war with the United States to guarantee the right of Mexican citizens to sell illegal drugs in the USA!)

The British spoke of the “white man’s burden” to provide “civilization” to the darker-skinned people of the world. While the British were willing to grant self-government to Canada, Australia, and New Zealand (all populated and controlled by people of European ancestry), they delayed indefinitely the same sort of freedom to India and to other colonies in the British Empire. In 1857, the British interpreted a series of local protests in various parts of India as wide-scale rebellion, and the British used military might to increase their control of southern Asia. In the United States, jobs were provided for freed slaves and for immigrants from Asia and Europe, but every new wave of workers was viewed with suspicion and dread. American cities were divided into neighborhoods of various cultures—Irish, German, Italian, Swedish, Polish, eastern European, Chinese, black, Jewish—and members of each culture stuck to their own kind.

Industrialization created problems of pollution and of an impoverished working class. In theory, capitalism provided relief by promising that the best workers would receive the highest wages and best working conditions, forcing employers to treat their workers well. Government regulations also helped to prevent abuse in the workplace. Among the most important regulations was recognition of labor unions—groups of workers united to negotiate wages and working conditions with their employers. Meanwhile, voting rights were granted to a larger segment of society, giving common workers power to elect government officials who would protect their rights and provide relief to their grievances.

During the Victorian Age, many intellectuals anticipated further changes in society that would eliminate the problems of industrialization. These changes were all called “socialism,” although they were not all the same. Some socialists created small communities where people who worked together also profited together, sharing the benefits of their labor and supporting their neighbors in the community. In some cases, these communities became the property of the business owners, who also ran the company store, the schools, the municipal government, and even the churches. Other socialists envisioned new communities in which families would each have a private apartment for sleeping but would eat together in cafeterias and share public transportation between their dwellings and their workplaces or schools. One group, called the Fabian Society, predicted and encouraged small and gradual changes aimed at a new socialist world. Others, including Karl Marx, predicted and encouraged sudden violent changes in which workers rebelled against business owners and their partners, the government leaders and church workers. The workers would take control of society, have the government run businesses for a while (socialism), and then allow the government to wither and die while people shared the benefits of their work—“from each according to his ability, and to each according to his need.”

Japan began the Victorian Age as a nation closed to the world, carefully limiting the number of people who could enter Japan from other countries or who could leave Japan to visit other countries. This practice ended when an American gunship threatened violence unless Japan would sign a “Treaty of Friendship.” This embarrassment overturned the Japanese government, and the new leaders toured Europe and North America to see what was working in the rest of the world. They brought modern ideas back to Japan—modern schools, modern military training and equipment, modern government with elected officials but also a centralized executive leader, and the best modern economic system (which was capitalism). The government built factories but quickly sold them to Japanese corporations. They improved the status of Japan so quickly that, by the beginning of the twentieth century, Japan was able to overcome China and even Russia in military confrontations.

Japan joined the party late, but the nation still benefited from the good things the Victorian Age offered. In the coming century, Japan would also experience some struggles from the dark side of the Victorian Age, a dark side that would first be felt in Europe. J.

Rescuing capitalism

Under capitalism, the rich try to become richer. In the process, they provide jobs for workers and products for consumers, stimulating the economy. As businessowners compete with one another for customers and for workers, they try to achieve the best balance of price and quality for their products. They try to find the right wages to pay their workers, high enough wages to keep the best workers, but low enough wages to keep their products affordable.

The Industrial Revolution offered a glut of workers because the population was growing, agricultural workers were being pushed off their land, and machines were making it possible to accomplish more work with fewer laborers. Socialists (and other enemies of capitalism) recognized the problems that the system contained; they saw the poverty of the working class. At the same time, industry and the growing population of the cities led to other problems not directly due to capitalism, such as pollution and disease. Blaming all these problems on capitalism, socialists assured their audience that changing economic systems would fix these problems and would offer workers a better life.

Karl Marx predicted that the workers would violently overthrow business owners, along with political and religious leaders and others who supported the status quo. He further predicted that the overthrow would happen earliest at the places where the Industrial Revolution began—the British Isles, followed by western Europe. Marx could not foresee a response to capitalism that would fix its problems from within. But certain things were already happening in Marx’s lifetime that would rescue capitalism from its dangers by improving the lives of the working class.

Even Moses and the prophets pronounced laws against greed, oppression, and unfair practices. They denounced cheating weights, scales, and measures; they spoke against mixing the chaff and the sweepings with the grain. According to the Bible, government represents God’s authority among people to enforce the laws, to protect the people, to limit the power of greed and other sinful tendencies. Governments in western Europe used their authority for the good of the people. They inspected stores and businesses to make sure their practices were fair and honest. They restricted pollution of the air, land, and water, establishing sewage treatment plants, water purification plants, and other needed responses to the pollution caused by industry and by urbanization. Governments placed limits upon the age of factory workers; they also limited the number of hours that could be required of workers. In many ways, governments used the force of the law to reduce the problems within capitalism, industrialism, and urbanization—and they did so without seizing the means of production, without taking farms and factories and stores out of the hands of their capitalist owners.

God’s law demands perfection. Human law cannot mandate the same level that God requires. Food contamination laws permit a small amount of insect parts, rodent hairs, and other contaminations; reading those permissions can be stomach-turning. Questions are raised, and will always be raised, about how much regulation is necessary and how much is too much. The political system exists to address such questions, and negotiation and compromise will always be part of the answer to these questions.

Perhaps the most important laws prompted by the Industrial Revolution were those that permitted workers to organize labor unions, leaders who represented the workers and negotiated with business owners for higher salaries and better working conditions. At first, business owners tried to break the unions, but governments supported the unions and insisted that business owners hear their demands and negotiate with them for the good of the workers. This process, unexpected by Marx and other revolutionary socialists, preserved capitalism in western Europe and North America. Eventually, much of the rest of the world would be persuaded to follow the same economic system. People turned to capitalism because it works. J.

Labor Day

The industrial revolution changed the world. One thousand years ago, Chinese technology created a new and better version of steel. Over the centuries that recipe spread, until it reached the British Isles, where iron and coal were abundant and were near each other, and where transportation by water made it easy to distribute what was manufactured. Labor-saving devices such as mechanical spinners and looms allowed increased production, and what happened in Britain began to happen in other European countries, in North America, and eventually throughout the world.

Capitalism had already begun to develop in medieval Europe. Workers formed guilds which controlled each craft, putting the power of production into the hands of workers. Along with the guilds came financial leagues which led to modern banking and a new financial system. With the industrial revolution came a new form of capitalism. Only those who had access to wealth could buy the new machines. Now workers came into the factories and worked for the investors instead of working at home and controlling their own careers. Following the precepts of capitalism, investors and factory owners paid as little as they could to workers and got as much work out of them as possible, thereby keeping prices low for their customers which allowed them to gain a profit.

Many people realized the problems implicit in the system of capitalism. Even Adam Smith, who wrote the book defining and defending capitalism, explained that workers needed to be treated well to produce a better product—and to be the customers that the factories required. Karl Marx was not the first thinker to attack capitalism, but he offered the most dramatic solution. He complained that the system was rigged to keep the many workers under the control of the few people who had wealth. Government and even religion, he said, always took the side of the wealthy few against the many workers. Marx predicted that the workers would rise in revolt. They would overthrow the wealthy few, along with government and religion, and create a new and fairer system. For a time, the government would own and control the factories and farms on behalf of the people (socialism). After a while the government would wither and die and the people would own the factories and the farms. They would distribute the wealth they produced according to the workers’ needs, and each worker would willingly labor according to his or her ability (communism).

Marx said that the revolution would begin in the countries where the industrial revolution began and would spread as industry had spread. When it had reached the entire world, then the conversion from socialism to communism could happen. Marx did not foresee any way the workers could achieve their goals of proper wages and decent working conditions without violent revolution. He did not foresee any way that capitalism could be preserved.

Marx was wrong. Workers in Europe and North America found ways to organize themselves into unions which could speak to the owners of factories on behalf of all the workers. Christian sensibilities took the side of the workers and implored factory owners to treat them better—fair wages, fewer hours of work, better and safer working conditions. Swayed by Christians and by the growing power of the labor unions, governments began making laws to require the workers in factories to be treated properly. Child labor was gradually abolished, work hours were regulated, and inspectors were sent into factories to guarantee the safety of the workers. Although there were exceptions, generally governments required factory owners to permit their workers to form unions that would negotiate with the owners for the good of the workers. Socialism and communism were not necessary. Capitalism, under limited government regulation, could be preserved, with investors and customers and workers all benefiting from the system.

In the United States we celebrate workers and their contribution to the nation and the world with a holiday called Labor Day. Unlike Memorial Day (which was originally May 30, until it was moved to the last Monday in May), Labor Day has always been celebrated on a Monday, the first Monday in September. Originally that Monday was meant to be a time when workers would parade through the streets of the city to be recognized by their fellow citizens. It was, naturally, an extra day without work for the laborers, a day when they could gather with their families and those of their coworkers in picnics and other festive occasions. Labor Day weekend has become the social end to summer, as Memorial Day weekend is the social beginning of summer.

Every Memorial Day a few people speak out about the importance of recalling the reason for the holiday. Memorial Day is not just about cook-outs and the beginning of summer. On Memorial Day we remember soldiers who lost their lives fighting for their country. I have written such reminders myself. Scolding Americans because we have forgotten the meaning of Labor Day happens far less often. Of course we should be grateful to those workers whose labor improves our lives. We might not go into factories and shake the hands of laborers there, but each of us can mark this Labor Day weekend in some appropriate way. Be kind to the restaurant workers and grocery store workers you encounter. Thank them for doing their jobs. Think of those other laborers who do not get time off for the holiday—police officers, fire fighters, hospital workers, pastors, and all those expected to continue working on a holiday weekend.

Labor Day recognizes workers. It also reminds us of a process—the way labor unions, governments, and Christians concerned about the lives of factory workers combined to assist those workers. Along the way, they rescued capitalism from the danger of revolt. We continue to debate how much regulation is necessary and which laws hinder capitalism excessively. We should debate these things. On Labor Day, though, we also rejoice and are glad for the good things we have because of the work of our neighbors. J.