Sunday, June 22, 2025

The rise and fall of tacit knowledge

1.

In the post-fascist period of the great Anti-Communist century, which I’d locate between 1945 and the mid 80s, the liberal intelligentsia of the capitalist side engaged in a struggle with the socialist bloc on my fronts, from documenting communist atrocities, increasingly under the sign of universal human rights, to challenging the very basis of central planning as a socio-economic program.

The latter, intellectually, was a more fundamental struggle. In the face of the spike in the GDP of the Soviet Union in the fifties, it seemed urgent to show that not only was the capitalist system more prosperous in the long term, but, as well, that the communist system was inherently mistaken in the means it took to ensure its goals.

It seemed, in the fifties, that socialism could succeed in transforming the surplus labor value produced by the working class into an articulation of socio-economic needs – an egalitarian system of healthcare, education, and manufacture that returned to the laborer the goods and services necessary to maintain his or her human worth. It was easy to point out that this system did not encode the basic democratic freedoms – but this was a more difficult point to make in the light of the empires that the liberal – capitalist powers had spent hundreds of years constructing around the world. It was difficult to maintain that Holland had democracy in mind in its Indonesian colonies, or Britain was ruling the colony of Kenya according to any system of elections. It was also difficult for the United States, with its Jim Crow, to claim to be democratically spotless.

Still, the liberal intellectual in the “Free World” needed to make the point that democracy and a capitalist system that distributed the social dividend on according to a grossly unequal system was the best of all possible systems for the population as a whole. “Best of all possible” took on a less abstract aspect when the Western democracies and the Socialist bloc wielded the missiles that, in the event of war, could extinguish all human life on the planet. What was, for Leibniz, a theological position was, for the Pentagon and the Kremlin, a practical situation that could ensue in the near future.

2.

Among the intellectuals that leaned Tory in the 50s and 60s, there was a phrase that came to stand for a whole program of resistance not only against Communist central planning, but against the state’s intervention in the so called “private” economic sphere in the West – an intervention that included regulation, social insurance, nationalized industries and other elements of the post-war lurch to the Left:  “tacit knowledge”. The phrase is associated with Michael Polanyi, the second half of whose book, Personal Knowledge, is dedicated to the “tacit dimension’.

It seems to me, in the light of our situation now and our general forgetting of what conservatism was in the Cold War, that a brief discussion of the rise and comparative fall of tacit knowledge would be interesting. Even fun! For those who find this kind of thing fun, that is.  Besides, in the family tree that arose from “tacit knowledge” there is a large group of concepts that land squarely in the New Left area.

Polanyi – brother to the more famous Karl – was a chemist with a metaphysical bent. Tempered by the experience of the soviet briefly established by Bela Kun in Hungary in 1919, and the subsequent semi-fascist governments under Admiral Horthy, Polanyi was already a celebrated anti-communist when he met Hayek at the Walter-Lippmann Colloquium in Paris in 1938. Hayek, whose notion of spontaneous organization is often associated with Polanyi’s idea of tacit knowledge, is not mentioned in Personal Knowledge. This is partly because Polanyi became disillusioned with the positivist turn of the Mont Pelerin society, as he saw it, which abandoned one of the keystones of conservatism: tradition. Polanyi’s sense that a new legitimation of liberalism had to encompass a strong sense of tradition and the transmission of the cultural heritage. Polanyi, who had much more experience of the practice of science than someone like Popper, was distressed that a Popperian approach to science was increasingly part of the Mont Pelerin package.

“Tacit Knowledge” was Polanyi’s idea of the fundamental epistemological base not only of modern society, but of all society: it even, in his view, was the basis of primate behavior, with its emphasis on mimicry. For Polanyi, scientific Marxism ignores the non-calculative aspect of the human unit. In place of the alienated laborer who is simply waiting for the right 5 year plan to find all happiness, Polanyi proposes something like the craftsman as the central emblem of the human – the artisan. The experience of the artisan – which goes into the transmission of artisan knowledge – is not originally expressed in a series of linear steps. Later on, rationalization might diagram a craft in a clear series of steps, but it begins as a series of hunches and feelings of the appropriateness or not of certain routines. Later in the eighties, the vocabulary of complexity theory will call this the emergent features of a complex system. Such systems are not linear. They are sorites-bound.

This vision of social and economic activity made for a different view of the bureaucratization of economic activity. Management, instead of being a linear-directed activity, is itself a craft, filled with hunches and jumps. The system must give as much freedom as possible to such activities – which means it should free itself from short – sighted unions and government regulators. Freedom is, in this sense, closely tied to the capitalist system. The inequality in wealth that results is a sort of side-effect, which is condemned to ephemerality, as new hunches and innovations will raise others and cause the downfall of those who have routinized their fortunes – mere rentiers.

3.

 

Personal Knowledge was published in 1958. Polanyi was recognized in certain conservative circles, but in general he was overshadowed by Hayek, who had a trans-Atlantic career.

But tacit knowledge, I think, had a more interesting career in the non-Stalinist New Left. If we look at Foucault’s tendency to blame the total societies of the school, asylum and prison to a certain totalizing mindset, missing the liberatory moment charted by writers like Sade, Nietzsche, Artaud, Bataille, Blanchot – the moment of the Other – we can see how Foucault ends up focusing on a souci de soi which is not unlike tacit knowledge as Polanyi envisions it. We can see this tendency most clearly in the work of Richard Sennet, Foucault’s American student. Other New Left tendencies – for instance, the anarchism of James Scott in Seeing like the State or David Graeber in Debt – have a very strong element the binary between state regulation/tacit knowledge. And of course complexity theory is a strong theorization of non-linearity – a position against scientism that Polanyi would no doubt have approved of.

4.

On the right, in the post-fascist phase of anti-communist struggle, Polanyi and Hayek were one variety of conservatism. But by the mid eighties, their version had been overtaken and submerged by Schumpeter’s defense of the entrepreneur, not as a transmitter of tradition but as a disruptive hero, creatively destroying, with distinct echoes of the fascist cult of the hero. In the 50s and 60s, conservative intellectuals valiantly tried to separate themselves from the social Darwinism of their forbears, which seemed all too ominously to lead to fascism. By the eighties, however, these worries and the reasons for them were becoming anachronistic. The Darwinian struggle for survival, properly colored, regained its narrative value, and the softer notion of a freedom carved out of the social forces institutionalized by the state to give the fullest extent possible to tacit knowledge was given mere lip service – it was the man in full to which the conservative intellectual heart was given. And thus, as the communist side was defeated in the late eighties, the stage was set for the wedding of a computer culture and the Right. The Right’s embrace of artificial intelligence and cryptocurrencies, today, is a strong marker that the traditional toryism invented in the twentieth century as a political contender against socialism and the mixed economic models of Liberalism, a contender that never had a serious political program but did have some ideological reach among the conservative intellectuals, is as well and truly buried as its centrally planning enemy, dead lions all.

 

 

 

 

 


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The rise and fall of tacit knowledge

1. In the post-fascist period of the great Anti-Communist century, which I’d locate between 1945 and the mid 80s, the liberal intelligents...