{"id":627,"date":"2019-10-19T10:04:50","date_gmt":"2019-10-19T10:04:50","guid":{"rendered":"http:\/\/jabardakhal.in\/english\/?p=627"},"modified":"2019-10-19T10:15:37","modified_gmt":"2019-10-19T10:15:37","slug":"neoliberalism-no-reformist-solution-to-its-crisis","status":"publish","type":"post","link":"https:\/\/jabardakhal.in\/english\/neoliberalism-no-reformist-solution-to-its-crisis\/","title":{"rendered":"Neoliberalism: No reformist solution to its crisis (Chapter I)"},"content":{"rendered":"\n

Introduction:\nNeoliberalism and its crisis<\/strong><\/p>\n\n\n\n

Now-a-days,\nnations throughout the globe are exhibiting a panorama that even mainstream\nmedia and the spokespersons of the world economy are being incapable to shadow\nthe economic crisis that is permeating the entire world. Recently, the IMF\nchief K. Georgieva said, that, \u201cin 2019,\nwe expect slower growth in nearly 90% of the world. The global economy is now\nin a synchronized slowdown<\/em>\u201d. \u201cIn some\nof the largest emerging market economies, such as India and Brazil, the\nslowdown is even more pronounced; in China, growth is gradually coming down\nfrom the rapid pace it saw for many years<\/em>\u201d, she added. According to World\nBank, the values of net trade balance in US and China are almost \u2018-\u2019 $600b and\n\u2018+\u2019 $200b, respectively, along with an Indo-China trade deficit of\napproximately $50b, where the trade balance of euro area is more than $500b\nhigher compared to UK. The UN has recently declared its significant fund\ndeficit due to non-repayment of 65 nations including a $1b still to be paid by\nthe US. In India, the growth rate seems to be at its lowest since last seven\nyears along with a very high fiscal deficit, may be as high as 10% as claimed\nby the former Governor R. Rajan, wherein more than $10b NPA has already been\ndeleted from the account of central bank RBI.<\/p>\n\n\n\n

Despite\nsuch severe situation, however, the Communist and Left forces are responding to\nit in their customary manner. Most of them including even those who claim\nneoliberal globalization to be responsible for it are relaxing on a note that\nglobal capitalism has still to come out of the 2008 sub-prime crisis. On the\ncontrary numerous bourgeoisie economists have expressed their concern demanding\nserious makeover of the current economic policies.<\/p>\n\n\n\n

In\nthis context, through a series of articles, we will show that the present\ncrisis of capitalist economy is an inevitable outcome of neoliberalism, which,\nbeing the newest phase of capitalism with an unprecedented novel trend in the\nmode of production, cannot but results in periodic crisis with increasing\ndegrees of its strokes, and thus has no solution in terms of any reform.<\/p>\n\n\n\n

\u2018Neoliberalism\u2019\nis conventionally regarded as a wrap up of a number of economic liberalization\npolicies defined by four \u2018D\u2019-s: Deregulate (privatization and free trade),\nDestroy (demolition and dissolution of trade unions and rampant violation of\nlabour laws), Decrease (tax exemption for the corporates) and Defund (fiscal\nausterity, reduction in government expenditure in social services,\ndisinvestment). It is also considered that such policies were set out globally\nafter the abolition of Bretton Woods system in 1971 by developing a worldwide TINA\nconsensus (i.e. There Is No Alternative) in the leadership of the dominant\nnations. <\/p>\n\n\n\n

However,\nit will be shown through this series of articles that \u2018Neoliberalism\u2019 is not\nmere set of policies that were taken up by the bourgeoisie governments, rather,\nit was a newly emerged phase of capitalism with qualitatively different and\nunprecedented characteristics, the central feature being a fundamentally new\nmode of production. The old days of capitalism, which was known to produce huge\nnumbers of cheaper commodities at a time, has now been transformed into the new\nmode of producing costly commodities in relatively smaller numbers but\nrepeatedly by updating or remodeling. We define the previous phases of\ncapitalism by \u2018ensemble mode of\nproduction<\/em>\u2019 and its neoliberal phase as the \u2018temporal mode of production\u2019<\/em>. <\/p>\n\n\n\n

The\norigin of crisis of capitalism in its previous phases was thus its large\nnumbers of replicas of the cheaper products suffering from low demands due to\neven lower purchasing power of majority of the people. The Keynesian resolve to\nsuch crisis situation was nothing other than to enhance government expenditure in\ngenerating significant employments with moderate wage\/salary and spending in\nsocial services. The aim of such prescription was to create a relevant numbers\nof consumers with that minimum level of purchasing power and a purchasing\ncondition, respectively, for the huge numbers of cheaper commodities to be\nsold. In the era of neoliberalism through a transformation of production trend from\n\u2018quantity\u2019 to \u2018quality\u2019, or as we say from \u2018ensemble<\/em>\u2019\nto \u2018temporal<\/em>\u2019 as its mode, however,\ncapitalism requires the supply of higher amounts of money in the hands of\nsmaller numbers of people as purchasers. Thus the Keynesian model is not at all\ncompatible with the present phase of capitalism; rather to create the consumers\nof costly commodities, bourgeoisie state would require a transformation of a\nsmaller section of the people into a neo-elite class leaving the other people\nin austerity. The austerity measures are thus not at all any policy to adopt<\/em>\nby the bourgeoisie state but their compulsion to adapt<\/em> with. <\/p>\n\n\n\n

The\nrepetitive scheme of production with newer applicative quality in this temporal mode<\/em> of capitalism has led to\ngenerating enormous numbers of contracts regarding production and trade in future\nwhich has resulted in the birth of derivative trading in stock market. The fundamental\nessence of derivative trading is to make profit out of those commodities which\nare not even produced presently. This in turn has led to a makeover of\ncapitalist overproduction from the \u2018overproduction in ensemble\u2019 of the previous\ndays into the \u2018overproduction in time\u2019 in the current neoliberal regime. This\nis manifested as the global stocks trades overshooting the real world GDP\nresulting to periodic financial crises that further collapses the entire\neconomy. In different cycles, such crises are emerged from different capitalist\nepicenters like Japan, US, UK, or even China. Moreover, such crisis is\ntransported from one nation to the other through foreign trading in the post- Bretton\nWoods currency system and fatally affects the intermediate nations too.\nRecently, such crisis has reached so high at its level, especially when it has\nalready engrossed the entire global network of neoliberal capitalism in more\nthan 250 countries, it has no space left as a bin. <\/p>\n\n\n\n

It\nis worthy to mention that the transition of previous phase of capitalism to\nneoliberalism does not take place by abolishing the productions in huge\nnumbers, i.e. ensembles<\/em>; rather by\nkeeping them aside of a central tendency toward repetitively producing costly\ncommodities, i.e. temporal<\/em>. In fact,\n\u201cacute and intense antagonism<\/em>\u201d exists\nbetween these modes which are highly inter-conflicting. Similarly, the\ncontracts regarding the future productions and their trades do not permeate the\nfinancial regime by abolishing the present creation of enormous labour values and\ncorresponding surpluses in the production sectors, rather, get compelled to fix\na target to extract surplus value by exploiting human labour within a specified\nspan of time in future. This in turn leads to a fascistic upsurge in several\nnations and deadly war conditions. <\/p>\n\n\n\n

Finally,\nnoting that Marx, in the Communist Manifesto, by describing how the past dead labour\nbeing invested as capital exploits the present living human labour, said that,\n\u201cIn bourgeois society, \u2026 the past\ndominates the present<\/em>\u201d, today, in the era of neoliberalism, we can say that\ncapitalism, by transforming itself into a futuristic economy based on temporal\nmode of production, is claiming: <\/p>\n\n\n\n

In the present bourgeois society, the past\nis dominating, not only the present, but also the future<\/em>. <\/p>\n\n\n\n

\"\"
Basudev Nag Chowdhury,
People\u2019s Brigade <\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Introduction: Neoliberalism and its crisis Now-a-days, nations throughout the globe are exhibiting a panorama that even mainstream media and the spokespersons of the world economy are being incapable to shadow … <\/p>\n","protected":false},"author":6,"featured_media":628,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[30],"tags":[37,35,36],"_links":{"self":[{"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/posts\/627"}],"collection":[{"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/comments?post=627"}],"version-history":[{"count":3,"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/posts\/627\/revisions"}],"predecessor-version":[{"id":631,"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/posts\/627\/revisions\/631"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/media\/628"}],"wp:attachment":[{"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/media?parent=627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/categories?post=627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jabardakhal.in\/english\/wp-json\/wp\/v2\/tags?post=627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}