In the legitimate pursuit of trying to understand the current economic situation in the context of history, the question most often asked is:  How does this compare to the Depression?  That could be the wrong question.  It might be more appropriate to ask:  How does this compare to the environment that led to the French Revolution?

When we relate the current situation to the Depression, we focus on what was primarily an economic phenomenon, but when relating it to the French Revolution, our thinking is broadened to include cultural/social/political upheaval as well.  That would put what we are going through now into an entirely different context, with much greater historical significance.  So, does the comparison make sense?

I’m not an historian, but I’ve been considering that question and have tried to educate myself by reading articles on the web about the period.  I did not focus on how things played out in the French Revolution itself.   Instead, I was soley interested on the environment that gave rise to the revolution.  As I linked from one paper to another, I became increasingly convinced that the comparison makes sense.  I suggest you do your own search – it’s fascinating.  I especially recommend that you start with “The French Revolution: Rethinking the Debate” by Gwynne Lewis, available in full online.  Professor Lewis is Emeritus Professor, University of Warwick, who is an exceptionally clear authority about the period.

I’ve considered going through a point-by-point comparison, providing validating links in each instance.  I pass.  I think it can be done, but I’m not going to do it.  It’s the broad environment, not the specifics that is fascinating.

Today, as then, we saw a middle class that became disillusioned with life.  They saw the class above them enjoying a life of luxury, financed in large part by the taxes of the middle class, while those enjoying the good life found ways to pay no or very little taxes.  They not only felt taken advantage of, but they saw themselves cut off from ever realizing the dream of a life of luxury.  There was an economic crisis, which arose in large part from a long, unpopular and useless war that drove the nation into significant debt.  Neighborhoods (or in the case of today, online communities) were coalesced by new communications capabilities.  It was easy to mobilize those neighborhoods/communities as their passions became aroused.  Religious passions became a major driver in politics.

Over-simplification?  You bet.  But is it accurate enough to make the point that we should be paying greater attention to the broader questions that arise when comparing today to the French Revolution?  I think so.  Do your own online search.

The Importance of the Question:

Our government/society is now considering major initiatives from the standpoint that they are economic measures needed to address immediate short term economic needs.  But maybe a more accurate approach would be to consider these as initiatives that are cultural and structural (in addition to economic) in nature and will have a long-lasting legacy in many ways.  If so, we should be much more deliberate and wide-ranging in this debate.

Personally, I am not convinced that the direction we are taking is good or bad, necessary or not.  I have some biases, of course, but remain open.  What concerns me more than whether our direction is good or bad is the issue of whether we are even slightly aware of what we are doing.

As I watch the flow of news, I am struck when President Obama calls certain corporate actions “bad strategy.”  Strategy?  The Government is going to define what is good strategy?  I thought that was the job of management and boards and, ultimately, investors.  I knew Government could regulate, but I never thought Government would set strategy.  Maybe they should!  Then again …. My point is simply this:  if things like that are happening, shouldn’t we be a little more deliberate about this?  Shouldn’t we be a bit more realistic about what we are getting into?  Or do Hegelian shifts happen quickly and basically invisibly?  I’m not certain where we are going, but I do think we are moving away from capitalism … I think we are in the initial stages of a structural and fundamental revolution just as certainly as a revolution arose from the environment in France around the late 1780s.