27 Jan 2022, 19:06

Istkalen Information Service: The state threatens to return us to a failed past

In 2018, Istkalen seemed to be a model for the world, an ultra-modern state that demonstrated how a form of socialism, or really a secularized distributism, could genuinely function. Heavy industry was almost entirely automated, agriculture dense, with the country having perhaps the only profitable vertical farms in the world, and light industry decentralized but also efficient, a wonderland where, with a workforce of the genuinely knowledgeable, additive manufacturing had genuine potential. It was effectively self-sufficient, and beyond that was a net exporter of most goods apart from electronics.

In 2018, it was seen as a country where the workers ruled through their unions, where an autocratic elite had been dismantled for a pure, anti-bureaucratic democracy, tempered by a sound and technocratic tradition. A calm and peaceful country, modern, progressive, prosperous, and democratic.

2018 was the pinnacle of Istkalen's modern history; but it was built on a foundation of lies. Yet it is to 2018 that the current leaders of Istkalen want to return.

Automation in heavy industry, in principle, was a good thing, but it caused numerous further problems. Technology was not yet advanced to the point that all manual workers in it could be discarded; and yet it was done anyways in a rudimentary way. Production facilities faced constant mechanical errors and damage; the country saw only a minimal increase, if not actually a decrease, in the production of raw materials and heavy machinery. The rapidity of the attempt at full automation - as soon as even a rudimentary form of such automation was developed, the government rushed to implement it everywhere as quickly as possible, often in the space of a few months - also caused significant unemployment. The state merely relegalized apprenticeship for no more than five years as a piecemeal solution.

The rapid expansion of additive manufacturing in light industry, while increasing efficiency when compared to handmade production, massively lowered the quality of products across the country. While standardization was more common, old craftsmanship had vanished. Waste also increased; errors were constant with the new technology, requiring far more to be used than usual. While the state pushed to open further recycling plants in order to combat this sudden increase, these recycling plants, themselves badly automated, were inefficient; at the same time, some of the material simply could not be recycled.

The vertical farms of Istkalen were perhaps the worst failure. While they allowed distributed ownership to continue in a more modern way, they used so much electricity that, in 2018, it was beginning to be rationed to ordinary consumers, despite massive increases in electric production with the breakneck construction of wind farms and nuclear power plants across the country. The associated expenses of this electricity were also far greater than the revenue generated from the farms; the state in response severely cut down on welfare and sought to subsidize the farms massively, while also cutting the pay of those in power plants significantly, deciding eventually to just stop paying them with money and instead with food seized from the farms themselves. This, too, resulted in unemployment; in ten years the percentage of the population of those engaged in agriculture fell from 60% to 35%, with few options available for the remainder. Significant unrest followed.

The expense of all of this still to an extent was laid on consumers; prices rose by over 75% in the space of five years, but wages largely remained the same. In response, the state forcibly imposed price controls, resulting in extreme shortage.

At the same time, the cost of all of this was weighing down on the state; the debt-to-GDP ratio was rapidly ballooning, and many were fearing a crisis, resultingin a unilateral "haircut" on all domestic bonds, followed quickly by a default on all these domestic bonds (the state was careful to categorize bond purchases as foreign and domestic, initially out of xenophobia and later out of a pragmatism of sorts that allowed them to take this action). The state then defaulted on all domestic loans, wiping out most of its debt (foreign investment was severely limited), causing financial collapse across the country. In September of 2018, the situation was at such a terrible point that the state decided it was better simply to abolish money entirely, resulting in even further unrest.

This resulted in the radical faction gaining control over the SDP leadership in November, and holding sham elections in December with an aim of returning to the older system. They abandoned the rapid technological advancement of the past era for a more conservative approach, relegalizing money and imposing a course of austerity. The economy appeared to stagnate; but knowing that the economic growth of the "modernization period" was really an illusion, this was really a stabilization. Inflation ended, and the state gradually stabilized until the war.

It is this disastrous path that we now appear to be embarking on. Again the rhetoric of this modernization, of automation and all these shiny things, is taken up; again are we promised that it is the future. We have forgotten already the disaster that occurred just four years ago, we have forgotten why we abandoned all of this.

The radical social democrats have been condemned, yes, perhaps that is why. People now see the past before them, even the past of social democracy in general, as better, and thus they lend their support to such a disastrous course.

Yet we have seen what happens when we advance recklessly; disaster. The position of the government must be more reasoned, and it must abandon its belief that modernization may occur by driving recklessly forwards, resurrecting the old and abandoned infrastructure.