112694748016780503

No alternative to neoliberalism?

Apostate Windbag thinks otherwise, thinking about the upcoming German election”:

And this is where the neo-Keynesnian arguments of the New New Left distend and where the neo-liberals make a very good point. They are quite right: there simply is no room for the welfare state and worker protection any more. Companies cannot afford them, and they’re not lying when they say this. In a global economy, though capital is nowhere near as mobile as its champions say it is, it remains master of any national parliament. Through investment flight and economic sabotage – as is happening in Germany today – capital commands all. It is not merely that German workers are saving too much, worried that they are about to lose their jobs and thus not spending and keeping the economy afloat, it is that German capital is consciously sitting on its hands, refusing to invest, when it could. It aims to discipline the SPD and the electorate.

Thus even if the Linkspartei were to form a government (which they cannot this election, but, as the third biggest party in the country now, it certainly is within their grasp within a handful of electoral cycles), as their plan is entirely dependent on ‘priming the pump’ – boosting demand as Bush has done, Germany would be the subject of the most ruinous economic sabotage on the part of both domestic and international capital that they would be tumbled out of office within one term.

[…]

The solution is lies outside the domestic realm. Capital may be able to chasten even an economy as large as Germany, but it cannot abandon an entire continent. At the European level, theoretically, democracy could once again be at least an equal match for capital. Priming the German pump is no solution, but priming the European pump may yet be. A European Keysianism is both saleable to the electorate and achievable, and, conveniently, dovetails with the need to offer an alternative vision of Europe by the Gauche du Non in the wake of the defeat of the European Constitution.