Yesterday, Greece defaulted on its creditors. We are in yet another financial crisis. Jim Stanford writes:
No one can predict how the European drama will unfold next. Or how other after-effects of the 2008-2009 crisis (such as the coming rise in U.S. interest rates) will shake still-fragile economies around the world. What is certain, however, is that globalized, financialized, polarized capitalism is incapable of finding the stable and efficient equilibrium fantasized by conventional neoclassical economists. Repeated outbreaks of credit-fuelled, speculative exuberance are inevitably followed by panic, retrenchment, and recession. This will keep happening. We don't know precisely when the next crisis will occur, nor its precise proximate cause. But we do know another crisis will occur, with 100 per cent certainty. And we do know that the 99 per cent of humanity who do not possess enough financial or business wealth to support themselves without actually working for a living, will be asked again to bear the brunt of the subsequent pain and dislocation.
On this Canada Day, we need to remember that those who presently hold the reins of power are manically devoted to the same neo-classical economics that has caused our recurring financial crises. And it doesn't have to be that way:
This pattern of repeating crisis and growing polarization is hard-wired into the DNA of modern capitalism: an economic system organized around the self-serving decisions of a surprisingly small and privileged segment of society. This crisis, no different from the last or the next, was not an unpredictable, unpreventable, one-off occurrence: a "black swan" event. Rather, it was the predictable, preventable result of an economy that puts the interests of financial wealth above the interests of the vast majority in working and supporting themselves. And it will happen again, unless and until we change the fundamental rules of the game.
Stanford writes that, just as Naomi Klein suggested in The Shock Doctrine, these crises are organized for the benefit of the fabulously wealthy few:
She showed how ruling elites regularly take advantage of moments of fear and confusion, arising at moments of economic, social, or even natural disaster, to enforce painful changes that they were preparing for years -- but that most people would not tolerate under "normal" circumstances.
Today is a day to reflect on what we've become. And what we've become -- particularly in the last decade -- is an ongoing tragedy.