The Alternative to Toxic Nationalism Isn't Neo-Liberalism—It's Social Democracy

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Bi-partisan Corporate Neo-Liberalism has failed the people, more neo-liberalism just leads to full-blown Fascism

Common Dreams - July 2016

"It is heartening to see Traub walk back his elitist war cry, and he is correct that liberalism in its current form — that is to say, corporate liberalism, or neoliberalism — has failed to muster an adequate response to the various crises facing global society.
But this is not because liberals have no desire to do so; it is because their ideological system is utterly bankrupt, divorced from the needs of the masses and subservient to the needs of organized wealth."

"The real question," he (Orwell) wrote, "is not whether the people who wipe their boots on us during the next fifty years are to be called managers, bureaucrats, or politicians: the question is whether capitalism, now obviously doomed, is to give way to oligarchy or to true democracy."

Orwell recognized what many today fail to perceive: That free market capitalism is, in the words of Karl Polanyi, a "stark Utopia," a system that does not exist, and one that would not survive for long if it ever came into existence.

But for Orwell, the question was not how (or whether) the crises of capitalism that rocked both Europe and the United States in the 20th century would be solved — the question was: what would take the place of an economic order that was clearly on its way out?

Read today, his prediction of the world to come emanates prescience.

"For quite fifty years past the general drift has almost certainly been towards oligarchy," Orwell argued. "The ever-increasing concentration of industrial and financial power; the diminishing importance of the individual capitalist or shareholder, and the growth of the new 'managerial' class of scientists, technicians, and bureaucrats; the weakness of the proletariat against the centralised state; the increasing helplessness of small countries against big ones; the decay of representative institutions and the appearance of one-party regimes based on police terrorism, faked plebiscites, etc.: all these things seem to point in the same direction."

This year has in some ways marked the peak of these trends — trends that are currently being exploited (as they always have been) by both genuine nationalists and political opportunists looking to capitalize on the destabilizing effects of the international economic order.

Globally, the concentration of income at the very top is obscene: As a widely cited Oxfam report notes, 62 people own the same amount of wealth as half of the world's population. The report also found that as the wealth of the global elite continues to soar, "the wealth of the poorest half of the world’s population has fallen by a trillion dollars since 2010, a drop of 38 percent."

And such trends have not just inflicted the poorest. The middle class in the United States, for instance, has been steadily eroding over the past several decades in the face of slow growth and stagnant wages. Meanwhile, top CEOs have seen their incomes rise by over 900 percent.

People are reacting. From the rise of Donald Trump and right-wing nationalists throughout Europe to the United Kingdom's vote to leave the European Union, people are using the influence they still have to express their contempt for a system that has failed them and their families.

Some of the discontent is undoubtedly motivated by racial animus and anti-immigrant sentiment, both of which have been preyed upon by charlatans across the globe. But it has also been motivated by class antagonism, by a general feeling that economic and political elites are making out like bandits while the public is forced to scramble for an ever-dwindling piece of the pie.

Responses to these developments by apologists for elites and by elites themselves have been varied, but all have had a common core: The United States and Europe are, contrary to popular perception, suffering from too much democracy.

The leash restraining the people, the argument goes, has been excessively loosened, and, consequently, the "ignorant masses" have wreaked havoc. More or less, the proposed solution has been to tighten the leash.

In a recent piece for Foreign Policy, James Traub calls on "elites to rise up against the ignorant masses." They must put the people in their place with facts and reason, with the decent sense that "the mob" lacks by definition.

Traub's was perhaps the most explicit and aggressive call to action, and, as he notes in his latest work for the same outlet, he has reaped a storm of criticism.

With a hint of regret, Traub insists that his point was misunderstood. The notion, Traub explains, that "people who take issue with the forces of globalization, whether from the left or the right, should defer to elites" is "repellent."

This latest piece was, when it was first published, provocatively titled "Liberalism Isn't Working." The title has since been altered, but the core point remains: Europe and the United States, Traub argues, are experiencing "the breakdown of the liberal order."

In Traub's view, irrationality is prevailing over reason — noticeable in, for instance, popular disdain for "experts" — and illiberal democracy is taking the place of what was previously liberal democracy. Intolerance is replacing tolerance. Those who "can’t stand the way the world is going and want to return to a mythical golden age where women and Mexicans and refugees and gays and atheists didn't disturb the public with their demands" are defeating those who favor diversity and free thought. ...
Read full article at Common Dreams

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