The Nation-State and Stock Exchange
A brief overview on two very important institutions, no matter what the nihilists say...
“The people cannot delegate to government the power to do anything which would be unlawful for them to do themselves.” - John Locke
Nation-states
The term "state" dates to Northern Italy in the 12th century, but the modern concept can be attributed to Thomas Hobbes' Leviathan. Published in 1651, with the full title spelled out as written, Leviathan or The Matter, Forme and Power of a Commonwealth Ecclesiasticall and Civil. The book discusses the structure of society and legitimate government, and is noted as one of the earliest examples of the social contract. If you've never read the book, you should give it a read.
In my opinion, nation-states are the most important power structures of the last 1,000 years. Colonies are nation-states, and colonies are natural extensions of nationalism, which is itself an extension of tribalism—a fundamental human trait. Throughout history, human groups have identified themselves based on geography, ethnicity, culture, and religion.
Many modern countries emerged as breakaways from colonies. While some critique colonies as racist, the structure has existed since antiquity, maybe longer. Egyptian colonization dates back to 3200 BC, and parts of Africa were colonized between 1200 BCE and 275 CE.
In the 1st century, colonies became a primary way for Roman generals to reward their veteran soldiers. When they retired, they were settled in colonies founded by the general, ensuring their loyalty and creating a pool of followers. As the Roman Empire expanded, colonies played an important role in the empires administration and economic success.
The modern nation-state system originated from 15th-century intellectual circles, and from the German Westphalian system after the Peace of Westphalia in 1648.
Depending on how you look at the situation, France after the French Revolution (1787–99) might be stated as the first nation-state, or the English Commonwealth in (1649).
Settler colonialism, not colonies, is a major point of contention in today's world, as it was notably dominated by white Europeans.
When I say settler colonialism, I'm referring to nation-states (countries) sending citizens to colonies and newly conquered lands to form settlements. While research on other civilizations' involvement in settler colonialism is limited, it's believable that similar dynamics existed in very early human societies.
According to current academic research, organized settler colonialism first occurred in the Canary Islands by the Crown of Castile from 1402 to 1496. But it wasn't always white Europeans, for instance, Genghis Khan and the Mongol Empire.
Stock Exchanges
Commodity-based money and commodity markets have existed since Ancient Mesopotamia (4500 BC). Sumerians first used tokens sealed in vessels, then documented the quantity of the commodity and the future delivery date. Today, commodities are mostly traded as futures contracts, which designate a future price and delivery date of the underlying commodity.
Before stock exchanges, exploratory voyages were underwritten by royals, aristocrats and wealthy merchants. Royals financed Columbus's voyage to America, and he also established colonies and brought along colonist on his voyages. Another worthy example is merchant adventurers: merchants who established foreign trading outposts and traded business abroad. This also had a direct relation to colonies.
The UK's South Sea Company, which existed from 1711-1853, was a joint stock company (shareholders purchased stock and stocks were issued to shareholders) that traded in slaves, participated in whaling, took part in other activities. When the shares collapsed, the stock market collapsed. This is one of the first speculative stock bubbles (a notable previous bubble would be tulip mania in the 1600s).
Stock exchanges originated in 12th-century France, with the first formal exchange established in Flanders in the early 1400s. Over time, this system evolved into the stock exchange, a cornerstone of free markets and market-based economies. Then the system development to what we have now, which is mass financialization of securities and commodities.
Out of curiosity, I asked ChatGPT the importance of the nation-state and stock exchanges, and this is what popped out:
Nation-State: The nation-state emerged as the predominant political unit in the West, characterized by defined territorial boundaries, a centralized government, and a population sharing a common identity, culture, and often language. Key aspects of the nation-state's significance include:
Political Stability: Nation-states provide a framework for governance, law enforcement, and the protection of citizens' rights. Political stability is essential for economic growth and social cohesion.
National Identity and Unity: The concept of the nation-state fosters a sense of belonging and solidarity among its citizens, promoting social cohesion and collective action.
Cultural and Social Development: Nation-states play a significant role in promoting and preserving cultural heritage, supporting education, healthcare, and social welfare programs.
Defense and Security: Nation-states are responsible for protecting their citizens from external threats, maintaining national security, and often projecting power on the international stage.
Economic Regulation and Development: Governments within nation-states enact laws and regulations that govern economic activity, including taxation, trade policies, and labor laws. They also often provide infrastructure and public services critical for economic development.
Stock Exchange: The stock exchange is a vital component of modern Western capitalism, facilitating the exchange of financial assets, capital allocation, and investment. Its importance lies in several key areas:
Capital Formation: Stock exchanges enable companies to raise capital by issuing shares to investors. This capital can be used for business expansion, innovation, and investment in new projects, driving economic growth.
Risk Management: Stock exchanges provide liquidity and price discovery mechanisms, allowing investors to buy and sell securities with relative ease. This liquidity and transparency help manage risk and ensure market stability.
Investment and Wealth Creation: The stock market offers individuals the opportunity to invest in a wide range of assets, including stocks, bonds, and derivatives, with the potential for capital appreciation and wealth accumulation.
Corporate Governance: Stock exchanges impose listing requirements and regulatory standards on companies, promoting transparency, accountability, and good corporate governance practices.
Economic Indicators: Stock market indices and performance serve as barometers of economic health and investor sentiment, influencing consumer confidence, spending patterns, and business investment decisions.
While the nation-state provides the institutional framework and regulatory environment within which the stock exchange operates, the stock exchange, in turn, fuels economic growth, innovation, and wealth creation, contributing to the overall prosperity and stability of society.
Needless to say, ChatGPT got it right.
Nation-states and stock exchanges are vastly important to Western civilization, these two often go hand in hand. As an example, if you look at defense and security, most of those corporations are very large publicly traded entities.
A word about financial fundamentals
Globally, the American economy stands out as the most significant phenomenon within America.
Regarding economics, economic success is rooted in fundamental economic principles, and those who drive America’s economic engines understand fundamentals deeply. I would argue that fundamental thought processes, including pragmatism and logic, are deeply ingrained in the American success story. This type of thinking is also, inadvertently, part of our American values. Any attack on economic fundamentals is nothing more than radical nonsense. Of course, in America, where we have free speech, radicals are free to pontificate.
Fundamentalism cannot be swayed by ongoing radical rhetoric. However, it's very clear to see that leftists and nihilists are attempting to undermine economic fundamentalism by attacking trickle-down economics and focusing on social justice, increasing the size of unionized workers, and increasing industrial economic policy. This is not a political comment, this is a factual observation.
Those who are against the system
It is clear, even from ChatGPT’s perspective, that the nation-state and the stock exchange (and associated fundamentals) are one of the backbones of modern Western society.
Attacking nationalism overlooks its fundamental roots in human tribalism. Of course, nationalism can be a slippery slope, but elements of nationalism are important in any nation-state.
It is easy to see that anti-capitalists are largely empowered by the wealth generated by capitalism. Radicals tend to be the loudest in the room, so in a false dawn, they have attempted to elevate the grievance arguments to the very top of our value chain. Not only is this false, but it's also manipulative.
Like it or not, identifying every disenchanted person and organizing against a nation's government and values is a form of nationalism rooted in identification, rather than nation-state nationalism.
When confronted with chaotic notions from groups like Antifa, BLM or the never-ending list of identity based groups who wish to overthrow the system in the West, including private property ownership, it is essential to recognize their focus on discrediting well know truths. The issue here is that attacking the truth weakens all arguments, even their arguments. In other words, revolution seems to be the only objective, not solving problems.
Relying on fundamental truths like logic is crucial. Understanding fundamental truths and structures is essential for navigating societal issues, just as it is for driving a car or constructing a building. If you drive down the wrong side of the road there are potentially dangerous consequences. While you can probably construct a skyscraper out of mud and straw, the structure may not last very long and it could also endanger human life.
2 + 2 equals four. 2 + 2 only equals five if the power structures are able to distort the truth.