Written by Francine Mestrum, 2017
Nos encontramos ante la muerte de una de las mayores
estafas ideológicas de los siglos recientes
(Álvaro García Linera, La Jornada, 28 de diciembre 2016)
The emergence of rentier capitalism
To all those who think ‘capitalism’ is the major obstacle to the success of the left and progressive forces, it may come as a surprise: capitalism continues to change and transform itself, to develop into something different from what it was before. And each time the left decides to better analyse what exactly is happening, ‘the enemy’ is taking one step ahead and succeeds in stopping all reflection on alternatives and strategies in order to surpass it.
To-day, this is happening once again. Thirty-five years after the introduction of neoliberalism which defined new rules for the functioning of the world, nearly two years after the IMF (International Monetary Fund) used the concept for the very first time and stated it might have perverse effects, the system is undergoing a metamorphosis and gives rise to political changes to which we are not prepared.
Neoliberalism is an ideology whose theoretical basis was defined by the ‘Mont Pèlerin’ group and it consists mainly in having markets decide on almost everything. In practice it first took the form of the ‘Washington Consensus’ and focused on the liberalisation of markets and free movement of goods, services, capital and people. It implied the deregulation of markets, including labour markets. In put into place a new kind of State, with less binding rules but more protection of property rights, markets and consumer rights. It preaches openness to the world and individual liberties.
In this movement, the capitalist system appropriated almost everything that was possible: from national enterprises to public services, from nature to knowledge. It dismantled existing protection of workers and is now appropriating life itself, through the advances of biotechnology. These changes went along together with a breakthrough of banks and a logic of financialisation. This latest development led to a ‘new’ capitalism that seeks less to produce and progress than to extract rents from everything it undertakes, while imposing austerity to populations all over the world.
Incomes from capital have risen enormously and to-day amount to more than 20 % of GDP in several countries. Have to be added to these incomes from all sorts of activities such as patents, brands, copyright, etc. This is rentier capitalism that put an end to free markets using institutional mechanisms. Multinational companies have captured the state apparatus in order to receive all the subsidies they want, new legislation for the protection of intellectual property, consumers and students have been encouraged to make debts. Later, almost all of the public sector passed into private hands, from health care to education, from social housing to prisons and even security forces, parks streets and squares, parts of the oceans and of the forests, all over the world. To-day, even ‘employers’ are disappearing, in the new ‘collaborative’ economy intermediating enterprises are limiting themselves to put demand in touch with offer.
At every step, capitalism is reaping the profits, without any risk.
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