How Unregulated Finance is Killing Democracy
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Published 2018-04-11
In his new book, American Prospect magazine editor Robert Kuttner charts the rise and fall of democracy in the West since World War II. The postwar social order was characterized by a unique “harmonic convergence of forces”—including an economically-directive state, a weakened capital-owner class, and strengthened labor unions—which allowed for economic growth within democratic institutions. But, following the Western economic crisis of the 1970’s and the collapse of the Bretton Woods system, big business was able to again direct the economy as it did in the pre-war period; the difference is that this time, banking and finance have played an increasingly leading role. The anti-regulatory climate this yielded in the 1980’s and 1990’s facilitated the 2008 financial crisis, which has in turn activated right-wing, populist movements against democracy.
All Comments (21)
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Wealth disparity is behind so much economic turmoil. It really is a tragedy of the commons for the wealthy and their rent seeking behavior that they are unable to stop themselves from destroying the society in which they live.
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Kuttner's book is the best examination of the failure of Neoliberalism I've read in many years.
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The Lewis Powell Manifesto is almost totally implemented on the US citizen and the controlled depression is now fully in place. Total control of family finances is now complete. Appreciate your bringing it for everyone to understand. Thanks for sharing this information.
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My dude on the right is wearing a bike shirt and a suit jacket fresh 2 death
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I would like to see a debate between the economists affiliated with this institute with the right wing economists who consider regulation as evil and cite „socialist“ countries like Cuba, Venezuela etc. as examples of failures of regulated capitalism
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It is a common fallacy to think of the post-war order as managed or organized, and neoliberalism of the 80s onward as a primacy of markets. The neoliberal era’s dirty secret, albeit in plain sight, is that it is a managed form of capitalism that uses state power to regulate society and structure the economy. This author seems to think that financial capitalism was a betrayal of the social contract, and perversion of a successful economy. Yet, it is clear whenever capital is the driving force of a society, its concentration creates political power, which further promotes its interests. The debate is not how to better obtain growth, as all capitalist growth is extraction and exploitation of communities and natural systems at an intensity that is necessarily unsustainable. And we have reached the limit. The only question now is what are the contours of a post-capitalist or post-growth economy. While this will inevitably produce backlash, that is not economic failure, it is the political rights favourite strategy - to entrench false and unrealistic expectations on a cultural level.
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Has he been invited onto MSNBC, or are they afraid of this level of coherence and lucidity ?
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Wish it were possible to quadruple like a video. Phenomenal analysis. Will buy the book.
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Great book. Very well-written! Thank you Robert!
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A good interview and well explained but Democracy is finished
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When some figure states that the world has created around 1,200 trillion value of money while the world actually produced around 50 trillion value of products and services then we all can see the problem of financialization haha
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When the system has failed as badly as ours has failed us, all it takes is for someone charismatic to claim that they can fix it all with one stroke of the pen...or one stroke of the sword. We're knocking on that door now. Best we fix this willingly, before it's too late. Maybe it already is.
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I'm ok enough to remember the scene when Reagan was about to sign the Glass Steagal Act to history the financiers standing over him saying "hurry up and just sign it!!"...ofcourse he did and a few years later we got the 2008 financial crisis.
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Liberty Under Siege by Walter Karp is a good book on the timeline of the counter revolution's political resurgence with a sprinkling in of the changing mentality of the business elite that led them to a rather aggressive class warfare through the new MBA shock troops(cadres). Written contemporaneous in a series of essays it's a remarkable piece of writing.
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Tax havens for billionaires is what is killing democracy.
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So it sounds like it is just boundless greed.
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If a Functional Democracy relies on legal Good Faith, then there's no such thing as a legitimate democratic society in these dysfunctional Due Process conditions of Privatisation and Financialisation, no reliable control of Contract Law, ie unchecked and unregulated venal inducements for some Lawyers with Government influence. Very good commentary, particularly in reference to the Kangaroo Court conditions.
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Nailing it! I need to get that book.
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How still up to date his views/predictions still are!
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Fascinating discussion!
