Stephen GillYork University, Toronto, Canada

CAPITALISM 2009, HELSINKI

23 APRIL 2009

POLITICAL REFLECTIONS

ON THE GLOBAL ECONOMIC & FINANCIAL CRISIS

Key questionsKey questions

1.1. How do we characterize the crisis of How do we characterize the crisis of global capitalism, and what are its global capitalism, and what are its dangers and opportunities for the dangers and opportunities for the progressive lefts?progressive lefts?

2.2. What issues, principles and policies do What issues, principles and policies do the lefts need to consider in order to the lefts need to consider in order to develop a new counter-hegemonic develop a new counter-hegemonic political project?political project?

OutlineOutline

Part 1: Reflections on global capitalism Part 1: Reflections on global capitalism & the nature of the crisis& the nature of the crisis

Part 2: Finance, debt and the bail-outsPart 2: Finance, debt and the bail-outs

Part 3: Political alternatives – dominant Part 3: Political alternatives – dominant and counter-hegemonicand counter-hegemonic

Powerpoint will be posted on: Powerpoint will be posted on: http://stephengill.com/news.htm

Part 1: Part 1:

Global crisis & capitalism 2009 Global crisis & capitalism 2009

What is capitalism? What is capitalism? Three perspectives on capitalist crises & Three perspectives on capitalist crises &

accumulationaccumulation1.1. Market fundamentalists and “pure” neo-liberals: capitalism is Market fundamentalists and “pure” neo-liberals: capitalism is

an economically efficient system & crises are short-term & self-an economically efficient system & crises are short-term & self-correcting. Markets should be allowed to self-regulate.correcting. Markets should be allowed to self-regulate.

2.2. Most economists: capitalist accumulation is unstable & crises Most economists: capitalist accumulation is unstable & crises are endemic. They require macroeconomic planning & political are endemic. They require macroeconomic planning & political intervention to allow for stabilization & the resumption of intervention to allow for stabilization & the resumption of “balanced growth.”“balanced growth.”

3.3. The radical position: Capitalism is a system of power. It does The radical position: Capitalism is a system of power. It does not involve the accumulation of goods for livelihood and social not involve the accumulation of goods for livelihood and social well-being, but accumulation of monetary values which in turn well-being, but accumulation of monetary values which in turn allows for control over society & the labour of others. allows for control over society & the labour of others.

Put differently the goal of capitalist accumulation has nothing Put differently the goal of capitalist accumulation has nothing to do with livelihood, it has everything to do with increasing the to do with livelihood, it has everything to do with increasing the social power, wealth & control of the few.social power, wealth & control of the few.

Seven features of capitalism 1989-2009Seven features of capitalism 1989-20091.1. Turnover time of capital accelerates, profits boom & rates of Turnover time of capital accelerates, profits boom & rates of

exploitation of people & nature increase.exploitation of people & nature increase.

2.2. Political power of free enterprise & the propertied fully restored, Political power of free enterprise & the propertied fully restored, unprecedented growth of a global plutocracy.unprecedented growth of a global plutocracy.

3.3. Subordination of state forms to capital (following some socialization Subordination of state forms to capital (following some socialization and nationalization of the means of production 1917-1989).and nationalization of the means of production 1917-1989).

4.4. Governments promote market + privatization + workfare + cut Governments promote market + privatization + workfare + cut provisions for families, education, health, leading to privatisation of provisions for families, education, health, leading to privatisation of risk for a majority; state guarantees (socializes) risks for big capital, risk for a majority; state guarantees (socializes) risks for big capital, e.g. huge bail-outs, subsidies.e.g. huge bail-outs, subsidies.

5.5. Acceleration of extreme inequality of income, wealth & life chances. Acceleration of extreme inequality of income, wealth & life chances.

6.6. Expropriation or dispossession of producers of their means to Expropriation or dispossession of producers of their means to subsistence – parallels early capitalist dispossession, enclosure subsistence – parallels early capitalist dispossession, enclosure and colonization.and colonization.

7.7. Capitalist markets increasingly govern food supplies, water and Capitalist markets increasingly govern food supplies, water and other basic necessities: global hunger and starvation mediated by other basic necessities: global hunger and starvation mediated by the capitalist market in ways that resemble 19the capitalist market in ways that resemble 19thth century capitalism. century capitalism.

The world capitalist market increasingly The world capitalist market increasingly determines food pricesdetermines food prices

Increased corporate control of Increased corporate control of global agricultureglobal agriculture

Decline of local self- Decline of local self- sufficiency & energy & fertilizer sufficiency & energy & fertilizer intensive export-orientation of intensive export-orientation of agricultureagriculture

Produces crop monocultures & Produces crop monocultures & damage to the biospheredamage to the biosphere

Global futures trading e.g. in Global futures trading e.g. in Chicago & New York markets, Chicago & New York markets, is linked to speculation & is linked to speculation & rapidly rising food pricesrapidly rising food prices

Market prices & rising hungerMarket prices & rising hunger

“ “Almost unnoticed behind the economic crisis, a Almost unnoticed behind the economic crisis, a combination of lower growth, rising unemployment and combination of lower growth, rising unemployment and falling remittances together with persistently high food falling remittances together with persistently high food prices has pushed the number of chronically hungry prices has pushed the number of chronically hungry above 1bn for the first time”. above 1bn for the first time”. Financial Times Financial Times April 6 2009. April 6 2009.

Since 2008 global agricultural commodities prices have Since 2008 global agricultural commodities prices have fallen by 40-50 per cent, but are well above pre-crisis fallen by 40-50 per cent, but are well above pre-crisis levels. levels.

Domestic prices in many developing countries are close to Domestic prices in many developing countries are close to record levels of 2008record levels of 2008

In some African countries prices are even higher than in In some African countries prices are even higher than in 2008.2008.

Capitalism & human progress?Capitalism & human progress?

ReReverses the decline over the past 25 years in verses the decline over the past 25 years in % of chronically hungry people.% of chronically hungry people.

UN’s World Food Program needs $6bn (€4.5bn) UN’s World Food Program needs $6bn (€4.5bn) in 2009 to feed the poorest, up 20 per cent from in 2009 to feed the poorest, up 20 per cent from last year’s record of $5bn.last year’s record of $5bn.

We should compare this to the gigantic costs We should compare this to the gigantic costs of the financial bailoutsof the financial bailouts

A broader view of the crisisA broader view of the crisis1.1. The crisis is therefore much more than a crisis of The crisis is therefore much more than a crisis of

capitalist accumulation or a necessary self-correction capitalist accumulation or a necessary self-correction aided by macroeconomic intervention and bailouts.aided by macroeconomic intervention and bailouts.

2.2. The crisis also reflects contradictions of what I call The crisis also reflects contradictions of what I call market civilization – a consumerist, privatized, market civilization – a consumerist, privatized, energy-intensive & ecologically myopic pattern of energy-intensive & ecologically myopic pattern of development.development.

3.3. As we shall argue, it involves a de facto state of global As we shall argue, it involves a de facto state of global economic emergency which presents dangers and economic emergency which presents dangers and opportunities for a variety of states and social forces opportunities for a variety of states and social forces – and not all of these forces are progressive – many – and not all of these forces are progressive – many are reactionary.are reactionary.

4.4. I call this a global organic crisis.I call this a global organic crisis.

Part 2: Part 2:

Finance, debt & bail-outsFinance, debt & bail-outs

The financial crisis has The financial crisis has involved 5 related sets of involved 5 related sets of

eventsevents1.1. Global stock market crash & falling profits.Global stock market crash & falling profits.2.2. Frozen credit markets -- banks refuse to Frozen credit markets -- banks refuse to

lend to each other or to the majority of lend to each other or to the majority of borrowers.borrowers.

3.3. A string of insolvencies that have A string of insolvencies that have threatened the global financial system as threatened the global financial system as presently constituted.presently constituted.

4.4. Rapidly growing unemployment.Rapidly growing unemployment.5.5. Socialization of the losses of capital (e.g. Socialization of the losses of capital (e.g.

bank losses of $4.1 trillion in total -- IMF bank losses of $4.1 trillion in total -- IMF estimate 21 April, 2009) but not of the estimate 21 April, 2009) but not of the majority of citizens. majority of citizens.

It is likely that the scale of the bank losses It is likely that the scale of the bank losses is much greater than has so far been is much greater than has so far been revealed.revealed.

Immediate causes of financial crisisImmediate causes of financial crisis

1.1. In USA since early 1980s real incomes of most workers have fallen -- In USA since early 1980s real incomes of most workers have fallen -- caused by rising exploitation of labour in USA. Workers borrow to caused by rising exploitation of labour in USA. Workers borrow to consume & roll over debts. consume & roll over debts.

2.2. Wall Street got control over US & global economic policy dating Wall Street got control over US & global economic policy dating back to the Clinton Presidency; this continues under Obama.back to the Clinton Presidency; this continues under Obama.

3.3. This control allowed for “financial innovation” e.g. home loans were This control allowed for “financial innovation” e.g. home loans were bundled into new tradeable financial products generating huge bundled into new tradeable financial products generating huge profits & increases in the stock prices of big banks. Banks allowed profits & increases in the stock prices of big banks. Banks allowed to engage in massive leveraging that was previously prohibited to engage in massive leveraging that was previously prohibited (borrowing against capital base by 30:1 or greater).(borrowing against capital base by 30:1 or greater).

4.4. When US house prices fell there was a collapse in the ability of US When US house prices fell there was a collapse in the ability of US workers to continue with their debt-funded overconsumption (US workers to continue with their debt-funded overconsumption (US savings ratios turn negative) & to make mortgage payments. savings ratios turn negative) & to make mortgage payments.

5.5. This triggered huge losses for the banks who had borrowed at vast This triggered huge losses for the banks who had borrowed at vast multiples of their capital base & this rendered them insolvent. multiples of their capital base & this rendered them insolvent.

Global priorities: capital comes firstGlobal priorities: capital comes first

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1By Way of Comparison

Cost of Millennium Development Goals

US$ 750 billion

Total Committed to Bailout & Stimulus in the EU, Britain and

USUS$ 17 trillion

EU + US + UK bailouts & fiscal stimulus = US$17 trillion. This is over 22 times larger than the total planned funds for the UN’s Millennium Development Goals MDGs seek to provide minimum & basic health & education for billions of the world’s very poorest people between now and 2020.

Crony capitalism on Wall Street Much of the losses above have involved fraud & Much of the losses above have involved fraud &

deception.deception. US $3 trillion bank bail out plans have continuity -- from US $3 trillion bank bail out plans have continuity -- from

US Treasury Secretary Hank Paulson (Bush) to Tim US Treasury Secretary Hank Paulson (Bush) to Tim Geithner (Obama) Geithner (Obama)

IHT 22 Aprl 2009: Neil Barofsky Special US Government IHT 22 Aprl 2009: Neil Barofsky Special US Government Investigator of the Treasury/Federal Reserve bank bail Investigator of the Treasury/Federal Reserve bank bail out plans. His report notes that: out plans. His report notes that:

1.1. Plan risks jeopardizing the credibility of the recovery Plan risks jeopardizing the credibility of the recovery effort by not requiring banks to provide detailed effort by not requiring banks to provide detailed information from banks on what they are doing with information from banks on what they are doing with taxpayers money taxpayers money

2.2. It involves “significant fraud risks”, e.g. allowing It involves “significant fraud risks”, e.g. allowing investors to double up on government subsidiesinvestors to double up on government subsidies

3.3. Minimizes risks of investors & allows them to take big Minimizes risks of investors & allows them to take big profits & leaves taxpayers with the lossesprofits & leaves taxpayers with the losses

4.4. It relies on the private credit-rating agencies found at It relies on the private credit-rating agencies found at fault in the crashfault in the crash

US bailouts in historical US bailouts in historical perspectiveperspective

What is a trillion?What is a trillion? A trillion is a million million of any A trillion is a million million of any

thing.thing. 1 Million = 1,000,000 1 Million = 1,000,000 1 Billion = 1,000,000,0001 Billion = 1,000,000,000 Trillion = 1,000,000,000,000Trillion = 1,000,000,000,000 A million seconds is 12 daysA million seconds is 12 days A billion seconds is 31 years.A billion seconds is 31 years. A trillion seconds is 31,688 yearsA trillion seconds is 31,688 years

What is a trillion dollars?What is a trillion dollars?

One trillion dollars in $1,000 bills stacked, one on One trillion dollars in $1,000 bills stacked, one on top of the other would reach upwards for 63 miles or top of the other would reach upwards for 63 miles or 101.38 km101.38 km

Finland’s GDP (official exchange rate) = $281.2 Finland’s GDP (official exchange rate) = $281.2 billion & Canada’s GDP = $1.564 trillion (2008 CIA billion & Canada’s GDP = $1.564 trillion (2008 CIA Factbook estimates, in US dollars). Factbook estimates, in US dollars).

$1 trillion equals roughly 3.5 years of annual Finnish $1 trillion equals roughly 3.5 years of annual Finnish outputoutput

$17 trillion equals total Canadian output for almost $17 trillion equals total Canadian output for almost 11 years. 11 years.

Part 3: Part 3:

Future political alternativesFuture political alternatives

Capitalism 2009: 3 main sets of alternatives, Capitalism 2009: 3 main sets of alternatives, each of which see a certain type of capitalism as each of which see a certain type of capitalism as the problem, and another type as the solution:the problem, and another type as the solution:

1.1. Bail outs will be followed by more neo-liberalism Bail outs will be followed by more neo-liberalism coupled with a reformulated new constitutionalism to coupled with a reformulated new constitutionalism to lock in fiscal austerity – this is the position of dominant lock in fiscal austerity – this is the position of dominant political forcespolitical forces

2.2. The resurgence of various forms of state capitalism.The resurgence of various forms of state capitalism.3.3. A variety of socialist responses, including that of a A variety of socialist responses, including that of a

number of states and social forces in Latin America number of states and social forces in Latin America premised on redistributive state capitalismpremised on redistributive state capitalism

4.4. What seems to be missing is a powerful assertion of What seems to be missing is a powerful assertion of progressive left alternative perspectives based on a progressive left alternative perspectives based on a different understanding of political economy and different understanding of political economy and society that can help articulate the need for new society that can help articulate the need for new policies and institutions in ways that challenge the policies and institutions in ways that challenge the basic capitalist mode of production and distribution - I basic capitalist mode of production and distribution - I will return to this in the final part of my talk.will return to this in the final part of my talk.

Three questions about the Three questions about the immediate political situationimmediate political situation

1.1. How long will this state of economic How long will this state of economic emergency last?emergency last?

2.2. Which key social and political forces Which key social and political forces will define it politically?will define it politically?

3.3. What type of global political economy What type of global political economy will likely follow the state of will likely follow the state of emergency? emergency?

Part 3A: Part 3A:

Future political alternatives:Future political alternatives:1. Dominant forces will seek a 1. Dominant forces will seek a

reformulated neo-liberal reformulated neo-liberal capitalismcapitalism

After the emergency: return to a After the emergency: return to a reformulated orthodoxy? reformulated orthodoxy?

1.1. Some progressive initiatives are incorporated into the Some progressive initiatives are incorporated into the response, e.g. by Obama: appease anger over bailouts; response, e.g. by Obama: appease anger over bailouts; expand healthcare insurance + “green investment.” expand healthcare insurance + “green investment.”

2.2. More pressures to privatize to pay for bail outs & More pressures to privatize to pay for bail outs & pressure to reduce welfare and public service provision pressure to reduce welfare and public service provision as a consequence of increasing deficits.as a consequence of increasing deficits.

3.3. After the bail-outs: reintroduction of mechanisms to After the bail-outs: reintroduction of mechanisms to justify & lock in a return of fiscal discipline & austerity.justify & lock in a return of fiscal discipline & austerity.

4.4. Reinforcement of market discipline on individuals, Reinforcement of market discipline on individuals, workers and families e.g. through growing debts workers and families e.g. through growing debts (personal loss of wealth, lower incomes, reduced (personal loss of wealth, lower incomes, reduced pensions). pensions).

5.5. IMF grows & resumes debt imperialism via donor IMF grows & resumes debt imperialism via donor country conditionalities and stabilization programs. country conditionalities and stabilization programs.

Authoritarian tendencies in the Authoritarian tendencies in the emergency?emergency?

1.1. However the bailouts & stimulus may not work, e.g. in However the bailouts & stimulus may not work, e.g. in Japan US & UK interest rates now effectively zero; huge Japan US & UK interest rates now effectively zero; huge deficits and even more government debt on the way -- who deficits and even more government debt on the way -- who will pay the costs? will pay the costs?

2.2. Efforts to manage the crisis – particularly if they fail – may Efforts to manage the crisis – particularly if they fail – may reinforce tendencies towards a more reactionary & reinforce tendencies towards a more reactionary & authoritarian capitalism as in the 1930s. authoritarian capitalism as in the 1930s.

3.3. Note the effects on state apparatuses associated with the Note the effects on state apparatuses associated with the “war on terror” (the option to suspend civil liberties, impose “war on terror” (the option to suspend civil liberties, impose martial law etc.) might be used against “revolts” from below.martial law etc.) might be used against “revolts” from below.

4.4. Those countries driven to the IMF & EBRD may be Those countries driven to the IMF & EBRD may be subjected to a new round of austerity & disciplinary neo-subjected to a new round of austerity & disciplinary neo-liberalism; authoritarian responses may seek to contain liberalism; authoritarian responses may seek to contain challenges from below. challenges from below.

Part 3B: Part 3B:

Future political alternatives:Future political alternatives:2. Counter-hegemonic forces 2. Counter-hegemonic forces

develop a progressive develop a progressive alternativealternative

Outlines for a Outlines for a progressive projectprogressive project1.1. Prestige & legitimacy of rulers heavily damaged; Prestige & legitimacy of rulers heavily damaged;

complacent; caught asleep at the wheel; their claims complacent; caught asleep at the wheel; their claims to govern in the general interest must be contested.to govern in the general interest must be contested.

2.2. E.g. deconstructing the G8 leaders’ pragmatic E.g. deconstructing the G8 leaders’ pragmatic slogan: “no penny-pinching during the crisis, but slogan: “no penny-pinching during the crisis, but balancing the budgets once the crisis is over” (The balancing the budgets once the crisis is over” (The Economist)Economist)

3.3. This actually entails “billions for the banks, pennies This actually entails “billions for the banks, pennies for the people” (Juan Somavia ILO Director in for the people” (Juan Somavia ILO Director in Financial Times) Financial Times)

4.4. This moment repoliticizes the political economy of This moment repoliticizes the political economy of capitalism & mandates greater political contestation:capitalism & mandates greater political contestation:

5555 Negatively: “Who’s going to pay for this crisis?” Negatively: “Who’s going to pay for this crisis?” More austerity? More taxes? More austerity? More taxes?

5555 Positively: The gigantic sums of money now Positively: The gigantic sums of money now available open a vast panorama of new possibilities available open a vast panorama of new possibilities for human development and social progress. for human development and social progress.

How to get there from here: How to get there from here: optimism of the willoptimism of the will

1.1. The progressive forces – the “global lefts” (in the The progressive forces – the “global lefts” (in the plural) are combining and could combine further.plural) are combining and could combine further.

2.2. I call this the I call this the post modern Princepost modern Prince – a global – a global political formation in the multiple which seems to political formation in the multiple which seems to have been sidelined in addressing global crises. have been sidelined in addressing global crises.

3.3. Its organic intellectuals – numbering in the Its organic intellectuals – numbering in the millions – are engaged in rethinking not only millions – are engaged in rethinking not only states and markets or power and production, but states and markets or power and production, but also the broad conditions of what feminists call also the broad conditions of what feminists call social reproduction – including the ecological social reproduction – including the ecological integrity and sustainability of the planetintegrity and sustainability of the planet

4.4. This involves addressing immediate needs and This involves addressing immediate needs and longer term issues, both locally and globallylonger term issues, both locally and globally

5.5. The lefts should further develop a new language of The lefts should further develop a new language of politics to address key issues – in ways that go politics to address key issues – in ways that go well beyond orthodox left-wing politics. This well beyond orthodox left-wing politics. This needs to shape new policy agendas.needs to shape new policy agendas.

Pessimism of the intelligence – key Pessimism of the intelligence – key obstacles to progressive proposalsobstacles to progressive proposals

There are two immediate political There are two immediate political battles/obstacles for the progressive forces battles/obstacles for the progressive forces involving opportunity costs of political involving opportunity costs of political choices & alternatives:choices & alternatives:

1.1. Over the use of “economic emergency funds” Over the use of “economic emergency funds” now – which expenditures are being now – which expenditures are being prioritized and which forces will benefit and prioritized and which forces will benefit and why?why?

2.2. Over who pays and when – over what Over who pays and when – over what timescale?timescale?

The vast expenditures limit the future fiscal The vast expenditures limit the future fiscal space for progressive projects.space for progressive projects.

Progressive alternatives: Progressive alternatives: some principlessome principles

Progressive alternatives must be couched in Progressive alternatives must be couched in terms of the production of a different kind of terms of the production of a different kind of society with a new political imaginary & set of society with a new political imaginary & set of ethical principles:ethical principles:

1.1. Democracy, equality, social justice.Democracy, equality, social justice.2.2. Economic stability & prudential regulation.Economic stability & prudential regulation.3.3. Improved social provisions grounded in better Improved social provisions grounded in better

and more accountable public institutions. and more accountable public institutions. 4.4. Social & economic transformation consistent Social & economic transformation consistent

with ecological sustainability.with ecological sustainability.5.5. Replace the politics of fear with human Replace the politics of fear with human

security & broad based human development.security & broad based human development.

Five sites of policy contestationFive sites of policy contestation

A.A. Rethink the tax base and the distribution of Rethink the tax base and the distribution of tax burdens whilst regulating the economy tax burdens whilst regulating the economy effectively and prudently.effectively and prudently.

B.B. Rethink the logic of dominant lifestyles – Rethink the logic of dominant lifestyles – market civilization & social and ecological market civilization & social and ecological sustainability – whilst preserving toleration.sustainability – whilst preserving toleration.

C.C. Revitalize our public and collective services Revitalize our public and collective services and infrastructure.and infrastructure.

D.D. Address demographic shifts: ageing societyAddress demographic shifts: ageing societyE.E. Develop policies for education & culture to Develop policies for education & culture to

help emancipate creative potentials.help emancipate creative potentials.

A. Rethink the tax base and the A. Rethink the tax base and the distribution of tax burdensdistribution of tax burdens

1.1. The Lefts need to go beyond the slogan “we won’t pay The Lefts need to go beyond the slogan “we won’t pay for your crisis”for your crisis”

2.2. The key shift in tax regimes is away from direct taxation The key shift in tax regimes is away from direct taxation (e.g. income and corporate taxes) towards widespread (e.g. income and corporate taxes) towards widespread indirect taxation (e.g. value added taxes). indirect taxation (e.g. value added taxes).

3.3. Indirect taxes are very regressive -- and hit the poor Indirect taxes are very regressive -- and hit the poor hardesthardest

4.4. Direct taxes on high earners & firms (and “the mobile”) Direct taxes on high earners & firms (and “the mobile”) have fallen quickly since the fall of the Berlin Wall in 1989 have fallen quickly since the fall of the Berlin Wall in 1989 – e.g. Sarkozy’s “50% rule” for the very rich in France.– e.g. Sarkozy’s “50% rule” for the very rich in France.

5.5. The rich and corporations can evade or avoid taxes The rich and corporations can evade or avoid taxes through the use of tax havens & transfer pricingthrough the use of tax havens & transfer pricing

6.6. The erosion of the tax base has been exacerbated by The erosion of the tax base has been exacerbated by inter-state tax competition to attract investmentinter-state tax competition to attract investment

B. Rethink the logic of dominant affluent B. Rethink the logic of dominant affluent lifestyleslifestyles

This involves the problem of what I call market civilization & social This involves the problem of what I call market civilization & social and ecological sustainability: Western lifestyles are energy and ecological sustainability: Western lifestyles are energy intensive and increasingly unhealthyintensive and increasingly unhealthy

1.1. The North American societies are the worst in this regard; the USA The North American societies are the worst in this regard; the USA consumes the lion’s share of global resources, with its population consumes the lion’s share of global resources, with its population increasingly obese.increasingly obese.

2.2. This problem was dramatized by the first President Bush, when he This problem was dramatized by the first President Bush, when he refused to go to the Rio Global Environment conference in 1982, refused to go to the Rio Global Environment conference in 1982, saying “our lifestyle is not negotiable”.saying “our lifestyle is not negotiable”.

3.3. This lifestyle is linked to US foreign policy & giant firms who seek This lifestyle is linked to US foreign policy & giant firms who seek to control Middle Eastern and other supplies of oil and fossil fuels.to control Middle Eastern and other supplies of oil and fossil fuels.

4.4. The tax and incentive regime associated with fiscal policies could The tax and incentive regime associated with fiscal policies could be restructured to help change these lifestyles, coupled to be restructured to help change these lifestyles, coupled to initiatives to improve public transportation, sports and initiatives to improve public transportation, sports and recreational facilities and to encourage healthier ways of living.recreational facilities and to encourage healthier ways of living.

C. Revitalize our public and collective C. Revitalize our public and collective services and infrastructure to improve services and infrastructure to improve

institutions of social reproductioninstitutions of social reproduction

1.1. We have been persistently told for years that it is We have been persistently told for years that it is impossible to pay for substantial improvements in impossible to pay for substantial improvements in health care, education and other social facilities.health care, education and other social facilities.

2.2. The enormous funds paying for the financial bailout The enormous funds paying for the financial bailout indicates that this was simply a political decision.indicates that this was simply a political decision.

3.3. It was only when capital was threatened with It was only when capital was threatened with collapse that these massive funds suddenly became collapse that these massive funds suddenly became available.available.

4.4. Fiscal choices have unequal impacts on men & Fiscal choices have unequal impacts on men & women at various levels in the social structure. women at various levels in the social structure.

5.5. So we have to ask what are the So we have to ask what are the opportunity costs opportunity costs of of the bailouts – in terms of alternatives forgone to the bailouts – in terms of alternatives forgone to use the resources for other social purposes?use the resources for other social purposes?

D. Address demographic shifts: D. Address demographic shifts: ageing societyageing society

This concerns the fiscal and social implications, especially in This concerns the fiscal and social implications, especially in Europe and Japan, of ageing populations – less pressing in the Europe and Japan, of ageing populations – less pressing in the USA & much of the global South where the age structure of the USA & much of the global South where the age structure of the population is much younger.population is much younger.

1.1. Compounded by the privatization of health care and of caring Compounded by the privatization of health care and of caring institutions more generallyinstitutions more generally

2.2. it needs creative thinking as well as new budgeting, allowing it needs creative thinking as well as new budgeting, allowing for real social differences since the costs of this demographic for real social differences since the costs of this demographic transition might well far out weigh the costs of the financial transition might well far out weigh the costs of the financial bailouts.bailouts.

3.3. Women tend to take the main burden of care when it is Women tend to take the main burden of care when it is privatized and returned to the family or “private” context.privatized and returned to the family or “private” context.

4.4. Solutions will require us to break down the dichotomy between Solutions will require us to break down the dichotomy between young and old, and the distinction between so-called young and old, and the distinction between so-called productive and unproductive members of the workforce and of productive and unproductive members of the workforce and of societysociety

5.5. Older people can make an ongoing and creative contribution Older people can make an ongoing and creative contribution well past their age of so-called retirementwell past their age of so-called retirement

E. Develop policies for new education E. Develop policies for new education and cultural dimensions of societyand cultural dimensions of society

We need new forms of progressive culture, broad-We need new forms of progressive culture, broad-based and critical educational systems, as well as based and critical educational systems, as well as media.media.

§ Education and media– e.g. from the primary school Education and media– e.g. from the primary school to the University -- subjected to a corporate-agenda.to the University -- subjected to a corporate-agenda.

§ Broad & critical purposes of education are narrowed Broad & critical purposes of education are narrowed to support a monoculture and society that in effect to support a monoculture and society that in effect abstracts almost everything into saleable abstracts almost everything into saleable commodities.commodities.

§ E.g. Economics: alternative ways of thinking about E.g. Economics: alternative ways of thinking about economic systems are often removed from the economic systems are often removed from the curriculum; economics is equated with making curriculum; economics is equated with making capitalism function more efficiently.capitalism function more efficiently.

§ Ultimately a new type of society requires a new form Ultimately a new type of society requires a new form of politics in North & South – an inclusive, diverse, of politics in North & South – an inclusive, diverse, democratic. green and forward-looking political democratic. green and forward-looking political agency – agency – the postmodern Princethe postmodern Prince..