The Mandibles – a story of a human impact of government finance

This review was posted at Amazon.

Lionel Shriver’s The Mandibles is a dystopia focused on financial issues, but you won’t find Wall Street or government characters in it. It shows how overly simple – and popular! – government decisions ruin the lives of the regular people. It makes an argument that federal government debt is a serious threat to our society and an attempt to get out of debt easily by renouncing it would be a disaster, collapsing the economy and plunging the whole country into dire poverty. In the ensuing economic collapse, shortages of all goods rival what is reported out of modern-day Venezuela. Homelessness is massive. The chilling perspective surely provides some food for thought. The book is well written, with likable characters and vivid scenes.

There are some decidedly Randian notes in the book: the spirited defense of free markets, extended dialogue on economics, cartoonishly negative and arguably mean-spirited depiction of socialists. There is even something like a Galt’s Gulch that I liked better than the original. Rand’s Galt’s Gulch was a utopia and the weakest part of Atlas Shrugged, in part because utopias are generally boring. Shriver’s version is decidedly bleak and thus more realistic. And the whole book is written mostly from a “little man” perspective, which was severely lacking from Rand’s writings.

The book covers 2 distinct time periods: first two thirds of the book are set in the late 2020s – early 2030s, when US is spiraling into collapse. The events of the last third of the book occur in 2047, when the situation is not quite as dire on the level of basic necessities, but federal government reasserted itself and became an oppressive monster. Punitive taxation inhibits economic activity. Government controls every little transaction, down to a parent giving her child a small allowance. Life becomes even bleaker than in the first part because there seems to be no future to hope for. Yet both parts of the book are united by an uplifting thread: spirit and resourcefulness of two persons, a young and an old, finding answers to the toughest challenges.

I found the first part of the book plausible. The events in the book are set off by a decision of a large group of countries to introduce a common currency backed by hard assets. This particular event may be unrealistic, but it doesn’t really matter. Anything could serve as black swan and the book would work with only minor changes if the triggering event was different.

The second part of the book appeared to me to be more schematic and less persuasive. The 2047 period echoes the key element of Vernor Vinge’s Rainbows End: government insisting on inserting itself into everything people do through electronic chips they own and control. While Vinge focuses on technological aspects of this arrangement, Shriver’s book is mostly about routine daily transactions. Interestingly, Vinge expected strict government chipping rules to be flouted and chips hacked, and his society, while not clearly described, was broadly functional. In the Shriver’s book, government control is inescapable and the resulting society hopeless. On this, it’s a bit hard for me to believe Shriver. There is another example of the similar absolutism in the book that sounds dubious. US state of Nevada breaks away from the totalitarian USA. The landlocked territory named USN badly need trade because it is too small to manufacture all the different goods available in the modern economy. US government prohibits any relations with the enemy territory and advertises dire consequences for seditious noncompliance, but doesn’t physically enforce the border. And in the book a spirited smuggling economy does NOT emerge! This makes no sense: while US people are under the spell of government propaganda, the Nevadans know that the border is non-existent and have all the incentives to make trade work. The lack of smuggling is decidedly strange for a book that extolls free markets. Black market is relatively free because it is remarkably difficult to regulate: government doesn’t do that and various non-government strongmen can only do so much. Smuggling and black markets have always existed where governments attempted to restrict trade – just look to Prohibition and the War on Drugs as examples.

The author also makes an astute observation that in a severe depression our entitlements system will lead to a bizarre phenomena where elderly would be the only people with meaningful income. They would become the anchors of their families. Woe to a family in which no one draws a Social Security for they will not know where their next meal will come from. This picture, while dystopian, is not a figment of author’s imagination: it would be familiar to people from former Soviet bloc who lived through internal conflicts and USSR breakup wars. Those government retirement checks were meager indeed, but amid civil wars and economic collapse there were often no jobs to be had.