The deuxième economy

The thing to remember about the so-called "postindustrial" economy is that it isn't just post-industry, it is actually post-human—and I don't mean that in the positive sense that the "Transhuamanists" use the term, i.e., for super-intelligence and 2001-style Star Children. Rather, I mean that the new economy is actually post-people. It doesn’t like people, or, really, need them.

Increasingly, it doesn't want them as workers. Labor is ever more performed by machines, or by contractors in China. And, increasingly, it doesn't want them as customers. More and more, large businesses do business with other businesses—B2B, as it's called.

In a very real sense, then, the traditional drivers of the economy, the great corporations, have ascended into a higher order of existence, leaving us behind. The most pressing issue for the nation -- and, indeed, for the whole of the West -- is what to do about that.

My suspicion is that we shall create a second level of economic activity, one that is "below" that of the big corporations. This other, second level — I call it "la deuxième" in an attempt to remove the nuance of lesser importance—will be what provides employment, services, health care, education, products, and just about everything else to those of us who are not in the favored 1% of the population that controls so much of the world's wealth.

And what will the deuxième be like? I'm guessing it will be a welter of smaller economic entities, limited in scope, local in effect, and coming in a thousand different flavors of ownership—partnerships, family businesses, sole proprietorships, co-operatives, non-profits, communes, corporations of the sort that the British call "Community Service Corporations" and Americans call "Low-profit Limited Liability Corporations," and many others as well.

And, yes, as you've already guessed, there is nothing radical in this proposal. It is precisely what people have done whenever large businesses found them to be unprofitable. It was to Co-ops that farmers turned in the Middle West during the Gilded Age. It was to Credit Unions and Savings and Loans (before S&Ls were demolished during the Reagan Years) that ordinary men and women went for mortgages and home loans.

Indeed, in a strange way, it may be that the deuxième economy will be the most conservative of all economic developments. It is a return to the small-scale enterprise of a hundred years ago.