The Thrust For Power
Economics Without The B.S.**:
[** Double entendre intended.]
Jacob Bronowski -- The Ascent of Man --The Thrust For Power
When the United States emerged out of World War II as the preeminent hegemon there was a recognition that world affairs are conducted through the use of the military (force) and commerce, along with diplomacy. The United States originated from the evolution of 18th Century Western Enlightenment, and the American Enlightenment version of that was to understand that a rules-based system provided a democratic society more stability than one based on power relationships – a society of laws, not men. The American Enlightenment, however, is not idealistic but practical, understanding that people, while possessing “goodness”, still tend to act in their own self-interest – so it is a combination of power relationships and a rules-based system.
The manner in which the United States attempted to conduct international commerce was through a rules-based system, not a power arrangement – the Bretton Woods Agreement, the General Agreement on Tariffs and Trade (GATT), which later become the World Trade Organization (WTO), the International Monetary Fund (IMF) and World Bank. It has functioned, but not without mistakes, and still needs much improvement.
So what we have for world affairs is a rules-based system for commerce, the use of the military force still, and a diplomatic system that is a combination of the two. The expansion caused by globalization, along with the expansion of the international financial system backed by the dollar has not been smooth. Imperfect human beings existing in such a system have created imbalances in those relationships which have resulted in inequalities, growing inequality gaps. If there is a recognition to spread democratic governance for promoting a broad-based general welfare, then it is imperative that a rules-based system prevail that is perceived to be fair to all so that it fosters engagement by all the participants.
