Western economies are heading for the rocks, but no-one’s at the helm

The neo-liberal project to shrink the state---although driven by the right and accepted even by parts of the centre-left---is starting to bite hard. Even the financial markets are worried that the so-called debt crisis cannot be solved unless there is growth.

The major western economies are now like a shipwreck waiting to happen.

Although financial markets are inherently volatile and the real economy may not hit the rocks this week (or even next), we know that the financial system in Europe—which includes the UK—and America is increasingly fragile.

We desperately need to restore the confidence that leads to jobs and growth, but we have run out of economic tools to fix the economy. The limits of monetary policy have nearly been reached while the real answer—a co-ordinated fiscal stimulus—is ruled out by bone-headed right-wing politicians in Europe and the United States.

The neo-liberal project to shrink the state—although driven by the right and accepted even by parts of the centre-left—is starting to bite hard. Even the financial markets are worried that the so-called debt crisis cannot be solved unless there is growth.

Social-democrats should be shouting this simple fact from the roof tops. Instead, Ed Miliband in the UK and his social democratic friends in continental Europe and the USA busy themselves with minor matters and cave in on the major ones.

In Britain, the Labour Party is debating the reform of the trade union vote in leadership elections. Political pundits wonder whether, when Parliament reconvenes, Ed will score sufficient Prime Ministers’ Questions points against David. 

In Berlin, former SPD Finance Minister Peer Steinbrück offers his support to Angela Merkel’s transfer union-obsessed government.  In Washington, a President whose social democratic leanings were applauded in Europe a few short years ago, hands the Tea-party Republicans budgetary victory on a plate.

Aditya Chakraborty recently wrote about the collapse of ‘statecraft’ going hand in hand with the rise of neo-liberalism. One might well argue instead that statecraft, far from having disappeared, has become the exclusive (and well-funded) preserve of the right.

Witness the ruthlessness with which the US Republicans have despatched Obama, or with which Cameron and Osborne have pursued their agenda to commodify the public realm and shrink the state.

At a time when world-wide recession threatens every item on the social-democratic agenda—from climate change to growing inequality, decent jobs,  pensions and affordable housing—where are the leaders of the Left?

Are they out addressing public meetings up and down the country, challenging the need for budgetary austerity, supporting trade union goals or explaining how the Tories are privatising the NHS? Decidedly not!

As Ed Miliband’s father argued, politics is far more about engaging with ordinary people than entertaining Parliament. We know from the 1930s and again from the late 1970s that right-wing populism thrives on economic insecurity and hardship. We are once again living in dangerous times. The left must summon all its energy to take its case to the public—or else risk calamitous defeat.

14 Responses to “Western economies are heading for the rocks, but no-one’s at the helm”

  1. Oli Sawtell

    Western economies are heading for the rocks, but no-one's at the helm: http://bit.ly/pz7KGq : writes George Irvin #financialcrisis

  2. Altany

    Western economies are heading for the rocks, but no-one's at the helm: http://bit.ly/pz7KGq : writes George Irvin #financialcrisis

  3. Watching You

    Western economies are heading for the rocks, but no-one's at the helm: http://bit.ly/pz7KGq : writes George Irvin #financialcrisis

  4. soisthesun

    Western economies are heading for the rocks, but no-one's at the helm: http://bit.ly/pz7KGq : writes George Irvin #financialcrisis

  5. Marilyn Freeman

    Western economies are heading for the rocks, but no-one's at the helm: http://bit.ly/pz7KGq : writes George Irvin #financialcrisis

  6. Michael

    Western economies are heading for the rocks, but no-one’s at the helm l Left Foot Forward – http://j.mp/pNmTqj

  7. SSP Campsie

    Western economies are heading for the rocks, but no-one’s at the helm l Left Foot Forward – http://j.mp/pNmTqj

  8. Peter Durant

    Western economies are heading for the rocks, but no-one’s at the helm l Left Foot Forward – http://j.mp/pNmTqj

  9. Geoffrey Pearson

    Western economies are heading for the rocks, but no-one's at the helm: http://bit.ly/pz7KGq : writes George Irvin #financialcrisis

  10. Tania Funston

    Bring back Gordon Brown!
    “@leftfootfwd: Western economies no-one's at the helm: http://t.co/hw9zeqH : George Irvin #financialcrisis”

  11. Amanda Wilkinson

    Western economies are heading for the rocks, but no-one’s at the helm l Left Foot Forward – http://j.mp/pNmTqj

  12. Leon Wolfson

    I think you’re mistaking, given recent events, Labour as a party of the left. Sadly.

  13. Knut Cayce

    RT @leftfootfwd: Western economies are heading for the rocks, but no-one's at the helm http://t.co/CIgz9Q2

  14. R J Croton

    RT @leftfootfwd: Western economies are heading for the rocks, but no-one's at the helm http://t.co/xI75kHX

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