The Problem Is Capitalism

Only radical reforms will solve neoliberalism’s crisis of democracy.

BY Joseph M. Schwartz and Maria Svart

In These Times - May 27, 2013

In “Lean Socialist: Why Liberalism Needs Socialism—and Vice Versa” (May 2013), Bhaskar Sunkara calls for the rebirth of a socialist movement that would work alongside liberals for immediate gains for working people, while simultaneously offering a vision of a socialist society that would extend democracy into the economic sphere. And, at the same time, that movement would fight for the structural reforms most likely to lead towards that goal. We at Democratic Socialists of America (DSA), including our founding co-chair Michael Harrington, have always embraced this strategy. The problem? Socialists became indistinguishable from liberals because the liberals and a strong labor movement disappeared, swept away when “the tides of neoliberalism moved in.” As Barbara Ehrenreich frequently noted in the 1990s, with liberals and social democrats endorsing Clinton’s and Blair’s “kinder, gentler” dismantling of the welfare state, socialists were often the last defenders of the liberal gains of the 1930s and 1960s. But to go beyond liberalism, we absolutely agree with Sunkara that work must be done alongside movement activists, rather than so-called liberal technocrats. Socialists need to teach the liberals to fight once again. But how?

First, we must remind liberals of history. Before social democracy retreated, socialists foresaw the dangers of insufficiently radical reforms. In the 1970s and 1980s, European socialist theorists such as Nicos Poulantzas and Andre Gorz joined Harrington in warning that if the Left failed to socialize control over investment, the corporate drive for profit would lead capital to abandon the “social contract” compromise of the welfare state. Socialist governments in France, Sweden and elsewhere pushed for democratizing investment. But capital immediately fought back, beginning with the CIA-aided overthrow of the Allende regime in Chile in 1973 and continuing with French capital’s strike of the early 1980s. In the face of the onslaught, democracy and old-style liberalism began to crumble. This time around, liberals must recognize the true enemy and embrace radical reforms. Socialists will be there to push them to do so.

To read more....