First Episode of New Podcast: Inherent Worth is out!

Untitled design (7)

A new podcast, Inherent Worth, which talks about the intersection between the political left and the liberal religious tradition of Unitarian Universalism, is out! “Interdependent Webs” talks about environmentalism, ethical consumption, what’s essential and what’s BS in the 21st century capitalist economy, and the ups and downs of UU online worship and community-building.

Find us on Twitter at @WorthInherent and SoundCloud here.

https://soundcloud.com/inherent-worth/episode-1-interdependent-webs

It’s 1860 Again (Without A Lincoln)

THJC-HEALTH-CORONAVIRUSUSA

So, it’s an election year. The country is falling apart- both in the long-term crumbling of infrastructure, education, and health care, and the short-term of the COVID-19 epidemic killing thousands of Americans a year. The President, obsessed with “re-opening the economy” to prevent an (inevitable) massive recession just before the November election, is trying to rally people to engage in mass protest to attack sensible Democratic governors who are ignoring him and choosing to side with public health- and acting in regional cooperation (in the Midwest, West Coast, and Northeast regions to name a few) as states rather than taking advice from the federal government. Trump is seeing his authority slip through his fingers, and is thus stoking popular fury in an attempt to win it back. Whether this is just mass protest, which will spread coronavirus faster, or armed attacks, remains to be seen. What is clear is that the country has conclusively and thoroughly gone to Hell.

This isn’t the first election year that’s taken place in Hell. There was 1932, in the midst of the Great Depression. 1940 and 1944, while World War II was raging. 1968, as the Vietnam War was peaking and left-wing mass protest threatened to overwhelm a divided Democratic Party, which ultimately lost due to Nixon’s subterfuge and the racist Southern Strategy.

But this is 1860. As the prospect of an anti-slavery (or anti-expansion of slavery, which to slave owners were one and the same) candidate becoming President, states began to engage in furious rhetoric, voter suppression, and unilateral actions. A Civil War was the fallout of the election, which killed probably about 750,000 people by recent estimates. The country was falling apart, after decades of strife, compromise, and a rising and militant abolitionist movement- ultimately leading to the raid on Harper’s Ferry by John Brown, which drove the slaveholding states into an absolute fury and created a revolutionary situation.

The issue here is that the 1860 election also brought us Abraham Lincoln, one of the best Presidents we’ve ever had- a savvy politician, a strong leader, perhaps the most gifted public speaker in American political history. His strength made both the campaign season and the aftermath of the election a more optimistic time for abolitionists and antislavery states. Though from humble origins, he had by then been proven to be a masterful orator and campaigner who would transform America in his four years in office.

In 2020, we’ve got Joe Biden. Biden is not a great orator- he routinely forgets his train of thought and can barely read from a teleprompter. His leadership is lacking, as he largely disappeared from national view during the initial period of panic about coronavirus, ceding all media time to Donald Trump. And his entire career has been filled with terrible decisions (the Iraq War), racist politics (busing, the crime bill, the War on Drugs), and naked corruption (the bankruptcy bill, Hunter Biden’s $600,000 salary for a Ukrainian energy company during his vice presidency). He is not Lincoln. He’s not even George W. Bush. He has no leadership capability, and thus he might just blow this whole thing.

Screen Shot 2020-04-18 at 9.46.18 AM
Electoral College Predictions as of April 3rd

Biden holds about a five point lead, without having had to debate Trump or make any public appearances. He’s the most sheltered political nominee in history, with the exception perhaps of Reagan during his decline in 1984. Five points nationally is not much, as Hillary won by three and still lost all the key states. Swing state polls have things generally within the margin of error, especially Wisconsin. Biden looks like he will be fighting a defensive war to hold traditional Democratic states Clinton lost (Pennsylvania, Michigan, and Wisconsin). Talk of taking back Ohio or Iowa seem like a pipe dream. And Florida, which would make the Midwest results irrelevant, is filled with voter suppression, attempts to overturn a voter initiative to re-enfranchise ex-felons (which likely will confuse these people and many will not vote due to that confusion), and a crooked Republican governor who will do anything to keep his state red, despite sliding approval ratings in a time where most governors have had residents rally around them. The map is small, the margins are thin, the suppression is total (remember all the 2016 suppression happened in spite of a Democratic president). Biden isn’t Lincoln. And that’s a problem when the country is tearing itself apart.

The BS economy II: BS-ish jobs and the coronavirus recession

BulllshitJObs

Years ago, I wrote a post entitled “The BS economy“, reflecting on David Graeber’s superb essay “On the Phenomenon of BS Jobs” that ended up being a runaway success. By the time his full-length book Bullshit Jobs (2018) came out, a poll had already been conducted that a substantial portion of people in developed countries believed their work had no societal value at all. And though bullshit jobs have in media discourse focused on the bureaucracy and public sector, many people from the private sector reported useless levels of middle management, creation of reports nobody actually reads, and people who exist to duct-tape together something that doesn’t work but could probably be fixed if that was the actual goal, rather than maintaining the status quo.

The spread of COVID-19, which has now enveloped many developed countries, who, with huge amounts of international air travel and centralized urban societies and health systems, were always going to be the first to be slammed by a pandemic. Italy is the post child of how bad things are now, with Spain currently outpacing them in terms of the rate of increase in death rate. The United States is in waves reaching and going beyond the saturation point of its gutted hospitals. According to World Bank data, the US has, per 1,000 people, about a third the hospital beds it had in the 1960s:

Screen Shot 2020-03-25 at 1.46.26 AM
Source: Trading Economics

The de-development of the US, wherein infrastructure is either destroyed deliberately (see, the auto industry buying and dismantling extensive and cheap electric streetcar systems in many cities) or through general neglect in the neoliberal era. The decrease in hospital beds, however, is astonishing not only for how much it digs into American Exceptionalism narratives, but also how it falls consistently even prior to the usual starting point of American neoliberalism in the Reagan era.

It is abundantly clear that the US will have the highest total deaths of any country, by an order of magnitude or more. The President wants to already roll back very inconsistent containment methods by Easter, in order to “restart the economy”. My state has still not adopted shelter-in-place, despite Boston being a major city with a large amount of imported cases and community transmission. It seems clear they will never receive federal assistance in going beyond current containment measures, let alone the medical supplies they need through the use of the Defense Production Act. The government, as most neoliberal governments in American and Western history, is basing their crisis response on handshake deals with large companies and promises of no-strings-attached bailout money.

I will revisit the difference between “the economy” (the method by which people obtain goods and services, through work or a welfare state) and “the Economy” (a reified concept based on a few stock indexes and how well billionaires and their conglomerates are doing) at a later date. I will focus on this post in how much the economy has been stripped down. Finding out which jobs are “essential” (largely the supply chains for food and medical equipment, along with education, though they are full of administrative layers and do-nothing middlemen skimming money off the top) and which are not is instructive. This is a natural experiment to go beyond the Bullshit Jobs framework, which relied on above-mentioned pollinga few hundred people who emailed about the bullshit parts (or wholes) of their jobs, and Graeber’s mastery of theory creation from an anthropological lens.

Landlords? Pure parasites, who get others to pay their mortgages and expansion, avoiding providing services as much as possible, which could be done collectively by tenants anyways.

Office jobs? Bullshit-ish, at the very least, if not total bullshit. The mass movement to working from home and teleconferencing within a couple of weeks indicates what a useless, environmentally-destroying artifice the office is. The office is an instrument of social control, whereby the bosses use the magic of at-will employment to add unneeded stress on people who know how to do their jobs infinitely better than management. With a huge drop in commuting, Los Angeles has some of the cleanest air it has ever had in the automobile era. Millions of hours of commuting and busywork have been cut, and people are able to balance whatever workload they actually have with accomplishing creative pursuits or otherwise having more time in the day. Graeber perceptively points out that many jobs have huge amounts of busywork because some jobs (like system administrators) require people to be on-call for a certain number of hours, but may frequently have no urgent work to do. Management hates to pay people to do nothing of substance, so they use the artifice of the office as a social control mechanism to feel they are getting their money’s worth and justify their existence.

DilbertBullshitJobs

It is clear that many jobs have bullshit-ish aspects to them. Some aspects, like interminable face-to-face meetings that could be sorted out in a ten-minute Slack chat, still persist. The “essential”, who are generally treated like dirt when there isn’t a crisis, show how little match-up there is between pay and social usefulness. A grocery store truck driver has orders of magnitude more importance than his superiors, and they could collectively management the supply chain with their co-workers, having so many years of combined experience on how food goes from farms to shelves. Countries like Denmark are paying a majority of laid-off workers’ salaries, though it should be re-evaluated what these workers should be paid given the social value of their work. 75% of salary seems okay (not ideal, but better than the nothing coming from America), but 75% of what, exactly? Marx’s labor theory of value has come into acute relevance in the past month, as it becomes clear who actually creates value (workers), and who is expendable (administrators, corporate executives, and industries like cruises and shale oil that have no future in a decarbonized economy).

What does the future hold? The idea that the economy can be “restarted” while every hospital is flooded with sick and dying people, and people on the frontlines in healthcare and essential goods production get sick, is insane. There will be a recession, as long as the current range of workable proposals in Congress are where the imagination stops. The stock indexes, which were swollen from deregulation that made once-illegal stock buybacks driving share prices far beyond what assets and earnings a company actually has in meatspace. Bailout money without regulation will go to buybacks, which is just another version of bonuses given out by AIG and Goldman Sachs after the 2008 bailouts. But real-world growth, unemployment, etc. will spiral upwards. A contraction of over 20% of GDP is now being predicted this coming quarter, with Great Depression-levels of unemployment.

A select few elites will benefit, although largely being old men, they will be vulnerable to COVID-19 just like everyone else. A New England Journal of Medicine article on the inevitability of rationing PPE and medical care notes that wealth should not be a factor in testing and treatment, though it inevitably will be to some point. But nothing prevents the wealthy from having severe cases and dying, even if medical care was available. This is not Ebola, it is not confined to the developing (or “developing” but really gutted) countries. And the frontline employees who prepare your food and serve you don’t have paid sick leave and will transmit COVID-19 to others no matter what your bank account balance is.

COVID-19 and the “Lib Ownership Economy”

Since the 2016 presidential primary campaign, Chapo Trap House has been one of the most influential podcasts in a growing network of often humorous, but strongly leftist media. Matt Christman, one of the five co-hosts and the host with the most interest in political history, posited in early 2019 that “owning the libs” had become an influential component of consumption patterns and the United States economy in general.


Screen Shot 2020-04-03 at 9.55.39 PM

Though this obviously connects to the rise of Donald Trump and “Make American Great Again” from 2015 to the present, the origins of decisions made primarily to outrage political opponents goes back at least a couple of decades. The modification of diesel trucks to produce plumes of dark smoke, called “rolling coal”, is often done at least in part to anger environmentalists. With the rise of right-wing talk radio after media deregulation during the Reagan administration, a confrontational political culture emerged that not only blamed “liberals” for the failings of the American political and economic system, but sought actively to antagonize them. What also emerges from this is the polarization of everyday consumption and decisions on political lines- the anti-LGBTQ activity of the leaders of Chick-fil-A spawned both protests and support-by-consumption by conservatives. The strongly reactionary nature of Barack Obama-era right-wing politics, embodied by the Tea Party, was rooted in opposition to everything that “liberals” (often centrist neoliberals like Obama and Hillary Clinton, in reality) wanted, and that liberal support of an issue was reason in itself to rally resources and people against it.

Triggered
A book that only would exist in a lib ownership economy.

Now, in 2020, a pandemic with all the deadly potential of climate change with a much more compressed timeline has arisen. The Trump administration has been marked by a permanent mobilization of the electorate and an end to off-peak electioneering. The President’s decision to file for re-election on the day of his inauguration, and holding mass rallies years before the 2020 election, fits with this new reality. Much like with climate change, there is a desperate attempt for the scientific establishment to get the whole of the population to heed its warnings. But defiance of social distancing and flattening the curve has emerged as about spurning liberal politicians (or public health officials who are seen as being such) than anything else.

A Tampa megachurch continued to hold mass services, even as social distancing was becoming a universal recommendation (or order). The pastor was subsequently arrested and charged with unlawful assembly and violating a public health order. It’s easy to see this person becoming a martyr in the way Kim Davis was for refusing to issue same-sex marriage licenses. A California megachurch gathering is now associated with at least 70 COVID-19 cases. Tate Reeves, Republican governor of Mississippi, rejected a shelter-in-place order well after many other states had implemented them. Quoting from the linked piece in the Jackson Free Press, emphasis added:

One Mississippian asked the governor why the state was not emulating China, the first country to detect COVID-19 and the first to control the spread of the virus. “Mississippi’s never going to be China. Mississippi’s never going to be North Korea,” Reeves responded. He added that “when looking at the numbers China’s putting out, claiming that they have no new cases over a period of time—I’m not entirely sure we can trust that data.”

Reeves’ skepticism of China’s control of the COVID-19 pandemic is incorrect, however. In areas across China most heavily affected by the novel coronavirus, the extensive lockdown, testing and case isolation protocols have eliminated the spread of the virus to the degree that the imminent danger for these areas is not community spread, but reinfection from travelers returning from abroad. Dr. Bruce Aylward, World Health Organization senior advisor, explains the dedication of the Chinese model. “They’re mobilized, like in a war, and it’s fear of the virus that was driving them. They really saw themselves as on the front lines of protecting the rest of China. And the world,” he said.

Reeves ultimately did issue a shelter-in-place order over a week later, but ultimately wasted valuable time at a political level (and not admonishing individuals for risky behavior).

At least in some places (including Fox News) have been ratcheting down the refrain that the United States needs to “restart the economy” and lift public health restrictions. However, even as more recommendations come in, the President gives them a political dimension. Upon announcing today that everyone should wear a face covering in public, he immediately pointed out that he himself would not be doing it. For the 40% of the country in lockstep with the President, such public statements dramatically undermine the efficacy of public health measures that require near-universal adherence to work within the confines and limits of the health system.

We are less than a month into any kind of response to the coronavirus and COVID-19. Pre-print academic research on the UK indicates a need for periodic lockdowns (far stricter than shelter-in-place, which is a broad term that may or may not be sufficient) well into 2021. Lockdowns are the only measure that has a chance of reducing R0 (the rate of infection) below 1, which was critical in keeping the Wuhan crisis from continuing to spiral further out of control.

fig-lockdown
In-progress research by Davies, Kucharski, Eggo, CMMID nCov working group & Edmunds (2020). 

Both right-wing elites and their base will become increasingly restive the longer this goes on, especially as the recession and unemployment deepens, and the calls for increased social spending increase. Asymptomatic or mildly symptomatic people continuing to move in public and not taking sanitary precautions due to the discourse of conservative media figures and politicians is a real concern. Also, the need for shelter-in-place or lockdown measures will straddle a presidential election. Joe Biden has been reluctant to criticize Trump’s coronavirus response (to me, this underlines what a political relic he is, basing his instincts on a pre-1994 vision of what Congress was like), but coronavirus is clearly going to be a major election issue. Debates about policy, like economic stimulus and bailouts, may merge into debates about public health practices, with political divisions emerging as some governors and mayors move unilaterally relative to the federal policy, for or against. While “owning the libs” acts with regard to climate change, like not recycling or “rolling coal” only have long-term, aggregate impact, even a small sliver of people who want to enrage whatever they think liberals look like could mean thousands more dead.

COVID-19: An end to the world (or to capitalism?)

There is a quote, which Capitalist Realism author Mark Fisher attributes to Fredric Jameson and Slavoj Žižek that “it is easier to imagine an end to the world than an end to capitalism.” I will say that this is likely not a recent insight among leftist thinkers. Acute crises like the First World War, which involved countries with high numbers of left-wing intellectuals and political parties, very well saw the imperialist carnage of European nation-states in apocalyptic terms. Though these crises can create a revolutionary situations (the February and October Revolutions in Russia came amidst a long period of defeats on the frontlines), they may also make it seem more likely that the world will end than a definitive end to the capitalist era. The subsequent Spanish Flu pandemic, coming at the tail end of the war, killed more people than the war.

Most people, outside of infectious disease experts, who worry about the end of human society as we know it, probably thought until a few months ago that the existential crisis was climate change. And indeed, it still is in the long-ish term. But COVID-19, which is ravaging countries with the most developed healthcare systems in the world, and is beginning to affect the Global South with very limited resources, has taken end-times thinking from about a decade out to week-by-week. Under one projection, even U.S states that have enacted shelter-in-place are looking at aggregate casualties in the hundreds of thousands, if not millions, depending on how strictly these advisories are imposed and the amount of assistance supplied by a generally oblivious federal government.

Climate change and COVID-19 have several important similarities. They both expose a general lack of intra-national and international cooperation in issues that ignore borders. Likely, by the end of this, poor countries will be the most vulnerable and the least likely to gain access to treatments discovered in the next year or two. Both reveal a critical lack of attention paid to infrastructure and creating excess capacity. And both have shown in the U.S the power of special interests to siphon of needed money for bailouts that are in large-scale firms largely crises of their own design (i.e spending most of their profits on stock buybacks rather than keeping cash on hand). I think some countries will learn valuable lessons that they will apply to combating climate change, but also that some countries are so deeply dysfunctional that they have both a lack of short-term and long-term planning when it comes to existential threats.

Lenin once wrote “There are decades where nothing happens; and there are weeks where decades happen.” COVID-19 has compressed decades of climate change damage into a couple of months. The end of feudalism occurred over several centuries, where the ancien regime of France fell in a couple of years. The question is whether the obstacles faced in confronting a pandemic will be used later on, or will we learn nothing from the tragedy.

The bullshit economy II: Bullshit-ish jobs and the coronavirus recession

BulllshitJObs

Years ago, I wrote a post entitled “The bullshit economy“, reflecting on David Graeber’s superb essay “On the Phenomenon of Bullshit Jobs” that ended up being a runaway success. By the time his full-length book Bullshit Jobs (2018) came out, a poll had already been conducted that a substantial portion of people in developed countries believed their work had no societal value at all. And though bullshit jobs have in media discourse focused on the bureaucracy and public sector, many people from the private sector reported useless levels of middle management, creation of reports nobody actually reads, and people who exist to duct-tape together something that doesn’t work but could probably be fixed if that was the actual goal, rather than maintaining the status quo.

The spread of COVID-19, which has now enveloped many developed countries, who, with huge amounts of international air travel and centralized urban societies and health systems, were always going to be the first to be slammed by a pandemic. Italy is the post child of how bad things are now, with Spain currently outpacing them in terms of the rate of increase in death rate. The United States is in waves reaching and going beyond the saturation point of its gutted hospitals. According to World Bank data, the US has, per 1,000 people, about a third the hospital beds it had in the 1960s:

Screen Shot 2020-03-25 at 1.46.26 AM
Source: Trading Economics

The de-development of the US, wherein infrastructure is either destroyed deliberately (see, the auto industry buying and dismantling extensive and cheap electric streetcar systems in many cities) or through general neglect in the neoliberal era. The decrease in hospital beds, however, is astonishing not only for how much it digs into American Exceptionalism narratives, but also how it falls consistently even prior to the usual starting point of American neoliberalism in the Reagan era.

It is abundantly clear that the US will have the highest total deaths of any country, by an order of magnitude or more. The President wants to already roll back very inconsistent containment methods by Easter, in order to “restart the economy”. My state has still not adopted shelter-in-place, despite Boston being a major city with a large amount of imported cases and community transmission. It seems clear they will never receive federal assistance in going beyond current containment measures, let alone the medical supplies they need through the use of the Defense Production Act. The government, as most neoliberal governments in American and Western history, is basing their crisis response on handshake deals with large companies and promises of no-strings-attached bailout money.

I will revisit the difference between “the economy” (the method by which people obtain goods and services, through work or a welfare state) and “the Economy” (a reified concept based on a few stock indexes and how well billionaires and their conglomerates are doing) at a later date. I will focus on this post in how much the economy has been stripped down. Finding out which jobs are “essential” (largely the supply chains for food and medical equipment, along with education, though they are full of administrative layers and do-nothing middlemen skimming money off the top) and which are not is instructive. This is a natural experiment to go beyond the Bullshit Jobs framework, which relied on above-mentioned pollinga few hundred people who emailed about the bullshit parts (or wholes) of their jobs, and Graeber’s mastery of theory creation from an anthropological lens.

Landlords? Pure parasites, who get others to pay their mortgages and expansion, avoiding providing services as much as possible, which could be done collectively by tenants anyways.

Office jobs? Bullshit-ish, at the very least, if not total bullshit. The mass movement to working from home and teleconferencing within a couple of weeks indicates what a useless, environmentally-destroying artifice the office is. The office is an instrument of social control, whereby the bosses use the magic of at-will employment to add unneeded stress on people who know how to do their jobs infinitely better than management. With a huge drop in commuting, Los Angeles has some of the cleanest air it has ever had in the automobile era. Millions of hours of commuting and busywork have been cut, and people are able to balance whatever workload they actually have with accomplishing creative pursuits or otherwise having more time in the day. Graeber perceptively points out that many jobs have huge amounts of busywork because some jobs (like system administrators) require people to be on-call for a certain number of hours, but may frequently have no urgent work to do. Management hates to pay people to do nothing of substance, so they use the artifice of the office as a social control mechanism to feel they are getting their money’s worth and justify their existence.

DilbertBullshitJobs

It is clear that many jobs have bullshit-ish aspects to them. Some aspects, like interminable face-to-face meetings that could be sorted out in a ten-minute Slack chat, still persist. The “essential”, who are generally treated like dirt when there isn’t a crisis, show how little match-up there is between pay and social usefulness. A grocery store truck driver has orders of magnitude more importance than his superiors, and they could collectively management the supply chain with their co-workers, having so many years of combined experience on how food goes from farms to shelves. Countries like Denmark are paying a majority of laid-off workers’ salaries, though it should be re-evaluated what these workers should be paid given the social value of their work. 75% of salary seems okay (not ideal, but better than the nothing coming from America), but 75% of what, exactly? Marx’s labor theory of value has come into acute relevance in the past month, as it becomes clear who actually creates value (workers), and who is expendable (administrators, corporate executives, and industries like cruises and shale oil that have no future in a decarbonized economy).

What does the future hold? The idea that the economy can be “restarted” while every hospital is flooded with sick and dying people, and people on the frontlines in healthcare and essential goods production get sick, is insane. There will be a recession, as long as the current range of workable proposals in Congress are where the imagination stops. The stock indexes, which were swollen from deregulation that made once-illegal stock buybacks driving share prices far beyond what assets and earnings a company actually has in meatspace. Bailout money without regulation will go to buybacks, which is just another version of bonuses given out by AIG and Goldman Sachs after the 2008 bailouts. But real-world growth, unemployment, etc. will spiral upwards. A contraction of over 20% of GDP is now being predicted this coming quarter, with Great Depression-levels of unemployment.

A select few elites will benefit, although largely being old men, they will be vulnerable to COVID-19 just like everyone else. A New England Journal of Medicine article on the inevitability of rationing PPE and medical care notes that wealth should not be a factor in testing and treatment, though it inevitably will be to some point. But nothing prevents the wealthy from having severe cases and dying, even if medical care was available. This is not Ebola, it is not confined to the developing (or “developing” but really gutted) countries. And the frontline employees who prepare your food and serve you don’t have paid sick leave and will transmit COVID-19 to others no matter what your bank account balance is.

Are We (Finally) in Late Neoliberalism?

The current wave of protests against austerity and imperialism indicate that we are at (another) crisis point in the roughly half-century since neoliberalism replaced Keynesian economics as the basis of contemporary capitalism.

It’s fitting that Chile, beginning with mass evasion of increased subway fares, and continuing to general strikes and a complete shutdown of the national infrastructure, is part of this wave. Neoliberalism, in its doctrinaire form, began in the aftermath of the 1973 coup that overthrew Salvador Allende and installed Pinochet as a dictator. The uprising in Haiti also connects to a longer historical process, as the Haitian people have been subject to imperialist efforts by major European powers (France historically, the United States now) to make them economically subservient and to overthrow or frustrate any attempt to build a political movement that is against austerity and foreign interference.

From Late English to Late Neoliberalism

Years ago, I wrote a post on this site about the evolution of the English language, and how future linguists will define the current moment. The feeling I had is that since Old English and Middle English both have fairly set beginning and end dates, that whatever form of the language we’re speaking today (usually dubbed “Modern English“) will eventually be given some historical marker, for the contemporary must eventually become the historical. This will be especially interesting given how English has become a highly diverse, global language since the beginning of Modern English, with English in different countries evolving at different rates, in different directions.

This general concept of evolution and the resulting terminology we use applies to capitalism, and neoliberalism more specifically. The term “late capitalism” (The Atlantic wrote about the term in 2017) is now used frequently, though I don’t run into it in academic literature as I do in podcasts and social media. The term usually refers to absurd products and business practices that seem unsustainable, thus giving a general feeling that capitalism is beginning to hollow out and collapse on itself. The saga of WeWork, which was once valued at $47 billion USD, despite losing huge amounts of money and having an obviously untenable business plan, fits into this. At some point I will write a more detailed, economics-focused post on the various players in the contemporary capitalist landscape, as we are likely on the edge of another Great Recession. WeWork fits into this landscape in being a venture capitalist-backed mirage, somewhere between the juggernaut companies that have enough cash on hand to survive even a terrible economic collapse, and the companies engaging in the same speculation that caused the 2007-2008 crisis, who will either be bailed out with public money and no accountability, or perhaps face some kind of takeover and structural change, depending on who wins the 2020 election.

I’ll quote a Jacobin interview with David Harvey to talk about what neoliberalism has meant in the context of post-war history:

I’ve always treated neoliberalism as a political project carried out by the corporate capitalist class as they felt intensely threatened both politically and economically towards the end of the 1960s into the 1970s. They desperately wanted to launch a political project that would curb the power of labor.

In many respects the project was a counterrevolutionary project. It would nip in the bud what, at that time, were revolutionary movements in much of the developing world — Mozambique, Angola, China etc. — but also a rising tide of communist influences in countries like Italy and France and, to a lesser degree, the threat of a revival of that in Spain

. . .

There were very few crises between 1945 and 1973; there were some serious moments but no major crises. The turn to neoliberal politics occurred in the midst of a crisis in the 1970s, and the whole system has been a series of crises ever since. And of course crises produce the conditions of future crises.

In 1982–85 there was a debt crisis in Mexico, Brazil, Ecuador, and basically all the developing countries including Poland. In 1987–88 there was a big crisis in US savings and loan institutions. There was a wide crisis in Sweden in 1990, and all the banks had to be nationalized.

Then of course we have Indonesia and Southeast Asia in 1997–98, then the crisis moves to Russia, then to Brazil, and it hits Argentina in 2001–2.

And there were problems in the United States in 2001 which they got through by taking money out of the stock market and pouring it into the housing market. In 2007–8 the US housing market imploded, so you got a crisis here.

Neoliberalism is characterized by the hollowing out of the state, the mass privatization of state assets, and the commodification of all things such that everything that’s not in the market begins to look and act like it. If we concieve of society as existing in three parts- the state, the market, and a civil society that exists externally of both, like this:

shows-a-conventional-Venn-diagram-depiction-of-the-spheres-of-civil-society-interacting

 

In a neoliberalized society, the market expands at the expense of the other two sectors, and the state and civil society begin to have more market-influenced aspects. In civil society, we see the rise of the Non-Profit Industrial Complex, which combines market forces with state surveillance. In the government, we see the rise of business metrics and corporate jargon that define and shape state action.

Is There A “Late Neoliberalism”?

So as Harvey says, neoliberalism has led to a series of interlocked, perhaps escalating crises all over the world. In the era of managed, Keynesian capitalism, central banks and governments were paying keen attention to growth metrics and financial speculation, so matters could only get so out of hand before actions was taken- bubbles were popped early or prevented entirely through regulation of speculative investments, slowdowns were countered with state investment. Since the state has become irrelevant in terms of financial regulation- instead being the muscle of the market to force compliance- the neoliberal era is a set of austerity reforms, a crisis related to these reforms, and further reforms in response. The thing is, none of these reforms actually solve anything- they just create further chaos that can be exploited. As Tony Weis states in a 2004 paper about how neoliberal reforms have destroyed the Jamaican agriculture industry, neoliberal action is not logical action, though contemporary economists attempt to depict themselves as following rigorous mathematical and logical precepts.

The question is whether there can be a crisis, a revolutionary reaction, so large that it overwhelms the neoliberal state. There are several directions this can take. One is the rise of far-right populism in the United States and parts of Europe, which use the gutting of the welfare state by neoliberal reforms and places the blames on various Others, stating that removing the undesirable parts of society will allow an era of abundance as existed in a (perhaps mythical) past.

Another is electoral anti-austerity movements. This includes the Bernie Sanders campaigns of 2016 and 2020, the Corbyn era of the Labour party, political parties that grew out of anti-austerity protests like Unidos Podemos in Spain and Solidarity-People Before Profit in Ireland. With the recent coup in Bolivia, and the releasing of Lula in Brazil, in addition to mass movements in Chile and Ecuador, the electoral and non-electoral responses to austerity and far-right reactionaries in Latin America are mixed together. This is not new- social democratic and democratic socialist politicians and parties have used social movements to help press for redistributive policies while in power, and against austerity when out of power.

Is neoliberalism in crisis? Yes, it always is somewhere in the world, and that’s pretty much the point. Is the crisis deep enough to lead to a new society? Well, here’s a bunch of Chileans with a banner reading “Chile will be the tomb of neoliberalism”, so they definitely think so:

ChileNeoliberalism

The remnant of the state in places like Chile, which is an oversized military and police force with some other things of much less importance, has to contain mass protests and general strikes while having very little to offer people to placate them. This is not the era of the New Deal, where programs were created in large part to stave off radicals who were making inroads in the working class. The neoliberal state has nothing but the stick, or as Loïc Wacquant calls it, the “iron fist” of the penal state. This polarizes people and totalizes the conflict. If the security forces blink, then it can be over- like the Bulldozer Revolution in Serbia at the dawn of the millennium. When a nationwide protest rocked the capital, the police and military decided to stand aside. And with that, the people, not the US and its enormous military, overthrew Slobodan Milošević. The federal buildings were seized, and the dictatorship melted away.

Perhaps it is happening again.

BulldozerRevolution
Belgrade, 5 October 2000