Tony, Mike, Mark,

Two errors of opposite signs; Krugman provides the corrections to both errors.

Mike, your expectations are too high to put onto this article. Krugman's 
historical account of a fifty-year-long history of the New Deal tax system 
being dismantled while wealth accumulated, wealth paid for the politicians who 
allowed it to accumulate even more wealth, is his overall account of his time 
frame. He cites the collapse in the rate of auditing millionaires from 7.2% to 
0.7% as his key evidence. These rates collapsed over the years 2011-19. He 
interjects at one point to note that these numbers were before Trump. There is 
no break in the narrative of Krugman's article because he is not attempting to 
identify a break in the narrative.

Additionally, there is an error in categorization. Social structures of 
accumulation are identified based upon how surplus is extracted and legitimized 
(i.e., validation), not by whom extracts or legitimizes it. Tax evasion is a 
means of extracting; however, it is not a mechanism of extraction. $600 billion 
per annum is a massive flow of resources from the state to property owners, and 
as such, it is organizing nothing. As such, you cannot construct a political 
economy on nonenforcement because nonenforcement is not a method of 
coordinating. Nonenforcement is parasitic on an accumulation regime, which it 
does not create.

Mark, "same shit, different toilet," has the opposite problem. The seed corn 
argument absorbs each and every momentary circumstance and thus fails to 
provide a basis for defining periods. Mechanisms used to govern under 
neoliberalism were impersonal and based on rules: central banking independence, 
rules-based trade systems, courts guaranteeing contracts, and markets 
disciplining. The claim made by neoliberalism concerning these mechanisms was 
that they applied universally. What has taken place since then is that claims 
to universality are now based on individual discretion. Personalized tariff 
exemptions, pardons for certain individuals, selectively prosecuting other 
individuals, and issuing permits on a case-by-case basis. This represents a 
fundamental transformation of the relationship between capital and the state 
regarding mediation, and if you fail to recognize it, you will be unable to 
understand why certain capitalist fractions are fearful of an administration 
that reduces their taxes.

As such, what has occurred is not a transformation in the political economy but 
rather a transformation in the political form. Krugman recognizes a symptom of 
the current situation and labels it as moral decay. Weber would label this 
process as patrimonialization, i.e., the conversion of public office into a 
private household resource for rulers. The IRS serves as the paradigmatic 
example here, and the fact that Krugman finds puzzling is not a preference for 
cheating. Rather than a preference, it is simply a selection criterion. 
Dependence is the end goal.

For this reason, I believe your policy recommendation—utilizing the impersonal 
fiscal apparatus to discipline the oligarchy—is the weak link in your entire 
position. In other words, you want to utilize an apparatus that is currently at 
issue within this conflict and not merely a neutral instrument available for 
use.

This option was attempted previously. The effort included funding totaling 
approximately 80 billion dollars along with a "trifecta," i.e., control of 
Congress and the White House. Unfortunately, it was reversed by the end of two 
election cycles. When fruit has been plucked and regrown once, twice, or three 
times, it is not low-hanging.

Reformist thought has consistently sidestepped the primary question: namely, 
who is going to compel an administration to prosecute its own donor base and 
subsequently maintain that prosecution until the next reversal? Without naming 
such a social force as described above, your proposal for action will remain 
correct but unfulfilled due to a lack of constituents demanding the same.

Bonapartist regimes are not successors but rather substitutes for successor 
regimes. They exist where no capitalist faction can rule in its own name and 
the working class cannot rule in its own. Thus, both portions of this dialogue 
are half correct. No new social structure of accumulation exists; something has 
fundamentally changed.

Tony


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