Don't expect a sudden cataclysm (AGUSTIN PAULLIER/AFP via Getty Images)

Last week, in an attempt to explain away the supply chain woes that are increasingly leading to goods shortages in America, President Biden cited a popular neoliberal fable. He observed that to make a pencil, wood and graphite must be sourced from the other ends of the world before the finished product can end up in American hands. “It sounds silly, but that’s exactly how it happens,” Biden mused, “that’s just the nature of the modern economy.” But the result, he added, is that “when global disruptions hit… it can hit supply chains particularly hard”.
For neoliberal ideologues such as Milton Friedman, who used the pencil fable to argue for opaque world-spanning supply chains, the beauty of such complex systems is not only that the consumer obtains his product at the lowest price possible, and that the producer can maximise his profits, “but even more to foster harmony and peace among the peoples of the world”. As the historian Quinn Slobodian noted in Globalists, his recent study of the first neoliberal theorists, such idealistic motivations were evident from the very start. Ignoring the fact that the globalised world of the late 19th century failed to prevent World War One, they believed that creating a giant interconnected market would make a repeat of such a cataclysm impossible.
They were wrong. Instead, the restructuring of the global economy into a large web vastly increases the risk of a total system collapse. Instead of one economy failing, a shock in one corner of the world can place great and sudden stress on economic and political systems thousands of miles away. A war in distant Taiwan can mean you’re no longer able to buy a new car; a drought on the other end of the world means empty shelves at home.
As archaeologists and historians have increasingly begun to stress, our globalised world has seen two antecedents in the past: in the interconnected, hyper-specialised trading systems of the Bronze Age, and those of the Roman Empire at its height. When both buckled under a wave of unexpected shocks, the result was not decline or recession but total collapse, a process defined by the great theorist Joseph Tainter as “fundamentally a sudden, pronounced loss of an established level of sociopolitical complexity”.
This is, as Tainter observes, “a suddenly smaller, simpler, less stratified, and less socially differentiated” society, where “the flow of information drops, people trade and interact less” and “specialization decreases and there is less centralized control”. This is not a Spenglerian moral fable of societal decline, but an inexorable process whereby growing complexity and sophistication bring with them a growing fragility: when a combination of shocks arrive, the entire society is suddenly forced to reorganise itself. It is not an extinction event or the end of the world: life goes on, just in a poorer, simpler fashion.
The great trading civilisations of the Bronze Age Mediterranean present just such an example. As the archaeologist Eric H. Cline notes in his recently reissued book 1177 BC, for more than two thousand years the great civilisations of Egypt, Western Asia and the Aegean had formed a single interconnected trading system, dependent on complex trading networks that “were open to instability the minute there was a change in one of the integral parts”.
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