The Wall Street crisis should mark the beginning of the end of an economic and social model that has dominated the world economy since at least 1981 with the rise of the Reagan conservative revolution and the rule of Thatcherism in the United Kingdom.
The Anglo-Saxon model of “free markets and unfettered capitalism”, as Inter Press Service John Lobe writes, has reached its limits.Which model will replace it? That is the really key question, as it was “the” question after the 1929 crash and the fall of the world into the Great Depression. Three options were opened at the time: communism, fascism or a radical renewal of the democratic model.
Franklin Roosevelt provided the best way to avoid the ominous trap of the choice between Communism and Fascism. The New Deal was the most decent and enlightened model that, as former editor in chief of Le Monde diplomatique famously said, “saved capitalism against the will of capitalists”. FDR much more importantly saved tens of millions of people from poverty and saved its country from the temptations of totalitarianism.
Thinking of this historical context, what could we expect from the current crisis? A return of Marxism? Some point to the renewed popularity of Marxism as well as to the rise of Die Linke, a gathering of former East German Stalinists and disgruntled West German trade unionists, in Germany, or of the leftist Socialist Party in the Netherlands?
But the trend might be as well as new popularity for fascism. Sunday’s election results in Austria, with 30% for the extreme right, might be an indicator of how voters might react to financial uncertainties and popular fears.
More than ever liberals and progressives in Europe and the U.S. have to mobilize to provide a reasonable and enlightened way out of the mess created by a system based on reckless greed and irresponsibility.
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