Home
/
RELIGION & LIBERTY ONLINE
/
The GameStop squeeze and the politics of envy
The GameStop squeeze and the politics of envy
Jan 15, 2025 11:19 AM

The GameStop squeeze is still alive, if fading. After jumping 1,500% in a matter of weeks, the stock has dropped and stalled, with some retail investors still holding out for another surge.

But while the dust has not yet settled, the popular narrative already seems to be firmly fixed: This was a battle between David and Goliath, a revolution sparked by the spunky rebels of Reddit against the hedge fund know-it-alls who have long deserved euppance. Whatever the end results, a new day has dawned in the fight to “stick it to the man.”

In many ways, it represents yet another manifestation of mob politics in the age of Instant Culture, inviting cheers and jeers from populist corners in predictable partisan patterns – all with little care or concern for detail, nuance, or underlying virtues or principles.

The game has started. The narrative is set. The protagonists are predetermined. The villains are duly marked. And so we grab our proverbial popcorn with glee.

“When everything is a game, everything is a joke and vice-versa,” writes game critic Todd Martens. “So, smile when you pose with that stolen lectern from the Capitol and laugh when you make thousands off a pany. Different people, different causes, but it’s all rooted in the same internet-fueled principles. No wonder, then, Republicans and Democrats have appeared aligned on the GameStop saga. It’s one thing to think the revolution will not be be televised, but it’s a whole other challenge when it’s memed and gamified.”

From Sen. Ted Cruz to Rep. Alexandria Ocasio-Cortez, politicians are hastily jockeying to unite behind the “little guy” against the “wealthy elites,” regardless of the existing laws or the wider range of incentives and trade-offs at play. The populist rage has found its focus, spurring a frenetic contest for the most outspoken Advocate of the Masses – an honor that is sure to catalyze plenty of undue oversight from our federal bureaucracy.

The risk of cronyism is real, to be sure. Yet in this particular case, the trades were made freely and without government interference. The verdict is still out on why Robinhood and other consumer platforms chose to block specific trades, but the rationale seems largely legitimate. Likewise, we have yet to fully understand the role that big money played on the spunky side of the trades, meaning that this may have been a bet between Goliaths and Goliaths, with the mon man” playing a smaller role than originally suspected. As Avik Roy explains, “The pundit class narrative about $GME as the ordinary Joes notching a win against the Wall Street titans pletely wrong on multiple levels.”

In the latest Acton Line podcast, financial analyst David Bahnsen digs deeper into these nuances, helping discern what really went down, and where the populist mythology typically goes astray. When es to hedge funds, for example, Bahnsen points out their various contributions over the years, which have led to new synergies, better price discovery, and greater accountability in capital markets.

“Are there some [hedge funds] who are sinister and short-sighted?” Bahnsen asks. “Yes, and those things have to be dealt with by market forces. But are these people operating in their self-interest and in pursuit of a profit that satisfies their clientele…doing an evil act? The answer is absolutely not.”

Unfortunately, the populist masses seem less concerned with such details, preferring to fill in the blanks with more vanilla varieties of eat-the-rich sentiment. For Sen. Elizabeth Warren and many others, the question is not so much about unfair “market manipulation,” but whether “the wealthy” are the primary players, and how the government can get around to “playing cop” accordingly.

Without a clear understanding of the moral good of free and open exchange and an honest embrace of the risks e along with it, this is where such fantasies typically lead. By seeking to “tear down the rich” as a value unto itself, we are bound to drift toward more sinister searches for political power and control, with results that have historically harmed the rich and the poor alike.

Thus, our concerns ought to revolve around far more than profits and losses or the makeup of winners and losers on this or that particular squeeze – whether they are rich or poor, “entrenched” or “revolutionary,” living on Wall Street or in their mothers’ basements.

As former Wall Street trader Chris Arnade explains, the underlying cultural attitudes have far more significance, bearing intangible fruits that are sure to endure beyond the material chaos of the moment. When all is said and done, the “smart money” will have stayed plenty safe and secure. Meanwhile, popular sentiment is only likely to grow in its cynicism and antagonism toward the rich:

For bankers this will just be another day at the office, another of the many market blow ups that don’t impact them, but impacts everyone else. Another thing those normies are outraged about to roll their eyes over.

The lesson taken away by those losers, and everyone else not on Wall Street, is more important, insightful, and dangerous though. It will be that there isn’t a meritocracy, or at least a justified one. It will be that everyone is just playing games. Those at the top get to dress up their game, even though it is destructive to everyone else, as legitimate, call playing it a career, and get rewarded mightily for it. Others, like them, have to make it a hobby, and even though it is just harmless fun, get scolded for it.

This will harden a cynicism that already exists in large parts of America. A cynicism that will convince more and more people to play all of their life, recklessly. To do what is known in gaming circles, as Int-ing, or Intentionally dying. Running madly at the boss, unworried if they are going to lose, suffer, or die. Because if you are not going to be allowed to win a rigged game, you might as well ruin it, and extract just a tiny moment of joy from that.

As real and pressing as those trends may be, Christians have a moral obligation to resist such cynicism – seeking clarity about the nature of our economic systems and institutions while staying vigilant to put freedom and virtue ahead of envy and class resentment.

“At its core, populism is covetousness disguised as a political movement,” writes Bahnsen. “And when es to matters like this Gamestop/Robinhood silliness, the rank disdain for the Ten Commandments that undergirds the current narrative – not to mention disdain for a coherent grasp of basic facts – is really self-evident.”

When we look past the bluster and acquaint ourselves with the facts, it es clear that this is not a Marxist crisis of history, wherein an oppressed proletariat is unduly shuttered from access and opportunity. If anything, the latest spectacle ought to confirm that our reality is quite the opposite.

“The arguments being made against [wealthy people] are not substantive or intellectual. They’re not theological or even philosophical,” Bahnsen concludes. “They are simply arguments that stem from a covetousness. And I think that is the problem for men and women of faith. It is an empty argument devoid of actually connecting the dots as to what these people are doing.”

Throughout the chaos of the squeeze – amid the mob’s rush to “run madly at the boss,” as Arnade puts it – there is plenty of room to ride the wave, knowing full well the range of risks and the players at hand.

But if we truly hope to help the “little guy,” we should understand that success begins not by burning down the wealthy for its own sake, but by keeping our sights on reality over resentment, value over vindictiveness, and freedom over fury.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
World Freedom Atlas
The World Freedom Atlas, “a geovisualization tool for world statistics,” looks like a very powerful plement to something like the Gapminder Trendalyzer tool. ...
Economic Literacy on Campus: Abysmal
Maurice Black and Erin O’Connor, research fellows at the American Council of Trustees and Alumni, write in “Illiterates,” a column in Newsday, that “younger Americans are deplorably uninformed about economic and financial matters.” They observe that “students who do not understand money e adults who are financially irresponsible.” And, of course, they e adults who are not equipped to understand broader economic issues involving government, such as taxation, debt and spending. From the column: Some colleges and universities offer programs...
PBR: Friedman on Free Trade
No, not that Friedman. In a wide-ranging lecture for the Carnegie Council for Ethics in International Policy earlier this year, George Friedman touched on American policy with regard to trade. He says of the United States, it has the potential to reshape patterns of international trade if it chooses. The United States throughout the 20th century, the second half in particular, has operated under the principle of a free-trade regime in which its Navy was primarily used to facilitate international...
‘Calvinism’ Transforming and Transformed
A recent Time magazine feature, which highlights “10 Ideas Changing the World Right Now,” has been making the rounds on the theological ‘nets. Coming in at #3 is “The New Calvinism,” which author David Van Biema describes as “Evangelicalism’s latest success plete with an utterly sovereign and micromanaging deity, sinful and puny humanity, and bination’s logical consequence, predestination: the belief that before time’s dawn, God decided whom he would save (or not), unaffected by any subsequent human action or decision.”...
Acton Commentary: The Problem with Government Mortgage Relief
In mentary, Sam Gregg writes that “there is little reason to be optimistic about the probable effects of the Obama Administration’s interventionist approach to mortgage relief. In fact, it is most likely to be counterproductive.” More placency about moral hazard? Read mentary at the Acton Website and share ments below. ...
Review: Drawing the Line at the Big Ditch
When I was in college, a popular refrain from many academics was to explain the rise of the “Right” or conservatism in the American South as a dynamic brought about because of race. Books like Dan T. Carter’s The Politics of Rage: George Wallace, the Origins of the New Conservatism, and the Transformation of American Politics attempted to link the politics of George Wallace to Ronald Reagan’s brand of conservatism. And if you are suspicious of that theory because Wallace...
Wilcox: God Will Provide — Unless the Government Gets There First
In a recent Wall Street Journal column, W. Bradford Wilcox looks at the “boost” that President Obama will give secularism through his rapid expansion of government. An Associate Professor of Sociology at the University of Virginia and a member of the James Madison Society at Princeton University, Wilcox is also a 1994 graduate of the Acton Institute’s Toward a Free and Virtuous Society program. Excerpt: … the president’s audacious plans for the expansion of the government — from the stimulus...
Acton Commentary: The State of the Fourth Estate
Edmund Burke: "...in the Reporters' Gallery yonder, there sat a Fourth Estate more important far than they all."In today’s Acton Commentary, “The State of the Fourth Estate,” I argue that the profession of journalism must be separable from traditional print media. My alma mater’s flagship student publication, The State News, where I broke into the ranks of op-ed columnists, celebrated its centennial anniversary earlier this month. The economics of news media increasingly make it seem as if the few kinds...
Has Damon Linker Dethroned Natural Law?
I’ll save you the suspense. No. Linker, known primarily for betraying Richard John Neuhaus by serving as editor of First Things and then publishing a book accusing Neuhaus of scurrilous theocratic aims, now writes at the New Republic. In a recent post there, he brilliantly claims to have demonstrated the idea of natural law is obvious poppycock. Why? Because he disagrees with two officials of the Catholic Church holding that a nine year old who was raped and with her...
Cole on “Patent Failure”
Back in September I posted an announcement about a new book that contributed in interesting ways to our understanding of patent/intellectual property issues. Now Julio Cole’s full review of the book in the Independent Review is available online. An excerpt: Should we really be surprised that the patent system’s internal dynamics have finally brought us to the point at which the potential profits of patenting have, for most industries, been entirely gobbled up by lawyers’ fees? Isn’t that e what...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved