Posts Tagged ‘Labour’


Mark Tansey, “Discarding the Frame” (1993″

Obviously, recent events—such as Brexit, Donald Trump’s presidency, and the rise of Bernie Sanders and Jeremy Corbyn—have surprised many experts and shaken up the existing common sense. Some have therefore begun to make the case that an era has come to an end.

The problem, of course, is while the old may be dying, it’s not all clear the new can be born. And, as Antonio Gramsci warned during the previous world-shaking crisis, “in this interregnum morbid phenomena of the most varied kind come to pass.”

For Pankaj Mishra, it is the era of neoliberalism that has come to an end.

In this new reality, the rhetoric of the conservative right echoes that of the socialistic left as it tries to acknowledge the politically explosive problem of inequality. The leaders of Britain and the United States, two countries that practically invented global capitalism, flirt with rejecting the free-trade zones (the European Union, Nafta) they helped build.

Mishra is correct in tracing British neoliberalism—at least, I hasten to add, its most recent phase—through both the Conservative and Labour Parties, from Margaret Thatcher to Tony Blair and David Cameron.* All of them, albeit in different ways, celebrated and defended individual initiative, self-regulating markets, cheap credit, privatized social services, and greater international trade—bolstered by military adventurism abroad. Similarly, in the United States, Reaganism extended through both Bush administrations as well as the presidencies of Bill Clinton and Barak Obama—and would have been continued by Hillary Clinton—with analogous promises of prosperity based on unleashing competitive market forces, together with military interventions in other countries.

Without a doubt, the combination of capitalist instability—the worst crisis of capitalism since the first Great Depression—and obscene levels of inequality—parallel to the years leading up to the crash of 1929—not to mention the interminable military conflicts that have deflected funding at home and created waves of refugees from war-torn zones, has called into question the legacy and presumptions of Thatcherism and Reaganism.

Where I think Mishra goes wrong is in arguing that “A new economic consensus is quickly replacing the neoliberal one to which Blair and Clinton, as well as Thatcher and Reagan, subscribed.” Yes, in both the United Kingdom and the United States—in the campaign rhetoric of Theresa May and Trump, and in the actual policy proposals of Corbyn and Sanders—neoliberalism has been challenged. But precisely because the existing framing of the questions has not changed, a new economic consensus—an alternative common sense—cannot be born.

To put it differently, the neoliberal frame has been discarded but the ongoing debate remains framed by the terms that gave rise to neoliberalism in the first place. What I mean by that is, while recent criticisms of neoliberalism have emphasized the myriad problems created by individualism and free markets, the current discussion forgets about or overlooks the even-deeper problems based on and associated with capitalism itself. So, once again, we’re caught in the pendulum swing between a more private, market-oriented form of capitalism and a more public, government-regulated form of capitalism. The former has failed—that era does seem to be crumbling—and so now we begin to turn (as we did during the last system-wide economic crisis) to the latter.**

However, the issue that keeps getting swept under the political rug is, how do we deal with the surplus? If the surplus is left largely in private hands, and the vast majority who produce it have no say in how it’s appropriated and distributed, it should come as no surprise that we continue to see a whole host of “morbid phenomena”—from toxic urban water and a burning tower block to a new wave of corporate concentration  and still-escalating inequality.

Questioning some dimensions of neoliberalism does not, in and of itself, constitute a new economic consensus. I’m willing to admit it is a start. But, as long as remain within the present framing of the issues, as long as we cannot show how unreasonable the existing reason is, we cannot say the existing era has actually come to an end and a new era is upon us.

For that we need a new common sense, one that identifies capitalism itself as the problem and imagines and enacts a different relationship to the surplus.


*I add that caveat because, as I argued a year ago,

Neoliberal ideas about self-governing individuals and a self-organizing economic system have been articulated since the beginning of capitalism. . .capitalism has been governed by many different (incomplete and contested) projects over the past three centuries or so. Sometimes, it has been more private and oriented around free markets (as it has been with neoliberalism); at other times, more public or state oriented and focused on regulated markets (as it was under the Depression-era New Deals and during the immediate postwar period).

**And even then it’s only a beginning—since, we need to remember, both Sanders and Corbyn did lose in their respective electoral contests. And, at least in the United States, the terms of neoliberalism are still being invoked—for example, by Ron Johnson, Republican senator from Wisconsin—in the current healthcare debate


Chris Dillow writes that an under-appreciated feature of last week’s election in the United Kingdom is that “social class has become less important as an influence upon voting behaviour.” His argument is that, based on Lord Ashcroft’s polls, Jeremy Corbyn’s Labour got a higher share of the well-off’s vote than Tony Blair’s Labour got in 1997, and Blair did far better than Corbyn among the working-class.

But there’s another way of looking at the class dimensions of the most recent election—not in terms of who voted but how they voted.

One of the interesting questions in Ashcroft’s exit polls concerns capitalism:

Q.12 Do you think of each of the following as being a force for good, a force for ill, or a mixed-blessing? Please give each one a score between 0 and 10, where 0 means they a very much a force for ill, 10 means it is very much a force for good and 5 means it is a mixed blessing. Capitalism

As it turns out, 61 percent of those who voted Labour consider capitalism at best a mixed-blessing, in contrast to 36 percent of Tory voters. (Green and Scottish National Party voters are even more opposed to capitalism—with 68 and 67 percent, respectively.)

A similar but somewhat less dramatic difference exists between socioeconomic groups (the closest the UK Office for National Statistics gets to classes). Only 44 percent of AB voters (in higher and intermediate managerial, administrative, professional occupations) consider capitalism a mixed-blessing or worse, as against the 58 of DE voters (in semi-skilled and unskilled manual occupations, unemployed and lowest grade occupations) who hold a negative view of capitalism.*

One possible interpretation of the snap election called by the Theresa May and the governing Conservative Party, then, is it was less a referendum on Brexit and more on capitalism. And on that score, with rising inequality and the threatened cutback in social services for those at the bottom, class still does matter for voters in the United Kingdom.


*The one surprising result in Ashcroft’s poll is how little difference there is in terms of age: while 53 percent of voters age 18 to 24 hold a negative view of capitalism, that falls to only 45 percent among voters 65 and over.


Special mention

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