Let’s start with the domestic and political situation. France in the late-18th century was bitterly inegalitarian. Economic inequality coexisted with social inequality — the old feudal caste system was starting to chafe against the realities of the early modern economy — and the political system itself had basically stopped functioning. Everyone knew reform was badly needed, but passing actual legislation was impossible. Special interests had the ability to veto every change, no matter how necessary, and as 1789 approached, total political gridlock became the order of the day. The French Revolution happened not because it was inevitable, but because the political system proved completely incapable of curing its deficiencies.
Does this seem a bit familiar? It should, because that is precisely the situation in the United States right now. An unequal political system has essentially seized up and stopped functioning, and is now stumbling towards election between the most unpopular president in modern history and the next-most unpopular president in modern history. One of those men is clearly fading rapidly, prone to slurring his speech or forgetting where he is; the other just became the first president to be convicted of a felony. Just as in France in the 1780s, violence, protests and disenchantment seem the likeliest conclusion.
But how is the economy doing? France in 1789 was famously bankrupt; in fact, the bankruptcy of the French Crown was the proximate cause of the entire revolution. It borrowed heavily to fund foreign wars and domestic spending, and before long, it had to keep borrowing even more money to pay off the interest on its old debt, only to borrow even more to pay for those loans, and so on. Finally, France could borrow no more, and the crisis began in earnest.
And yet, when it comes to fiscal impropriety, 18th-century France simply can’t compete with modern America. The US is by far the most indebted nation in the world today in absolute terms, gorging as it does on some $1 trillion in additional debt every three months. And unlike in revolutionary France, when public pensions and social welfare simply didn’t exist, America has a supplementary “shadow debt” of around $175 trillion, representing its commitments for future welfare.
On top of this already miserable situation, the US has to contend with another problem not faced by early modern France: deindustrialisation. On the eve of revolution, France was remarkably self-sufficient, which is why it could so easily go from a political and economic basket-case in 1789 to dominating most of Europe in 1812. By contrast, America in 2024 is not self-sufficient; the old industries that allowed it to dominate following the Second World War have now been sold off for scrap, and the US today is dependent on exporting dollars and importing physical goods in return. If demand for dollars drops, those physical goods cannot be quickly replaced. A much more painful period of economic readjustment will have to be undertaken in the US, while France in 1789 essentially only had to rationalise the resources it already possessed to become powerful again.
So, the social and political situation in contemporary America is at least comparable to that in France in 1789, while the economic situation is actually a fair bit worse.
via UnHerd
