Golden Oldie: Great comment on neoliberalism

by: OpenLeft

Sat Jan 01, 2011 at 11:00



A Daniel De Groot Golden Oldie
From Sep 04, 2010. Original HERE.

Note: This is actually more sTiVo's post than Daniels, but it was Daniel's choice as one of his top posts of the year.


In response to my quick hit on UK public opinion strongly favouring having the Labour party abandon the "New Labour" neoliberal agenda, sTiVo has the following to say:

The thing about Britain is that their debate is closer to the real meat and potatoes of what this argument is all about.  Ours is frustratingly diverted into "Like or Dislike Obama" or "Is the Tea Party Racist" and other tangential questions.

Britain makes it clear: it's really about social democracy vs. neoliberalism.

It is important that [Open Left] understand this.  This is the debate that is barely allowed to be mentioned on our side of the pond but it's the crucial distinction.

When Paul Krugman argues for Keynesianism he's taking the social democratic side of this argument.  But he's not allowed to say so, or at least not willing.

The mistake of our side in the past period was in not understanding how strongly our opponents believed in the other side of this argument. It was indeed their central rationale.  It wasn't "just politics".
cont

OpenLeft :: Golden Oldie: Great comment on neoliberalism

When Barack Obama made his famous remarks about Ronald Reagan being transformational, it was misinterpreted as being political, an attempt to reach out to the other side.  It actually was, as some feared, philosophical.  It really did mean, sincerely, that except around the edges, he thought that Reaganism-Thatcherism was irreversible.  Just as Bill Clinton does, just as Tony Blair does.

The Third-Wayers are serious about this.  Seriously deluded, perhaps, but dead serious.  There was never an attempt to triangulate the "independent center", those who still believed in Reaganism but were distressed by the partisan cultural meanness.  That was sincere.  Those who were played were the Democratic base.  They would have to be satisfied with corporate-style knockoffs of social-democratic ideas (health care being the most obvious example).  Labor reformers would have to be mollified with "we don't have 60 votes".  And symbolic gestures devoid of content like inviting Pete Seeger to the White House.

Why didn't this work?  Why are the Dems SO wounded by a bad economy?  A better economy was absolutely crucial to the Third Way plan.  They didn't think it would get this bad.  If it hadn't gotten this bad, they might have been able to pull it off.  People would be working, the craziness wouldn't have gained so much traction, people would have been able to laugh at Sarah Palin, Dems would have been fat and happy.  But that way depended on bubble economics, which the neolibs mistaken thought was permanent.  They may not even believe they depend on bubble economics, they may even delude themselves that they truly stand in the middle.  But when push comes to shove, they never move to the left.

Instead we have this worst of all possible worlds - Obama falsely accused of "socialism" and "socialism" - his toothless attempts to counter bubble economics - all that neoliberalism will allow - blamed for the economic failure.

When the pundits say "America is a conservative country" I have to say, in opposition to most left thinking, they're right in a way.  Our counterargument has been poll numbers.  This is not an effective counter because they have enough power elsewhere to spit on poll numbers, to manipulate them and to make the inconvenient ones disappear.  Thus we hear endlessly about polling on the the "Ground Zero Mosque".  Not so much about Social Security.

When we say "the Dems hate the Left" or they're beating up on "dirty fucking hippies", what we're REALLY saying is that, for the Third-Wayers, neoliberalism vs. social democracy is actually the whole ballgame.  The last vestiges of American social democracy - the New Deal and all its accoutrements - must be wiped out, at all costs.  

They haven't been able to say so - because they need the votes of the "little people".  But there's almost no play left in that gambit.  With each [dispiriting] election betrayal (Clinton and NAFTA, Obama and Health Care, Obama and Social Security) the Democratic brand gets weaker and weaker.

We on the Left, the "netroots", etc., need to understand the centrality of this point more than we do.  The coming fight over Social Security is not one issue among many, it's the defining issue of this period.  Third Way politics is dependent on the bubble economy.  This has failed.  We can't go back there.  We have to make this known.  

The Third Wayers were born of the idea that Communism had failed.  It had, but the Third Wayers went much too far in sweeping the entire social democratic program off the table with it.  The social democratic reforms of the twentieth century are what enabled the West to defeat the problematic communist opponent.  The mistake is in cynically jettisoning them after the threat passed.  Bait and switch, really. But going back to the nineteenth century for economic inspiration ignores why social democracy and communism gained the traction they did in the first place.  

Free-market fundamentalism is not the answer, but the Third Wayers have no answer to it, because they cravenly accept its orthodoxies.  In the current situation we have to drag them, kicking and screaming, back from this abyss.

But until we understand why we're in the position we're in we won't be able to get out of it.

STRENGTHEN SOCIAL SECURITY.  DON'T CUT IT.

(I bolded a few key passages and corrected a couple typos)

Well said, particularly raising the too-rarely raised point that the New Deal (and Great Society) built America into the most powerful and prosperous society in human history.  This should be one of the most powerful arguments for the type of liberal/progressive policies most reading here support, and should be used more often.  All of the sophistry that gets into the weeds of various New Deal programs and arguments about arcane figures feels rather unnecessary when you look at the grand aggregate result.  If it was all such a failure, why did America succeed so well?


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Great points. Thanks for reposting. (4.00 / 2)


Warms the corners of my heart, but leaves a question - (4.00 / 1)
When we say "the Dems hate the Left" or they're beating up on "dirty fucking hippies", what we're REALLY saying is that, for the Third-Wayers, neoliberalism vs. social democracy is actually the whole ballgame.  The last vestiges of American social democracy - the New Deal and all its accoutrements - must be wiped out, at all costs.  

They haven't been able to say so - because they need the votes of the "little people".  But there's almost no play left in that gambit.  With each [dispiriting] election betrayal (Clinton and NAFTA, Obama and Health Care, Obama and Social Security) the Democratic brand gets weaker and weaker.

We on the Left, the "netroots", etc., need to understand the centrality of this point more than we do.  The coming fight over Social Security is not one issue among many, it's the defining issue of this period.  Third Way politics is dependent on the bubble economy.  This has failed.  We can't go back there.  We have to make this known.

Must the Democratic Party re-organize and re-orient itself to reality, or is the problem the President we elected?

In a comment thread to a Rosenberg diary from Friday, 12/31, jeffweinberg posted a link to the DLC - Democratic Leadership Council website. I went there and read some interesting things. One of these was the DLC's "The American Dream Initiative," published in July 2006: http://www.dlc.org/ndol_ci.cfm...
Here is a section of it that I think might describe what the Left has tagged as "Obama's Cat Food Commission."  The Deficit Commission might be an adaptation of Democratic Party ideas. The giveaway on ownership, to me, is the mention of an up-or-down vote by Congress in the description below, which we know is how the existing commission works (with the congressional vote preceded by a majority Commission vote). Here is the section of the American Dream with the idea for the Commission:
If we are willing to restore accountability to government, we can cut the deficit and make important long-term investments at the same time:
• Cutting Wasteful Corporate Subsidies. This administration and Congress have turned Washington into a cash machine for narrow interests. The U.S. now spends scores of billions every year on unnecessary business subsidies that distort the market and discourage competition. We need to create an independent, non-partisan commission to scrutinize and propose the elimination of wasteful, outdated business subsidies. By presenting its recommendations to Congress for an up-or-down vote, this commission would produce $200-$250 billion in savings over 10 years.  ...
And,
• An End to Spending and Giving Away Money We Don't Have. We need to restore pay-as-you-go rules so Congress can not enact new spending programs or tax cuts without offsetting savings to pay for them. ...

From what we've seen so far, I can't imagine President Obama convening a commission to cut wasteful corporate subsidies. Instead he convened a deficit commission. I am not yet of an age to receive Social Security  benefits, but I'm not that far away.  There is no way that I, and the approximately 80 million U.S. residents born in the years 1946 to 1964, according to the 2000 Census, will stand for not getting what we paid for.

I think sTivo is soooo right: "The coming fight over Social Security is not one issue among many, it's the defining issue of this period."

At least the numbers are on our side.


and it would be soo much easier - (4.00 / 1)
- if 'we the netroots' would remind ourselves from time to time that Obamas mother was one of these "dirty fucking hippies"!

[ Parent ]
how true - (4.00 / 1)
When Barack Obama made his famous remarks about Ronald Reagan being transformational, it was misinterpreted as being 'political' and it actually was, as some feared, philosophical.  It REALLY did mean that for an American 'dreamer' a 'political' debate of Reaganism-Thatcherism or 'Third-Wayers' is secondary. First of all comes this idea that you 'can make it there' and that it actually isn't 'Versailles' at all. With the Nouveau-rich-crowd and 'role models' of 'Social Climbers' it's an absurd comparison and 'Village' seems to be a much better fit thinking of a 'White House' Maria Antoinette probably would have used as her garden shag. And that 'reality' kills every 'political' discussion about 'social democracy'. Who wants 'THAT' if you can't get rich and famous anymore??! - and the thing about Europe -(and not only Britain) - is that their debate is closer to the real meat and potatoes because we had 'Versailles' and we are very well aware of it that our chances to make it into the castle are nearly 'null'. And only if the American people will have at least two generations of 'Versailles' (New York City's Wall Street) - you probably can start to debate 'class war' and it is important that [Open Left] understand this because this is the crucial distinction.

Yes, this is the heart of it (4.00 / 2)
Once the sacred middle class -- not just us -- realizes what the game is, and understands that the costs will accrue to them, not just to Mexicans, black folk, and the more or less invisible poor who are only invisible because they're white, then we'll see something. It may not be communism, but for students of history, it'll certainly resemble it in some ways, particularly in the desperation with which it'll be believed by those who've been turned away at the gates of the present supposedly social democratic parties.

If we're very, very lucky, the neoliberal enterprise will cough once or twice, then catch and start rolling again on as many cylinders as the present mechanics have seen fit to fix. That's what the Clintons, the Obamas, and the gnomes at the Pentagon are hoping for, or should be hoping for, if they have any sense. The Kochs and the Norquists are another matter. They welcome the apocalypse, largely because they don't think that its devastations will reach all the way up the mountain to them, and it goes without saying that they don't give a rat's ass about anyone lower down the slopes.

I don't actually know whether or not the America of the Clintons and Obamas can be rallied, patched, fed invigorating drugs, or re-engineered -- one metaphor is as good as another, I guess -- but it's no comfort to realize that the Clintons and Obamas and the schools of pundits swimming with them don't either.

If I were forced to place a bet, I'd put what remains of my money on somebody like Hugo Chavez, or maybe even Juan Perón to be the next big thing, with apocalyptic splinter groups designated by pretentious acronyms by themselves, and demonic epithets by everyone else, proliferating under their paranoid gaze.

If I'm wrong, you can all sue me, assuming tort law hasn't gone away altogether by then. In the meantime, a Feliz Año Nuevo to all.


ein gut's Neues too - (4.00 / 2)
and may the better women (and some men) - win this year!

[ Parent ]
I can't but wondering... (4.00 / 3)
... if the Dem embrace of neoliberalism (and Labour's similar turn in the UK) isn't borne of something more pragmatic--that there was a realization that the electoral landscape was being changed dramatically by television (as Adlai Stevenson predicted) and the way to win was to win the election-money sweepstakes in order to pay for advertising.  The right and business community have always had the necessary money while the left has traditionally had little more than votes and shoe leather.  That the Reagan campaigns and administrations were the most stage-managed of any in history, that their success could be attributed to something akin to the slickest and most expensive of Hollywood production companies fronted by a venerable, if mediocre, actor who could hit his marks and read his lines convincingly, well, that must have pretty much reinforced in them the belief that money counted more than votes,  

The cynical argument in favor of that strategy is essentially the one Carville has offered all along--that one can't implement policy unless one wins (which neatly waltzes away from the eventual problem of having to pay one's pipers)--and yet we know that both Bill Clinton in 1995-6 and Tony Blair in 1996-7 shaped their election speech and image based on focus groups and polling of swing voters--the people least committed to principle and most devoted to narrow self-interest in the electorate--and that once Blair and Clinton won, policy continued to be shaped according to the whims of that same group, which also believed the deceptive "free market" mantra of government interfering with their prosperity.  That both Dems and New Labour eventually lost the esteem of their bases by favoring the one voting segment that reflected the views of their election backers is significant, I think.  

One can't ignore in this the very symbiotic role that television news plays in this electoral philosophy.  Policy matters and platforms have taken a back seat to fundraising in much of electoral reporting.  It has become the horse race, because more money raised means more radio and television revenue for broadcasters, and in a subtle, but powerful, way determines who the press perceives and promotes as the front-runners.

M'self, I don't think it's any accident that the DLC was cobbled together not long after Reagan's second win and it seems logical to say it was largely predicated upon the "if you can't lick `em, join `em" principle, rather than on any carefully-constructed philosophy of national governance or economic policy for the common weal.  Effectively, the New Democrats (of which Obama certainly is one, without formal membership) put their faith in the power of money and marketing, never anticipating that doing so would inevitably also require an abandonment of principles which constituted a fundamental disloyalty to their core constituency.  


that's certainly part of it (4.00 / 2)
Getting beaten 3 times in a row (80, 84, 88) certainly had a big impact on the Democratic party.  At that point, in 1992, they were 1 in 5 since 1968.  When the Republicans lost 5 times in a row from 1932 to 1948, they picked an actual moderate (even a liberal maybe) in Eisenhower whom they actually hated, and his VP Nixon who would later declare "we're all Keynesians now" during his own administration.  It was a long road from the New Deal until the point where the GOP could actually nominate a real conservative in Reagan in 1980 and win with him.  

Victory has a way of settling ideological debates in the minds of politicians.    


[ Parent ]
Even So (4.00 / 1)
Reagan had to pretend to be FDR.  He didn't come on like Calvin Coolidge at all.

"You know what they say -- those of us who fail history... doomed to repeat it in summer school." -- Buffy The Vampire Slayer, Season 6, Episode 3

[ Parent ]
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