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Has The Economy Failed Society?

Posted By Administration, Friday, January 4, 2019
Updated: Wednesday, February 27, 2019

Esmee Wilcox has published her first installment in our Emerging Fellows program. She recaptures socioeconomic theories in the light of realities being experienced in our modern age. The views expressed are those of the author and not necessarily those of the APF or its other members.

Societies have sleepwalked into an acceptance of the predominance of capital. We have gone far beyond Karl Marx’s theories of capital driving the ordering of society. We no longer question the consequence of this imbalance for our existence. We need to rebalance the needs of capital and society. Not simply as an end in itself, but primarily because we need new social norms to tackle future global issues. How has this imbalance come about?

Is Marx right that the ordering of society is necessarily driven by the needs of capital? If so, what does this mean for the assumptions we bring to our conception of society? What does this mean for the widely-held view that capitalism has triumphed other economic models?

The 1990s view of the ‘triumph of capitalism’ came out of the toppling of the old communist order in Eastern Europe and the Soviet Empire. Alongside this came a slow opening up of China to trade and privately run enterprise from the late 1970s. However, there is a flaw in the logic to present capitalism as the only alternative to communism. Without any credible alternative models on the table, it is easy to see why the ideology of capitalism took hold. 25 years on, with rising populism coupled with pervasive neo-liberal power, there are three interconnected trends that illuminate the contradictions and flaws in the predominance of the economy in our patterns of local and global behaviours.

First, the enduring power of the interests of capital at the heart of government. Politically-centrist governments have gained and retained power with policies that appeal to lower-income communities. They appeal to the interests of capital because they have done so without transferring political influence.

At the same time, the interests of capital have subtly influenced the organising of public and social value to be more ‘commercial’. It has confused being responsive to citizens needs with being economically driven. The ‘McKinsey effect’ on public policy-making should not be underestimated. In more recent years there has been some recognition of the need to rebalance social with economic value within UK local government: the 2012 Social Value Act created a space for public policy-makers to utilise its purchasing power to balance economic efficiencies with social benefits. However, it hasn’t challenged the underlying economic model whereby one’s life expectancy and life chances can be predicted by one’s mother’s educational status and the extent of your vocabulary at age two.

Second, our attachment to material possessions – aptly described as ‘affluenza’ – at the heart of our economic growth model, placates the reality of our diminishing ability to influence capital power. Credit is freely available, we can buy our housing association property, but we can’t persuade governments to pay for sufficient modern housing stock to have a home and a family life. This consumerist economic model drives income generation over friendships and developing community capital. Coupled with business interests creating a more precarious working environment, we are increasingly squeezing out time to care.

Third, the status anxiety that comes from our awareness of our social position in any social interaction. We’re so worried about people who have more income. More luxurious experiences than us. Retaining our rung on the ladder. Our status dominates our social interactions and reduces the joy in them. As social encounters become harder to have, we shy away from them and become lonelier and more isolated.

This is why it’s interesting to consider alternatives to the predominance of economic drivers on our society. It doesn’t just affect people at the bottom of income distribution, but the powerful interests of capital. Society can’t be divided into economically self-supporting strata when social phenomena exist as a response to the whole. We can no longer ignore these feedback mechanisms.

Marx’s theories were conceived of in far less connected societies. They have remained intact as we have become more globally connected. However, they are not a guide to our future that is more complex, interconnected and unpredictable. We know that self-organised, adaptive and resilient communities are more able to respond to changes in the external environment. This requires high levels of co-operation and collaboration, the antithesis of atomised economic self-supporting behaviours. These are a clue to the social norms that have to be in abundance if we are to tackle global late 21st Century issues.

The triumph of capitalism is a binary argument suited to the interests of 20th century phenomena. It has taken hold because we have become seduced by its simplicity and its immediate rewards. It is much more difficult, and yet more compelling, to seek out the 21st Century socio-economic norms that will help us face up to scarce physical resources. It will be disruptive but offers hope for future generations.

© Esmee Wilcox 2019

Tags:  capitalism  economics  power 

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