Holes in the Keynesian Arguments against Neoliberal Austerity Policy--Not "Bad" Policy, But Class Policy

The Neoliberal fiscal responsibility vs. the Keynesian deficit spending debate thus seems more like a trap, or diversion, than an effective strategy to replete the public purse and bring about an economic recovery, as it sidetracks the root causes of debt and deficit, and accepts the Neoliberal argument that blames social spending as the culprit--in effect, blaming the victims (the people) for the crimes of the perpetrators: the Wall Street gamblers, the military/security spending, and the supply-side tax cuts. This insidious argument and the fake debate between the Democrats and the Republicans pursue two objectives: first, to absolve the real perpetrators of their responsibility for the colossal debt and deficit; and second, to restructure the debt and the economy in ways that would dismantle the welfare state, and throw back the working conditions, living standards, inequality and class divisions more than a century earlier--the late 19^th and early 20^th centuries.

Therefore, it is time to change the premises or parameters of the debate from "when or by how much social spending should be cut" to "why should the people pay for something they are not responsible for?" It is time to turn the tables and start asking: Why should the Wall Street gamblers not pay to rebuild the economy they drove to ruins, or pay the debt they accumulated? Why can't a part of the hugely redundant and destructive military spending be reallocated to non-military public spending? Why do we need to have over 800 military bases around the world? Why can't unearned incomes (capital gains, interest, dividends, rents from property) be taxed at least as much as earned incomes, income from work and profit from real production? What are the benefits of the numerous tax shelters (tax-free bonds, family trusts, oil depletion allowances, etc.) to national or public interests?

Obviously, there is not much room for these kinds of questions to be raised within the two-party political machine. It is, therefore, time for the broad masses of the working people, that is, not just the traditional blue collar workers but also perhaps over 90% of the so-called white collar workers and "professionals," especially public-sector employees, to mobilize and organize independently of the two-party system in order to fend off the brutal Neoliberal offensive against their living and working conditions. It is abundantly clear that the illusions over Obama's message of change have turned to nightmares as he has betrayed the grassroots who voted for him. More generally, the policy of working and pleading with the Democratic Party in the hope of reversing or containing the relentless attack of capital on labor (and other disenfranchised social strata) must be abandoned, since Democrats are only slightly less Neoliberal than Republicans--they may as well be called stealth Neoliberals.

When the workers and other grassroots will gain the necessary consciousness and determination to actually appropriate and utilize the existing technology and resources for a better organization and management of the world economy in the interests of the majority of world citizens no one can tell. One thing is certain, however: to play such a role, the working class needs entirely new visions and new politics. The new, independent labor politics will need to (a) go beyond trade unionism, (b) go beyond national borders, and (c) operate through coalitions and alliances with non-labor grassroots opposition groups. There is definitely no shortage of material resources for this purpose, certainly not in the US and other industrialized countries. What is lacking is the political will and/or capacity to reorient the society's priorities and reallocate its resources. The feasibility of these proposals (and the fate of capitalism), ultimately, comes down to the relationship of social forces and the balance of class struggle.

Next Page  1  |  2  |  3

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).