Showing posts with label capitalism. Show all posts
Showing posts with label capitalism. Show all posts

Monday, April 13, 2015

Did Korea's Economic Development Require State Protection?

A common argument that is often brought up to argue against free market capitalism is Korea's economic development. Many argue that despite the fact that President Park Chung-hee was a dictator, one thing that people cannot argue against is the economic development that Korea enjoyed under his 17-year-long rule.

Specifically, what those people are usually referring to is the series of protections, quotas, tariffs, and subsidies that President Park had given to what were then nascent chaebol companies.

One such defender of that point of view is Professor Ha-joon Chang, an economics professor at the University of Cambridge, and the author of such books as Bad Samaritans, Kicking Away The Ladder, and 23 Things They Don't Tell You About Capitalism.

Professor Ha-joon Chang
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Much can be said about his books, and I plan to do so in the future. For now, however, I will focus only on his defense of the infant industry argument, which is an idea that argues that emerging businesses and industries require government protection – in the form of tariffs, subsidies, and quotas – from their more entrenched competitors, particularly foreign competitors.

In that article that I linked earlier from The Independent, Professor Chang compares nascent industries to his six-year-old child. If this weren't a cringe-worthy moment of stupidity and/or academic dishonesty, I don't know what is.

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Moving on, in Bad Samaritans, Professor Chang makes the argument that Korea's economy did not develop because of neo-liberal economic policies, but rather due to heavy government involvement in the economy. There is no question that that is true.

There is also no question that Korea's rapid economic growth was nothing short of miraculous. There is a reason that it is often referred to as the Miracle on the Han River. But is that proof that protectionism was what allowed Korea's economy to develop so quickly? Well, that's quite hard to confirm considering the fact that Singapore and Hong Kong, which practised freer trade policies, went through much quicker and greater economic development.

“But they are city-states; they cannot be compared to a country that is so much bigger like Korea,” I often hear people say.

Fine, fair enough. Then one has to wonder about China and India. Both countries are much bigger than Korea and their economies grew much more quickly after they began to liberalize their respective economies (see here and here).

Of course, this is certainly not to say that government controls and economic programs are non-existent in Hong Kong or Singapore or China or India. They are not free market economies. But they have shown that freer markets do lead to greater growth.

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Another point that Professor Chang does not mention is that subsidization and other forms of government protections do not guarantee economic survival or development in any way, stretch, or form.

Yes, Korea is an example of an economic success story. However, we also have to look at other examples where protecting infant industries were not successful. For example, African cotton farmers want their governments to end the subsidies programs for their respective national industries so that they can finally compete in the international market; and which African country's economic development could ever compare with Korea's economic growth?

The problems of protecting infant industries are not limited to African countries. In the United States, despite the government's efforts to prop up Solyndra, a company that specialized in manufacturing solar cells, with up to US$535 million of taxpayers' money, the company still declared bankruptcy.

Similar examples can be found in Korea, too. Samsung was certainly one of the chaebol conglomerates that the Korean government helped to protect and nurture. However, Samsung is not the only business that got so much love from the government. Another industry that has gotten a lot of love from the Korean government is the rice industry. So why has Samsung become an internationally well-known name but there isn't a single Korean food-producing company that is as well-known outside of Korea?

In other words, no amount of subsidies or trade protections ever seems to be able to prevent what was always doomed to fail from failing.

So what does Korea owe its economic success to? That is a difficult question to answer; much more difficult than Professor Chang would like for his readers to believe. It's certainly not free market economics. As Professor Chang has shown, the Korean government has been heavily involved in Korea's economy. But as I have shown, freer markets like Hong Kong and Singapore have grown more quickly than Korea and subsidies do not guarantee success.

Though that specific question may be harder to answer, what is much easier to answer is that Korea's economy did not develop because of the government's protections, subsidies, and overall involvement in the economy, but rather in spite of them.

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Monday, March 23, 2015

Grieving Lee Kuan Yew's Passing

I go through the news at least twice a day every day. For those who frequent this blog, I am sure that it will not surprise you when I say that I have tailored my newsfeed to focus on news stories that are focused on business, finance, and economics.

However, I saw a news story pop up the other day, the kind that doesn't usually appear on my newsfeed, which grabbed my attention.

It was a headline from The Wall Street Journal – Singapore Former Prime Minister Lee Kuan Yew’s Condition Worsens.

At age 91, Lee Kuan Yew has certainly lived a long life, and it is only natural that sooner or later, death comes for saints and sinners alike. And just this morning, I saw that he has finally passed away. No one lives forever, and though his passing was expected, I still feel a deep sense of sadness knowing that he is gone.

I was fifteen years old when I first read Alex Josey's book Lee Kuan Yew: The Critical Years (1971-1978) in my school's library. As I read about the political challenges that Lee Kuan Yew had to face – striving to have Singapore become accepted and then eventually being expelled from the Malaysian Federation, the conflict with the communists, the delicate balancing act that was needed to ensure Singapore's multicultural population did not devolve into ethnic strife, the establishment of an institutional and legal order that were needed to transform Singapore from a former backwater colony to a developed nation – my respect and admiration for him knew no bounds.

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It was right around the time when the conflagration that came to be known as the Asian Economic Crisis engulfed so many lives when I first read about Lee Kuan Yew. Although Brunei, the country where I was living at the time, was not considered as one of the countries that was directly affected by the crisis, when the indirect effects of the crisis merged with Brunei's own internal problems at the time – which involved a playboy prince who had misspent billions of the country's money to maintain a hedonist lifestyle (see here, here, here, and here) – Brunei's economy went into a tailspin.

As I compared him to other Asian leaders who were in power at the time, many of them now disgraced and/or forgotten, I felt bitterly angry that there wasn't anyone else who possessed the determination, the vision, the self-confidence, and the intelligence that Lee Kuan Yew possessed. I thought that Lee Kuan Yew was a giant among men and that he was the kind of leader that Park Chung-hee could have been; the kind of leader that world leaders ought to emulate.

Then for many years after that, I had stopped thinking of Lee Kuan Yew, until now. The simple reason for it was that despite the ravaging effects of the Asian Economic Crisis and Amadeo's implosion, life still went on. I went on to graduate from high school, went on to college and then graduated from college as well, learned and experienced new things, gotten jobs, quit jobs, paid bills, accumulated debt, went through personal hardships, overcame some of them, and learned to adapt to those that I could not overcome. Life has a way of moving on, it seems, and making us forget even things that we once held most dear.

As the years passed by, after being influenced by Milton Friedman's eloquent arguments for economic freedom, Friedrich Hayek's seminal book The Road to Serfdom, and Ayn Rand's philosophy of Objectivism, my views changed dramatically. And I stopped believing that Lee Kuan Yew was the kind of leader that others ought to emulate.

I rejected Lee Kuan Yew's tribal notion of “Asian Values” – the implication that “Western-style” democracy is somehow not applicable to Asian nations because of the particular sets of culture that Asians are born and raised in. I rejected the notion that culture determines an entire people's societal structure into perpetuity.

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The United States' military adventures in Iraq and Afghanistan and its subsequent failures to “impose democracy” on those societies might have somewhat exonerated Lee Kuan Yew's belief that cultural differences could cause an imposition of democracy on those societies to become a failure.

However, comparing Asian countries – such as South Korea, Japan, Taiwan, Hong Kong, and Singapore, which have developed their economies, social structures, and their political values since the 1950s – to Iraq which had been ruled by a fascist dictator and to Afghanistan that had been ruled by the Taliban for decades is a clear attempt at academic dishonesty. As the former countries' economies transformed from labor-intensive economies to capital-intensive economies to technology-intensive economies, people's priorities, thoughts, beliefs, and political views have changed.

The idea that people's culture is static is wrong. And it is clear that Lee Kuan Yew could not have failed to have known that. In other words, his notion of “Asian Values” was no more than a bald-faced attempt at retaining his own hold on power.

I also rejected Lee Kuan Yew's reliance on Orwellian social engineering programs and Machiavellian politics to curtail social vices that range from chewing bubble gum to caning people for drug-related charges. His use of the Internal Security Act, Singapore's version of Korea's National Security Act, as well as his penchant for bankrupting his political opponents (see here, here, and here), which effectively banned them from participating in politics due to the country's Bankruptcy Laws, was just as abusive, if not more so.

I also found it hypocritical that his government intruded so much into Singaporeans' daily lives despite his proclaimed belief that “the ruler or the government does not try to provide for a person what the family best provides.” The extent that is Singapore's Nanny State is especially glaring considering the fact that over 80% of the Singaporean population lives in public housing.

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However, Lee Kuan Yew's most lasting legacy, which will last into the future long after he is gone, is that he was the intellectual voice behind the foisting of authoritarian capitalism. He succeeded where Park Chung-hee failed. Unsurprisingly, Singapore has long been China's source of inspiration in its plans to develop its political structure as well as its socio-economic engineering programs (see here, here, here, and here).

Considering China's economic might, it is possible that the authoritarian capitalism that Lee Kuan Yew advocated and championed will define the twenty-first century as much as liberal capitalism defined the twentieth century, which would seemingly nullify Francis Fukuyama's theories in his book, The End of History. If Lee Kuan Yew's version of capitalism replaces the liberal form of capitalism in much of the world's zeitgeist, which I think it could, the social changes it could bring to the world will be enormous, in both good and terrible ways.

It has been many years since I thought that Lee Kuan Yew was the kind of leader that world leaders ought to emulate. As I said earlier, I stopped believing that a long time ago. Now, I have lost all faith in the benefits of concentrated political power even if it is in the hands of wise and benevolent leaders of whom I know none.

Although I now stand firmly against many things that Lee Kuan Yew stood for despite my youthful dalliances with authoritarianism, I am still grieving now that Lee Kuan Yew has breathed his last. Although I have come to stand opposed to his leadership style and philosophy, and dearly hope that his legacy will not be as widespread as I fear it will be, what no one can deny is that he was still an intellectual giant among men who had achieved more than most can even dream. Though perhaps not goodness, he has certainly achieved greatness and immortality in his own right. As Richard Nixon once said, had Lee Kuan Yew “lived in another time and another place, he might have attained the world stature of a Churchill, a Disraeli, or a Gladstone.”

Though I am grieving his passing, I do not grieve the authoritarian that he became. Rather, I am grieving the man that he could have been – an intellectual titan who might have attained the world stature of a Locke, a Jefferson, or a Tocqueville – a man who, above all else, might have used his staggering and formidable intelligence to champion the cause of freedom and liberty.

Unless you are on your deathbed
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Monday, March 16, 2015

Trickle-Down Economics Redux

The Straw Man Argument is a type of argument that is used to misrepresent someone else's argument, by way of exaggeration or misrepresentation or complete fabrication, with the intention of making the other person's argument easier to attack. It is a dishonest method that almost always undermines rational debate.

As such, almost everyone hates this form of argument. However, many people still resort to this kind of argument on a daily basis – some deliberately, while others unknowingly. And one of the most prominent Straw Man Arguments that have been used so excessively that many people have come to accept the Straw Man as gospel truth is the concept of Trickle-Down Economics.

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It is very easy to find arguments against trickle-down economics.


Senator Elizabeth Warren said that trickle-down economics “devastated U.S. workers while propping up the wealthy.”

Pope Francis pontificated against it, calling it a “a crude and naïve trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system.”

(I am not sure if Pope Francis is the right person to talk about naïveté or the idiocy of faith. See here and here.)

Economists have argued against it, too. For example, Paul Krugman said that trickle-down economics is “being nice to the wealthy and cruel to the poor.” And Robert Reich says that it is one of the “big lies” conservatives promise voters.

The OECD released a report that said that “the benefits of growth do not automatically trickle down across society.”

Trickle-down economics has also been attacked and criticized by thinkers, academics, politicians, activists, and journalists in Korea as well (see here, here, here, here, here, and here).

The case against trickle-down economics is clear. It is also clear that it has some very powerful enemies.

Not a friendly face in sight...
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But who actually supports trickle-down economics? Who is actually championing giving more to the rich? The answer is “No one.”

As I already said in a previous post:

Trickle-Down Economics does not actually exist. It is a lie. “Trickle-Down Economics” was a phrase that was devised in the United States in the 1980s when the Democratic Party needed a a catchy zinger to attack President Reagan's economic policy. The phrase was a remarkable political slogan as it painted Reagan and other advocates of tax reduction as sycophants who had all been bought and paid for by greedy billionaires at the expense of the poor and the middle class.

One of the most prolific economists of our time, Thomas Sowell, once challenged anybody “to quote any economist outside of an insane asylum who had ever advocated this “trickle-down” theory.”

To date, no one has ever adequately answered that challenge.

Quoting Thomas Sowell again:

Let’s do something completely unexpected: Let's stop and think. Why would anyone advocate that we “give” something to A in hopes that it would trickle down to B? Why in the world would any sane person not give it to B and cut out the middleman? But all this is moot, because there was no trickle-down theory about giving something to anybody in the first place.

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Those who advocate lower taxes, of which I am one, have never made their case by supporting the idea of transferring wealth from the masses to the rich. Rather, they emphasize the creation of additional wealth and jobs when businesses are not hampered by burdensome regulations and steep taxes.

However, even that is only half of the argument. Those who champion lower taxes do not support lowering taxes only for the rich, but also for everyone else. Crazy as it may sound, no free market capitalist has ever claimed that society would become wealthier because the rich would spend more. Rather, they argue – correctly – that tax cuts in general would stimulate the economy. That is because lowering taxes is based on the idea that if the government lowers taxes, the people – both rich and poor – will have more of their own money and will, therefore, tend to engage in more economic activity.

What is undeniable is that reducing taxes does help the rich more than it helps the poor. However, that is incidental. After all, the rich pay far more than their “fair share” of taxes. Therefore, it becomes all too easy to caricature any tax cut as “tax cuts for the rich.”



Tax cuts might help the rich more, but it also helps the poor. After all, there are only four ways to spend money:

  • Spend your own money on yourself.
  • Spend your own money on somebody else.
  • Spend somebody else’s money on yourself.
  • Spend somebody else’s money on somebody else.



Therefore, the phrases “trickle-down economics” and “tax cuts for the rich” are nothing more than the inventions of a desperate political mind that did not have the ability to debate the merits of an opposing viewpoint. After all, what easier way can there be to “win” a debate than to invent a viewpoint that no one holds, attack that viewpoint, and then claim intellectual victory?

This is not to say that there is no need for a real debate about which policies are needed in order to promote economic growth. With all due respect to Grover Norquist, God knows that lowering marginal tax rates alone is not a panacea (see here and here). That debate is badly needed. Unfortunately, however, demagogues are far too busy trying to slay the imaginary “trickle-down” dragon.

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Sunday, January 4, 2015

Korea - The Country of the Future

On December 18th 2014, IKEA, the world's largest furniture retailer, opened its first Korean branch in Gwangmyeong, Gyeonggi Province. The store is 25,759 square-meters (approximately 277,267 square-feet) in size and it is accessible via train and three inter-city express highways.

It would appear that IKEA's business is booming. So much so that the THREE inter-city express highways that lead to IKEA are congested with cars – all of them customers who want to buy their next furniture item from IKEA.

Apparently, doing well in business is not always a good thing. A little over two weeks after IKEA opened its doors to the public, the Gwangmyeong Municipal City has demanded that IKEA come up with a “dramatic breakthrough” by January 7th 2015 to resolve the problem of the congested roads. The municipal government threatened that if IKEA fails to come up with a solution by that date, the government would withdraw the temporary approval that it gave to IKEA to operate in its city, thus forcing IKEA to shut its doors starting on January 15th 2015.

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The Gwangmyeong Municipal City is also pressing the central government to have IKEA registered as a large-scale discount mall, which is currently registered as a mall specializing in furniture. This registration change would force IKEA to shut its doors twice a month on weekends.

Never mind the fact that the Seoul High Court already ruled that that particular regulation was unlawful because “it was difficult to judge if the rules actually helped smaller retailers while limiting consumers' choice at the same time.”

What is the government proposing that IKEA does? Should IKEA stop being a furniture retailer for a few years and re-brand itself as a construction company that specializes in road expansion? Or should it be a railroad company that focuses on adding and updating Korea's railway system? Or should it be forced to expand its already huge parking lot, which can house up to 2,000 vehicles?

Or should IKEA be forced to raise its prices? That way, consumers will just stop going to IKEA. Oh, wait. IKEA was already investigated by the Fair Trade Commission for “charging South Korean customers more than it charges buyers in other countries” even before it opened!

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President Park Geun-hye can wax poetic about transforming Korea into a creative economy until her face turns blue. The reality that is Korea's economy says that the government's rhetoric is just that. Considering the latest attack on IKEA, the Seoul Metropolitan Government's persecution of Uber, Korea's ridiculous tariffs on agricultural imports, Korea's inability to overturn its anachronistic internet laws, Koreans' overall mercantile mindset, and many other illiberal and anti-globalization tendencies, it is hardly surprising that half of all foreign firms based in Korea plan on leaving Korea sooner rather than later.

Charles de Gaulle was purported to have once said, “Brazil is the country of the future... and always will be.” Though I am not sure if Charles de Gaulle really did say it, regardless of the authenticity of the source, I cannot think of a more curse-like compliment than that. After all, it is another way of saying that an entire country is forever destined never to fulfill its huge potential.

Unless there is a real structural economic reform and a genuine change in the Korean people's attitudes about free trade, and soon, there is a good chance that that epithet will not apply only to Brazil.

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Thursday, December 11, 2014

Does Capitalism Breed Nepotism?


By now, most people must have heard about the incident in Korean Air that has been dubbed “Nut Rage.”

For those who are still unaware, a Korean Air executive, Ms. Cho Hyun-ah, who is the airline's head of cabin service and the daughter of the company's boss, created a ruckus on one of her company's planes that was headed from New York to Incheon. Ms. Cho had caused a delay in the flight when she demanded that a senior crew member be removed from the flight when the crew member failed to serve macadamia nuts “properly.” According to the story, the crew member served Ms. Cho the nuts in a bag, instead of serving the nuts on a plate.



When the news broke out on social media, justice was swift and terrible. Ms. Cho resigned from her position as head of cabin service, but continued to be an executive at the company. When that failed to satiate the fury of the Internet mob, she resigned from all of her roles from the company.

Justice had been served. Seemingly.

In a way, I can understand where Ms. Cho came from (assuming that the anger was purely based on her disappointment over improper service; and that her attitude having been the result of being her father's daughter did not play any role in her action).

What she did lack was tact. She could have resolved the situation so much more amicably. She could have given a stern one-on-one pep talk. She could have gently reminded the crew member of the company's regulations about how to properly serve food to first class passengers. However, she chose to be as dramatic as possible and turned herself into a symbol that represents everything that people hate about the rich.

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But we have to go back to the question. Does capitalism, indeed, breed nepotism? This question is not without merit. After all, Ms. Cho is her father's daughter.

However, I am disinclined to agree with the statement. I do not think that capitalism breeds nepotism at all.

Firstly, we have to recognize one thing – no matter how much we may talk about individualism, human society has always revolved around the family. Before meritocracy and individualism, children joining the family was standard practice, and in many ways, it still is.

Well, not all family businesses are created equal
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As time has progressed, with social and economic equality becoming more important to many people, nowadays people like to imagine that they are more ambivalent about family ties. However, there seems very little evidence to say that is actually the case.

Therefore, it would seem that nepotism is far older than capitalism.

Secondly, generally speaking, the children of wealthy parents tend to be highly qualified individuals in their own right. Though admittedly they went to the best schools because their wealthy parents paid for their pricey education, it does not change the fact that they have often gone to the best schools. Furthermore, due to the pressure that is often placed on them to be excellent in whatever they do, they often excel in their own right.

This, too, is much older than capitalism.

Thirdly, what do Benazir Bhutto, Megawati Sukarnoputri, Corazon Aquino, Indira Gandhi, Daw Aung San Suu Kyi, and Park Geun-hye have in common?

I have heard many people point to these female Asian leaders to express their disappointment with the American people's inability/unwillingness to (yet) elect a woman to the White House. However, those people are only telling a half-truth. What they don't tend to mention is that people from India, Indonesia, Myanmar, Pakistan, the Philippines, and Korea appear to be more willing to elect women because people in those societies tend to value family affiliations more.

Whether we like to admit it or not, women's advancement (at least in politics) often seems to begin at the altar.

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Fourth, nepotism is not unique to humans.

So, due to the historical precedence that nepotism has over capitalism, and that it is not unique to humans, it would appear that capitalism does not breed nepotism. However, considering that the rich tend to marry only among themselves, it would seem that at the very least, capitalism does enforce nepotism and vice versa. After all, one of the main reasons why people continue to work to earn more money than they need for themselves is to ensure that they can provide a more comfortable life for their children.

Is there a cure for nepotism? Well, I am not entirely sure if nepotism is actually a disease that requires a cure. More than anything else, it seems like it is an ingrained part of our more inner-psyche that cannot be easily extricated by mere legislation. Perhaps if all humans evolved to treat the rule of law as sacrosanct, we may see changing attitudes toward nepotism (and perhaps even toward the notion of family itself). Until, then, however, whether the prevailing economic system is based on laissez-faire capitalism, crony capitalism, corporatism, welfarism, socialism, communism, or whatever other -ism there is, it seems that we will not be ridding ourselves of nepotism any time soon.

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Sunday, August 18, 2013

The Philosophy of Snowpiercer

WARNING: The following blog post contains a lot of spoilers. If you have not yet seen Snowpiercer and wish to do so without having the plot given away, then do not read this.

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Snowpiercer has been called a sci-fi action film. It’s hardly sci-fi. If people insist on referring to it as a sci-fi film, those people will have to admit that it is based on awful sci-fi. The movie begins with the premise that Mankind finds a way to combat global warming with a man-made chemical that is used to cool Earth’s atmosphere. And cool Earth’s atmosphere it does. So much so that the whole planet undergoes a new Ice Age period, thus leading to a mass extinction of life as we know it. At least until the very end of the movie when a polar bear appears on-screen, thus throwing that whole “mass extinction of life as we know it” plot right out the window.

That the audience is expected to believe that scientists would not have tested this Earth-altering chemical ad nauseam before it is unleashed into the stratosphere is ludicrous. Even more laughable is the fact that the audience is told to believe that the one thing that not only survives but also supports what is left of humanity in this freezing hell is a train that is running around the world non-stop.

Snowpiercer is a good sci-fi film just as much as Animal Farm is a reliable farmer’s almanac. That being said, just like Animal Farm is a beautiful allegorical story, so is Snowpiercer. Some might say that Snowpiercer is a lousy allegory because it doesn’t resemble the real world that we live in today. Those critics are not wrong. The movie doesn’t match the world that we live in today. However, Animal Farm didn’t resemble real-life 1940s English society that the English used to live in either.

Source: http://aminarchi.edublogs.org/files/2011/02/animalfarm-1jvsb08.jpg

I watched Snowpiercer about two weeks ago, and when the movie ended, two thoughts occurred to me. The first thought that happened to me was that I had just witnessed a rare find – a film that respected the audience’s intelligence. The second thought that occurred to me was that most people are seldom ever honest about what we know and almost always dishonest about what we don’t know. In other words, most things that most people claim to know, especially in regards to the social sciences (such as politics, economics, and philosophy, themes that this movie touches on), are the pretense of knowledge.

As such, because this movie operates on the assumption that the audience is intelligent, and then proceeds to touch on themes that are, unfortunately, subjected to mind-numbing subjectivity, the conclusion that I reached was that there were going to be many people who were going to watch this movie through the lens of very dumbed down current event stories that they might have watched on the news.

Because everyone knows how a mob has always traditionally been associated with intelligence.
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That there are only a small number of movie reviews for Snowpiercer that claims that the central theme that the movie focuses on is class warfare, a far too simplistic overview, is most likely due to the fact that Snowpiercer has yet to be shown in movie theaters outside of Korea just yet. It’s only a matter of when before harebrained newspaper columnists who see themselves as enlightened populists decide to hail this movie as a rallying call for the Occupy Movement. Yes, class warfare is undoubtedly one of the topics that the film explores but there is so much more than what meets the eye.

Like Animal Farm, what Snowpiercer does is to challenge totalitarianism and all of the little despotisms that exist within it. Taking on the position of opposing authoritarianism while not living in a totalitarian state hardly seems edgy. However, another more subtle criticism that the movie deals with is the morality (or the lack thereof) of political leadership regardless of what stripe it comes in. More on this later.

Throughout the whole movie, there isn’t a single element that has not been somehow affected by the totalitarian nature of the train’s leadership. From the very beginning of the movie, the audience is made to dive right into the deep end of the tense environment that surrounds the tail section of the train – the claustrophobic Dickensian world that is home to the train’s poorest inhabitants. Crammed into a tight, squalid space, these individuals, including the movie’s main protagonist, Curtis (played by Chris Evans), live, if it can be called that, a miserable existence.

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Revolution is boiling beneath the surface and it doesn’t take long for the audience to sympathize with the tail-enders; as the audience’s blood is churned and made to call out for bloody revenge when we see an anonymous guard brutally smashing his rifle’s butt into the face of an unarmed elderly woman. Considering the real-life events that have unfolded around us, such as the Arab Spring and the various anti-austerity protests that we have seen throughout Europe and the United States, it becomes easy for people to root for the tail-enders, while at the same time jumping to the conclusion that the movie is about the oppressed 99 percent fighting for justice against the tyrannical 1 percent.

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People who claim that this movie is an allegorical indictment of the inherent injustice that exists in capitalism are missing the point of not just the film but the very nature of capitalism itself.

Many anti-capitalists would jump to tell anyone who is willing to listen that income mobility that is claimed to exist in a capitalist economic system is a myth – that one’s economic fate is predetermined by the socioeconomic status that one is born into and has no opportunity whatsoever to move up that proverbial ladder. The fact that there are immigrants who arrive in developed countries with very little money and very little knowledge of the local language, but nevertheless, persevere and rise in those societies or that many of their children excel in school and go on to obtain professional careers and establish businesses do not seem to detract those anti-capitalists from their religion.

The fact that economic classes exist in capitalist societies is undeniable. However, the anti-capitalists’ insinuation that the members who make up those classes are static is nothing less than willful ignorance.

Whereas the thing that anti-capitalists claim to fight against does not actually exist in real life societies that practice capitalism, it does exist in Snowpiecer’s world. In Snowpiecer’s world, one’s socioeconomic fate is preordained by the tickets that everyone had purchased (or not purchased) before the train embarked on its non-stop seventeen-year journey – fist class, economy, and freeloaders. Even the children of those who are born on the train, long after the events that initially took place for this story to be set in motion, are forced to live in the stations that their parents had first found themselves in. “The people at the front of the train are the head, and those at the back of the train are the feet,” claims Mason (played by Tilda Swinton), one of the movie’s deliciously evil antagonists, who hisses with authoritarian finality, “Know your place, keep your place!”

The social system that the train operates on is based on a medieval feudalistic system, which is enforced by brutal violence. This is hardly a capitalist society.

Source: http://6claymendoffeudalism.weebly.com/uploads/4/1/4/2/4142501/5395891.jpg

When people watch this movie without thinking more deeply into it, it becomes easy to assume that it is about a war between the haves and have-nots, a situation that capitalism purportedly permitted to exist. However, that couldn’t be further from the truth. Capitalism, by its very nature, requires political freedom, which includes, among other things, the opportunity for socioeconomic mobility. Snowpiercer was not an indictment of capitalism, but rather an indictment of tyranny.

In another sign that this movie’s challenge is toward tyranny rather than capitalism, the audience is shown how the tail-enders receive their food. During mealtime, the tail-enders who are constantly hungry and malnourished are assembled by the guards and counted each time so that they may be rationed the appropriate amount of food – brown gelatinous bars, which are simply referred to as protein bars. It is later revealed that none of the tail-enders was informed what those protein bars were made of – mashed cockroaches (the movie never explains where all those cockroaches came from).

In the real world, since the mid-nineteenth century, the countries in the world where famine occurred have been the countries that were run by tyrannical regimes that attempted to control, distribute, and ration food and farming based on political decisions. Robert Mugabe’s Zimbabwe, the Kim Dynasty’s North Korea, Mao Tse Tung’s China, Mengistu Haile Mariam’s Ethiopia, Mohamed Farrah Aidid’s Somalia. In the past one hundred and fifty years, every single famine that the world has witnessed has been the result of, to use a euphemism, political mismanagement.

Source: http://media.salon.com/2013/05/somalia-famine-deaths.jpeg4-1280x960.jpg

However, toward the end of the movie, it is later revealed that the tail enders’ diet did not consist of only these mashed cockroach bars. When Curtis explains his motivation for wanting to take his revolution all the way to the front of the train, he reveals that there was a time when he was forced to eat human flesh.

In the frantic early days when the train was about to begin its journey as it raced against the oncoming Ice Age, the tail-enders who didn’t buy a ticket but were fortunate enough to board the train were left with no food to eat. As a result, when hunger set in, they began to cannibalize each other. Curtis mentions that he knows what human meat tastes like and that “babies taste the best.” He confesses that when Edgar (played by Jamie Bell), his second-in-command, was a baby, Curtis almost killed and ate him but was prevented from doing so by Gilliam (played by John Hurt), the tail-enders’ elder leader and Curtis’ mentor and father-figure, who cut off his own hand for the hungry tail-enders to eat in exchange for letting Edgar live. It was only after many people had been cannibalized and had voluntarily amputated their own limbs to feed each other that they were provided rationed protein bars.

In Snowpiercer, the train is the country, which is ruled by a tyrant; the people forcefully imprisoned in their stations under the penalty of death. The people’s malnourished state and their being forced to eat bugs and each other is a story that we have seen far too many times on the news (here, here, here, here). As Curtis recounts his past experience in having eaten human flesh, he says that though it makes intellectual sense for the tail-enders to show gratitude for being allowed to board the train and live, considering the hell that they were forced to live through, it was impossible to feel one iota of gratitude. It is impossible not to sympathize with him.

Source: http://www.goenglish.com/GoEnglish_com_OutOfTheFryingPanAndIntoTheFire.gif

Another theme that the movie touches on is how the train’s leaders treat the tail-enders. Early on in the film, a mysterious, plump looking woman who wears a bright yellow coat, in stark contrast to the sooty grey that surrounds the tail end of the train, enters the scene with several armed guards. Carrying a simple tape measure, she measures the height and width of two small children and wordlessly whisks them away to the front of the train. Before the woman can take the two children away, however, one of the child’s parent throws his shoe at the woman, reminding the audience of a similar event that occurred in real life when a desperate man hurled his shoe at the most powerful man in the world.

Such lawlessness, of course, cannot go unpunished. The train’s inventor and chief engineer and Dear Leader, the mysterious Wilford (played by Ed Harris), sends Mason to punish this act of rebellion. Before the shoe thrower’s sentence can be carried out, a punishment which appears to be a method that the Saudi government would have adopted had the Arabian peninsula been covered in permafrost as opposed to sun-scorched sand, Mason gives a speech, which the audience feels has been given to the tail-enders many times before. In the first sign of Wilford’s cult of personality, not unlike the kind of praise that is showered on North Korea’s Kim Dynasty, Mason offers glory to Wilford, stating that he is merciful and kind. Therefore, any sort of rebellion against such mercy and kindness is that much more magnified and thus cannot go unpunished. “Know your place, keep your place.”


It is later revealed toward the end of the movie that the woman in the yellow coat took those children to the front of the train to work as slaves. Wilford explains that in the train’s seventeen-year journey, parts have needed to be repaired and replaced. However, in that time, pieces that are required to keep the train running have “gone extinct” and that, therefore, small children are needed to crawl into tight spaces that no adult can squeeze into to manually repair the train. In other words, the tail-enders are treated no better than cattle. They’re fed just enough to be kept alive, they are “disciplined” when the need arises, and they are used as beasts of burden.

As for Mason, she offers a microcosmic view of what abusive political power can do to a human being. No one in the world is born evil. As such, Mason must have, at one point in her life, been a sweet, innocent, and good-natured child. Had Mason possessed any of these characteristics, however, none of it was present by the time she makes her first appearance in the movie. Mason is shown wearing large spectacles that give her an insect-like appearance, sports a thick Yorkshire accent, and her imperious lips appear perfect just to issue orders.

Source: http://wac.450f.edgecastcdn.net/80450F/screencrush.com/files/2013/04/snowpiercer_poster_tilda_swinton_full.jpg

Everything about Mason – her looks, her dress, her mannerisms, her speech – shows that she is the end product of having possessed despotic power over the lives of others for an extended length of time. She is cruel, mean, petty, and expects the people that she stomps on and treats like trash to be grateful to her. It is the price that tyrants have to pay – sacrificing their humanity for power, and reason for delusions.

The movie could have offered just a simple solution – “The tail enders succeed in their revolution and once the tyrant and the haves have been taken out, all the tail-enders whose rights as human beings had been stripped away live happily ever after.”

But once again, the movie treats the audience like intelligent adults. In a short scene, after Gilliam listens to Curtis’ plan on how he plans to lead his ragtag group of revolutionaries to the front of the train, he slowly and cryptically asks, “And then what?” It is a deep philosophical question that has no easy answers. However, Curtis has no time for all that. “We kill Wilford,” he says without hesitation, as though somehow that is the solution to all of their problems.

But that is a question whose weight has been far too understated in this movie – “And then what?” This same question is currently being asked in Egypt and other Arab nations. So the mob finally fought back and showed the world that Hosni Mubarak was nothing more than a paper tiger. And then what? So the mob got back together and showed the world that Mohamed Morsi wasn’t even half the paper tiger that Mubarak was. And then what? Judging from what we see on the news, it hardly seems that the Egyptians have found their happily ever after fairy tale ending.

“And then what?”

Now what?
Source: http://images2.fanpop.com/images/photos/3500000/Finding-Nemo-finding-nemo-3570108-853-480.jpg

As Curtis and his ragtag team of revolutionaries fight their way into one car after another, they begin to see whole new worlds that the tail-enders had not even known to exist in their wildest dreams. And with each progression they make, the more decadent the scenery becomes. Initially, we see a whole train car that has been fitted to serve as a horticultural orchard that grows fruits. In another car, the entire car is used as an aquarium that the front enders harvest twice a year that they may eat fresh fish while at the same time making sure that the fish are culled in moderation to avoid population crashes. This theme gets explored again later.

In other cars, people enjoy Swedish saunas, and in others, they binge on alcohol and drugs as they rave the night and day away. However, the most surreal car that the revolutionaries enter is the school car. In this car, which is designed as a preppy grade school classroom, an overly cheerful and hyper teacher (played by Alison Pill) leads about a dozen or so students in their lessons. However, the studies have less to do with maths or grammar but instead focuses on singing adulatory praise for Wilford; again, not unlike the education that we find in tyrannical regimes like in North Korea (here, here, here).

Although this movie is undoubtedly an allegorical tale that criticizes tyranny, and not capitalism as anti-capitalists would have people believe, it is difficult to know for sure what kind of economic system exists on this train. We never get to see a trade transaction. We see food being rationed out, which implies that production is centrally planned but the scene where the decadently rich binge excessively on alcohol and drugs indicate that, assuming that production is centrally planned, there is an underground economy of sorts that circumvents the central planning authority, which seems impossible considering the fact that they are all on a train which no one can get off of.

What we do know for sure is what had been hinted to us earlier at the aquarium scene and later spelled out toward the end of the movie – population control is enforced and based on Malthusian principles that would have made Paul R. Ehrlich proud.

Paul R. Ehrlich
Source: http://upload.wikimedia.org/wikipedia/commons/thumb/e/e3/Paul_Ehrlich_-_1974.jpg/463px-Paul_Ehrlich_-_1974.jpg

What’s important to remember about the aquarium scene is that the fish in the aquarium is culled in moderation twice a year so that the upper class may enjoy eating fish while avoiding crashing the aquarium’s fish population. When Curtis finally meets Wilford for the very first (and the very last) time at the engine room, whose design looked like a minimalist version of a Plaza Hotel suite, Wilford reveals that Curtis’ revolution had been planned and orchestrated all along by him. Throughout the movie, Curtis receives notes from an anonymous source from the front of the train, which goad him to keep fighting on. It turned out that the person who sent Curtis those notes of encouragement was none other than Wilford himself.

So why would Wilford foment a violent revolution that is aimed at himself? He explains that he did so to ensure that the violent proletarian revolution would occur. This would compel both the tail-enders and the upper class to kill off one another. That way, the population of the train, both the tail-enders and the elites of the upper-class section, would be kept in check. Wilford reveals to Curtis that he had to make this choice because he could not wait for natural selection to take its course; had he done so, the exponential population growth would have outpaced the arithmetical level of food production, which would have caused everyone to slowly starve to death.

In the real world, Malthus limited his apocalyptic prediction to limited food production. However, even though those predictions were proven to be false even within Malthus’ own lifetime, his views never really went away. In fact, neo-Malthusianism has been the rallying call for many of the world’s modern-day environmentalists, such as the aforementioned Paul R. Ehrlich who made a similar (debunked) prediction in his 1968 bestseller, The Population Bomb. In his book, he predicted that hundreds of millions of deaths would occur per year throughout the 1970s and he insisted that the only way to avert this catastrophe was through mass population control “by compulsion if voluntary methods fail.”

Killing millions to save millions?  Makes perfect sense.
Source: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7hyphenhyphenIMPwPrW5k8rj31wUU8Xcapl6TptwFQksUty-K_pj0VFPZ6IiDtKNEKeB5zPpxYyLjJY857GllXyqNt4VbXof-0h2aGnKRwduGBC6bXbqTL4Zm5wDu6J4ncPui2YSwnfet3muaWmEl9/s400/rwanda+genocide+skull+tomb.jpg

However, as we all know, instead of the global-scale famine and widespread death that Ehrlich predicted, the 1970s witnessed a modern agricultural revolution, which continues to this day. Despite a doubling of the world’s population, food production continues to grow as technological innovation creates more and more food on each acre of farmland. As mentioned earlier, the people in the world who suffer from starvation and famine suffer not because of a lack of food but because of, again with the euphemism, political mismanagement.

In the real world, Malthus, Ehrlich, and other similar-minded people have been debunked. But what about aboard the Snowpiercer? Does Malthus’ apocalyptic prediction bear any weight for the train’s inhabitants? Sadly, yes. Firstly, food production can only occur on the train, which, unlike fertile farmland, cannot be expanded or tilled. Secondly, and more importantly, as the only human beings left on the planet are all located inside the train, trade with the outside world is impossible. What that means is that food production is clearly limited and that the train’s inhabitants have no choice but to be self-reliant.

In some ways, the situation that the train’s inhabitants find themselves in is similar to North Korea’s juche system, an ideology which all but destroyed North Korea’s economy and social systems. Considering the heavy security apparatus that Wilford employs (which bears parallels to North Korea’s million-man army) who mostly carry rifles that have no ammo (which bears parallels to North Korea’s ammunition shortage) whose job it is to pacify (which bears parallels to North Korean soldiers being used to terrorize the people into submission) the hungry tail-enders (who bear parallels to North Korea’s hungry citizens), the fictional world of Snowpiercer bears striking resemblance to the Malthusian reality that is North Korea’s juche ideology.

The reality that is juche.
Source: http://bibliojunkie.files.wordpress.com/2010/12/north-korea-is-dark.jpg?w=600&h=444

Under such conditions, not only does the culling of people become possible, it becomes necessary. It is the full blossoming of Jeremy Bentham’s utilitarianism, the philosophical school of thought that calls for “the greatest good for the greatest number,” which when one thinks about it, one begins to realize that it is one of the most vicious slogans ever foisted on humanity. Utilitarianism is a horror because it never defines “good” except that it is whatever is good for the greatest number. Who, in any particular issue, decides what is good for the greatest number? And why does numerical superiority immediately mean that it is good? It is a horrific philosophy, but in North Korea and aboard the Snowpiercer, its horrors take a backseat to its necessity.

The difference between the leadership that oversees the Snowpiercer and their real-life counterparts in North Korea is that the former was forced into its predicament by a rapidly changing climate that was no longer conducive to human survival whereas the latter voluntarily chose to create its own hell. Differences in matters of choice aside, however, it does not change the fact that both leaders are guilty of overseeing the mass murder of their own peoples. This was the movie’s stance on Mathusianism; it is a philosophy that legitimizes mass murder and one that is only possible in a tyrannical regime.

Lastly, the movie touches on the morality of the two leaders of the train – Wilford who rules with an iron fist from the front of the train and Gilliam who preaches (and practices) self-sacrifice from the back of the train. Of the two, Wilford is easier to analyze.

When Wilford and Curtis meet for the first time, besides admitting that Curtis’ revolution and all the previous revolutions that came before were pre-planned efforts at keeping a check on the train’s population, Wilford tells Curtis that everyone on the train has their place; it just so happens that Wilford’s place is at the front of the train. He then says something remarkable to Curtis. While wearing what appears to be a silk robe and cooking a steak dinner in his engine room, which, again, looks like a minimalist version of a Plaza Hotel suite, Wilford says to the clearly exhausted, soot-covered, malnourished, and bleeding Curtis that he, too, has to bear a cost for being at the front of the train; that contrary to what Curtis might think, Wilford isn’t very happy with his lot in life either.

Source: http://ic.pics.livejournal.com/brent360/14736544/16182/16182_600.jpg

The audience could easily sneer at the irony of Wilford’s self-pity. However, I doubt that Wilford was disingenuous. In fact, Wilford is likely the most self-aware and honest character in the entire movie. Unlike Mason, Wilford doesn’t suffer from any kind of delusions. He knows what he wants, and he knows the price that he has to pay for it.

What he wants is power; he simply wants to rule. The cult-like manner in which his henchmen worship him is proof of this. He is not destined for happiness, and he knows this. He simply wants to rule. To rule, Wilford had to design the world that he wanted. It wasn’t just the train that he designed. He designed a world of obedience – a world where the thought of each man will not be his own, but an attempt to guess Wilford’s thoughts. A world where no man will hold a desire for himself but will direct all his efforts to satisfy Wilford’s desires. However, Wilford’s thoughts and desires, and everyone else’s desire to fulfill his thoughts and desires is nothing more than a circular logic. He wishes to rule, and they want to be ruled. And the wheels of the bus go round and round.

But to get what he wants, he has to pay a price. The price that he has to pay is that he has no purpose except to keep the people, the very people whom he despises, contented. He has to lie, flatter, praise, and inflate their vanities and vulgarities. He has less independence than even the mediocrities that he rules over. At least his henchmen rule over the tail-enders and torture them for whatever sadistic pleasure that they derive from it. Wilford, however, is far too intelligent and self-aware to stoop to that level of stupidity and barbarism. He merely uses people for the sake of what he can do for them. It’s his only function. He has no other private purpose. It’s the price that he has to pay for power.

An empty shell of a man
Source: http://jimsomerville.files.wordpress.com/2011/06/humptydumpty1.jpg

Gilliam, on the other hand, is a more complicated case study. Contrary to Wilford’s regal appearance, Gilliam looks disheveled and wears what appears to be sackcloth. In some ways, it’s what I have always imagined John the Baptist to look like. Furthermore, due to his message of self-sacrifice, which he also practices, at least an arm and a leg have been voluntarily amputated to feed the tail-enders before they were provided with their mashed-cockroach protein bar rations. His arm has since been replaced by what looks like a crook handle from an umbrella while his leg has since been replaced by a broomstick.

Source: http://ic.pics.livejournal.com/brent360/14736544/16630/16630_600.jpg

For all intents and purposes, Gilliam seems to be Wilford’s polar opposite. However, during Wilford’s fateful meeting with Curtis, it is revealed that both Wilford and Gilliam were actually friends and had been cooperating with one another from the very beginning; Wilford running things from the front of the train and Gilliam from the back of the train. Though they seldom met face to face, it is revealed that they spoke to each other regularly on the phone in the middle of the night. This was how Wilford knew to send those notes to Curtis to incite his revolution. This is when we realize that Gilliam and Wilford are not actually polar opposites, but, in fact, are mirror images of one another. They are the two sides of the same coin.

In essence, whereas Wilford was demanding that everyone sacrifice their thoughts and their desires to his will, Gilliam was demanding that everyone sacrifice their thoughts and their desires to each other. The difference is to whom people are being commanded to sacrifice. However, it doesn’t change the fact that people are being ordered to make sacrifices. And it stands to reason that where there’s sacrifice, someone is collecting sacrificial offerings. Where there is service, someone is being served. The man who speaks of sacrifice speaks of slaves and masters, and he intends to be the master.

However, Gilliam’s idea of ruling over the masses is more perverse than Wilford’s. According to Gilliam’s notion of self-sacrifice, the world that he envisions is one where the thoughts and desires of each man will not be his own, but an attempt to guess the thoughts and desires of the man next to him who in turn will have no thought or desire of his own. It is a world where everyone is subjugated to the will of everyone else. It is a world where people are slaves to each other, a world that does not even offer the dignity of serving a master.

Wilford’s message was that the individual has no rights; that the Führer, him, is all that matters. In the order that Wilford offers, no private motive is permitted. The only motive that he permits is that of service to him.

On the other hand, Gilliam’s message is that the individual has no rights; that the collective is all that matters. In the order that Gilliam offers, no private motive is permitted. The only motive that he permits is that of service to the masses.

Both men fixed the game from the very beginning. Heads – sacrifice. Tails – sacrifice. It doesn’t matter whether they give up their soul to the Führer or to each other, so long as they give it up; so long as the people accept that self-abnegation and self-denial are considered uncompromisable and sacred values.

Self-sacrifice, however, cannot continue to exist without a leader to collect the alms. In the real world, traditionally, there have been two kinds of leaders who collected these alms. As different as they were, however, like Wilford and Gilliam, they have always been but mirror images of each other. The leaders have always been either God or Society. The people who reaped the alms for the leaders could not, however, be mere mortals. We are mere mortals, and no one knows better than us just how imperfect that we can be. The reapers had to possess a certain kind of moral or political authority over the rest of us. As a result, they have been given various names over human history – Priests, Commissars, Kings, Parliamentarians, etc.

So long as individuals are not free to choose to live our own lives the way we see fit, it doesn’t matter whether we serve God or the Führer or the Proletariat. At the end of the day, we are all just slaves waiting for our turn to be called to the altar.

Source: http://genelempp.files.wordpress.com/2011/07/sacrificial-stone2.gif

That is the ultimate question that Curtis had to answer. Is the human race worth saving if we’re nothing more than slaves to each other? The only correct answer is “No.”

After the train is destroyed, we see that all the main characters, the good, the bad, and the ugly, are all dead. It’s all well and good. All of those characters’ hideous morality was the end result of a putrid philosophy. No good could have possibly come out of their survival.

The only two survivors are a young boy and a slightly older girl, two characters who were born on the train and whose total combined screen time couldn’t have been more than twenty minutes. With the train and its contents destroyed and everyone who had been on board dead, the odds of survival are overwhelmingly stacked against these two young children.

However, whether or not the human race survives is irrelevant. What is relevant is that they are free and that their survival depends on their own independent minds.  This is the movie’s final message: the importance of freedom; damn the odds.

Source: http://www.encognitive.com/files/images/free%20to%20choice--live%20with%20consequences%20of%20your%20choice.jpg

From what I have read online, not only has this movie yet to be released outside of Korea, there isn’t even a release date.

Furthermore, according to Collider.com, the Weinstein Company, which owns the rights to distribute Snowpiercer in the United States, Canada, the United Kingdom, Australia, New Zealand, and South Africa, wants to cut twenty minutes from the movie, mainly from the bits that give character details, ‘to make sure the film will be understood by audiences in Iowa... and Oklahoma.’

Though I am not sure how this movie will change when it is released in the rest of the world, I sincerely hope that the changes will not detract too much from the movie’s overall philosophy.

This movie is unique because it is intelligent and because it treats the audience as though we were intelligent.  To lose that would be to sacrifice what makes this movie special in the first place.  And that would be a terrible shame.


EDIT: February 8th, 2014

It has just been announced on IGN that the director’s cut of Snowpiercer, and not the cut version that Harvey Weinstein wanted, will be released in the US.  Although there is no word yet about a US release date, it seems that it will only be a matter of time before it is announced.


Bong Joon-ho, the director, appears to have stuck to his guns and refused to compromise on his basic principles.  Had he done as Weinstein wanted, and cut twenty minutes from the movie’s more serious story-focused portions, the film would have probably dissatisfied everybody.  Mr. Bong could have focused only on his immediate financial earnings and done as was asked by Weinstein, but he instead chose to remain faithful to his vision, his truth.  He could have compromised; tried to be all the things that were demanded, but both he and the movie might have ended up being nothing more than a disappointment to everyone.


This speaks volumes about the man’s integrity. As an individual, the best compliment that I can offer him is, despite the world that we live in today, where virtual information is so easily transferable, to say this is one movie that I have paid to watch in the theater and will pay to watch again when it is released on Blu-ray.



Source: http://blogs.nature.com/naturejobs/files/2012/10/122279910_integrity1-1024x682.jpg