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
Analysing a bank’s financial statements is a bit like suing your family lawyer for malpractice; the jury may be on your side but the evidence is invariably circumstantial. However, in times such as these when even charities are screwed by their bankers – it is best not to trust anyone. Worry not, we at Kafila are not just concerned with playing theory-theory and pseudo-secular Hindu-bashing, we are also deeply concerned about the financial crisis – it has a direct impact on the bonuses taken home by our CEO and board-members. Accordingly, I offer you a simple step by step way to figure out when your bank will go under.Written in an easy conversational style, this post is an invaluable tool pedagogic for Kafila readers both young and old. Stay with me guys, this is going to be fun.
First a bit of background: In May 2008, Vikram Pandit finally stamped his authority on the behemoth company that he had been chosen to lead. Signalling a bold break from the past, he replaced Citigroup’s 2007 slogan “Let’s get it done” by reviving Citigroup’s 1970s slogan “The Citi Never Sleeps”. While the new/old ad campaign is sure to bring back memories of more profitable times, the firm’s precarious financial situation suggests that The Citi apart, Pandit won’t be getting much rest either. Mystery Question: What will it take to wipe Citi out?
Continue reading How to know if (when) your bank is insolvent
Either the well was very deep, or she fell very slowly, for she had plenty of time as she went down to look about her and to wonder what was going to happen next…” As General Motors representatives prepare for the February 17 discussion with the Treasury Department on viability plans, they shall be under some pressure to illustrate how they plan to pull the company of its $44 billion dollar rabbit-hole of debt and re-emerge into the sunny wonderland where selling cars actually generates profit. The company is expected to show progress on negotiations with its creditors and must have firm commitments by end-March, else it could be forced to pay back the $13.5 billion loaned by the Treasury thus far. Given GM’s current liquidity crisis, a misstep on February 17 could plunge it into bankruptcy.
Continue reading Generally Motored! Why GM has the Government by the Gonads