Reading about the WH's refusal to sign the COVID relief package, many historical parallels come to mind.

But since Asian history is underrepresented, a spotlight on Wang Anshi and the decline of the Song dynasty.
@AskAKorean @Noahpinion

https://twitter.com/thehill/status/1291782962850258944?s=20

The often-repeated description of pre-modern China as a stagnant society is incorrect. The Northern Song dynasty (960-1127) is evidence of this.

With an admin focused on econ growth, trade penetrated the countryside and farmers produced surpluses for a rapidly urbanizing society

This rapid growth can be seen in the expansion of the money supply. The world's first paper currency is introduced in China during this period.

And in the 11th century, you see signs of mass industrial production: Song arsenals produced more than 16 mil arrowheads/year.

Over time, however, large estates grew wealthier and began evading taxes. This shifted the tax burden to the poor, exacerbating a widening wealth gap.

This is the period when the Chinese classic "Water Margins" is set. The novel details the rampant injustice

Simultaneously, the Song faced a geopolitical threat in the north. The Liao dynasty was threatening China's frontiers. Gifted cavalrymen, the Khitan people who established the Liao had already established a presence south of the Great Wall and were being held back w/tribute

Into this crisis stepped Wang Anshi with a major reform package that would address both the growing inequality and the security threat.

The important feature of Wang's "New Policies" for our story today was simple: The state would become a direct lender to the peasantry.

Why was this important?

The large estates were lending grain to poorer farmers. These loans were important because they fed farming families between sowing and harvest months. But the estates charged a 100% interest rate, ensuring that these farmers would remain poor

Wang's plan was for the government to correct this usurious behavior by lending grain at a 20-30% interest rate. Still very high, but a major boon to the livelihood of the peasantry.

Moreover, he proposed that the state reassess property taxes to end tax evasion.

Adding a security dimension to these reforms, Wang proposed that the government lend horses to poor farmers. This would increase their productivity. In return, these farmers would be responsible for taking care of them, and the horses would be collected during wartime.

Wang's "New Policies" addressed both the growing economic injustice and security threat to the empire.

But it infuriated the wealthy. The rising productivity of poorer farmers meant more competition for their estates. And government loans undercut their money lending business.

There were some setbacks. The state had trouble managing the overwhelming request for loans - and often the bureaucrats succumbed to bribery.

Moreover, any setback in society - a drought or even a comet - was blamed on Wang's reforms. He was ultimately pushed out of court.

The reforms floundered in Wang's absence.

The result was an increasingly impoverished society that was incapable of defending itself against threats from the north.

In 1125, the capital Kaifeng fell to the Jurchen.
In 1279, the remainder of the Song fell to the Mongols

Coming back to the present-day U.S., it's discouraging that our government is floundering in the face of a clear need for the government to act in the interest of economic justice and public health. It had been so gungho about tax cuts for the wealthy https://www.nbcnews.com/politics/congress/senate-republican-coronavirus-aid-plan-excludes-evictions-moratorium-n1235108

tl;dr

In the words of @mollywood: An unequal country is a vulnerable country.

/end