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Todd Suomela's Library tagged austerity →  View Popular, Search in Google

May
11
2012

"Philosophically, the Brooks and Rajan essays are interesting for the way they awkwardly combine an old-fashioned style of conservatism (the poor will always be with us, accept your lot) with a more modern form of inclusive neoliberalism (accept deregulation, and you too can be rich!) By itself, the first style of argument is simply intolerable to modern sensibilities, but the crisis has rendered the second increasingly implausible. Together, however, the two arguments add up to nonsense.

The simplest response is that self-styled critics of “structural” economic problems are not being structural enough. The existence of a hyper-polarized wage structure is not a fact of nature but is itself a structural problem, and one that has been facilitated by specific policy choices. What we need is not “human capital” but a shift away from protecting rentiers and toward strengthening the bargaining position of labor."

jacobinmag.com/...two-faces-of-austerity
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economics education jobs work labor austerity neoliberalism

  • There is an odd dissonance in these accounts, however, one that’s more obvious in Rajan’s version than in Brooks’. First, we are told that the stagnation of wages and the disappearance of jobs is an unchangeable structural fact: globalization and technology dictate that the demand for labor will be split between a handful of high-skill, “superstar” jobs and a mass of menial, poverty-wage service work. Yet we are also told that we face a deficit of “human capital”, implying that adequate education is all that anyone needs to escape the trap of unemployment or low wages.
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