A fascinating article, but I think that marxism is also dead: its core insights remain, but its theory, despite repeated spurts of relevance, is not fully capable of dealing with neoliberalism or capitalism: we need a new broader platform based on a ‘new communism’ that can take marxism both ways: as a resource, and as an out of date yet still relevant critique. But marxism can’t be allowed to forestall the reinvention of marx’s essental goal: we must tackle neo-liberal economics, its theory, and ideology, subjects Marx never knew about..
The Death Grip of Neoliberalism
Keynes is Dead; Long Live Marx!
by ISMAEL HOSSEIN-ZADEH
Many liberal economists envisioned a new dawn of Keynesianism in the 2008 financial meltdown. Nearly six years later, it is clear that the much-hoped-for Keynesian prescriptions are completely ignored. Why? Keynesian economists’ answer: “neoliberal ideology,” which they trace back to President Reagan.
This study argues, by contrast, that the transition from Keynesian to neoliberal economics has much deeper roots than pure ideology; that the transition started long before Reagan was elected President; that the Keynesian reliance on the ability of the government to re-regulate and revive the economy through policies of demand management rests on a hopeful perception that the state can control capitalism; and that, contrary to such wishful perceptions, public policies are more than simply administrative or technical matters of choice—more importantly, they are class policies.
The study further argues that the Marxian theory of unemployment, based on his theory of the reserve army of labor, provides a much robust explanation of the protracted high levels of unemployment than the Keynesian view, which attributes the plague of unemployment to the “misguided policies of neoliberalism.” Likewise, the Marxian theory of subsistence or near-poverty wages provides a more cogent account of how or why such poverty levels of wages, as well as a generalized predominance of misery, can go hand-in-hand with high levels of profits and concentrated wealth than the Keynesian perceptions, which view high levels of employment and wages as necessary conditions for an expansionary economic cycle .