It is now clear that market liberalism has failed in its own terms. It promised that if markets were set free, everyone would benefit in the long run. In reality, most households in developed countries experienced less income growth under market liberalism than in the decades of Keynesian social democracy after 1945. Of more immediate importance, except for the top one per cent there has been no recovery from the crisis of 2008, and even worse looms ahead. And despite the initial success of the backlash against Keynesian macroeconomic policies, austerity is now failing in political as well as economic terms.
Popular anger has boiled over in a string of electoral defeats for the advocates of austerity. But, unlike the right-wing tribalism that has formed part of that backlash, progressive politics cannot, in the end, rely on anger. It must offer the hope of a better life. That means reclaiming utopian visions such as that of Keynes.
John Quiggin, autor de “Zombie Economics: How Dead Ideas Still Walk Among Us”, Princeton University Press