“Defund the Police” is a powerful slogan. It articulates a vision of a better world that so many of us on the left want to live in. A world free from the arbitrary state violence on display in the killings of George Floyd, Breonna Taylor, and Eric Garner. At the same time, either implicitly or explicitly, it also expresses a strong desire to address the problems that afflict American society with redistribution instead of violence through the provisioning of public goods such as education, health care, housing, and the like. To be sure, I want more than anything to live in this world, one without policing and with robust social democratic programs like universal single-payer health care and guaranteed housing. However, the politics of defund the police is not how we get from here to there.Read More »
The recent ‘insurrection’ on Capitol Hill should put an end to any liberal illusions that 2021 would usher in, in Biden’s words, a return to decency. Surreal images of the QAnon Shaman roaming the US Senate may yet become one of the defining photographs of the Trump presidency. In many ways it is symbolic of the President himself – inchoate and unashamedly atavistic yet, emboldened by law and order, obstructive and corrosive.
Many of these themes are touched upon in Eric Lonergan and Mark Blyth’s short book Angrynomics. In many senses it is a timely book, published just weeks after the murder of George Floyd and in the midst of the largest global recession since the Second World War, these are fertile grounds for anger. Certainly there is very little to dispute about Lonergan and Blyth’s premise:
“We have an abject failure of policy. Rather than presenting a major programme of economic reform, the global political elite has offered nothing substantive, instead choosing either to jump on the bandwagon of nationalism or insist that nothing fundamental is wrong… The political classes, bereft of ideas, are now desperately peddling old ideologies and instincts, or pursuing bizarre distractions like Brexit.”
As a result of this abject failure, people are angry. They are either publicly anger or privately angry. That public anger either manifests itself in moral outrage (think, for instance, of an Extinction Rebellion protest) or tribal rage (for example, and this is used in the book, fans at a football match). Private anger, meanwhile, gives us an insight into the daily micro-stresses of people’s lives. This is the Lonergan and Blyth typology of anger.
While the authors are clear that “we need to draw a clear distinction between legitimate public anger and cynical manipulation of tribal anger for political ends” (22), their analysis often fails to live up to the task. Through the centrality of “legitimate moral grievances in the Rust Belt” in explaining the election of Trump (25) and the “real stressors” of immigration driving the Brexit vote (111-112), Angrynomics ends up sidestepping important discussions of race for an overly simplistic explanation of class.Read More »
In the wake of the current uprising in support of Black Lives Matter, there has been increasing interest in the use of mainstream empirical methods in economics — like randomized control trials (RCTs) and administrative data evaluation — to address issues of racism and violence in the institution of policing. These interests are well intentioned, but similar to prior debates, we are reminded that “there is reason for concern” about the relevance of these approaches amidst a mass movement calling for deep structural and institutional change. In just two weeks, mass protests have sprung up across the U.S. and the world calling for the defunding, disbanding, and abolition of police as well as the dismantling of white supremacy. This moment has the potential to bring about an institutional and structural shift in our politics, society, and economy. Given this, we will echo many of the concerns shared by economists about the limits of some empirical methods, the biases embedded in administrative data, and the relevancy of these approaches to the current moment calling for immediate change. Read More »
From a prison cell in 1930, Antonio Gramsci wrote “The crisis consists precisely in the fact that the old world is dying and the new cannot yet be born; in the interregnum a great variety of morbid symptoms appear.” The political economic and biological relevance of Gramsci’s words and the conditions under which they were written extend well beyond historical parallel and literary metaphor. A crisis has metastasized from the micro-biological to the political economic. Now, neoliberalism is dying. In the interregnum, a great variety of morbid symptoms have appeared: social distancing, crisis policing, death camps, and pandemic labor. Of what disease are these symptoms? Not coronavirus. Carceral capitalism. Read More »
The spread of the coronavirus epidemic around the world in the past few weeks has exposed not only differences in the lack of preparedness of various public health systems, but also differences in reactions to the crisis. Some governments imposed an early lockdown in their attempt to ‘flatten the curve’ while others have taken a more gradual approach, proceeding from travel restrictions through limits on non-essential businesses to shelter-in-place regimes.
As the epicenter of the pandemic shifts from Asia to Europe and the U.S, however, some reactions stand out among the rest in their utter disregard for human life. Federal and state officials in the U.S. have first downplayed the threat two months before it arrived in the country, as well as refused offers for help from the World Health Organization. Now, as the curve in the U.S. is about to get steeper (see the surgeon general’s warning), top levels of government are considering scaling back the moderate measures that have been taken so far, with a view to return to normal activity within a few weeks. While blaming China for not controlling the virus early enough, some officials are contemplating consciously allowing their own citizens to experience a much worse spread of infection and death than China has seen.
One clear example of this misguided and dangerous ideology can be seen in the pressure put on the U.S. government by corporate lobbyists not to activate the Defense Production Act – which enables the executive branch to order corporations to manufacture the direly-needed medical supplies for testing and treating the virus. Large swaths of the political elite, instead, are relying on the private sector’s voluntary offers to produce such goods. Worse, these same politicians are aching to get the economy back to normal, so as to boost the stock market and their own ratings at the same time. The lieutenant-governor of Texas even went as far as suggesting that older citizens – the group most prone to dying from the virus – would gladly ‘sacrifice’ themselves in the interest of getting the economy moving again.Read More »
Oh, how the righteous have fallen! As the global economy succumbs to COVID-19, we are haunted by the specter of state capitalism. Last week chief economic advisor to the White House, Larry Kudlow, suggested that the US government could take equity stakes in corporations in return for aid. Housing evictions are being postponed. Payroll for employees in some parts of the private sector are to be covered. And the list continues. In the UK, plans are afoot, dare one say, to renationalize the struggling airline sector and other companies.
At the moment, critics of such statist measures are too worried about their own personal health to make a fuss. But as we flatten the curve of the infected and the wheels of the market start turning again, the righteous apostles of the free market will return with a vengeance, and the state capitalists will tumble from their temporary thrones.
As with the last crisis just a decade ago, the state capitalists provided much needed support and took a humble bow (at a profit) when their services were no longer needed. Bailing out General Motors was a good deal for the US taxpayer, as was TARP. Certainly, the same will happen this time around. Or will it?
Since the election of Donald Trump in the US and the Brexit vote in the UK, the prophets of the free market have been decisively pushed out of the halls of power or forced to accept a different religion (typically that of an authoritarian and nationalist form of neoliberalism). National capital comes first!
Without a doubt, Trump and the Brexiteers did not foresee needing state ownership of industry and explicit state direction to achieve their goals. There are plenty of ways the state fosters, guides, and shapes private capital. Capitalism is never without the state, except in some libertarian utopia. State ownership just makes this relationship more explicit.
The embrace of Singapore as a post-Brexit economic model for the UK is telling in that respect. The government of Singapore continues to be a major shareholder of Singaporean industry and commerce, with no plans to change. Why should it? It owns successful and competitive companies. Indeed, state-owned enterprises the world over are demonstrating their competitive prowess. They aren’t the bureaucratic corporate sloths that we are told necessarily come with state ownership. Capital centralized in the hands of the state is resilient and growing for a reason. State-owned enterprises and state-controlled investment vehicles, such as sovereign wealth funds, are multiplying and growing the world over.
For the British elite, Brexit reflected an underlying lament of the sale of British industry (and finance) to foreign owners, even though many became rich that way. They know that restoring such past glory requires explicit action of the state, likely through more centralization of (national) capital. This is a reason behind the refusal to agree to level playing-field provisions with the EU in the future relationship negotiations. But there is more to this than returning to some past glory. Global capital accumulation is driven increasingly by capital centralized in the hands of the state.
The Trump administration’s battle with China (supported implicitly by other Western powers) is not driven by some desire to protect liberal rules-based international order. Rather, it is a battle of national capital. Afterall, China is capitalist.
China’s shift from assembling goods to also designing them, and doing so competitively, has unsettled the hierarchies of the world economy. But China is unwilling to relinquish its development model and its ownership of large swaths of Chinese industry. That is not in the DNA of the Chinese elite. Large state ownership is both necessary to secure the political dominance of the party state at home, and to expand and consolidate the integration of Chinese firms into global supply chains under favorable terms.
This is met in the US (and to a lesser extent other Western economies) by an increasingly aggressive form of techno-nationalism — a form of economic nationalism in the realms of trade, industrial, and investment policy, that aim at securing exclusive control of key scientific-technological innovations. National elites in the West more generally are realizing that they need state power to compete in the global economy. In reality, they always have. But the cloak of free-market neoliberalism energized their buccaneering self-confidence that they were above it all. That fiction is over.
The extension of state prerogatives by non-Western powers used to fuel all sorts of anxieties among state actors and observers in the West. Now, these very same modalities of state intervention are being called for, if not praised, by commentators across the political spectrum. Some even look with envy at the agility with which non-Western state capitalists are currently managing the crisis. The pace at which this ‘new normal’ is emerging is remarkable. We are all state capitalists now (or we all want to be).
COVID-19 and the generalized economic crisis it has catalyzed may hasten changes toward explicit forms of state capitalism in the West. Yet, a decloaked state at the helm does not necessarily mean a more progressive and just economic system (just like it does not mean a move toward state socialism). Who will bear the brunt of the costs of the current transformations, and who will benefit from the consolidation of the ‘new’ state capitalism, will be the outcome of a tense political process. This much we know.
Photo by Governor Tom Wolf. Pennsylvania Commonwealth microbiologist Kerry Pollard performs a manual extraction of the coronavirus inside the extraction lab at the Pennsylvania Department of Health Bureau of Laboratories on Friday, March 6, 2020.