On Your Marx: Neoliberalism on the Rocks

From n+1

The first intellectual consequence of the economic crisis was to undermine neoliberalism—or the belief in the sufficiency of markets to secure human welfare—as the age’s default ideology.

The second was to prompt a hasty resurrection of Keynes. “We are all Keynesians again!” the ghost of Richard Nixon might have declared as Gordon Brown and Barack Obama, leaders of the nations most squarely behind the neoliberal push of the last thirty years, changed the Anglo-American tune and, this past winter, begged their European colleagues to stimulate the Continental economy with borrowed money. The crisis also made the economists Paul Krugman and Nouriel Roubini into the ?rst Keynesian superstars since John Kenneth Galbraith. Their recommendations, on their invaluable blogs, of still vaster countercyclical spending and the temporary nationalization of banks were not taken up by the Obama administration, but they did confer new respectability on the idea of close state involvement in the economy.

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