Neoliberalism’s many deaths and strange non-deaths 

neoliberalismBy Jack Copley and Alexis Moraitis

The coronavirus pandemic has required states to take unprecedented steps to backstop the world capitalist economy. This has included enormous liquidity injections into financial markets, guaranteeing the wages of furloughed workers, and temporarily requisitioning and coordinating parts of the private sector. Yet last year a different threat – not epidemiological but proletarian – similarly forced states to adopt redistributive policies against their wills, albeit on a smaller scale. 

From the vantage point of the current uprisings against racist police violence, the empty streets of the early 2020 lockdown appear as a brief exception to the broader trend of mass unrest. In 2019, streets, avenues, and squares in different parts of the world flooded with protestors decrying the pro-rich policies of their respective governments. The scale, endurance, and spectacular disruptiveness of these popular explosions pressed governments from Western Asia to Europe to Latin America to abandon so-called neoliberal fiscal rectitude and reluctantly embrace Keynesian stimulus policies.

In Chile, on the eve of the autumn 2019 revolt, billionaire austerian president Sebastián Piñera invoked a classic metaphor of neoliberal stoicism to explain how he would resist popular opposition to his painful reform programme: ‘Ulysses tied himself to a ship’s mast and put pieces of wax in his ears to avoid falling for the … siren calls’. Less than one month later, this modern Ulysses had broken free from his tethers, announcing increases in the minimum wage, healthcare benefits, pensions, electricity subsidies, and the reform of Chile’s very constitution. There are clear parallels with France’s Emmanuel Macron, a former investment banker who assumed power in 2017 on a platform of market discipline, only to buckle under the weight of the relentless Gilet Jaunes movement and announce a €17 billion package of concessions.

How are we to grasp the jarring Keynesian U-turns of such cartoonish neoliberal governments in the face of mass protest and pandemic? It is commonly assumed that the neoliberal project represented the shrinking of the state sphere and its replacement by the cold logic of the marketplace. The 2008 bank bailouts appeared to buck this trend, as states were called upon to undertake drastic interventions. But this turned out to be a hiccup in neoliberalism’s larger narrative arc, as austerity quickly took hold. Yet perhaps this latest accumulation of crises will at last force states to reclaim the territory they had ceded to the market. After its ‘strange non-death’, is neoliberalism finally dying?Read More »