Nowadays we can see how the managerial system works under the neoliberal, globalist and imperialist capitalism. All the big supranational corporations are centrally planned institutions. They are managed by small groups of people in upper centralised management. These people don't observe the free market rules very much and are don't allowed to do so on the daily basis. They don’t see a need to look after best external price proposal to secure supplies. They regularly transfer goods and services internally instead.
They don’t observe free market rules but dictate their own game rules to the markets and the governments. They wrecked the American automotive industry, the most of Polish and other Eastern European industries, including East Germany, and are about to wreck the crucial industries across the Western world, exploiting the quixotic ideologies of New Left. Facing the worldwide tragedy we must rediscover the Lange model of market socialism.
The wrecked old Ford autocar. Authors own picture
Even before the First World War, two French economists working in Switzerland: Léon Walras and Wilfred Pareto made groundbreaking scientific discoveries in the field of economic calculations, i.e. the conditions of profitability of economic activity. Walras provided the definition of economic utility based on economic value which has a decisive influence on the price formation of individual commodities, also on how demand is shaped.
A student, follower and successor of Walras at the University of Lausanne was Wilfred Pareto who developed an extraaordinary theory of total or general economic equilibrium
This professor's achievements were enormous and immensely important. He developed a total of five new economic theories. He achieved this by processing a huge amount of statistical data on the production, purchase and sale of various goods and the income of the population. Together with his assistants he used arithmometers, compometers (mechanical calculators) and special typewriters. He presented the results of these calculations in the form of many tables and mathematical equations.
He hypothesized that applying his theories to the national economy would transform the country whose government did so into a great economic power
This hypothesis is referred to as Parethian efficiency or Parethian equilibrium. During the last years of his life, Pareto became interested in history and sociology. Also in these areas he relied on interesting sources in the form of tax statistics from several cities in Western Europe and South America. He compiled the results of several centuries and ... He was shocked and embittered by his discoveries.
He came to the conclusion that most people are cruel and self-righteous persons who, instead of sympathizing with their fellow human beings, are ready to accumulate wealth and make a career over dead corpses
Regarding the socio-economic side of the development of the state and civilisation, Pareto was of a firm opinion that progress in the field of social relations is an illusion, and democracy is a fraud that must lead to an unbelievable disaster. In his opinion, people are divided into shepherds (the ruling elite), dogs (the police and the army, special services) as well as immoral and primitive cattle.
The state have to be ruled by one man — a monarch or a dictator — being tough and reckless autocrat and despot who ensures order and security, and then leads his countrymen towards progress kicking and punching them with no grace
In fact, there is an aristocracy, a class government that is ruling all the time and their members are filthy rich and don't care for ordinary people. Although the latter are also evil and cruel, they must be provided with tolerable working and living conditions. Simply because they are what the rest of society depends on. It is they who pay the largest sums to the state treasury. Logically, if they start to die of hunger and cold, if there is no work for them, the state will perish.
That is why — according to Pareto — a revolution sometimes happens, being besides desperately needed. The members of the existing ruling class are expropriated, sometimes also murdered, and the living conditions of ordinary people improve
To achieve this goal a radical political movement has to emerge and overthrow the shepherds who do not care enough for their cattle, replacing them by its own men and women at the same time. The more ruthless and brutal the movenent becomes, the longer the new and better order shall last.
One of the students attending Professor Pareto's lectures was Benito Mussolini
In the following years, he put into action both the economic and the socio-political theories of his master. Italy quickly recovered from internal difficulties and began to grow in strength and prosperity.
So what mistake did the fascist leaders make due to which they lose their lives and power?
We must admit that during the interbellum both fascist dictators freed their countries from insecurity, mass unemployment and industrial walkouts. Under their rule there was full employment and even the well-being of the common people. Both Germany and Italy were once again great powers and admiration of a considerable part of the world, and even their foes were impressed by their awesome new power. So why did their experiment fail? Was it some kind of conspiracy against them that led to the unnecessary WW 2?
Fascism was based on several wrong assumptions
First of all, we must remember about their belief that every obstacle can be removed by force and ruthlessness. The fascists did not understood that in many cases it is better to be patient and try to gain time. They were unable to understand the wisdom of Julius Caesar: generosity befits the winner. Also another ancient Roman wisdom; agreements must be adhered to. They tried to intimidate and compel whole nations to obey with brutal and primitive persecution. Thus they finally united all their enemies (which earlier, also later fought each other) against the Axis powers.
A grave question is arising: Did you see many serious similarities between the fascism and the present-time globalism?
Just like that late political system it knows no fear, shame and compassion. It turns charitable activity into a brazen advertisement for natural and legal persons who undertake it. Globalists and multinational corporations conduct their policy in a dictatorial manner, ruthlessly taking normal life from other people. Like fascist regimes, globalism efficiently uses science, technology, and propaganda to deceive the people and lead them to their destruction. It has an efficient and unbelievably smart managerial force at its disposal, but instead of waiting for the right moment it puts its plans into action in a hurry, despising patience and moderation.
Globalists seems to consider ordinary people to be cattle and themselves to be the sole owners of that cattle, who are allowed to do with them as they please
Oskar Lange who was well versed in Wilfred Pareto's economic and social theories, accurately predicted the future, increasingly inhuman versions of capitalism. At the same time, he understood the great importance of his economic theories. Already as an adolescent boy, affected by the terrible misfortune of an incurable disease and facing premature death, he began to sympathize with people suffering from poverty and malnutrition. He was a good genius who wanted to save ordinary people. He decided to use the scientific achievements of a bitter old man who despised "cattle" to develop a theory of an economically efficient socialist system. This economic theory was introduced to the world at a time when fascism seemed to be invincible. Currently, it is gaining more and more importance. We will present it in the next episode of this series.
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