An earlier version of this essay was published in Outlook magazine
“The young students are not interested in establishing that neoliberalism works – they’re trying to understand where markets fail and what to do about it, with an understanding that the failures are pervasive. That’s true of both micro and macroeconomics. I wouldn’t say it’s everywhere, but I’d say that it’s dominant.
“In policymaking circles I think it’s the same thing. Of course, there are people, say on the right in the United States who don’t recognise this. But even many of the people on the right would say markets don’t work very well, but their problem is governments are unable to correct it.”
Stiglitz went on to argue that one of the central tenets of the neoliberal ideology – the idea that markets function best when left alone and that an unregulated market is the best way to increase economic growth – has now been pretty much disproved. Read the full report by Will Martin here
One often hears over-zealous warriors of neoliberalism say of Leftists that they live in a time- warp; that the world has long changed and that the disappearance of state-socialism has finally proved that all their beliefs were little more than pipe-dreams. They talk as though history came to an end with the collapse of actually existing socialisms and the global ascendance of neoliberalism in the early 1990s. As though all thought came to an end; as if the distilled essence of everything that could ever be thought, or need be thought, was already encapsulated in the neoliberal dogma.
Continue reading New Politics of Our Times and Post-Capitalist Futures
In February this year, Iceland jailed four of its rogue bankers for market manipulation and for defrauding ordinary people. No, the heavens did not fall. Thunder and lightning did not strike. The wrath of God did not descend upon the people of Iceland. On 13 February 2015, Reuters had reported:
Iceland’s Supreme Court has upheld convictions of market manipulation for four former executives of the failed Kaupthing bank in a landmark case that the country’s special prosecutor said showed it was possible to crack down on fraudulent bankers. Hreidar Mar Sigurdsson, Kaupthing’s former chief executive, former chairman Sigurdur Einarsson, former CEO of Kaupthing Luxembourg Magnus Gudmundsson, and Olafur Olafsson, the bank’s second largest shareholder at the time, were all sentenced on Thursday to between four and five and a half years. –
In less than four months since this happened, Mathew Yglesias reported in Vox Business and Finance two days ago that the economy had in the meanwhile done quite well:
Yesterday, Iceland’s prime minister, Sigmundur Gunnlaugsson, announced a plan that will essentially close the books on his country’s approach to handling the financial crisis — an approach that deviated greatly from the preferences of global financial elites and succeeded quite well. Instead of embracing the orthodoxy of bank bailouts, austerity, and low inflation, Iceland did just the opposite. And even though its economy was hammered by the banking crisis perhaps harder than any other in the world, its labor didn’t deteriorate all that much, and it had a great recovery.
For those who have seen the brilliant documentary film Inside Job, which exposed the unscrupulous game played by the bankers and the financial oligarchy in defrauding millions of ordinary people and eventually triggering of the financial crisis in the US and the world at large, the story of Iceland’s descent into the dystopic neoliberal world must still be fresh in their minds. Continue reading Iceland Jailed Bad Bankers While Modi Govt Bails Out Defaulting Sugar Mills