Writing<\/a><\/span> for New Left Review (NLR), Streeck begins by asking what it means to exist within a “polycrisis.” In his view, under an increasingly “less democratic” capitalism, the countries of the rich world face “a bundle of similar crises that have emerged more or less unnoticed.”<\/p>\nAccording to Streeck, beneath these developments lies a fiscal crisis that has finally moved to the fore. In this context, “the mounting demands placed on society by the evolution of contemporary capitalism” clash with the shrinking capacity of “democratic politics” to secure the resources required to meet them.<\/p>\n
Streeck argues that one consequence of this dynamic is the striking rise of “new-model opposition parties that are critical of the existing order and threaten to unseat the now-ageing ruling parties of the post-war era.”<\/p>\n
Contending that nearly all of these problems in Germany stem from a policy of “stealth austerity,” Streeck points out that public investment has been deprived of resources as a result: “Stagnant [economic] growth; under these conditions any structural change assumes a zero-sum character; the deterioration of public infrastructure, including railways, bridges, and roads; a growing housing shortage and rising urban rents; the inability of both cities and rural areas to adapt to the consequences of climate change; the lack of an immigration policy to offset an ageing population alongside a sharp decline in birth rates; the decay of the education system, especially primary schools; the indebtedness of local authorities and their diminished capacity to make necessary investments and provide basic services; rising income and wealth inequality; with those most affected being chronically low-income families, particularly families headed by single mothers; and finally, widespread anxiety about the future, driven in part by fears of cuts to basic state-provided services that are becoming increasingly difficult to finance.”<\/p>\n
According to the author, since the 1970s an ever-widening gulf has emerged between the overhead costs of capitalism and the amount that capitalist firms are willing (or can be forced) to contribute toward covering them. The progression operates as follows: these costs arise from the necessary preconditions and consequences of capitalist production, ranging from research and development and the creation of human capital to remedying environmental destruction. Yet they also stem from the need to secure legitimacy for a mode of production in which the extracted surplus value accrues to a small class of capital owners. Every form of the social wage; that is, state top-ups to the market wages of workers, such as social security and health insurance, serves to consolidate this legitimacy. As capitalist development advances and new needs arise among workers and their families, these expenditures (such as childcare facilities or eldercare) expand. At the same time, however, the scope for levying taxes on both the working classes and the classes that profit from them reaches its limits.<\/p>\n
Streeck writes that during the neoliberal era, in order to sustain this zero-sum game; that is, to enable both capitalists and workers to carry on, states resorted to borrowing on deregulated global financial markets. Yet as sovereign debt levels escalated, the state faced the risk of losing its “creditworthiness” in the assessment of “the markets”; doubts emerged over its ability to meet interest payments from existing revenues, and even the interest itself had to be financed through borrowing.<\/p>\n
In Germany, this development manifests through a “reform” debate conducted “under the watchful eye of the markets,” encompassing restrictions on pensions, sick leave, and labour rights.<\/p>\n
Alongside this, the debt tap is opened to appease NATO allies and the arms industry, and perhaps as a last resort to slow down deindustrialisation.<\/p>\n
According to Streeck, with the fiscal crisis no longer a slow-moving one, and with no hope of bringing it and the accompanying infrastructure and social welfare crises under control in the foreseeable future, traditional centrist parties have abandoned their conventional approach of “spreading cheer and optimism.”<\/p>\n
The same holds true for the standard democratic narrative that those dissatisfied with government policy can vote for another party at the next election; the risk that this will benefit the new “anti-systemic” opposition appears too great.<\/p>\n
Streeck writes:<\/p>\n
“This paves the way for the formation of a party cartel in which the main parties avoid clashing with one another. In Germany this scenario seems particularly plausible: after all, the CDU and SPD were in power almost uninterruptedly throughout the long years of ‘shadow austerity’, and largely in coalition.”<\/p>\n
Consequently, the issue ceases to be the debt crisis, rising rents, crushing living costs, shrinking public services, or growing segments of the population turning to food banks; instead, it becomes “populism,” the AfD, and neofascism.<\/p>\n
Streeck points out that centrist parties, or “we democrats,” use this to make closing ranks mandatory once again. The logical extension of this policy is a summons to fight “against the right” and make a final stand for “our democracy,” rather than struggling against the growing power of markets over the public: “And for the sake of this, we are asked to set aside our petty squabbles over who will be subjected first, and who spared until later, to the overt austerity demanded by subsidised capital markets.”<\/p>\n
Streeck continues:<\/p>\n
“At first glance; from the standpoint of the ruling political class; this certainly has its appeal. Demonstrations by all sensible people against the AfD are far preferable to demonstrations against the rising cost of living; ‘firewalls’ cost far less than insulating the walls of old apartments; reports by the Federal Office for the Protection of the Constitution are far cheaper than nurseries and schools where all children can be accommodated and educated together. Moreover, floating the idea of having a party supported by at least a third of the electorate banned by the Constitutional Court in the name of ‘militant democracy’ guarantees an exciting item on the evening news about the daily exertions of those who run the state.”<\/p>\n
Yet Streeck believes that none of this will work, either now or in the long run. Pointing out that the current governing and political class has taken no steps to address the real problems it “wants to hide behind the AfD problem,” the sociologist says: “Even if the party is banned, trains will still not run on time, heat-related deaths will not decline, cities will not become more liveable, rents will not fall, and pensions and jobs will not become more secure.”<\/p>\n
Streeck notes that the situation would not change if the AfD were to enter government rather than being politically or physically locked away; nevertheless, he argues that the prevailing political mentality fears giving the AfD the opportunity to fail in the face of the “polycrisis.”<\/p>\n
Streeck believes the AfD will not be diminished by the next demonstration or the next broadcast of partisan television news. In his view, as long as the “forces of the state and democracy” exhaust themselves on a secondary battlefield such as “democracy versus populism” to divert attention from the crises unfolding under their own governance, the AfD will have an easy ride.<\/p>\n
Reminding readers that an external enemy (Russia) has been added to the internal enemy, Streeck underlines that the two are conflated as far as possible through “conspiracy theories.”<\/p>\n
The author notes that the drive to transform a “welfare” state into a “garrison” state and brand the AfD as the “Kremlin’s fifth column” raises the question of how a debt-laden government intends to fund raising defence spending to at least 5% of GDP: “Will it resort to even more austerity or even more borrowing, risking an ultimate rupture with the domestic population, with global financial markets, or with both?”<\/p>\n
Arguing that the left, unlike “PR specialists,” must ask certain questions, the German author points to the following:<\/p>\n
“How can we make capital pay the bill for the costs it imposes on society and nature? How can we prevent tax avoidance and tax evasion? How will we protect companies that provide quality jobs to people in our country from a global trading system that shows no respect for workers? How can we halt the decline in our population through immigration and better family policies? In a society in transition like ours, how will we ease the debt burden on our local authorities so that they can deliver the public services essential for everyone to lead a good life? And how must ‘our democracy’ be restructured so that it becomes a democracy for all and gives citizens the opportunity to take control of their own lives; so that they are not forced to beg for handouts from a state whose coffers are empty and will remain so for a long time to come?”<\/p>\n
Streeck concludes his article by stating: “Playtime is over; the situation is serious, and we urgently need to grow up.”<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
German sociologist Wolfgang Streeck has examined the link between the conditions driving the rise of the Alternative for Germany (AfD) and the capitalist crisis, calling on the left to “stop playing games and grow up.” Writing for New Left Review (NLR), Streeck begins by asking what it means to exist within a “polycrisis.” In his […]<\/p>\n","protected":false},"author":1,"featured_media":16521,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[3],"tags":[1483,5706,1866,955,2314,5408,6433,21937,543,503,9646,21935,21936,12884,683,1886,13544,21674],"class_list":["post-16520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-europe","tag-afd","tag-alternative-for-germany","tag-austerity","tag-capitalism","tag-cdu","tag-defence-spending","tag-financial-markets","tag-fiscal-crisis","tag-germany","tag-headline","tag-local-government","tag-new-left-review","tag-polycrisis","tag-public-debt","tag-russia","tag-spd","tag-welfare-state","tag-wolfgang-streeck"],"yoast_head":"\n
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