The crisis:

“The late-neoliberal ruling class states that if deregulation produced the systemic collapse, we need more deregulation. If lower taxation on high incomes led to a fall in demand, let’s lower high-income taxation. If hyper-exploitation resulted in the production of unsold and useless cars, let’s intensify car production. Are these people crazy?“

The alternative:

The prospect of a revolution is not open to us. The concept of revolution no longer corresponds to anything, because it entails an exaggerated notion of the political will over the complexity of contemporary society. Our main prospect is to shift to a new paradigm not centered on product growth, profit, and accumulation, but on the full unfolding of the power of collective intelligence.

Interesting analysis of the evolving European tragedy, and the emerging alternative.

Excerpted from Franco Berardi Bifo:

1.

“The European tragedy has been founded on a false representation of social reality, based on some assumptions that contradict daily experience, but are nevertheless delivered as absolute truth, as unquestionable dogma.

Platitude 1: Public spending must be drastically cut if European budgets are to be balanced. In fact, European states have been cutting their budgets over the last thirty years, and are now diverting financial resources from social infrastructure towards banks and corporations. This diversion has already produced extensive damage, and will produce more.

Platitude 2: The European economy must compete with the emerging economies of developing countries, and this can happen only by reducing labor costs. This means that in order to become competitive, in a strictly economical sense, European life should be impoverished. And this is what is happening: unemployment is rising, education is being privatized, and racism is spreading. Nobody has ever explained why the only criterion for evaluating wealth must be financial in nature.

Platitude 3: The European worker’s productivity must be increased while salaries must be reduced. This produces an effect of low demand, deflation, and depression, but also overproduction. 40 percent of cars produced in Europe will not find buyers (thank God). So why should carmakers seek to increase the productivity of their already hyper-exploited workers? Consumption declines because salaries shrink, but also because Europeans simply do not need any more cars.

Platitude 4: The age of retirement must be raised, as there will be too many young people and too few old people in the future. The retirement age has already been raised in every European country, and now in France as well. But the rationale does not make sense. The productivity of the average European worker has increased fivefold over the past fifty years, so when the time comes, fewer young people actually will be able to feed more old people. But in reality, raising the retirement age has nothing to do with any social concern whatsoever. Rather, it is a trick for reducing labor costs. Capitalists would much rather pay a poor, old worker a salary than a deserved pension, and leave the young to find their own way, accepting any kind of occupation, whether precarious or simply underpaid.

No European politician dares to question these fundamental platitudes.”

2.

“The institutions of the welfare state have been under attack for thirty years: full employment, labor rights, social security, retirement, public schools, public transportation—all of these areas have been weakened, neglected, or destroyed. After thirty years of neoliberal obsession, we arrive at a collapse. What comes next? The ruling class answers coarsely: more of the same. Further reduction of public sector salaries, further raising of the age of retirement. No respect for society’s needs and the rights of workers.

Thatcher said thirty years ago that there is no such thing as society, and today this statement comes across as a self-fulfilling prophecy. Society is in fact dissolving, leaving space to a jungle where everyone fights against one another. Following the Greek crisis, the monetarist dogma has been strongly reinforced, as if more poison could act as an antidote. Reducing demand will lead to recession, and the only result will be to further concentrate capital in the hands of the financial class and further impoverish the working class.

Following the Greek financial crisis, emergency law was declared: a self-proclaimed Merkel-Sarkozy-Trichet directorate imposed a deflationary policy to be forced on the various national governments of European countries. In order to rescue the financial system, this self-proclaimed directorate diverts resources from society to the banks. And in order to revive the failed philosophy of neoliberalism, social spending is cut, salaries are lowered, the retirement age is raised, and the younger working generation is precarized. Those who do not acknowledge the great necessities of competition and growth will be cut out. Those who choose to play the game will have to accept any punishment, any renunciation, any suffering demanded by the great necessity. But who said that we must absolutely be part of this?

So far, the result of the collapse of neoliberal politics has been its confirmation and consolidation. When the American financial system collapsed, there was a general expectation that capital concentration would be abandoned or at least diminished, as a redistribution of wealth seemed necessary to rescue the economy. This has not taken place. The Keynesian way has not even been explored, and Paul Krugman has been left to repeat a series of perfectly reasonable options that no one is willing to consider.

Thanks to the crisis, American society has been robbed by big finance, and now Europe is following with its own mathematical ferocity. Is there any chance of stopping this insane race? A social explosion is possible, as it is apparent that living conditions will soon become unbearable. But precarious labor and the decomposition of social solidarity may open the way to a frightening outcome: ethnic civil war on continental scale, and the dismantling of the Union, which would unleash the worst instincts of nations.

In Paris, London, Barcelona, Rome, and Athens, massive demonstrations have erupted to protest the restrictive measures, but this movement is not going to stop the catastrophic aggression against social life, because the European Union is not a democracy, but a financial dictatorship whose politics are the result of unquestioned decision-making processes.

Peaceful demonstrations will not suffice to change the course of things and violent explosions will be too easily exploited by racists and criminals. A deep change in social perception and social lifestyle will compel a growing part of society to withdraw from the economic field, from the game of work and consumption. These people will abandon individual consumption to create new, enhanced forms of co-habitation, a village economy within the metropolis.”

3.

“We must give something up, but what exactly? Certainly we must give up the hyper-consumption imposed on us by large corporations, but not the tradition of humanism, enlightenment, and socialism—not freedom, rights, and welfare. And this is not because we are attached to old principles of the past, but because it is these principles that make it possible to live decently.

The prospect of a revolution is not open to us. The concept of revolution no longer corresponds to anything, because it entails an exaggerated notion of the political will over the complexity of contemporary society. Our main prospect is to shift to a new paradigm not centered on product growth, profit, and accumulation, but on the full unfolding of the power of collective intelligence.