Capital could not just abolish the gains of the postwar period. It was necessary to preserve social peace. The "trick" in the 1970s consisted of using inflation to defuse the emerging conflict between labour and capital over redistribution. The money machine was used to compensate for the loss of income which resulted from the reduction in capital’s contribution to the welfare state… Evidently, that could not last. So from the late 1970s inflation was replaced with public debt, and states borrowed (rather than tax) in order to be able to keep up the level of services. Then, in the 1990s, when states began to worry about the growing weight of debt servicing as part of their budgets, and reduced their spending (and thus social services) we took recourse to private debt. In other words, we made it easier than ever for households to take on debt so that they could preserve their purchasing power, which was being cut back by these budget consolidation measures. And that led us to the 2008 catastrophe.
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Socialist candidate Benoît Hamon’s campaign is now at an impasse, because he couldn’t see that the neoliberal fox would refuse to accommodate to the socialist hen, while Mélenchon takes an opposing strategy, write Cédric Durand and Razmig Keucheyan. First published in Libération. Translated by David Broder.
Elections were for long time rather boring. Carried forth by a liberal wind, there was a seamless exchange of office between the self-assured Right and the lightweight Left — these wholehearted converts to market modernisation — in the eternal present of capitalism. Capitalism had been made master of a globalised space and a financialised time. Endemic unemployment, consumerist exultation and terrorist/criminal horror made up the three dramatic extremes of a little game buzzing along, spiced up only by the candidates’ antics or the scenes made by betrayed friends.