When Collapse Is Cheaper and More Effective Than Reform
November 5, 2015

Collapse begins when real reform becomes impossible.

We all know why reforms fail: everyone whose share of the power and money is being crimped by reforms fights back with everything they've got.

Reforms that can't be stopped by the outright purchase of politicos are watered down in committee, and loopholes wide enough for jumbo-jets of cash to fly through are inserted.

The reform quickly becomes "reform"--a simulacrum that maintains the facade of fixing what's broken while maintaining the Status Quo. Another layer of costly bureaucracy is added, along with hundreds or thousands of pages of additional regulations, all of which add cost and friction without actually solving what was broken.

The added friction increases the system's operating costs at multiple levels. Practitioners must stop doing actual work to fill out forms that are filed and forgotten; lobbyists milk the system to eradicate any tiny reductions in the flow of swag; attorneys probe the new regulations for weaknesses with lawsuits, and the enforcing agencies add staff to issue fines.

None of this actually fixes what was broken; all these fake-reforms add costs and reduce whatever efficiencies kept the system afloat. Recent examples include the banking regulations passed in the wake of the 2008 meltdown and the ObamaCare Afforable Care Act (ACA).

Eugene V. Debs is to Bernie Sanders what Abraham Lincoln is to Barack Obama. It is easy to see why Sanders admires the old Socialist leader. He was a tireless champion of the working class, who went to prison before sacrificing his integrity, and made the capitalist class (or as Sanders calls it, the billionaire class) shudder with fear. Last week, Sanders announced that he is planning a “major speech” on Democratic Socialism, and while providing examples of modern European countries like Denmark and Norway is no doubt important, it would be remiss to leave out America’s own radical past and one of its foremost leaders. As Eric Foner wrote in The Nation last week, in a letter to the Senator:

“I urge you to reconsider how you respond to the inevitable questions about what you mean by democratic socialism and peaceful revolution. The next time, embrace our own American radical tradition. There’s nothing wrong with Denmark; we can learn a few things from them (and vice-versa). But most Americans don’t know or care much about Scandinavia. More importantly, your response inadvertently reinforces the idea that socialism is a foreign import. Instead, talk about our radical forebears here in the United States, for the most successful radicals have always spoken the language of American society and appealed to some of its deepest values… Each generation of Americans had made its own contribution to an ongoing radical tradition, and you are following in their footsteps. So next time, forget about Denmark and talk about (Thomas) Paine, (Frederick) Douglass, FDR, and Debs as forebears of a movement that can make the United States a fairer, more equal, more just society.”

America has a rich history of radicalism, and Sanders is quite simply reviving this long tradition after decades of dormancy. It has been nearly a century since Debs was sentenced to prison for opposing the first World War, and today, opposition and revolt are more important than ever.

"The problem is that austerity is being used as a narrative to conduct class war," he said, lambasting the government for cutting taxes on the wealthy while slashing spending on public services.

"To be talking about reducing the state further when effectively what you are doing is reducing taxes like inheritance tax and at the same time you are cutting benefits—that is class war," Varoufakis continued.

Varoufakis called for Britain's public institutions, from the National Health Service to higher education, to be protected from free market economics.

Ultimately, Varoufakis expressed hope that Jeremy Corbyn—the anti-war, anti-austerity candidate who was elected leader of the British Labour Party earlier this month—will turn out to be the inverse of Margaret Thatcher, who he said "reinvigorated right-wing politics."

"It would be wonderful if Jeremy could do this for the left-wing and put on a show for us outsiders," Varoufakis said.