Ideology Crisis - Cult Magazine

2022-09-24 06:19:56 By : Mr. Peter Wang

The 2008 crisis seemed, at first, to be an excellent moment for the reconstruction of a practice and a thought of the left in the world.After all, few crises in the history of capitalism have been triggered by such ideological elements in the debate between the right and the left.The 2008 crisis was triggered by two elements, both mandatory in the booklet of so-called “neoliberalism”: the deregulation of financial markets and the idea that the market can become the regulatory entity of its own risk.The American financial market was heavily regulated between 1933 and the beginning of the 1990s by an act of President Roosevelt a few weeks after coming to power, the so-called “Glass–Steagall Act”, which separated investment banks from commercial banks, limited leverage in financial markets and, above all, limited the size of banks, making them regional.As a result, a relationship was established between the financial market and the State in the United States, according to which the financial market could generate profits, but was not capable of destabilizing the State or the country's economy.This balance prevailed until the 1990s.The political-economic doctrine that we today call neoliberalism has fought strongly since the mid-1990s against the regulation of financial markets and defended the idea that markets are capable of regulating their own risk.Therein lies the origin of the 2008 crisis, which, in this sense, was eminently political.Not only did deregulation allow American and European banks to take huge speculative positions that put the entire world economy at risk, but the instruments developed for risk assessment proved to be completely innocuous.As the financier George Soros stated, risk assessment seems to be a very interesting instrument.The problem is that nobody knows how to do it.In other words, all those who tried to anchor their risk in instruments produced by Wall Street and the financial market ended up with heavy losses, and the main US insurance company went bankrupt and had to be rescued by the US government.This forms the backdrop to the 2008 financial meltdown, which opened up a number of opportunities for the left, among which, of course, was to place a new emphasis on the economic regulation of financial markets by the state.Today, almost five years after the first signs of the crisis, it is possible to divide the reaction of the left to the crisis in two moments: a first clearly negative and a second more positive, still under construction, in which the “Indignados” movement in Spain , and Occupy Wall Street assumed a certain role.Although it is very difficult to define what the left is, I would argue that left-wing thought and practice has two major structuring poles: the first is an idea of ​​justice, whether social or distributive;the second is a critique of the market that points to the need for State interventions with the aim of regulating or curbing excesses generated by the market's own operation.Conceived in this way, it is not difficult to see that the supposed reconstruction of a leftist practice in the first phase of the 2008 crisis ended up being guided exclusively by the second element.In the main developed economies, the State rescued their financial markets by massively intervening in them.This was the case of the different packages elaborated in the USA – a first one by the George W. Bush administration and a second one by the Obama administration.The two packages that are at the root of the speeches of both the Tea Party and Occupy Wall Street were conceived exclusively as a one-off rescue of the financial market.The Bush administration's package came to be a distribution of $25 billion checks to the biggest banks, and the Obama administration's package was not much different, as it named Wall Street's top representative as its Secretary of the Treasury.What happened as a result of a financial market rescue policy without a proposal for justice was the disaster we know: American banks recovered and, at the same time, almost 2 million people lost or are about to lose their homes. for banks, US unemployment has been above 8% for nearly two years and the poverty data in the world's richest country is shocking.In other words, the Obama administration's policies led to a recovery of the financial system without leading to a recovery in the economic situation of the population.This is the backdrop for Occupy, it is the beginning of the second phase of the left's reaction to the crisis.Occupy has placed on the US political agenda the two issues that are fundamental to a left-wing approach in the country.The first is Wall Street's lack of legitimacy.The movement that took over a park (not by chance a private park) raised the issue of the destructive role played by Wall Street in relation to industrial companies (an issue that resurfaced in this year's Republican primaries).It also called into question the lack of representation of the actions of the financial system in relation to the majority of the population.While a part of the American population is unable to have a decent retirement or is at risk of losing their home, Wall Street companies operate with another logic: they have stratospheric profits, part of which are reverted to employees, and losses equally stratospheric levels that are covered by the federal government or the Central Bank.Hence the meaning of the Occupy slogan: we are the 99% that show the dichotomy between the beneficiaries of the financial system and the American population as a whole.Second, Occupy highlighted the lack of representation of its political system and the ways in which economic power and political power are associated in Washington.Goldman Sachs, the main investment bank operating in the US, practically dominated the last US administrations, if we consider that Robert Rubin (Bill Clinton's Treasury Secretary), Henry Paulson (George W. Bush's Treasury Secretary) and Timothy Geithner ( Barack Obama's Secretary of the Treasury) left their ranks.The policies made by these governments ended up converging against the interests of the majority of the American population.It is nearly impossible to thwart Goldman Sachs interests within government and/or Congress.Occupy highlighted the lack of representation of politicians by raising the banner of “real democracy now”, one of its main slogans.By raising the slogan of economic inclusion and real democracy, the movement called into question the two main elements of the relationship between the economic system and the political system as practiced in the United States and with which Obama himself was unable to break.At the same time, it politicized the dispute between right and left and showed the vulnerabilities of the kind of liberalism practiced in the US.The eviction of Zuccotti Park was perhaps the best expression of public privatization in the country.The movement occupied a private park that had among its rules that it was open for 24 hours (all public parks in the United States closed at night).However, as the movement strengthened, pressure began to evict the park.The company that owns it changed the statute, banning camps inside.The police then evicted the park in the early hours of November 14, 2011. Thus, the eviction act itself shows the non-public nature of the way politics has operated in the United States.The movement, which spread across the US, reaching mainly California, ended up being associated this year with the first victories of the left in elections in Europe since the beginning of the crisis.The European crisis is a worsened continuation of the changes implemented by neoliberalism in the US, with an addendum: the situation of the euro.If the assumption of neoliberalism is the depoliticization of regulation and risk control in the economy, the euro was a step forward in relation to this conception.It represents the attempt to dissociate currency and political sovereignty.The euro was created from the fiction that currency stability can be detached from the sovereignty of the State or the national States that support it.Countries with very fragile economies, such as Greece, until 2009 were considered free of any risk for the financial markets, which made them capable of issuing huge debts.When the banks and the markets realized the risks, they themselves continued with the task of making economies such as the Greek, Portuguese and Spanish unfeasible.Greece's GDP has been falling steadily since 2008 and unemployment has reached a quarter of the population.But what is worse, the country has completely lost its sovereignty in the stabilization process coordinated by the European Union (read Germany) and the IMF.EU funds made available to Greece are deposited in a current account controlled in part by the two institutions.The Greek government does not have access to it.All these facts led to the victory of the left in Greece and France.The “Merkoziy” recipe, which is austerity in public accounts by means of cutting public spending, finally seems to be in crisis.François Hollande has today the possibility of coordinating a different response to the economic crisis that befalls the continent.This response has to be both economic and political.Economic, because it is necessary to think about a regulation that does not allow banks to incur the losses they generated and then present the accounts to their respective national states – as BNP, Daxia and now Bankia did.And political, because, evidently, the European population, as well as the North American one, is no longer willing to tolerate the inequalities generated by the rescue processes that were not guided by any criterion of justice.In other words, today, with the elections in Greece and France, with a possible collapse of the right-wing government in Spain and with the strengthening of movements such as the “Indignados” and Occupy, we return to the classic question that brought the European left to power. in the post-war period: how to establish a relationship between state intervention and egalitarian values?The reconstruction of the left as a political alternative depends on the elaboration of an economic policy that performs two functions: on the one hand, this policy must be able to ensure the stability of the financial system, but this cannot be a solely systemic objective.This stability has to be compatible with the exercise by the financial system of an economic activity that produces results for the wider economy.On the other hand, the results of state intervention must be morally just and politically egalitarian, otherwise the very principle of intervention will be questioned.François Hollande is right to question Angela Merkel about the social costs of the European fiscal pact.But if he wants to go further, he will have to listen to the outraged about a new way of exercising the active role of the state.Leonardo Avritzer is a professor at the Department of Political Science at the Federal University of Minas Gerais and one of the organizers of the book Corruption – Essays and Criticism (Ed. UFMG).Just an addendum.The Right won the Greek elections.And the “Spanish collapse” was caused by the left.The current right-wing Spanish government took over with the country already broken.The European crisis has not spared governments of either the left or the right.Good analysis.however, I disagree with the professor's concept of the left. It seems to me that his description of the left flirts much more with social democracy than with bobbio's classic left, for example.Mr.already started his article with a fallacy: “The 2008 crisis was triggered by two elements, both mandatory in the booklet of so-called “neoliberalism”: the deregulation of financial markets and the idea that the market can become the regulatory entity of its own risk.”In which of these countries does the State not regulate the financial market?(since everyone has a central bank)And when placing a representative of the market as Secretary of the Treasury does not mean that he will dominate the government, it is quite the opposite.I would like to know why the cover is representing our symbol (guy fawkes mask) on a red background with the phrase “LEFT AT THE CROSSROADS” we are neither left nor right, we are nonpartisan.We just don't agree with this "message".Grateful.vardenafil 20mg erfahrung levitra canadian pharmacy cialis 20mg cialis 10mg pharmacy 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