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Garrett78

(10,721 posts)
Sat May 19, 2018, 06:10 AM May 2018

The Nation-State: Is it Dead?

Not long ago, someone posted an article by Rana Dasgupta, claiming that the nation-state is dying, if not already dead. I think this is an important read/rebuttal: http://bilbo.economicoutlook.net/blog/?p=39086

When we published our latest book – Reclaiming the State: A Progressive Vision of Sovereignty for a Post-Neoliberal World – last September, Thomas Fazi and I approached the UK Guardian to see if they would publish an Op Ed by us summarising the main arguments presented in the book. We received no response. Pluto tell us that the book is one of their better sellers since it was published. And it is not as if the topic is irrelevant in the Guardian’s assessment. That is clear from the fact that on April 5, 2018, they published one of their ‘long read’ articles by Rana Dasgupta – The demise of the nation state – which is a direct refutation of the ideas advanced in our book. This ‘long read’ also falls into the same traps and analytical errors that we point out has besotted the Left side of politics since the 1970s. The article is clearly part of the Guardian’s agenda to appear progressive but, in fact, be anything of the sort. As I have noted previously, the Guardian seems content to publish a torrent of anti-Brexit articles and criticisms of Jeremy Corbyn rather than provide any semblance of balance.

Here are a few simple questions to start with:

If the nation state is dead why does Wall Street spend billions of US dollars trying to influence who wins government and once government is decided on influencing the outcome of specific legislation.

Over the period that Rana Dasgupta claims the nation state has lost relevance, the total spending in the US on lobbying has gone from $US1.45 billion (1998) to $US3.36 billion (2017) and the number of unique, registered lobbyists who have actively lobbied has risen from 10,404 to 11,502 (Source).

Why does “Dark Money” exist? Billions are spent in an effort to influence elections for the ‘nation state’. Why, if the nation state is dead?

Look at the major US donors – National Rifle Association, US Chamber of Commerce, Americans for Prosperity, American Future Fund, and more.

Why?

Why do organisations such as the Dow Chemicals spend $US13.6 million lobbying government in 2016, if the state no longer has the capacity to limit their activities?

Why do “Many of the UK’s largest companies shroud their lobbying efforts in secrecy and do not disclose their political engagements to the public or shareholders” and spend billions of pounds lobby government? (Source)

Why did “six of the big energy companies” spend “tens of millions of dollars for a climate change denial campaign, despite knowing the claims were false”? (Source)

Even though the Greek government surrendered its currency sovereignty upon joining the Eurozone, why did the ECB essentially threaten to bankrupt its financial system in 2016 at the time of the referendum if they didn’t think the government had any legislative capacity to take independent decisions?

Why in small nations such as Australia is there a multi-million dollar lobbying industry? Why do gun lobby gropus spend hundreds of thousands of dollars “helping minor rightwing parties win seats” at elections in Australia? (Source)

Tobacco, gambling, medicines, energy, and the rest – why do they outlay billions to influence government legislation if the state has withered away?


Note, the neoliberal framing going on here.

Tax bases have shifted somewhat – governments have run out of money which the rich have take for themselves and so the social-democratic welfare state has to be dismantled and the ‘moral promise’ abandoned because the governments can no long buy stuff or transfer money.

That is as a pure neoliberal myth as you will ever find. It is typical of the fake analysis that the Guardian promotes these days.

In the period that Dasgupta is considering (post 1970s), the monetary system that most nations operate within fundamentally changed.

Governments adopted fiat monetary systems and floated their currencies in international markets. That freed them from financing constraints that were present during the Bretton Woods era of fixed exchange rates.

These constraints existed even though the governments issued their own currencies because the central banks were committed to defending agreed parities between currencies, which meant that they had to withdraw currency from the system when it was facing downward pressure and vice versa in times of currency pressures upward.

In the modern era, no such financial constraints exist and so the fact that tax bases have shifted is largely irrelevant to the capacity of a national government to maintain first-class hospitals, schools and income security (the ‘welfare state’).

The reason that public infrastructure and public services are under threat and being retrenched is nothing at all to do with ‘lost’ fiscal capacity.

It is all to do with the shift in the dominant ideology that has occurred since the 1970s or 1980s depending when you start counting.


In many countries successive governments began cutting expenditures on public sector employment and social programs; culled the public capacity to offer apprenticeships and training programs, and set about dismantling what they claimed to be supply impediments (such as labour regulations, minimum wages, social security payments and the like).

The neoliberal era was in full swing.

But, importantly, neoliberalism works through the state not apart from it. The state can set the conditions that private capital has to work within.

That is why capital spend billions lobbying governments.

There was no ‘fiscal crisis of the state’, just a relentless and strengthening campaign from capital to extract more national income for profits and it used the ‘fiscal crisis’ smokescreen as a vehicle to justify all sorts of policies – privatisation, cuts to income support, deregulation that would be in their interests.

Note the causality – capital lobbied governments to change policy positions through legislation and regulation – to advance its interests.

Nothing has been done independent of the state!
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Hortensis

(58,785 posts)
1. Dead? Power has become more diffused, of course,
Sat May 19, 2018, 07:00 AM
May 2018

continuation of a progression from divine rulers to "the people." Right now most is "diffusing" to the people who count their wealth in the hundreds of millions and up, of course.

Sorry. He's right, what he's calling "nation-states" aren't dead. Just voted in mine last week, so I know it's still here, and my DIL became a U.S. citizen the week before. The arguments he chooses to refute that our states are "dead" are unsupportable of course, whoever's presumably making them, and equally of course are promptly knocked down. Massive dark money isn't spent to influence elections because government and who runs it don't matter.

But my literal mind is always irritated by this kind of silly premise. I really need a more active sense of humor. At the moment this premise is making me think of some of the hats wedding guests are wearing on the screen, and I'm not even smiling. The coffeemaker's broken.

I think part of it is that he keeps splashing the term neoliberal all over. He's writing from over the pond, and I hope as an economist he means strongly economically conservative/laissez-faire.

But these days over here, that word's most used in leftist anti-Democratic propaganda because having "liberal" in a conservative term makes it a good tool for deception. It was used all over DU in 2015-2016 by dissidents who didn't know or care what it meant, just that it sounded insulting.

Speaking of propaganda, I notice another title on this blog claims "the Left propaganda" insists the state is, not dead, but powerless. Maybe the Irish left, but not me. If I were religious, I'd be praying every day that we get control of both houses of congress and that a rogue golf ball deliver us from evil, although a tribulation of them would probably be required.


Garrett78

(10,721 posts)
5. I'm not entirely sure how or why the term "neoliberal" was chosen.
Mon May 21, 2018, 01:03 AM
May 2018

But, as Mitchell wrote, it's basically, "...cutting expenditures on public sector employment and social programs; culled the public capacity to offer apprenticeships and training programs, and set about dismantling what they claimed to be supply impediments (such as labour regulations, minimum wages, social security payments and the like)."

It's been overused in describing mainstream Democrats, but I can't argue against the point that some Democrats have contributed to the problem (I'm looking at you, Bill Clinton).

Hortensis

(58,785 posts)
6. It's a baldfaced lie when used to describe Democrats.
Mon May 21, 2018, 10:07 AM
May 2018

Not "overused," Garrett78. Neoliberalism, effectively laissez-faire capitalism, is right-wing economic extremism, which is not only not supported by the Democratic Party but is completely inimical to the liberal values our party is based on.

This baldfaced lie is promoted by ignorant fools, malicious players, and insidious liars. And by its use this way we identify them. Same as we would someone trying to knife us on the street.

Those hostile to Democrats on BOTH sides work against the Democratic Party by casting blame for conservative crimes on Democrats. Conservatives confuse voters with this tactic. But worse are those on the left who use it to sabotage America's huge and only liberal progressive party, then of course also blame Democrats for the harm they themselves cause.

Here's reality:

ALL those programs you mention were created by the liberal-controlled Democratic Party and, in the past, by also allying with liberals and moderate conservatives in the Republican Party. ALL future progressive advances will be created by the Democratic Party. We're it.

And that's because political liberals are the people who are caring enough, numerous enough, and competent enough to make them happen. WE do it, usually creating majorities by convincing moderate conservatives to work with us.

But always against great opposition. That's because half the citizens of our democracy either oppose most progressive programs outright or want them severely limited. The conservative half.

To get ANYTHING done, at least permanently, the Democratic Party must get at least some cooperation from some Republican legislators. And that, SOP, requires concessions in writing legislation.

Which brings us back to political actors like this author, Garrett78. Education does not reform dishonesty, merely helps hostile actors develop language as a more effective weapon.

You know, the opposition of conservatives doesn't offend me a tenth as much as the opposition from those, like this author, who say, and sometimes believe with astonishing hypocrisy, that they support liberal ideals but spend their lives trying to kneecap liberals while they work to achieve and protect those ideals.

Garrett78

(10,721 posts)
7. I agree, for the most part, but Bill Clinton is not innocent.
Mon May 21, 2018, 11:34 AM
May 2018

So-called welfare reform, NAFTA, tinkering with the idea of privatizing Social Security, "the era of big government is over," etc., etc., etc.

Mind you, Bill Clinton is still infinitely better than any Republican...and, fortunately, it seems the Democratic Party is continuing to move away from Clinton-esque governance.

Hortensis

(58,785 posts)
8. Clinton's presidency took place during the conservative Reagan
Mon May 21, 2018, 11:46 AM
May 2018

era, when 3/4 of the nation shifted farther right. Even large numbers of Democrats were affected by the new conservative mood that replaced the long, spectacular run of the New Deal era.

As a progressive liberal Democrat in those years, I was unhappy with much of the legislation he signed, but I understood that in those years the liberal Democratic Party was struggling to retain enough power, in national politics definitely but also in most states, to be able to offset the conservatism of this new era and protect our gains from the decades before. Representative government under Republicans wasn't wholly broken then, and "the people" wanted a retrenching, a return to what they imagined were the good old ways.

Authors you've clearly read who point to Clinton era actions as representative of what Democratic liberalism is, and what the Democratic Party of this era is trying to achieve, are either inadvertently passing on their own ignorance or deliberately trying to deceive you.

Here's a link to our 2016 platform. Another lie no one should believe is that what's in it is irrelevant. It is our statement of purpose, even if far too ambitious to achieve in one presidency.

But just scan the parts of it that most interest you and imagine what would happen to Republican power if, instead of believing their insidious lies, all Americans genuinely understood that this is what the grand, extremely diverse coalition that is the Democratic Party wants for us all. Versions of this, morphing to reflect our current needs and moods, are always in our dreams, and hopefully a little refresher from our party itself will also inspire. It's not lost, just delayed.

https://www.democrats.org/party-platform

Garrett78

(10,721 posts)
9. You seem to be under the impression that I'm pushing the notion that Dems are neoliberals.
Mon May 21, 2018, 11:54 AM
May 2018

I'm not. The OP article is all about refuting the notion that the nation-state is dead (a notion promoted by some leftists, which plays right into the hands of anti-government, neoliberal right wingers). It's not dead. It's just been hijacked.

The OP article is a critique of another article that was recently posted here at DU. As liberal Democrats, we mustn't give in to this idea that the nation-state (or effective government) is dead and gone.

Hortensis

(58,785 posts)
10. Glad you're not, but please note that author IS.
Mon May 21, 2018, 12:21 PM
May 2018

Again, we all have no problem recognizing a real knife coming at us. But words make bloody fools of most who aren't watching for incoming.

We need to all understand that words are routinely weaponized into the political equivalent of knives, or poisoned Kool-Aid for another analogy. We much watch out and recognize when our thoughts are under attack.

As for this author's purpose, I haven't examined official premise for validity, just got hooked by the reality that this article is (also?) a vehicle for delivery of weaponized words. The official theme of any article may be a valid message on its own. Sometimes, instead, the putative message is actually about as politically important as a Dennis the Menace cartoon and the real purpose is achieved entirely by subthemes, in this case sprinkling false equivalencies between Democrats and right wing laissez-faire economic thievery.

You can figure out which pattern this article falls into. This author's work is in my trash bin. He can't be trusted, and any valid point he might want to make will have been made better by others.

 

TimeSnowDemos

(476 posts)
2. It's dead
Sat May 19, 2018, 07:46 AM
May 2018

For corporations, the wealthy and the security services.

Largely.

For poor schmucks its as alive as ever.

BSdetect

(8,999 posts)
3. These ideas are tackled in "Sapiens" - Sapiens: A Brief History of Humankind, Noah harari
Sat May 19, 2018, 09:53 AM
May 2018

One scary point is that banks are lending money at twenty times their cash in hand.

Currency trading is the biggest business - more traded each day than the entire world GDP for a year.



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