The Guardian
Donald Trump, Peter Thiel and the death of democracy
Ben Tarnoff
ht Kevin Fathi
Today’s Neoliberalism had nearly silenced serious left dissent by the late 1990s, or successfully isolated it in remote academic corners. Bill Clinton’s two terms in the 1990s are proof of that. And there is the continuing tension between Neoliberal economics and democracy: notice the desperate, barely concealed attempt by the Republican Right to shrink the franchise, using as one of its main levers the racial stigmas from “The Great Incarceration” and the yet to be proven accusations of voter fraud.Real-World Economics Review Blog
This political “shunning” of the left happens even in the supposedly liberal Ivy League. The late political theorist Sheldon Wolin (1922-2015), shortly before his death, in an interview with Chris Hedges, spoke of the silent treatment he was given by the faculty at Princeton University when he placed a copy of his new magazine “Democracy” on the faculty lounge coffee table. He was shunned. Perhaps they did not like where he was going with his last book, or could see it coming much earlier: Democracy Inc.: Managed Democracy and the Specter of Inverted Totalitarianism (2008). Here is that interview, Segment Seven from a nine part series at the RealNewsNetwork.…
According to defenders of the ‘free market’, more than a few of whom are dogmatic market fundamentalists, political democracy is an unwanted parasite on the body of economic growth. Democracy whips up unrealistic public passions and fantasies. It distorts and paralyses the spirit and substance of rational calculations upon which markets functionally depend; understood as government based on majority rule, democracy is said to be profoundly at odds with free competition, individual liberty and the rule of law. What is therefore required is ‘democratic pessimism’ and (Friedrich von Hayek’s famous thesis) the restriction of majority-rule democracy in favour of ‘austerity’ (cutbacks and restructuring of state spending) and limited constitutional government (‘demarchy’ ) whose job is to protect and nurture ‘free markets’ protected by the rule of law.
Other scholars, political commentators, policy makers and politicians stake out the contrary view. They maintain that since markets are never ‘naturally’ free but always, in one way or another, the creature of laws and governing institutions, market failures and market ‘externalities’ require political correction. Well-designed political interventions that draw democratic strength from popular consent are needed to redistribute income and wealth, to repair environmental damage caused by markets and to breathe new life into the old ideals of equality, freedom and solidarity of citizens.…The Conversation
For me, EU referendum raised a question which nobody has so far asked, namely: if there was a case for a referendum, isn’t there a far stronger case for worker democracy?
Many of us were appalled by the atrocious standard of debate in the referendum. Robert Harris called the episode “the most depressing, divisive, duplicitous political event of my lifetime.” Perhaps Thatcher and Attlee were right: referendums are a “device of dictators and demagogues.”
Which brings me to the question. If you think the referendum was a good idea, you must surely think worker democracy is a far better one. I say so for three reasons:Worker democracy would be either social democracy or democratic socialism, with government of, by and for the people.
Polanyi’s views were the exact opposite of his contemporary, Joseph Schumpeter, who famously defined democracy as giving people a choice over which elite group would rule over them.…
In contrast to the Marxist tradition, Polanyi defined socialism in terms of the extension of democracy into the economic realm. He wrote: “Socialism is, essentially the tendency inherent in an industrial civilization to transcend the self-regulating market by consciously subordinating it to a democratic society.” Buried in this brief definition are a series of ideas that could be useful for building an alternative to the current dysfunctional global economy.…
And that extension also means abandoning the free market idea that the workings of the economy should be off-limits to democratic decision making. Polanyi’s argument was that free market advocates were always disingenuous in their arguments in favor of laissez-faire. His view was that imposing free markets on society always required extensive state coercion. That was what he was getting at with the fictitious commodities; they do not just emerge naturally; they have to be created every day through the exercise of governmental powers. Under laissez-faire, these government powers are used to enhance the power and wealth of the ownership class.…
Polanyi was hardly naïve. He recognized that those with wealth would resist this deepening and extension of democracy just as propertied elites had often resisted the expansion of suffrage and other democratic rights. Moreover, he was contemptuous of those who imagined that the coming of socialism was somehow preordained or inevitable. He believed that building socialism required an organized socialist movement that was able to create institutions of popular democracy through which people could learn how society works and become empowered citizens.…Out of paradigm with MMT, but many useful social and political insights about an incremental transition from oligarchic capitalism to democratic socialism.
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