Sunday, March 08, 2009

The disintegration of capitalism as a world system

Follow Brazil's Example

A discussion by Immanuel Wallerstein at The Nation. The thing to not here is that his views are not very different than Tom Freidman's in the New York Times, posted earlier.

...Obama is irrelevant, as are all the other left-of-center governments. What is going on is the disintegration of capitalism as a world system, not because it can't guarantee welfare for the vast majority (it never could do that) but because it can no longer ensure that capitalists will have the endless accumulation of capital that is their raison d'etre. We have arrived at a moment in which neither farsighted capitalists nor their opponents (us) are trying to preserve the system. We are both trying to establish a new system, but of course we have very different, indeed radically opposed, ideas about the nature of such a system.
Because the system has moved very far from equilibrium, it has become chaotic. We are seeing wild fluctuations in all the usual economic indicators--the prices of commodities, the relative value of currencies, the real levels of taxation, the quantity of items produced and traded. Since no one really knows, practically from day to day, where these indicators will shift, no one can sensibly plan anything.

In such a situation, no one is sure what measures will be best, whatever their politics. This practical intellectual confusion lends itself to frantic demagoguery of all kinds. The system is bifurcating, which means that in twenty to forty years there will be some new system, which will create order out of chaos. But we don't know what that system will be.

What can we do? First of all, we must be clear what the battle is about. It is the battle between the spirit of Davos (for a new system that is not capitalism but is nonetheless hierarchical, exploitative and polarizing) and the spirit of Porto Alegre (a new system that is relatively democratic and relatively egalitarian). No lesser evil here. It's one or the other.

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