The Sovereign Individual - Mastering the Transition to the Information Age - YouTube - PR Report #9 The Sovereign Individual::Chapter 9 - Nationalism, Reaction and The New Luddites
This episode of the PR Report, hosted by Plebrizing, focuses on Chapter 9 of "The Sovereign Individual," titled "Nationalism, Reaction in the New Luddites." The chapter explores the anticipated backlash against the shift towards the information age and the potential resurgence of nationalism as a reaction to the perceived decline of the nation-state.
The episode begins by drawing a historical parallel to the early 16th century, when the Catholic Church held immense power. The rise of the printing press enabled the proliferation of heretical arguments, challenging the Church's authority and leading to the Reformation. Similarly, the authors posit that microprocessing-based technological advances are disrupting the status quo of modern nation-states. This "new revolution of power" is liberating individuals at the expense of the 20th-century nation-state by facilitating the transition into the information age.
This transition brings a discontinuity, marked by changes in economic organization, the emergence of a cyber economy, and the diminishing importance of geographically-bound organizations like governments, labor unions, and licensed professionals. While widespread secession movements are not yet prevalent, the authors suggest it's a possible consequence, highlighting the potential for regions like Texas, Florida, or El Salvador to embrace more autonomous paths. The episode also anticipates a decline in the status of traditional elites and the respect for national symbols.
The core of the chapter and the episode lies in the prediction of a nationalist reaction centered among those who lose status, income, and power due to political devolution and new market arrangements. This manifests in suspicion of globalization, free trade, foreign ownership, hostility to immigration, and resentment towards the "information elite" who thrive in the new environment. This backlash could also include neo-Luddite attacks on successful sovereign individuals.
The episode highlights how the concept of Nationalism will loosen its grip as the Information Age ushers in a new consciousness of identity, new morality and complementary ideologies. While predicting the Nationalist reaction to peak in the early decades of the 21st century, the authors suggest fragmentation of sovereignty to have already demonstrated better efficiency, that is ultimately leading to the collapse of the nation state due to fiscal crisis.
Focusing on the individual perspective, the transition into the information age involves the "denationalization" of the individual. Citizenship becomes less attractive and tenable. Mass communication fades in favor of customized news feeds, which is exemplified by the internet experience of the last 10-20 years. The Privatization of education, facilitated by technology is an example.
The authors contend that a competitive market for protection services will emerge, challenging the government's monopoly. Innovators face vilification, and nationalist sentiment resurges. The wealthiest OECD countries, burdened by high taxes and regulations, will see individuals and businesses seeking more favorable jurisdictions. Only the "most patriotic or stupid" will continue to reside in high-tax countries. The "legions of losers" will resist changes that undermine the nation-state, potentially leading to violent and unpleasant backlashes against the information economy.
The authors emphasize the role of low-cost, advanced computational capacity in empowering individuals and reducing returns on violence, creating a competitive market for protection services. They cite the example of the Luddites in 19th-century England, who destroyed automated cropping machines that threatened their livelihoods. This historical example illustrates the potential for displaced workers to resort to violence in response to technological disruption.
Digital resources, particularly digital money, may prove to be predictable and defendable in the information age, fostering anarchy based on voluntary cooperation. Digital money, such as Bitcoin, can be transferred anywhere on the planet at the speed of light. Nation-states would have to simultaneously suppress both the world's banking and data havens and even then, they might only be able to sabotage or destroy certain sums of digital money, not seize it. This decreased return on violence is what will transform how the economy operates.