Towards postcapitalism?

postcapitalismPaul Mason’s new book Postcapitalism: a guide to our future is a serious book with an ambitious agenda.

But you wouldn’t necessarily have picked that up from some of the early reviews. Political commentators from the centre and right were pretty quick to the pages of the Times or the Spectator to offer their dismissal. Even some reviews from the centre-left have been a bit tepid.

The book should, we’re told, be viewed as some form of regression by Mason to the driveling Marxism of his youth. The book indicates bankruptcy of the intellectual left. Mason’s argument that we may be seeing the beginning of the end of capitalism is taken to indicate his failure to understand the remarkable resilience of capitalism.

Quite a bit of the commentary on Mason’s book doesn’t do it justice. It isn’t entirely clear that some of those commenting on the book have done Mason the courtesy of actually reading what he’s written, or engaging with it seriously. Those who have taken time to do so, such as David Runciman in today’s Guardian, find plenty of interest. Which isn’t to say that Mason’s argument is unproblematic. Or, for that matter, that criticism isn’t justified. [Read more…]

Keen insight into the monetary economy

Lucas Papademos, former vice-president of the European Central Bank, has now been installed as the new Prime Minster of Greece. The imminent arrival of former European Commissioner Mario Monti as Prime Minister of Italy will get the post-Berlusconi era properly under way. This is to be an era of technocratic policy-making by market-approved placemen.

Defenders of democracy are deeply concerned about the way in which this process has evolved. It is not so much that crisis has precipitated change at the top of national governments. Nor even that these countries find themselves governed by interim governments that are appointed rather than elected. More concerning is the apparent erosion of sovereignty through the overt intervention of foreign governments in domestic affairs, and the apparent concentration of European power in the hands of the eight members of the Frankfurt Group, only two of whom are democratically elected politicians.

But this is not simply a crisis of politics and the economy. It is also a crisis of economic epistemology. Of economic knowledge. Paul Mason, BBC Newsnight’s Economics Editor, observed on Friday’s programme that “The economic orthodoxy of an entire generation of politicians seems to be failing. And they don’t know what to do.” [Read more…]