A Reversion to a Dickensian Variety of Capitalism

[marmar]

A Reversion to a Dickensian Variety of Capitalism

By Jayati Ghosh, Professor of economics at Jawaharlal Nehru University, New Delhi, and the executive secretary of International Development Economics Associates. Cross-posted from Triple Crisis.

Since her death, many eulogies of Thatcher have spoken of her as a revolutionary. Thatcherism (along with the associated Reaganomics) is seen as a radical transformative agenda that changed the face of economy and society. But seen from the developing world decades later, much of this agenda appears familiar, in the form of structural adjustment policies that have been forced upon different countries at different times by international institutions.

Given the broad contemporaneity of these strategies, it is a moot point who “inspired” whom, or just how original those ideas were. But it is certainly true that they contributed to shaping policy dialogue in fundamental ways, and thereby left a continuing (if unfortunate) legacy. Consider just five significant elements of this legacy, most features of which are now found across the world and especially in developing countries.

First, and possibly the most well-known: the attack on organised labour and the resulting drastic reduction in workers’ bargaining power. This occurred not just through the instrument of unemployment (or fear of it) used to discipline workers, but through regulation and legal changes as well as changing institutions. This is now an almost universal feature, except in societies such as in Latin America where recent political changes have generated some reversal.

Second, financial deregulation and significant increases in the lobbying and political power of financial agents. This has led to the massive expansion and then implosion of deregulated finance, with the crisis affecting the real economy in terrible ways. It has also contributed to deindustrialisation and the rentier economy. The UK today is clearly one, with its focus on the City of London as its most prominent “industry” – but this is increasingly the fate of countries that are much lower in the development and per capita income ladders. .....................(more)

Read more at http://www.nakedcapitalism.com/2013/05/a-reversion-to-a-dickensian-variety-of-capitalism.html#W6lfBiBu57JoklmV.99

[pscot]

1. Are there no prisons?

'Plenty of prisons,' said the gentleman, laying down the pen again.
'And the Union workhouses.' demanded Scrooge. 'Are they still in operation?'


'Both very busy, sir.'

'Oh. I was afraid, from what you said at first, that something had occurred to stop them in their useful course,' said Scrooge. 'I'm very glad to hear it.'

'Under the impression that they scarcely furnish Christian cheer of mind or body to the multitude,' returned the gentleman, 'a few of us are endeavouring to raise a fund to buy the Poor some meat and drink, and means of warmth. We choose this time, because it is a time, of all others, when Want is keenly felt, and Abundance rejoices. What shall I put you down for?'

'Nothing!' Scrooge replied.

'You wish to be anonymous?'

'I wish to be left alone,' said Scrooge. 'Since you ask me what I wish, gentlemen, that is my answer. I don't make merry myself at Christmas and I can't afford to make idle people merry. I help to support the establishments I have mentioned-they cost enough; and those who are badly off must go there.'

'Many can't go there; and many would rather die.'

'If they would rather die,' said Scrooge, 'they had better do it, and decrease the surplus population

[Addison]

2. "Take all you can get

and keep back all you can't be forced to give up. That's business."

Pancks, in Little Dorrit

God I love Dickens.

[Egalitarian Thug]

3. The economic hitmen and jackals have come home to take care of us.

From the long view, what is being done to us is ironic justice since we have been doing all over the world for over a century.
& R