Wednesday, February 25, 2009

the new deal's "loaded gun"

Klein writes that the real death of international Keynesianism (ie, Marshall Plan) was the collapse of the USSR (p.252):

"There was never going to be a Marshall Plan for Russia [in the early 1990s] because there was only ever a Marshall Plan because of Russia. When Yeltsin abolished the Soviet Union, the "loaded gun" that had forced the development of the original plan was disarmed. Without it, capitalism was suddenly free to lapse into its most savage form, not just in Russia but around the world. With the Soviet collapse, the free market now had a global monopoly, which meant all the "distortions" that had been interfering with its perfect equilibrium were no longer required."

so what this means, in essence, is that the "victory" over the USSR was a heavy blow to neo-liberalism, since it removed all vestiges of social welfare, kept in place to keep revolutionary rage at bay. it was a success that appears to have been fatal, at least for the prevailing corrupt structure.

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