STOCK MARKET WATCH -- Friday, 19 September 2014

[Demeter]

32. Scotland’s Independence Vote Shows a Global Crisis of the Elites

http://www.nytimes.com/2014/09/19/upshot/scotland-independence-vote.html?abt=0002&abg=1&_r=0

When you get past the details of the Scottish independence referendum Thursday, there is a broader story underway, one that is also playing out in other advanced nations. It is a crisis of the elites. Scotland’s push for independence is driven by a conviction — one not ungrounded in reality — that the British ruling class has blundered through the last couple of decades. The same discontent applies to varying degrees in the United States and, especially, the eurozone. It is, in many ways, a defining feature of our time...The rise of Catalan would-be secessionists in Spain, the rise of parties of the far right in European countries as diverse as Greece and Sweden, and the Tea Party in the United States are all rooted in a sense that, having been granted vast control over the levers of power, the political elite across the advanced world have made a mess of things.

The details of Scotland’s grievances are almost the diametrical opposite of those of, say, the Tea Party or Swedish right-wingers. They want more social welfare spending rather than less, and have a strongly pro-green, antinuclear environmental streak. (Scotland’s threatened secession is less the equivalent of Texas pulling out of the United States, in that sense, than of Massachusetts or Oregon doing the same.) But there are always people who have disagreements with the direction of policy in their nation; the whole point of a state is to have an apparatus that channels disparate preferences into one sound set of policy choices.

What distinguishes the current moment is that discontent with the way things have been going is so high as to test many people's tolerance for the governing institutions as they currently exist....The details of the policy mistakes (IN DIFFERENT COUNTRIES) are different, as are the political movements that have arisen in protest. But together they are a reminder that no matter how entrenched our government institutions may seem, they rest on a bedrock assumption: that the leaders entrusted with power will deliver the goods.

Power is not a right; it is a responsibility. The choice that the Scots are making on Thursday is about whether the men and women who rule Britain messed things up so badly that they would rather go it alone. And so the results will ripple through world capitals from Athens to Washington: People don’t think the way things are going is good enough, and voters are getting angry enough to want to do something about it.