By our One Nation Aussie Economic Forum – our Aussie Economist
Before diving into the economics behind Woke, and the political, cultural and corporate causes that flow from that, like Gay Marriage, The Voice and DEI (Diversity, Equity and Inclusion), let’s define Woke.
“Aware of, and actively attentive to,important facts and issues (especially issues of racial and social justice).Has come to represent an embrace of progressive activism, as well.From some varieties of a dialect called African-American Vernacular English (sometimes called AAVE).” – Fox News
Public Choice Theory provides one of the best frameworks for understanding the economics driving Woke activists and corporates. In particular, the ‘Baptists and Bootleggers’ of the public and private sectors.
“Baptists point to the moral high ground and give vital and vocal endorsement of laudable public benefits promised by a desired [government intervention]. Baptists flourish when their moral message forms a visible foundation for political action. Bootleggers are much less visible but no less vital. Bootleggers, who expect to profit from the very regulatory restrictions desired by Baptists, grease the political machinery with some of their expected proceeds.” – Prof. Bruce Yandle
Another one of the frameworks for better understanding Wokenomics is the Austrian School of Economics.
“There are fundamentally two ways of satisfying a person’s wants: (1) by production and voluntary exchange with others on the market [ie the economic means] and (2) by violent expropriation of the wealth of others [ie the political means].” – Prof. Murray Rothbard
“All [three] types of [government] intervention, of course, are subdivisions of the hegemonic relation—the relation of command and obedience [ie the political means]—as contrasted with the contractual relation of voluntary mutual benefit [ie the economic means].” – Prof. Murray Rothbard
The outcome sought by all human action is profit – i.e. the ends sought and achieved (including political, business and home) were worth the means (including time, effort and enjoyment). Such profits can be any combination of monetary, material and ‘psychic’. The more challenging and less guaranteed way is “the economic means” through peaceful voluntaryism. The more accessible and guaranteed way is the political means through violent statism. The former seeks honest regular profits. The latter seek dishonest supernormal profits or economic rents. Profits = Revenues – Costs. They both comprise Prices x Quantities/Qualities. See Exhibit A.
Decreasing supply puts downward pressure on quantity and quality as well as upward pressure on price. See Exhibit B. The three main (but not only) ways to do that in a market, sector or economy are:
- Government taxation, by reducing private provision to the public.
- Government spending and borrowing by redirecting private investment to the public.
- Government regulation restricting private competition by the public.
Increasing demand puts upward pressure on price and quantity and downward pressure on quality. See Exhibit C. The three main (but not only) ways to do that in a market, sector or economy are:
- Government money, by inflating private bidding and public.
- Government immigration, by favouring foreign numbers over domestic.
- Government propaganda, by conditioning personal inclinations by the public.
Like many other things, profits can be created and used for good or bad. They are good when honestly pursued and earned by market entrepreneurs. They are servants of the people. They are bad when dishonestly pursued and earned by political entrepreneurs. They are enslavers of the people.
Market entrepreneurs typically earn average profits. This is their return for serving others well. These relatively lower profits are reinvested in capital, labour and land. Political entrepreneurs typically make supernormal profits. This is their return for helping themselves well. These somewhat higher profits provide extra funds for going to and supporting Woke. Woke is not cheap and is much more affordable when one is a monopoly or cartel. Thus, Woke incentivises corporates to seek the government favours needed to reduce competition. And vice versa. That is, reduced competition incentivises corporates to go and support Woke.
Being awake to the economics of Woke is one of the keys to ‘knowing thine enemy’ and, thus, defeating it and winning one day. The enemy is that of Western Civilisation itself (i.e. the ‘marriage’ of Athens and Jerusalem or Socrates and God). But, even though I am an economist, I know that economics is not enough. One must also understand the history, philosophy and theology of this modern-day Frankenstein’s Monster of Woke that goes back to not just the Sophists of ancient Greek philosophy but further to the Fall in ‘Biblical times’.
Exhibit A: Raise Profits