Chasing Shadows: Socialism Won't Go Away Because It is Capitalism's Antithesis

http://www.counterpunch.org/2018/08/13/chasing-shadows-socialism-wont-go-away-because-it-is-capitalisms-antithesis
Date Written:  2018-08-13
Publisher:  CounterPunch
Year Published:  2018
Resource Type:  Article
Cx Number:  CX22882

The abstract forces of capitalism's dynamism create the conditions for ever more creative and novel ways to profit, which is why the Golden Age of postwar capitalism-which had a mix of capitalist and socialist economic features-evolved into the neoliberal period after the external oil shocks of 1973 and 1979. Those conditions created a transitional context to shift out of a regulated state-interventionist capitalism into the aggressive, free-market neoliberal variety lasting more than 30 years, leading us to the precipice of the present.

Abstract: 
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Excerpt:

The neoliberal argument for economic improvement grew out of the structural conditions of the previous crisis, and is encapsulated by 'trickle-down' theory. Specifically, so the argument goes, cut the taxes of high-income earners so they can make more money off their investments; by taking home a greater share, they would spend more, in turn creating jobs and more income for everyone. While trickle-down economics was being promulgated, poor people’s housing subsidies were cut and the minimum wage was frozen during the Reagan years despite the rising cost of goods. The trickle down perspective was bizarre as an argument and cruel in practice, but understandable from the system's pressure to accumulate capital in a new way. For instance, why give more money to those already well-off so they have further incentive to work harder and stimulate the economy, but cut working class resources and impoverish them so they have further incentive to work harder and stimulate the economy?

Trickle-down has essentially been American economic policy for over 30 years now. Deregulating financial markets unleashed an aggressive capitalist dynamic which changed corporate culture, leading to an increase in hostile takeovers of companies, asset stripping, and downsizing–all in the name of delivering faster-and-faster profits at the expense of the long-term viability of a company. Toys 'R' Us is just the latest victim in a long list.

Subject Headings

• Socialism