The Myth of Centralization

centralized government myth

Centralization, as you might already know, is quite a tricky subject. On one hand, there’s a completely real and fathomable fear of totalitarianism, dictatorship, monarchy and oligarchy. But on the other, in times of reckless economic abandon, suffering and stagnation, Centralization is almost always the only way of reviving an economy.

Centralized Government has the power to invigorate the spirits, star up the engine and pull the people out of economic misery. We’ve seen it with FDR, we’ve seen it with Hitler and Lenin’s Revolution, Napoleon’s a good example too. But as we already know, most of these Centralized bodies have not survived or fared well future’s pressure.

In fact, these dictatorships, excluding FDR, have scared their people, their land and their history for centuries to come, they have done more evil and destructive than good, and all because they could, because nobody stopped them or had the ability to.

And here we are, 2013, the 21st century, and yet Centralization still plays a huge role in the world of today: from European union economic centralization to Putin’s Mafia state to China’s hold on resources, Centralization, in many of its forms rules the world of today.

But why? Why this gargantuan, almost evolutionary need to be controlled and to control still has its power on our civilizations? It definitely doesn’t produce the most effective results; on the contrary, it reduces productivity in favor of rigid complacency and oversight. It doesn’t hold any democratic principles; it doesn’t favor the people or any common good, other than the elite.

Russia’s a great example of Centralization, and the powers and history behind it. Before the Soviet Union, Russia was a monarchy headed by a Czar who had great legislative and executive powers. The inefficiencies of this type of government are well know, and as we all have heard, have culminated in the uprising of the peasant class.

After the revolution, everything was centralized and given and taken away to the government, headed by a dictator, whose word was law. The 70 years of this type of government by some estimates killed and executed over 100 million, from famines created by mismanagement to ideological executions.

After the fall of the Soviet Union, Russia was a free for all. You see, because under communism there was no private property, meaning every factory, every plant, every mine belonged to the government, those who had connection to the politburo and enough balls to take what they want became billionaires overnight. Russia freed itself from political elite just to end up with another one, an oligarchy.

Headed by Putin, who has absolutely no problems with all of his crook buddies and their dirty tactics, his centralized government oversaw every single takeover and privatization since 1999, and he made sure every one of his friends from school and the KGB got a nice share of pie.

Germany, completely bankrupt and devastated by World War 1 and the treaty of Versailles has turned to absolutist dictatorship in form of Adolph Hitler and his Third Reich. The Third Reich centralized everything into few government bodies that obeyed the word of the fuehrer. This concluded in the complete destruction of Germany as a whole state.

China, after the communist revolution headed by Mao, had to endure collectivization, famines, executions, totalitarianism and fear. The same mechanism behind the USSR helped to establish a centralized, totalitarian government. But this story however is a bit different. The People’s Republic history doesn’t end with war or dissolution, it continues into the future. China saw the failures of economic planning of Soviet Union and other socialist republics and learned a few lessons.

It liberated its economy, still maintaining control on its resources and currency, making it possible for entrepreneurs to open up businesses. It played its centralized government smart, hedging against currency speculation and attacks, and controlling its massive collection of resources. In a way, because the main gears in its economic engine belong to the government, it established a stability never seen in the West, and therefore has seen rapid economic growth since.

And now we come to the main guest of honor, The European Union. The EU is a great example of failed ideology and failed centralization of economic tools used by nation states to prosper and progress. The state that it is in today shows the main message of this piece of writing:

Centralization is an evil inherent in our nature, triggered by a set of circumstances humanity has seen hundreds of times and irreparable by reason and example

The European Union and its history are well documented, so I’ll pass on the explanation of its origin, and focus on the origin of its ideology. The EU was established to create a common European community immune to war and economic disasters such as the depression of the 30’s. The main purpose is quite noble, since Europe had its fair share of wars and economic crises, but in the context of the 21st century, the ideas are antiquated.

The Euro as a common currency has shown disastrous results on its smaller, lesser states such as Greece, Ireland and Portugal. The rock bottom borrowing rates of Germany, coupled with treaties and free trade, the governments of these nations have binged so far on debt it’s impossible to fix the damage it has done.

Economies such as Spain and France have shifted their interests from themselves and given up their sovereign interests in favor of “common good” of Germany. Britain had a massive influx of immigration and saw no benefits of its EU membership.

Nations joined the European Union because it’s profitable and easy. You sign a paper and in a year you’re able to borrow money at cheap rates, trade without any interference and get euro funds for “schools and hospitals”.

And the main antagonist of them all, the European Central Bank, the sugar daddy, the drug dealer, is now in control of nation’s budgets, able to veto laws that it doesn’t agree with, headed by an appointed technocrat.

The whole system is a big, fat mess, unable to see its shortcomings and failures, going nowhere but oblivion and dissolution. The Centralized system, as with all centralized systems has an expiration date, and once the date is overlooked and ignored, it begins to rot and smell of death until its pieces are eaten by maggots and its dead carcass forgot for eternities.