In my last two posts, I highlighted Karl Marx (Karl Marx) and summarized his works in a nutshell (Karl Marx’s works in a nutshell), respectively. In this post, I will present my “loop theory”.
1. What is the “loop theory”?
The “loop theory”, as shown by the image above, simply extends and truncates Marx’s model of societal development as follows:
- Capitalism and socialism are in a loop, requiring balancing from time to time. Both, if poorly managed, may set us back to feudalism.
- Capitalism and feudalism are also in a loop, requiring balancing from time to time.
- Communism is so far away that it should be ignored as irrelevant.
2. The loop theory enhanced
Let me enhance the loop theory by inserting two notions: monarchy and republic, as shown below.
It is important to emphasize four points as follows:
- Monarchy and republic are two different forms of government.
- Capitalism and socialism are two different forms of economic systems.
- Monarchy and feudalism are synonyms.
- A republic is socialistic by definition, as everything is supposed to be for the “public”. For more, read American Political Taxonomy Simplified.
With that, two notes about the enhanced loop theory:
- Monarchy: It may introduce capitalism. One contemporary example: Saudi Arabia.
- In a republic, capitalism and socialism should co-exist, with the government balancing between them. For example, while capitalism creates extra-ordinary wealth for the able and lucky folks, socialism provides the less fortunate with a safety net, thus creating and maintaining a “harmonious” society, which is a key concept in Chinese governance.
Bottom line: In a republic, the challenge is to have a government balancing between capitalism and socialism, not arguing about just having one without the other, like many Americans do.
For more, read What is the role of government?
3. Discussion
Throughout the 19th century, during which Karl Marx lived, there were only two significant republics (with the rest being monarchies, mostly):
- France: It switched between republic and monarchy back and forth, without being stable.
- America: It was a republic founded by/of/for the rich, with slavery. So, it was socialism for the rich: supporting capitalism with free labor!
As a result, neither France nor America was neat enough to fit into Marx’s original model of societal development.
It was not until after WW II that many “real” republics emerged, with two major forms of government: democracy (e.g., France and America) and autocracy (e.g., China). For more, read Toward an ideal form of government.
4. Concluding remarks
- Marx’s model of societal development remains basically correct.
- With the enhanced loop model, many contemporary issues can be easily and best explained.
5. Closing
For a more thorough discussion of the loop theory and Marxism, wait for my next post. Meanwhile, read History 2.0 – China’s Comeback vs. America’s Decline.
