"To propose any concrete alternative economic model at this juncture would smack of hubris. Right now no-one has the answers and that is precisely what characterizes a crisis. But one thing is certain: by embracing the underconsumptionist critique and the Keynesian solutions of those such as Skidelsky, Baran and Krugman, we will not only be failing to think outside the box, we will be reaching for a branch that simply isn’t there anymore."
This absolutely must-read analysis in Open Democracy explains why neither Keynes nor neo-liberal austerity will lead us to the exit of the economic collapse.
A few remarkable quotes from this brilliant article:
“… the ‘left’ will over time adopt an underconsumptionist position. For those passionate about ecological sustainability and not simply reducing human beings to units capable of economic maximisation this is of grave concern”
“While it may be tempting for the left to champion a Krugman-like Keynesianism and ‘go for growth’ ↑ , given contemporary levels of abundance, combined with unprecedented levels of education, technical knowledge and new forms of non-state, non-market production, we should not be looking at the period of 1945-73 as an idyll to be repeated. It is not possible, neither is it – I would argue – desirable.”
“There will be no second act for Roosevelt’s New Deal. Instead we must answer the question that Keynes posed in his 1930 essay: how, after growth, can we ‘live wisely, agreeably and well’?”