Those of us who hail from the heterodox economic traditions keep wondering in some amazement at the persistence of neoliberal thought. I mean, how much evidence of failure will it take to discredit these people? We have had major meltdowns and corruption on a scale so vast that it boggles the mind in just the last 25 years and yet the persistence of belief marches on. It's not that I have not had experience with this sort of behavior before. My mother once got a letter from a 95-year-old friend who was very sick. In spite of his age and health, he closed with a paragraph stating that he was still convinced that the Lord Jesus Christ was coming back during his lifetime to take him home to heaven. He had believed that he would be Raptured since he was a teenager—why stop now? He died in less than two weeks.
This is what I think of when I read that some neoliberal believes that high interest rates are good for the economy or that privatizing a public good leads to greater prosperity. Makes a belief in the Rapture look positively enlightened by comparison. In the case of Russia, we find the toxic waste of neoliberalism crippling an economy already under stress from organized economic sanctions and a dramatic fall in the price for oil—Russia's big deal export. Russia's economy should logically be on a wartime footing given the external threat. And yes, there have been some remarkably successful war economies organized in traditionally capitalist havens (see USA 1941-45). If you look at these successful war economies, they look almost nothing like neoliberalism. So why has V. Putin chosen to keep the Yeltsin-era neoliberals around to mismanage his economy when almost anything else would make his country stronger and more able to cope with external threats? Good. Damn. Question.
It turns out Mr. Putin has been asking this very question. And he looks like he is about to throw some neoliberals overboard. If he thinks the western press has been hostile, wait until his tries ridding himself of the official economic religion.
Insane Tyrant will be the kindest description by the folks at the
Guardian.
Of course, this conversion to a more rational economics may still be wishful thinking. The writers below who argue that Russia is going to try something else, Engdahl, Hudson, and Roberts, are known critics of the neoliberal madness. They want someone (with a reasonable chance of success) to try the heterodox methods. There is a lot of pride on the line here. I know how that feels. It has been nearly 30 years now since I first reassembled the most successful ideas of the USA Progressives from 1873-1973—the effort that led to
Elegant Technology. With every bump and crash that demonstrates once again how neoliberalism tends towards Gilded Age Neofeudalism I ask myself—will anyone with the necessary clout ever stand up to this crazy thinking? It's only the survival of the species that's at stake, after all.