Is this the Death of Neoliberalism?

Invasion of the Putin-Nazis

So, here we are, a little over one hundred days into “The Age of Darkness” and the “racially Orwellian” Trumpian Reich, and, all right, while it’s certainly no party, it appears that those reports we heard of the Death of Neoliberalism were greatly exaggerated. Not only has the entire edifice of Western democracy not been toppled, but the global capitalist ruling classes seem to be going about their business in more or less the usual manner. The Goldman Sachs vampires are back in the White House (as they have been for over one hundred years). The post-Cold War destabilization and restructuring of the Middle East is moving forward right on schedule. The Russians, Iranians, North Koreans, and other non-globalist-ball-playing parties remain surrounded by the most ruthlessly murderous military machine in the annals of history. Greece is being debt-enslaved and looted. And so on. Life is back to normal.

Or … OK, not completely normal. Because, despite the fact that editorialists at “respectable” papers like The New York Times (and I’m explicitly referring to Charles M. Blow and Nobel Prize-winning economist Paul Krugman) have recently dropped the completely ridiculous “Trump is a Putinist agent” propaganda they’d been relentlessly spewing since he won the election, a significant number of deluded persons, having swallowed their official vomitus (i.e., the vomitus of Blow and Krugman, and other neoliberal establishment hacks) like the hungry Adélie penguin chicks in those nature shows narrated by David Attenborough, are convinced (these deluded persons are) that the Russians are waging a global campaign not only to maliciously hack, or interfere with, or marginally influence, free and fair elections throughout the Western world, but to control the minds of Westerners themselves, in some Orwellian, or possibly Wachowskian fashion. Worse yet, these deluded persons are certain, the Russians are now secretly running the White House, and are just using Trump, and the Goldman Sachs gang, and capitalist centurions like General McMaster, as a front for their subversive activities, like denying Americans universal healthcare and privatizing the hell out of everything.

If you think I’m being hyperbolic, check out #MarchforTruth on Twitter, or its anonymous Crowdpac fundraising page, which at first glance I took for an elaborate prank, but which seems to be in deadly earnest about “restoring faith in American government,” uncovering Trump’s “collusion” with Russia, and reversing his “subversion of the will of the people.” The plan is, on June 3, 2017, thousands of otherwise rational Americans are going to pour into the streets “demanding answers” from … well, I’m not sure whom, some independent prosecutor, or congressional committee, or intelligence agency, or whomever is responsible for ferreting out the Putin-Nazi infiltrators that “respected” pundits like Blow and Krugman (and stark raving loonies like Louise Mensch) have convinced them are now controlling the government. Weirdly, these same “respected” journalists, the ones who have been assuring the world that The President of the United States is a covert agent working for Russia, have failed to even mention this March for Truth, and are acting like they had nothing to do with whipping these folks up into a frenzy of apoplectic paranoia.

Incidentally, one of my colleagues contacted Mr. Blow directly and inquired as to whether he’d be vociferously supporting or possibly leading the March for Truth, and was chastised by Blow and his Twitter followers. I found this reaction extremely troubling, and asked my colleague to contact Mensch and suggest she check with her handlers at The Times to make sure the Russians haven’t gotten to him. However, just as he was sitting down to do that, the “Comey-firing” brouhaha broke, which seems to have brought Blow back to the fold, albeit in a less hysterical manner than his Rooskie-hunting readers have grown accustomed to. We can only hope that both he and Krugman return to form in the weeks to come as Russiagate builds to its dramatic climax.

Oh, yeah, and if Russiagate isn’t paranoid enough, apparently, the corporate media is now prepared to deploy the “Putin-Nazi Election Hackers” propaganda in any and every election going forward (as they did in the recent French election, and as they tried to do in the Dutch elections, and presumably will in the German elections, and as The Guardian appears to be retroactively doing in regard to the Brexit referendum). Any day now, we should be hearing of the “Putin-Nazi-Corbyn Axis,” and the “Putin-Nazi-Podemos Pact,” and video footage of Martin Schultz and a bevy of former-East German hookers engaging in Odinist sex magick rituals in an FSB-owned bordello in Moscow. Soon, it won’t just be elections … no, we’ll be hearing reports of Russian shipments of rocks, bottles, and pointy sticks to the “Putin-Nazi Palestinian Terrorists,” and … well, who knows how far they’re willing to take this?

All joking aside, as I’ve written about previously, what we’re dealing with here is more than just a lame attempt by the Democratic Party to blame its humiliating loss on Putin (although of course it certainly is that in part). The global neoliberal establishment is rolling out a new official narrative. It’s actually just a slight variation on the one it’s been selling us since 2001. I could come up with a sixteen-syllable, academic-sounding name for this narrative, but I’m trying to keep things simple these days … so let’s call it The Normals versus The Extremists, (the Normals being the neoliberals and the Extremists being everyone else). The goal of this narrative is to stigmatize and otherwise marginalize opposition to Neoliberalism, regardless of the nature of that opposition (i.e., whether it comes from the left, right, or from religious, environmentalist, or any other quarters).

Now, as any professional storyteller will tell you, one of the most important aspects of the narrative you’re trying to suck people into is to make your protagonist a likeable underdog, and then pit him or her against a much more powerful and ideally incorrigibly evil enemy. During the Cold War, this was easy to do — the story was Democracy versus the Commies, traditional “good versus evil”-type stuff. Once the U.S.S.R. collapsed, the concept needed major rewrites, as a new evil adversary had to be found. This (i.e., the 1990s) was a rather awkward and frustrating period. The global capitalist ruling classes, giddy with joy after having become the first ever global ideological hegemon in the history of aspiring global hegemons, got all avant-garde for a while, and thought they could do without an “enemy.” This approach, as you’ll recall, did not sell well. No one quite got why we were bombing Yugoslavia, and Bush and Baker had to break out the Hitler schtick to gin up support for rescuing the Kuwaitis from their old friend Saddam. Fortunately, in September 2001, the show runners got the break they were looking for, and the official narrative was instantly switched to Democracy versus The Islamic Terrorists. This re-brand got extremely good ratings, and would have been extended indefinitely if not for what began to unfold in the latter half of 2016. (One could go back and locate the week when the mainstream media officially switched from the “Summer of Terror” narrative they were flogging to the new “Invasion of the Putin-Nazis” narrative … my guess is, it was early to mid-September.) It started with the Brexit referendum, continued with the rise of Trump, and … well, I don’t have to recount it, do I? You remember last year as clearly as I do, how, suddenly, out of seemingly nowhere, the Putin-Nazi menace materialized, and took the place of the “self-radicalized terrorist” as the primary target for people’s hatred and fear. OK, sure, at first, there were no Putin-Nazis. It was just that the Brexit folks were fascists, and Trump was Hitler, and Bernie Sanders was some sort of racist hacky sack Communist. But then the Putinists poisoned Clinton, and unleashed their legions of Russian propagandists on the gullible, Oxycodone-addicted denizens of “flyover country,” and, as they say, the rest is history.

In any event, here we are now … stuck inside this simulation of “reality” where Putin-Nazi hackers are coming out of the woodwork, a partyless neoliberal banker has been elected the President of France, Donald Trump is an evil mastermind or a Russian operative, depending on what day it is (as opposed to just a completely incompetent, narcissistic billionaire idiot), and neoliberal propaganda outfits like The New York TimesThe Washington Post, MSNBC, CNN, The Guardian, NPR, et al., are perceived as “respectable” sources of journalism, as if their role in generating and occasionally revising the official narrative weren’t so insultingly obvious. Personally, I am looking forward to the upcoming German elections this Autumn, wherein Neoliberal Party “A” is challenging Neoliberal Party “B” for the right to continue privatizing Greece (and any other formerly sovereign nations the banks can get their hands on) in a demonstration of European unity, and fiscal austerity … and, you know, whatever.

If this is the Death of Neoliberalism, just imagine what awaits us at the Resurrection.

Counterpunch

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You’re witnessing the death of neoliberalism – from within

 
Mark Carney
‘You hear it when the Bank of England’s Mark Carney sounds the alarm about ‘a low-growth, low-inflation, low-interest-rate equilibrium’. Photograph: Dylan Martinez/AFP/Getty Images

What does it look like when an ideology dies? As with most things, fiction can be the best guide. In Red Plenty, his magnificent novel-cum-history of the Soviet Union, Francis Spufford charts how the communist dream of building a better, fairer society fell apart.

Even while they censored their citizens’ very thoughts, the communists dreamed big. Spufford’s hero is Leonid Kantorovich, the only Soviet ever to win a Nobel prize for economics. Rattling along on the Moscow metro, he fantasises about what plenty will bring to his impoverished fellow commuters: “The women’s clothes all turning to quilted silk, the military uniforms melting into tailored grey and silver: and faces, faces the length of the car, relaxing, losing the worry lines and the hungry looks and all the assorted toothmarks of necessity.”

But reality makes swift work of such sandcastles. The numbers are increasingly disobedient. The beautiful plans can only be realised through cheating, and the draughtsmen know it better than any dissidents. This is one of Spufford’s crucial insights: that long before any public protests, the insiders led the way in murmuring their disquiet. Whisper by whisper, memo by memo, the regime is steadily undermined from within. Its final toppling lies decades beyond the novel’s close, yet can already be spotted.

When Red Plenty was published in 2010, it was clear the ideology underpinning contemporary capitalism was failing, but not that it was dying. Yet a similar process as that described in the novel appears to be happening now, in our crisis-hit capitalism. And it is the very technocrats in charge of the system who are slowly, reluctantly admitting that it is bust.

You hear it when the Bank of England’s Mark Carney sounds the alarm about “a low-growth, low-inflation, low-interest-rate equilibrium”. Or when the Bank of International Settlements, the central bank’s central bank, warns that “the global economy seems unable to return to sustainable and balanced growth”. And you saw it most clearly last Thursday from the IMF.

What makes the fund’s intervention so remarkable is not what is being said – but who is saying it and just how bluntly. In the IMF’s flagship publication, three of its top economists have written an essay titled “Neoliberalism: Oversold?”.

The very headline delivers a jolt. For so long mainstream economists and policymakers have denied the very existence of such a thing as neoliberalism, dismissing it as an insult invented by gap-toothed malcontents who understand neither economics nor capitalism. Now here comes the IMF, describing how a “neoliberal agenda” has spread across the globe in the past 30 years. What they mean is that more and more states have remade their social and political institutions into pale copies of the market. Two British examples, suggests Will Davies – author of the Limits of Neoliberalism – would be the NHS and universities “where classrooms are being transformed into supermarkets”. In this way, the public sector is replaced by private companies, and democracy is supplanted by mere competition.

The results, the IMF researchers concede, have been terrible. Neoliberalism hasn’t delivered economic growth – it has only made a few people a lot better off. It causes epic crashes that leave behind human wreckage and cost billions to clean up, a finding with which most residents of food bank Britain would agree. And while George Osborne might justify austerity as “fixing the roof while the sun is shining”, the fund team defines it as “curbing the size of the state … another aspect of the neoliberal agenda”. And, they say, its costs “could be large – much larger than the benefit”.

IMF managing director Christine Lagarde with George Osborne.
IMF managing director Christine Lagarde with George Osborne. ‘Since 2008, a big gap has opened up between what the IMF thinks and what it does.’ Photograph: Kimimasa Mayama/EPA

Two things need to be borne in mind here. First, this study comes from the IMF’s research division – not from those staffers who fly into bankrupt countries, haggle over loan terms with cash-strapped governments and administer the fiscal waterboarding. Since 2008, a big gap has opened up between what the IMF thinks and what it does. Second, while the researchers go much further than fund watchers might have believed, they leave in some all-important get-out clauses. The authors even defend privatisation as leading to “more efficient provision of services” and less government spending – to which the only response must be to offer them a train ride across to Hinkley Point C.

Even so, this is a remarkable breach of the neoliberal consensus by the IMF. Inequality and the uselessness of much modern finance: such topics have become regular chew toys for economists and politicians, who prefer to treat them as aberrations from the norm. At last a major institution is going after not only the symptoms but the cause – and it is naming that cause as political. No wonder the study’s lead author says that this research wouldn’t even have been published by the fund five years ago.

From the 1980s the policymaking elite has waved away the notion that they were acting ideologically – merely doing “what works”. But you can only get away with that claim if what you’re doing is actually working. Since the crash, central bankers, politicians and TV correspondents have tried to reassure the public that this wheeze or those billions would do the trick and put the economy right again. They have riffled through every page in the textbook and beyond – bank bailouts, spending cuts, wage freezes, pumping billions into financial markets – and still growth remains anaemic.

And the longer the slump goes on, the more the public tumbles to the fact that not only has growth been feebler, but ordinary workers have enjoyed much less of its benefits. Last year the rich countries’ thinktank, the OECD, made a remarkable concession. It acknowledged that the share of UK economic growth enjoyed by workers is now at its lowest since the second world war. Even more remarkably, it said the same or worse applied to workers across the capitalist west.

Red Plenty ends with Nikita Khrushchev pacing outside his dacha, to where he has been forcibly retired. “Paradise,” he exclaims, “is a place where people want to end up, not a place they run from. What kind of socialism is that? What kind of shit is that, when you have to keep people in chains? What kind of social order? What kind of paradise?”

Economists don’t talk like novelists, more’s the pity, but what you’re witnessing amid all the graphs and technical language is the start of the long death of an ideology.

 

http://www.theguardian.com/commentisfree/2016/may/31/witnessing-death-neoliberalism-imf-economists?CMP=fb_gu