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FionaK
view post Posted on 6/6/2012, 10:43




It has been my view for some time that the neoliberals are profoundly undemocratic and that their project leads to plutocracy, necessarily. To date I have seen very little open admission of this, however. That seems to be changing. While some of us were thinking about different ways of governing it appears that some of them have been doing the same thing. This article from the Adam Smith institute argues that democracy is tyranny: another Orwellian assertion but one which embodies the mindset of those who believe that the state is always and everywhere the cause of any problems

http://www.adamsmith.org/blog/politics-gov...t-on-government

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from the viewpoint of those who prefer less exploitation over more and who value farsightedness and individual responsibility above shortsightedness and irresponsibility, the historic transition from monarchy to democracy represents not progress but civilizational decline.

Lest we think that this is a fringe opinion let us not forget the sequence of events in the 1930's which led directly from laissez faire economic strategy to the horror of the Second World War: there were many calling for "a strong leader" in that period. They got them in spades.

I have been puzzled by what appears to be the confidence of the neoliberals just at a time when it is obvious that their prescriptions do not work and that the outcomes are exactly the same as they were in the interwar period. In a functioning democracy that should lead to a change of course: instead we see a rush to complete their agenda. I had assumed they knew the game was up and that the aim now was to enshrine their policies in law so that they would be hard/impossible to reverse. The solution to europe's economic woes is now being talked of in terms of greater fiscal (and therefore political) union. Given the "stability pact" that does not seem to imply addressing the democratic deficit in europe: it seems that the direction of travel is the opposite. It is likely that such prescriptions will indeed undermine democracy, since a state which cannot control its budget is no state at all, whether it is a nation state or a much larger entity.

Extremists of all stripes rose in the interwar period and they fought out their differences on the streets and later in the fields of battle over much of the globe: "strong men" did indeed arise and all of them identified the plutocrats as a source of the evil they perceived. The plutocrats of their day are said to have believed that such figures could be controlled and would act to further their interests despite this rhetoric. We are also invited to belleve that they were wrong. I am not so sure, since many of the super rich appear to have done well out of the ensuing war: it may have been coincidence, or maybe not.

What I am sure about is that if you impoverish the majority violent conflict will arise: Ironically I now susbscribe to the view that if we continue on this course There Is No Alternative. I think that this piece from The Adam Smith Institute may well be the shape of things to come, though they remain on the fringes for the moment. If democracy fails the people then they will reject it: and seductive calls like this are one thread in achieving that.

Such an outcome may lead to dictators who are under plutocratic control: or to dictators who are not under the control of the current rich but instead replace them with other unelected people: either way they must destroy the current economic and political arrangements without clearly acknowledging that. War is the very best way to go about that. And at the end we can blame those same strong leaders, and not the figures behind them who make money from blood. They might have to retrench for a while at the end of any such war: but it keeps the story alive by distracting attention from the true source of the catastrophe. They rise again, in time.

In short I do not think that the neoliberals are confident because they believe what they say: I do not think they are enshrining their prescriptions in law to hobble succeeding governments in attempts to reverse what they have done (though that is a handy side effect as we see in Greece and elsewhere: there are no good options at present): rather I think that some of them at least recognise that only war can maintain any semblance of the current mess into the future and that it is a price they are willing to pay

We have an awful lot of stuff glorifying war in the media at present: the excuse in this country is the anniversary of the Falklands war. That may be coincidence, of course. On the other hand there is concern at the level of cuts to the defence budget and it may be argued that speaks to an opposite conclusion. But one of the narratives the UK tells itself about the second war is that the UK disarmed in the interwar period and the axis powers did not: if that were not so we would have won easy ;). The UK always honours its decent committments, not like those pesky europeans, after all. So I am not all that persuaded by that, even if it is a fact.

We are also hearing a lot of talk of "german dominance" and that resonates in this country just as it does in others.

In the past I feared war but I could not answer the queston "who would we fight": it tended to weaken my position. Now I have a horrible fear that the answer is "the same people we fought the last time": and that is horrifying

I used to support the European union. It seemed to me to be a good thing for the reasons usually given: that it would make war less likely; and it made sense to break down national barriers in favour of international cooperation and all of that.

I think that many ordinary people subscribed to those ideals and still do: thus the greeks are said to want to stay in europe but to reject the economic horror that currently entails. But the project has been captured by the plutocrats, and the institutions have been subverted to their purposes. I do not think that is reversible in the current situation. It follows that I no longer believe the european union is a buffer against war: I thnk it is a cause of it, instead. If we are to pursue the good things which such a union could theoretically deliver we must dismantle what we have now, and we must do it soon. But if we do it because of the tensions which the economic crisis exacerbates then the push against democracy will continue: and their job has already been done

There is nothing at all inevitable about this set of economic prescriptions as the basis for the european ideal: even if you think it was no more than "getting and spending" (as many in the UK believe: they like economic union but not political union - preferring a "free market" which stands apart from political integration) it does not follow that the economic analysis of the neoliberals is correct. We can make a different choice. That said, I do not think there is anything to be gained by pretending that the ideals which inform most people's committment to a european project are any longer in play: what we have is a very different kind of beastie in reality. If we do not separate those things in our minds we will end in war. Time to take this project back if it is to survive. I see no signs of that and so I am at present entirely opposed to european union. This is sad but I cannot close my eyes to the fact that what most people seem to want has been used to further an agenda which they do not want: it is a mask and what is beneath it is very ugly indeed

 
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FionaK
view post Posted on 12/9/2012, 10:12




www.guardian.co.uk/commentisfree/20...shift-austerity

This is an article on the dutch elections which are to be held today. It is not very informative and the bias is manifest in its description of radical austerity policies as "social reform". That is to be expected in the UK where such rhetoric is so entrenched as to be considered objective: and it may be that the same is true in the Netherlands, if the article's analysis of the political spectrum is right. It appears that, as in this country, the "socialists" have bought the neoliberal agenda and that is now considered to be the centre ground.

And that is what I wanted to talk about.

It is at least arguable that the neoliberal agenda is nothing more than laissez faire capitalism by another name:that is the position I take. If that is the case a number of interesting questions arise. As I see it that position, when in the ascendancy, leads to great divisions within society. All over europe that agenda was dominant in the past: and in particular from the end of WW1. It is an ideology which actually promotes the interests of corporations and the very wealthy: and that is always at the expense of the majority, so far as I can tell. That is, of course, not normally openly admitted: but when it is, the story is always that freedom from regulation and government interference will lead to increased prosperity for all: or for "the country", at least. That is not true. I do not think there can be any doubt that it is not true.

What occurred to me, though, was that the people are not fooled. Thus in the 1920's and 1930's there was a great polarisation in society: the left and the right rose and they had this in common:they both ascribed the misery of the population to that very ideology and its consequences. For the left the problem was capitalism: for the right the problem was the very wealthy cabal (often identified with jews or some other ethnic traitor group). The self described centre shifted to the right and we saw an uncompromising stance from those with wealth and power. In Germany they chose to support the hard right, on the basis they could control it (or so at least one story goes, and I think it has some merit): elsewhere that was not so true though there was a strong strand of support for the nazis amongst the elite in this country, and presumably in others as well). What was lacking was any spirit of compromise: left and right each had an analysis and they were increasingly at odds.

In the end this led to war. There are many factors in the genesis of war but for me the fundamental reason for it was the failure of the economic policy underpinning laissez faire. The crash of 1929 was pivotal: and the pursuit of austerity measures following that crash could not solve the inherent problems of the economic model. I have discussed that before and it is not really central to what I wish to say here: though the parallels are important.

My basic point is rather that after the war there was a consensus which was basically adopted throughout Europe. From one perspective social democracy is exactly that: a recognition that the interests of the wealthy do NOT coincide with the interests of the majority: and that this genuine and deep seated difference has to be accommodated. I think our forebears were clear sighted about that. The solution was to compromise. For this period of our shared history we behaved in a rather adult way. The wealthy retained a great deal of power, and the capacity to safeguard their position in terms of assets and income, on the back of that power: but not wholly. Other interest groups organised and they were able to ensure that there were limits to the concentration of wealth, and to the ability of the very wealthy to pursue their interests with impunity. As I see it all the different interests in society accepted the need for compromise: none would get all they wanted: but none would starve, and the "elite" would not lose all of their privilege, either. We could live with that.

Within the constraints of that consensus there were shifts in the balance from time to time: but the settlements reached were within well defined limits: there were regulations which ensured that workers could not be reduced to the condition of serfdom which obtained in many 19th C factories, for example. Safeguards against utter starvation, and support for those who suffered from the failures of the capitalist model as it went through its various "business cycles" etc meant that the poor could have some security and some dignity. The levels of support of course changed over time: groups previously unrecognised became conscious of themselves as groups and there were hard negotiations over their rights. That can be seen in the history of feminism, for example. But all of those battles were fought within a framework of the post war consensus.

That has been abandoned. One thing I am convinced of is that where such a consensus exists it begins to be taken for granted after one or two generations. There are always problems and disatisfactions with the status quo: but such a framework is taken to be a "natural" order unless the principles are clearly elaborated and the history is known. "The price of freedom is eternal vigilance", it is said. But you have to know what to look out for: and we have forgotten.

Having forgotten, we have listened to the siren song of the right. They forget first: perhaps because the rich do not suffer from war in the same way as the rest of us, it does not go so deep into their mindset. Whatever the reason their interests are, and remain, different: and they pursue them as and when they can. So do we all, in the end. Therein lies the importance of the consensus: we have to know we are compromising, and why we are compromising: but that knowledge gets lost.

We currently have a narrative which says we are all on the same side: that is a narrative of the right and it is ironic, for there is no doubt that they have declared class war: austerity is not for them. One interesting consequence is that where their story is rejected they manage to convey the impression that the group which is in opposition is the one breaking the consensus: but they have already done that and what we see is increased polarisation: just as emerged last time we saw the mainstream promoting this faux unity.

In these circumstances there is always the temptation to refuse to compromise: and "sell out" is a dirty phrase for those who adhere to ideological or political purity. It is tempting, of course. I do not think it is in anyone's interest to demand they get all that they wish for, however. I honestly believe that our interests are so different that this must end in war: civil war if people retain a clear understanding of the problem: or international war if we are persuaded to blame these problems on some other group or nation.

What has that to do with the link at the start of this post, you may ask. Well I was led to these thoughts by the report that coalition may not be possible at this election: and the recollection of the difficulties Belgium had in forming a coalition after the 2010 elections. Both these states are constituted on some form of PR and it has worked well for many years. I gather that the people in those countries like that system and dislike fptp, for example. It occurred to me that this possibility rests on the consensus I am talking about. PR cannot work if there is no such consensus, and no recognition of the need for messy compromise within those limits.

In this country it was noticeable that once the neoliberal tendency gained their dominance, there was much talk of "thinking the unthinkable" and this was presented as an open and almost technocratic approach much in line with "scientism" and "pragmatism" and all of that. But what it really meant was the destruction of the basic premises on which that consensus was built. That is also what "there is no such thing as society" means, I think.

The post war consensus was not pure; not admirable in many ways. But it was unifying. We do not value it enough: we do not see the peril of refusing it. perhaps. But if we cannot form governments in its absence that, to me, suggests we need to radically rethink what we are about
 
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FionaK
view post Posted on 15/9/2012, 10:24




It seems that the reports of the likely outcome of the dutch elections were not fulfilled in the event, and that the dutch decided to back those parties which accept the current mainstream analysis: backing attempts to save the euro through the impoverishment of european people. That is interesting in itself. It means that my thoughts above are wrong insofar as they are predicated on increased polarisation within the elected body. It remains to be seen whether that represents a true consensus about policy, but the indications are that it does. The differences between the two "centrist" parties appear to be differences of detail such as timing: austerity is accepted by both, as is the case with the main parties in this country too.

Here the coalition has proved disastrous for the liberals because they have not defended any part of their agenda and have joined with a party which has no will to compromise at all. I am not clear about how a dutch coalition might be constituted, nor how far compromise is possible there. It is always difficult to get a handle on another country's politics, and the picture of the Netherlands I was given in this country has not survived discussion with Vninect, who has informed me about things like the privatisation of dutch health care: something not much reported here.

I am interested in the formation of governments in those countries used to coalition. in the current circumstances and I wonder how this will be achieved in the Netherlands: from my position it seems a little analogous to a recognition here that there is no substantive difference between Labour and Tory. In the past that led to the "National Government" led by Ramsay MacDonald (though to be sure most of the labour party refused to serve) and the de facto rule of the conservatives from 1931. Public spending was savagely cut and the great depression ensued. Subsequently MacDonald was largely villified. It is interesting that an attempt to rehabilitate his reputation did not really happen until the neoliberal hegemony was well advance and it is interesting to note that that was predicated on the idea that Keynes was wrong: written before the crash of 2008 and based on the assumptions of the then current mainstream economic orthodoxy. Wiki has a telling quote from that book

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In the harsher world of the 1980s and 1990s it was no longer obvious that Keynes was right in 1931 and the bankers wrong. Pre-Keynesian orthodoxy had come in from the cold. Politicians and publics had learned anew that confidence crises feed on themselves; that currencies can collapse; that the public credit can be exhausted; that a plummeting currency can be even more painful than deflationary expenditure cuts; and that governments which try to defy the foreign exchange markets are apt to get their—and their countries'—fingers burnt. Against that background MacDonald's response to the 1931 crisis increasingly seemed not just honourable and consistent, but right....he was the unacknowledged precursor of the Blairs, the Schröders, and the Clintons of the 1990s and 2000s

Indeed....

The parallels with the 1930's are a bit scary, to me
 
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2 replies since 6/6/2012, 10:43   887 views
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