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it is beautifully written and a magnificent read, whether or not one follows the author all the way to his final destination in this journey of the pilgrim soul in the capitalist wilderness.

McCarraher challenges more than 200 years of post-Enlightenment assumptions about the way we live and work. He rails against “the ensemble of falsehoods that comprise the foundation of economics”, which offer “a specious portrayal of human beings and a fictional account of their history”.

Homo economicus, driven by instrumental self-interest and controlled by the power of money, is condemned as a shabby and degrading construct that betrays the truth of human experience.

After capitalism has delivered what the author describes as “two centuries of Promethean technics and its irreparable ecological impact” there must be a return to an earlier, gentler, more sacramental vision of the world; one that has a greater sense of natural limits and a restored sense of wonder at creation.

McCarraher embarks on a kind of genealogy of neoliberal morals, barrelling his way through the tracts, studies, theories and literature that have constituted the “symbolic universe” of capitalism since the Renaissance.

From the English Puritans who made money for the greater glory of God, through the machine idolatry rampant in 1920s Fordism, to the cult of the ruthless entrepreneur

capitalism is best understood, he concludes, as a secular faith. It operates through myths and dogma, just as any religion does.

Modernity is not, as Max Weber maintained, the culmination of a process of intellectual “disenchantment”, in which societies lost their sense of the sacred and embraced the rational

Instead, a different enchantment took hold of our minds; the material culture of production and consumption. “Its moral and liturgical codes are contained in management theory and business journalism,” writes McCarraher. “Its iconography consists of advertising, marketing, public relations and product design.”

This brave new era produced a “predatory and misshapen love of the world

Spiritually diminished by the commodification of things and people, and the desire to consume, we have lost sight of what the Catholic poet Gerard Manley Hopkins described as the “dearest freshness deep down things”.

On Avarice. This work, says McCarraher, signalled a transition: the growth of commerce and banking was beginning to loosen the grip of biblical disdain for “filthy lucre”

the Florentine then makes an argument that is precociously modern, suggesting that without it, there would be “no temples, no colonnades, no palaces…”

The 17th-century Puritans are presented as a capitalist “avant garde”, driven by notions of a divine calling to turn common land into private property and then turn a profit on it

Milton mourns this sellout of the English revolution, using Paradise Lost to portray Mammon as a fallen angel, driven to blasphemous self-aggrandisement on eart

by the 20th century such satanic cunning is the new common sense in business circles

McCarraher leaves the poetry of Milton to move, via the Industrial Revolution, to the outlandish business utopias dreamed up in early 20th-century America

In February 1928, Vanity Fair caught the mood, praising Henry Ford as “a divine master-mind”

the epilogue of this mammoth portrait of the religious longings at the heart of secular materialism carries a bleak message: 20th-century fantasies of the world as one global business have been realised. Capital’s empire now extends to all corners of the world. Globalisation has built a “paradise of capital”

But Mammon is delivering an unsustainable future dominated by wage stagnation, tech-led unemployment, deepening inequality and environmental peril. As disaster looms, distraction is being sought in “a tranquillising repertoire of digital devices and myriad forms of entertainment” along with “the analgesic pleasures of consumption”.

“get back to the garden”. A new Romantic left is needed to reinhabit a sacramental imagination, which values people and things in themselves rather than as factors of production, and places collaboration over competition

recalling John Ruskin’s principle of “amazement”, which teaches that the gifts of nature should be admired and nurtured, rather than ravished and depleted

where pessimism might take hold, the author’s Christian faith gives him a trump card. For McCarraher, it is simply the case that “the Earth is a sacramental place, mediating the presence and power of God”

however obscured the truth is by a destructive lust for power and accumulation. It is simply a question of seeing things as they truly are.

With respect to crime, poverty and homelessness, Brown argued,One thing that may occur is that disinvestment in city downtowns will alter the spatial distribution of these elements in cities — i.e. in which neighborhoods or areas of a city is crime more likely, and homelessness more visible. Urban downtowns are often policed such that these visible elements of poverty are pushed to other parts of the city where they will not interfere with commercial activities. But absent these activities, there may be less political pressure to maintain these areas. This is not to say that the overall crime rate or homelessness levels will necessarily increase, but their spatial redistribution may further alter the trajectory of commercial downtowns — and the perception of city crime in the broader public.

“The more dramatic effects on urban geography,” Brown continued,may be how this changes cities in terms of economic and racial segregation. One urban trend from the last couple of decades is young white middle- and upper-class people living in cities at higher rates than previous generations. But if these groups become less likely to live in cities, leaving a poorer, more disproportionately minority population, this will make metropolitan regions more polarized by race/class.

the damage that even the perception of rising crime can inflict on Democrats in a Nov. 27 article, “Meet the Voters Who Fueled New York’s Seismic Tilt Toward the G.O.P.”: “From Long Island to the Lower Hudson Valley, Republicans running predominantly on crime swept five of six suburban congressional seats, including three that President Biden won handily that encompass some of the nation’s most affluent, well-educated commuter towns.

In big cities like New York and San Francisco we estimate large drops in retail spending because office workers are now coming into city centers typically 2.5 rather than 5 days a week. This is reducing business activity by billions of dollars — less lunches, drinks, dinners and shopping by office workers. This will reduce city hall tax revenues.

Public transit systems are facing massive permanent shortfalls as the surge in working from home cuts their revenues but has little impact on costs (as subway systems are mostly a fixed cost. This is leading to a permanent 30 percent drop in transit revenues on the New York Subway, San Francisco Bart, etc.

These difficulties for cities will not go away anytime soon. Bloom provided data showing strong economic incentives for both corporations and their employees to continue the work-from-home revolution if their jobs allow it:

First, “Saved commute time working from home averages about 70 minutes a day, of which about 40 percent (30 minutes) goes into extra work.” Second, “Research finds hybrid working from home increases average productivity around 5 percent and this is growing.” And third, “Employees also really value hybrid working from home, at about the same as an 8 percent pay increase on average.

three other experts in real estate economics, Arpit Gupta, of N.Y.U.’s Stern School of Business, Vrinda Mittal, both of the Columbia Business School, and Van Nieuwerburgh. They anticipate disaster in their September 2022 paper, “Work From Home and the Office Real Estate Apocalypse.”

“Our research,” Gupta wrote by email,emphasizes the possibility of an ‘urban doom loop’ by which decline of work in the center business district results in less foot traffic and consumption, which adversely affects the urban core in a variety of ways (less eyes on the street, so more crime; less consumption; less commuting) thereby lowering municipal revenues, and also making it more challenging to provide public goods and services absent tax increases. These challenges will predominantly hit blue cities in the coming years.

the three authors “revalue the stock of New York City commercial office buildings taking into account pandemic-induced cash flow and discount rate effects. We find a 45 percent decline in office values in 2020 and 39 percent in the longer run, the latter representing a $453 billion value destruction.”

Extrapolating to all properties in the United States, Gupta, Mittal and Van Nieuwerburgh write, the “total decline in commercial office valuation might be around $518.71 billion in the short-run and $453.64 billion in the long-run.”

the share of real estate taxes in N.Y.C.’s budget was 53 percent in 2020, 24 percent of which comes from office and retail property taxes. Given budget balance requirements, the fiscal hole left by declining central business district office and retail tax revenues would need to be plugged by raising tax rates or cutting government spending.

Since March 2020, Manhattan has lost 200,000 households, the most of any county in the U.S. Brooklyn (-88,000) and Queens (-51,000) also appear in the bottom 10. The cities of Chicago (-75,000), San Francisco (-67,000), Los Angeles (-64,000 for the city and -136,000 for the county), Washington DC (-33,000), Seattle (-31,500), Houston (-31,000), and Boston (-25,000) make up the rest of the bottom 10.

Prior to the pandemic, these ecosystems were designed to function based on huge surges in their daytime population from commuters and tourists. The shock of the sudden loss of a big chunk of this population caused a big disruption in the ecosystem.

Just as the pandemic has caused a surge in telework, Loh wrote, “it also caused a huge surge in unsheltered homelessness because of existing flaws in America’s housing system, the end of federally-funded relief measures, a mental health care crisis, and the failure of policies of isolation and confinement to solve the pre-existing homelessness crisis.”

The upshot, Loh continued,is that both the visibility and ratio of people in crisis relative to those engaged in commerce (whether working or shopping) has changed in a lot of U.S. downtowns, which has a big impact on how being downtown ‘feels’ and thus perceptions of downtown.

The nation, Glaeser continued, isat an unusual confluence of trends which poses dangers for cities similar to those experienced in the 1970s. Event#1 is the rise of Zoom, which makes relocation easier even if it doesn’t mean that face-to-face is going away. Event#2 is a hunger to deal with past injustices, including police brutality, mass incarceration, high housing costs and limited upward mobility for the children of the poor.

Progressive mayors, according to Glaeser,have a natural hunger to deal with these problems at the local level, but if they try to right injustices by imposing costs on businesses and the rich, then those taxpayers will just leave. I certainly remember New York and Detroit in the 1960s and 1970s, where the dreams of progressive mayors like John Lindsay and Jerome Patrick Cavanagh ran into fiscal realities.

Richard Florida, a professor of economic analysis and policy at the University of Toronto, stands out as one of the most resolutely optimistic urban scholars. In his August 2022 Bloomberg column, “Why Downtown Won’t Die,”

His answer:

Great downtowns are not reducible to offices. Even if the office were to go the way of the horse-drawn carriage, the neighborhoods we refer to today as downtowns would endure. Downtowns and the cities they anchor are the most adaptive and resilient of human creations; they have survived far worse. Continual works in progress, they have been rebuilt and remade in the aftermaths of all manner of crises and catastrophes — epidemics and plagues; great fires, floods and natural disasters; wars and terrorist attacks. They’ve also adapted to great economic transformations like deindustrialization a half century ago.

Florida wrote that many urban central business districts are “relics of the past, the last gasp of the industrial age organization of knowledge work the veritable packing and stacking of knowledge workers in giant office towers, made obsolete and unnecessary by new technologies.”

“Downtowns are evolving away from centers for work to actual neighborhoods. Jane Jacobs titled her seminal 1957 essay, which led in fact to ‘The Death and Life of Great American Cities,’ ‘Downtown Is for People’ — sounds about right to me.”

Despite his optimism, Florida acknowledged in his email thatAmerican cities are uniquely vulnerable to social disorder — a consequence of our policies toward guns and lack of a social safety net. Compounding this is our longstanding educational dilemma, where urban schools generally lack the quality of suburban schools. American cities are simply much less family-friendly than cities in most other parts of the advanced world. So when people have kids they are more or less forced to move out of America’s cities.

What worries me in all of this, in addition to the impact on cities, is the impact on the American economy — on innovation. and competitiveness. Our great cities are home to the great clusters of talent and innovation that power our economy. Remote work has many advantages and even leads to improvements in some kinds of knowledge work productivity. But America’s huge lead in innovation, finances, entertainment and culture industries comes largely from its great cities. Innovation and advance in. these industries come from the clustering of talent, ideas and knowledge. If that gives out, I worry about our longer-run economic future and living standards.

The risk that comes with fiscal distress is clear: If city governments face budget shortfalls and begin to cut back on funding for public transit, policing, and street outreach, for the maintenance of parks, playgrounds, community centers, and schools, and for services for homelessness, addiction, and mental illness, then conditions in central cities will begin to deteriorate.

There is reason for both apprehension and hope. Cities across time have proven remarkably resilient and have survived infectious diseases from bubonic plague to cholera to smallpox to polio. The world population, which stands today at eight billion people, is 57 percent urban, and because of the productivity, innovation and inventiveness that stems from the creativity of human beings in groups, the urbanization process is quite likely to continue into the foreseeable future. There appears to be no alternative, so we will have to make it work.

As so many IRL organizing meetings are, the meeting was admirably focused on the here and now. There was little to complain about. But when a speaker closed by saying “All power to the people,” I winced. Because it was emblematic of that inescapable feeling that attends radical politics now - the feeling that it’s all kitsch, like a Googie-architecture portrayal of the space age.

The palpable sense that everyone is quietly aware that the whole thing is a type of pantomime, people going through the motions with no real sense of possibility, unwilling to entirely give up on the profound moral necessity of radical change but at this point entirely incapable of lying to themselves about the reality of what’s actually possible

you know what would be a much bigger symbol of radical progress than some killer whales attacking a couple dozen random small watercraft? A diverse working-class movement based on shared economic need, coming together across demographic distance and using their labor power to earn a better, more just world for all people, rallying under a banner of shared sacrifice and the universal brotherhood of all. But nobody, nobody believes that such a thing is possible. Not anymore

We are all of us at a lefty Renaissance festival, our hammer and sickles no more authentic than Ye Olde Meade Hall, feeling like parents trying to keep the myth of Santa Claus alive to a child that’s probably just too old to keep buying it

It’s easier to imagine whales delivering our salvation than it is to imagine us delivering it to ourselves.

Yes, enjoying orcas attacking some random boats is natural and funny, and rolling that into a metaphor of radical politics in a humorous way is fine. But that’s not all that’s been happening with this story, is it? I’m not just talking about a few random tweets, here. I’ve been following this story for days now, in various forums, and growing increasingly sad as people seem to invest more and more in this, emotionally. What’s going on here, exactly?

I was at an organizing meeting not too long ago, one put together by a good local lefty organizatio

Many of these scholars, he correctly notes, adopted the German model of the research university—but, he claims, only for evil purposes. “As racist ideas jumped off their scholarly pages,” he writes, “American scholars were especially enamored with the German ideal of the disinterested, unbiased pursuit of truth through original scholarly studies, and academic freedom to propagandize African inferiority and European superiority [sic].”

just as Kendi argues in Stamped from the Beginning that the racism of some of the founding fathers irrevocably and permanently brands the United States as a racist nation, he claims that these disciplines cannot be taken seriously because of the racism of some of their founders

Kendi complains in the autobiographical sections of How to Be an Antiracist that his parents often talked the same way to him. Nor does it matter to him that the abolitionists bemoaning the condition of black people under slavery were obviously blaming slavery for it. Any negative picture of any group of black people, to him, simply fuels racism.

Two critical ideas emerge from this article. The first is the rejection of the entire western intellectual tradition on the grounds that it is fatally tainted by racism, and the need for a new academic discipline to replace that tradition.

the second—developed at far greater length in Kendi’s other works—is that anyone who finds European and white North American culture to be in any way superior to the culture of black Americans, either slave or free, is a racist, and specifically a cultural racist or an “assimilationist” who believes that black people must become more like white people if they are to progress.

Kendi, in Stamped from the Beginning, designated Phyllis Wheatley, William Lloyd Garrison, Harriet Beecher Stowe, Sojourner Truth, W. E. B. DuBois, E. Franklin Frazier, Kenneth and Mamie Clark, and other black and white champions of abolition and equal rights as purveyors of racist views. At one time or another, each of them pointed to the backward state of many black people in the United States, either under slavery or in inner-city ghettos, and suggested that they needed literacy and, in some cases, better behavior to advance.

because racism is the only issue that matters to him, he assumes—wrongly—that it was the only issue that mattered to them, and that their disciplines were nothing more than exercises in racist propaganda.

This problem started, he says, “back in the so-called Age of Enlightenment.” Elsewhere he calls the word “enlightenment” racist because it contrasts the light of Europe with the darkness of Africa and other regions.

In fact, the western intellectual tradition of the eighteenth century—the Enlightenment—developed not as an attempt to establish the superiority of the white race, but rather to replace a whole different set of European ideas based on religious faith, the privilege of certain social orders, and the divine right of kings

many thinkers recognized the contradictions between racism and the principles of the Enlightenment—as well as its contradiction to the principles of the Christian religion—from the late eighteenth century onward. That is how abolitionist movements began and eventually succeeded.

Like the last movement of Beethoven’s Ninth Symphony—which has become practically the alternate national anthem of Japan—those principles are not based upon white supremacy, but rather on a universal idea of common humanity which is our only hope for living together on earth.

The western intellectual tradition is not his only target within modern life; he feels the same way about capitalism, which in his scheme has been inextricably bound together with racism since the early modern period.

“To love capitalism,” he says, “is to end up loving racism. To love racism is to end up loving capitalism.” He has not explained exactly what kind of economic system he would prefer, and his advocacy for reparations suggests that he would be satisfied simply to redistribute the wealth that capitalism has created.

Last but hardly least, Kendi rejects the political system of the United States and enlightenment ideas of democracy as well.

I am constantly amazed at how few people ever mention his response to a 2019 Politico poll about inequality. Here it is in full.

To fix the original sin of racism, Americans should pass an anti-racist amendment to the U.S. Constitution that enshrines two guiding anti-racist principals: Racial inequity is evidence of racist policy and the different racial groups are equals. The amendment would make unconstitutional racial inequity over a certain threshold, as well as racist ideas by public officials (with “racist ideas” and “public official”

The DOA would be responsible for preclearing all local, state and federal public policies to ensure they won’t yield racial inequity, monitor those policies, investigate private racist policies when racial inequity surfaces, and monitor public officials for expressions of racist ideas. The DOA would be empowered with disciplinary tools to wield over and against policymakers and public officials who do not voluntarily change their racist policy and ideas.

In other words, to undo the impact of racism as Kendi understands it, the United States needs a totalitarian government run by unaccountable “formally trained experts in racism”—that is, people like Ibram X. Kendi—who would exercise total power over all levels of government and private enterprise

Kendi evidently realizes that the American people acting through their elected representatives will never accept his antiracist program and equalize all rewards within our society, but he is so committed to that program that he wants to throw the American political system out and create a dictatorial body to implement it.

How did a man pushing all these ideas become so popular? The answer, I am sorry to say, is disarmingly simple. He is not an outlier in the intellectual history of the last half-century—quite the contrary.

The Enlightenment, in retrospect, made a bold claim that was bound to get itself into trouble sooner or later: that the application of reason and the scientific method to human problems could improve human life. That idea was initially so exciting and the results of its application for about two centuries were so spectacular that it attained a kind of intellectual hegemony, not only in Europe, but nearly all over the world.

As the last third of the twentieth century dawned, however, the political and intellectual regime it had created was running into new problems of its own. Science had allowed mankind to increase its population enormously, cure many diseases, and live a far more abundant life on a mass scale.

But it had also led to war on an undreamed-of scale, including the actual and potential use of nuclear weapons

As higher education expanded, the original ideas of the Enlightenment—the ones that had shaped the humanities—had lost their novelty and some of their ability to excite.

last but hardly least, the claimed superiority of reason over emotion had been pushed much too far. The world was bursting with emotions of many kinds that could no longer be kept in check by the claims of scientific rationality.

A huge new generation had grown up in abundance and security.

The Vietnam War, a great symbol of enlightenment gone tragically wrong, led not only to a rebellion against American military overreach but against the whole intellectual and political structure behind it.

The black studies movement on campuses that produced Molefi Kete Asante, who in turn gave us Ibram X. Kendi, was only one aspect of a vast intellectual rebellion

Some began to argue that the Enlightenment was simply a new means of maintaining male supremacy, and that women shared a reality that men could not understand. Just five years ago in her book Sex and Secularism, the distinguished historian Joan Wallach Scott wrote, “In fact, gender inequality was fundamental to the articulation of the separation of church and state that inaugurated Western modernity. . . .Euro-Atlantic modernity entailed a new order of women’s subordination” (emphasis in original). Gay and gender activists increasingly denied that any patterns of sexual behavior could be defined as normal or natural, or even that biology had any direct connection to gender. The average graduate of elite institutions, I believe, has come to regard all those changes as progress, which is why the major media and many large corporations endorse them.

Fundamentalist religion, apparently nearly extinct in the mid-twentieth century, has staged an impressive comeback in recent decades, not only in the Islamic world but in the United States and in Israe

Science has become bureaucratized, corrupted by capitalism, and often self-interested, and has therefore lost a good deal of the citizenry’s confidence.

One aspect of the Enlightenment—Adam Smith’s idea of free markets—has taken over too much of our lives.

in the academy, postmodernism promoted the idea that truth itself is an illusion and that every person has the right to her own morality.

The American academy lost its commitment to Enlightenment values decades ago, and journalism has now followed in its wake. Ju

Another aspect of the controversy hasn’t gotten enough attention either. Kendi is a prodigious fundraiser, and that made him a real catch for Boston University.

No matter what happens to Ibram X. Kendi now, he is not an anomaly in today’s intellectual world. His ideas are quite typical, and others will make brilliant careers out of them as well

We desperately need thinkers of all ages to keep the ideas of the Enlightenment alive, and we need some alternative institutions of higher learning to cultivate them once again. But they will not become mainstream any time soon. The last time that such ideas fell off the radar—at the end of the Roman Empire—it took about one thousand years for their renaissance to begin

We do not as individuals have to give into these new ideas, but it does no good to deny their impact. For the time being, they are here to stay.

They tend to read each assignment two or three times before coming to class and take notes as well. Some of them have been incarcerated for 20 or 30 years and have been reading books all that time. They would hold their own in any graduate seminar. That they have had rough experiences out in the real world means they are less liable to fall prey to facile ideologies. A large proportion of them are black and Latino, and while they may not like David Hume’s or Thomas Jefferson’s ideas on race, they want to read those authors anyway. They want, in short, to be a part of the centuries-long conversation that makes up our civilization

My students there, enrolled in a for-credit college program, provide a sharp contrast with contemporary undergraduates. These men are highly motivated and hard-working

Never have I been more grateful to teach where I do: at a men’s maximum-security priso

Best of all from my selfish point of view as an educator, these students have no access to cellphones or the internet

they have retained their attention spans, while those of modern college students have been destroyed by their dependence on smartphones

My friends who teach at Harvard tell me administrators have advised them to change topics or activities several times in each class meeting because the students simply can’t focus for that long.

My students at the prison sit through a 2½-hour class without any loss of focus. They don’t yawn or take bathroom breaks

I have taught classes on the Enlightenment, the Renaissance, Romanticism, George Orwell, South Asian fiction. We’ve done seminars on Adam Smith and Alexis de Tocqueville. Together we have read Montaigne, Rousseau, Keats, Erasmus, Locke, Montesquieu, Wollstonecraft, Byron, Goethe, Petrarch, Rabelais, Saadat Hasan Manto, Rohinton Mistry

We encourage them to treat different societies in history as experiments in time travel, where they try to understand the mores of particular eras as though from the inside. They are very open to that approach, unlike university students, who tend see the past only as one long undifferentiated era of grievous unenlightenment: not just one damn thing after another, but one damn oppressive thing after another.

Like students at elite institutions, most of my incarcerated scholars are politically liberal. Unlike them, many are religious, and that proves surprisingly enriching in studying these authors

My hours at the prison are rich in such moments. In many ways, it is the Platonic ideal of teaching, what teaching once was. No faculty meetings, no soul-deadening committee work, no bloated and overbearing administration. No electronics, no students whining about grades.

Quite a few of our students are serving life sentences and will never be able to make use of their hard-won college credits

No student debt, no ideological intolerance, no religious tests—whoops, I mean mandatory “diversity” statements.

And in our courteous, laughter-filled classroom there is none of the “toxic environment” that my friends in the academy complain about, and that I experienced during my own college teaching career.

If prison inmates, many of whom have committed violent crimes, can pay close attention for a couple of hours, put aside their political and personal differences, support one another’s academic efforts, write eloquent essays without the aid of technology and get through a school year without cheating, is it too much to ask university students to do the same?

Or ask professors to try to create an atmosphere where these habits can prevail

it is easy to forget how much we have in common as people. I can’t think of any major nation after the United States with more of a Protestant work ethic and naturally capitalist population than China.

These days, it is extremely difficult for a visiting columnist to get anyone — a senior official or a Starbucks barista — to speak on the record. It was not that way a decade ago.

The Communist Party’s hold is also a product of all the hard work and savings of the Chinese people, which have enabled the party and the state to build world-class infrastructure and public goods that make life for China’s middle and lower classes steadily better.

Beijing and Shanghai, in particular, have become very livable cities, with the air pollution largely erased and lots of new, walkable green spaces.

some 900 cities and towns in China are now served by high-speed rail, which makes travel to even remote communities incredibly cheap, easy and comfortable

Just when trust has become more important than ever between the U.S. and China, it also has become scarcer than ever. Bad trend.

China’s stability is a product of both an increasingly pervasive police state and a government that has steadily raised standards of living. It’s a regime that takes both absolute control and relentless nation-building seriously.

For an American to fly from New York’s Kennedy Airport into Beijing Capital International Airport today is to fly from an overcrowded bus terminal to a Disney-like Tomorrowland.

China got an early jump on A.I. in two realms — facial recognition technology and health records — because there are virtually no privacy restrictions on the government’s ability to build huge data sets for machine learning algorithms to find patterns.

“ChatGPT is prompting some people to ask if the U.S. is rising again, like in the 1990s,”

“I understand your feeling: You have been in the first place for a century, and now China is rising, and we have the potential to become the first — and that is not easy for you,” Hu said to me. But “you should not try to stop China’s development. You can’t contain China in the end. We are quite smart. And very diligent. We work very hard. And we have 1.4 billion people.”

Before the Trump presidency, he added: “We never thought China-U.S. relations would ever become so bad. Now we gradually accept the situation, and most Chinese people think there is no hope for better relations. We think the relationship will be worse and worse and hope that war will not break out between our two countries.”

A lot of people hesitated when I asked. Indeed, many would answer with some version of “I’m not sure, I just know that it’s THEIR fault.”

t was repeated conversations like these that got me started asking American, Chinese and Taiwanese investors, analysts and officials a question that has been nagging at me for a while: What exactly are America and China fighting about?

the real answer is so much deeper and more complex than just the usual one-word response — “Taiwan” — or the usual three-word response — “autocracy versus democracy.”

Let me try to peel back the layers. The erosion in U.S.-China relations is a result of something old and obvious — a traditional great-power rivalry between an incumbent power (us) and a rising power (China) — but with lots of new twists

One of the twists, though, is that this standard-issue great-power rivalry is occurring between nations that have become as economically intertwined as the strands of a DNA molecule. As a result, neither China nor America has ever had a rival quite like the other.

in modern times, China, like America, has never had to deal with a true economic and military peer with which it was also totally intertwined through trade and investment.

Another new twist, and a reason it’s hard to define exactly what we’re fighting about, has a lot to do with how this elusive issue of trust and the absence of it have suddenly assumed much greater importance in international affairs.

This is a byproduct of our new technological ecosystem in which more and more devices and services that we both use and trade are driven by microchips and software, and connected through data centers in the cloud and high-speed internet

so many more things became “dual use.” That is, technologies that can easily be converted from civilian tools to military weapons, or vice versa.

no one country or company can own the whole supply chain. You need the best from everywhere, and that supply chain is so tightly intertwined that each company has to trust the others intimately.

when we install the ability to sense, digitize, connect, process, learn, share and act into more and more things — from your GPS-enabled phone to your car to your toaster to your favorite app — they all become dual use, either weapons or tools depending on who controls the software running them and who owns the data that they spin off.

As long as most of what China sold us was shallow goods, we did not care as much about its political system — doubly so because it seemed for a while as if China was slowly but steadily becoming more and more integrated with the world and slightly more open and transparent every year. So, it was both easy and convenient to set aside some of our worries about the dark sides of its political system.

when you want to sell us ‘deep goods’ — goods that are dual use and will go deep into our homes, bedrooms, industries, chatbots and urban infrastructure — we don’t have enough trust to buy them. So, we are going to ban Huawei and instead pay more to buy our 5G telecom systems from Scandinavian companies we do trust: Ericsson and Nokia.”

as we’ve seen in Ukraine, a smartphone can be used by Grandma to call the grandkids or to call a Ukrainian rocket-launching unit and give it the GPS coordinates of a Russian tank in her backyard.

So today, the country or countries that can make the fastest, most powerful and most energy efficient microchips can make the biggest A.I. computers and dominate in economics and military affairs.

As more and more products and services became digitized and electrified, the microchips that powered everything became the new oil. What crude oil was to powering 19th- and 20th-century economies, microchips are for powering 21st-century economies.

When you ask them what is the secret that enables TSMC to make 90 percent of the world’s most advanced logic chips — while China, which speaks the same language and shares the same recent cultural history, makes zero — their answer is simple: “trust.”

TSMC is a semiconductor foundry, meaning it takes the designs of the most advanced computer companies in the world — Apple, Qualcomm, Nvidia, AMD and others — and turns the designs into chips that perform different processing functions

TSMC makes two solemn oaths to its customers: TSMC will never compete against them by designing its own chips and it will never share the designs of one of its customers with another.

“Our business is to serve multiple competitive clients,” Kevin Zhang, senior vice president for business development at TSMC, explained to me. “We are committed not to compete with any of them, and internally our people who serve customer A will never leak their information to customer C.”

But by working with so many trusted partners, TSMC leverages the partners’ steadily more complex designs to make itself better — and the better it gets, the more advanced designs it can master for its customers. This not only requires incredibly tight collaboration between TSMC and its customers, but also between TSMC and its roughly 1,000 critical local and global suppliers.

As the physics of chip making gets more and more extreme, “the investment from customers is getting bigger and bigger, so they have to work with us more closely to make sure they harvest as much [computing power] as they can. They have to trust you.”

China also has a foundry, Semiconductor Manufacturing International Corporation, which is partly state-owned. But guess what? Because no global chip designers trust SMIC with their most advanced designs, it is at least a decade behind TSMC.

It’s for these reasons that the erosion in U.S.-China relations goes beyond our increasingly sharp disagreements over Taiwan. It is rooted in the fact that just when trust, and its absence, became much bigger factors in international affairs and commerce, China changed its trajectory. It made itself a less trusted partner right when the most important technology for the 21st century — semiconductors — required unprecedented degrees of trust to manufacture and more and more devices and services became deep and dual use.

when American trade officials said: “Hey, you need to live up to your W.T.O. commitments to restrict state-funding of industries,” China basically said: “Why should we live by your interpretation of the rules? We are now big enough to make our own interpretations. We’re too big; you’re too late.”

Combined with China’s failure to come clean on what it knew about the origins of Covid-19, its crackdown on democratic freedoms in Hong Kong and on the Uyghur Muslim minority in Xinjiang, its aggressive moves to lay claim to the South China Sea, its increasing saber rattling toward Taiwan, its cozying up to Vladimir Putin (despite his savaging of Ukraine), Xi’s moves toward making himself president for life, his kneecapping of China’s own tech entrepreneurs, his tighter restrictions on speech and the occasional abduction of a leading Chinese businessman — all of these added up to one very big thing: Whatever trust that China had built up with the West since the late 1970s evaporated at the exact moment in history when trust, and shared values, became more important than ever in a world of deep, dual-use products driven by software, connectivity and microchips.

it started to matter a lot more to Western nations generally and the United States in particular that this rising power — which we were now selling to or buying from all sorts of dual-use digital devices or apps — was authoritarian.

eijing, for its part, argues that as China became a stronger global competitor to America — in deep goods like Huawei 5G — the United States simply could not handle it and decided to use its control over advanced semiconductor manufacturing and other high-tech exports from America, as well as from our allies, to ensure China always remained in our rearview mirror

Beijing came up with a new strategy, called “dual circulation.” It said: We will use state-led investments to make everything we possibly can at home, to become independent of the world. And we will use our manufacturing prowess to make the world dependent on our exports.

Chinese officials also argue that a lot of American politicians — led by Trump but echoed by many in Congress — suddenly seemed to find it very convenient to put the blame for economic troubles in the U.S.’s middle class not on any educational deficiencies, or a poor work ethic, or automation or the 2008 looting by financial elites, and the crisis that followed, but on China’s exports to the United States.

As Beijing sees it, China not only became America’s go-to boogeyman, but in their frenzy to blame Beijing for everything, members of Congress started to more recklessly promote Taiwan’s independence.

Xi told President Biden at their summit in Bali in November, in essence: I will not be the president of China who loses Taiwan. If you force my hand, there will be war. You don’t understand how important this is to the Chinese people. You’re playing with fire.

at some level Chinese officials now understand that, as a result of their own aggressive actions in recent years on all the fronts I’ve listed, they have frightened both the world and their own innovators at precisely the wrong time.

I don’t buy the argument that we are destined for war. I believe that we are doomed to compete with each other, doomed to cooperate with each other and doomed to find some way to balance the two. Otherwise we are both going to have a very bad 21st century.

I have to say, though, Americans and Chinese remind me of Israelis and Palestinians in one respect: They are both expert at aggravating the other’s deepest insecurities.

China’s Communist Party is now convinced that America wants to bring it down, which some U.S. politicians are actually no longer shy about suggesting. So, Beijing is ready to crawl into bed with Putin, a war criminal, if that is what it takes to keep the Americans at bay.

Americans are now worried that Communist China, which got rich by taking advantage of a global market shaped by American rules, will use its newfound market power to unilaterally change those rules entirely to its advantage. So we’ve decided to focus our waning strength vis-à-vis Beijing on ensuring the Chinese will always be a decade behind us on microchips.

I don’t know what is sufficient to reverse these trends, but I think I know what is necessary.

If it is not the goal of U.S. foreign policy to topple the Communist regime in China, the United States needs to make that crystal clear, because I found a lot more people than ever before in Beijing think otherwise.

As for China, it can tell itself all it wants that it has not taken a U-turn in recent years. But no one is buying it. China will never realize its full potential — in a hyper-connected, digitized, deep, dual-use, semiconductor-powered world — unless it understands that establishing and maintaining trust is now the single most important competitive advantage any country or company can have. And Beijing is failing in that endeavor.

In his splendid biography of the great American statesman George Shultz, Philip Taubman quotes one of Shultz’s cardinal rules of diplomacy and life: “Trust is the coin of the realm.”