Post Neo-Liberalism… what next?

9 02 2017

The articles coming out in what I consider mainstream media lately – the Conversation in this case – has me astounded……

While this piece is interesting, there is no mention whatever of Limits to Growth……

If Streeck is correct, then we need to anticipate what a post-capitalist world may look like. He thinks it will be terrible. He fears the emergence of a neocorporatist state and close crony-like collaboration between big capital, union leaders, government and the military as the consequence of the next major global financial crisis.

Jobs will disappear, Streeck believes. Capital will be intensely concentrated in very few hands. The privileged rich will retreat into security enclaves dripping with every luxury imaginable.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

It is unfashionable, or just embarrassing, to suggest the taken-for-granted late-modern economic order – neoliberal capitalism – may be in a terminal decline. At least that’s the case in what former Australian prime minister Tony Abbott likes to call the “Anglosphere”.

What was once known as the Chicago school of economics – the neoclassical celebration of the “free market” and “small government” – still closes the minds of economic policymakers in the US and its satellite economies (although perhaps less so in contemporary Canada).

But, in Europe, there has always been a deep distrust of the Anglo-American celebration of “possessive individualism” and its repudiation of community and society. Remember Margaret Thatcher’s contempt for the idea of “society”?

So, it is unsurprising that neoliberalism’s advocates dismiss recent European analyses of local, regional and global economies as the nostalgia of “old Europe”, even as neoliberalism’s failures stack up unrelentingly.

The consequences of these failures are largely unseen or avoided by policymakers in the US and their camp followers in the UK and Australia. They are in denial of the fact that not only has neoliberalism failed to meet its claimed goals, but it has worked devastatingly to undermine the very foundations of late-modern capitalism.

The result is that the whole shambolic structure is tottering on the edge of an economic abyss.

What the consequences might be

Two outstanding European scholars who are well aware of the consequences of the neoliberal catastrophe are French economist Thomas Piketty and German economist Wolfgang Streeck.

Piketty’s 2013 book, Capital in the Twenty-First Century, charts the dangers of socioeconomic inequality in capitalism’s history. He demonstrates how this inequality can be – and has been over time – fundamentally destructive of sustained economic growth.

Most compellingly, Piketty documented in meticulous detail how contemporary neoliberal policies have constructed the worst forms of socioeconomic inequalities in history. His analysis has been underlined by the recent Oxfam report that showed a mere eight multi-billionaires own the equivalent amount of capital of half of the global population.

Despite Piketty’s scrupulous scholarship, Western neoliberal economies continue merrily down the road to nowhere. The foundations of that road were laid by the egregiously ideological policies of Thatcher and Ronald Reagan – and slavishly followed by Australian politicians on all sides ever since.

Streeck’s equally detailed scholarship has demonstrated how destructive of capitalism itself neoliberal policymaking has been. His latest book, How Will Capitalism End?, demonstrates how this neoliberal capitalism triumphed over its opponents (especially communism) by devouring its critics and opponents, obviating all possible alternatives to its predatory ways.

If Streeck is correct, then we need to anticipate what a post-capitalist world may look like. He thinks it will be terrible. He fears the emergence of a neocorporatist state and close crony-like collaboration between big capital, union leaders, government and the military as the consequence of the next major global financial crisis.

Jobs will disappear, Streeck believes. Capital will be intensely concentrated in very few hands. The privileged rich will retreat into security enclaves dripping with every luxury imaginable.

Meanwhile, the masses will be cast adrift in a polluted and miserable world where life – as Hobbes put it – will be solitary, poor, nasty, brutish and short.

What comes next is up to us

The extraordinary thing is how little is known or understood of the work of thinkers like Piketty and Streeck in Australia today.

There have been very fine local scholars, precursors of the Europeans, who have warned about the hollow promises of “economic rationalism” in Australia.

But, like the Europeans, their wisdom has been sidelined, even as inequality has been deepening exponentially and its populist consequences have begun to poison our politics, tearing down the last shreds of our ramshackle democracy.

The time is ripe for some creative imagining of a new post-neoliberal world that will repair neoliberalism’s vast and catastrophic failures while laying the groundwork for an Australia that can play a leading role in the making of a cosmopolitan and co-operative world.

Three immediate steps can be taken to start on this great journey.

First, we need to see the revival of what American scholar Richard Falk called “globalisation from below”. This is the enlivening of international civil society to balance the power of the self-serving elites (multinational managers and their political and military puppets) now in power.

Second, we need to come up with new forms of democratic governance that reject the fiction that the current politics of representative government constitute the highest form of democracy. There is nothing about representative government that is democratic. All it amounts to is what Vilfredo Pareto described as “the circulation of elites” who have become remote from – and haughtily contemptuous of – the people they rule.

Third, we need to see states intervening comprehensively in the so-called “free market”. Apart from re-regulating economic activity, this means positioning public enterprises in strategic parts of the economy, to compete with the private sector, not on their terms but exclusively in the interests of all citizens.

As Piketty and Streeck are pointing out to us, the post-neoliberal era has started to self-destruct. Either a post-capitalist, grimly neo-fascist world awaits us, or one shaped by a new and highly creative version of communitarian democracy. It’s time for some great imagining.

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6 responses

9 02 2017
ejhr2015

Well, I for one are endlessly writing that we are predained to crash, that our current techno-industrial civilization cannot last much longer. 250-300 max years. from 1750. would be about it.
I also believe the rate of resource consumption is aided and abetted by the “Elite”. Unlike stated here however the elite will never be able to hide away when the end time begins. although they may prolong their life a little. WE are so interconnected only a few First peoples will know how to live off what will be a devastated land, trashed by starving hordes and climate change.

10 02 2017
MargfromTassie

The super elite are already buying their super stocked bunkers.
http://www.cbsnews.com/pictures/amazing-doomsday-bunkers-of-the-super-rich/

11 02 2017
rabiddoomsayer

At the edge of the abyss we choose to march forward. The abyss is right in front of us, but we close our eyes and march on.

We see the little pictures of doom. We see a big problem here, a small problem there, a major problem somewhere else; few step back and look at the total picture. Our civilization is dying, our biosphere is dying, Homo stupidicus is going away, extinct away.

13 02 2017
13 02 2017
Idiocracy

Wow thats a blast from the past! 🙂

I hadn’t started reading Dave at that time yet, but that’s some classic DOTE there… fantastic!

14 02 2017
david higham

I hadn’t either. I have been reading some of his older essays lately.
There is some excellent stuff there.

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