Idiotism

Capitalism and the Privatisation of Life

Neal Curtis

• Publisher: Pluto Press
• Year: 2012
• eBook ISBN:
  9781849647892
• Topic: Philosophy
• Subtopic: Political Philosophy

Idiotism examines society in late capitalism where the market logic of neoliberalism has become the new 'common sense'. Using the Greek word idios, meaning 'private', Neal Curtis calls this privatisation of the world 'idiotism'. Through constructing a new vocabulary with which to understand our society, Curtis examines 'idiotism' across the spheres of economics, politics and culture, drawing on the philosophy and political theories of Martin Heidegger, Louis Althusser, Franco Berardi, Jacques Rancière and Cornelius Castoriadis. This book recasts our conception of the new privatised world's 'common sense', presenting it as not simply a case of false consciousness, but an problem related to our own existence.

1

Enclosing the World, or Idiotism

This book was conceived in the aftermath of the ‘Great Financial Crisis’ (Bellamy and Magdoff 2009) that first came to public attention in 2008, but continued to devastate lives as I began to write in February 2011. No doubt it will continue to do so for many years to come, even as those most responsible quickly return to their multi-million dollar bonuses euphemistically referred to as ‘compensation’. The state of the economy at the time of the crisis can be highlighted in a couple of quite startling facts that John Lanchester sets out in the opening chapter of his book Whoops!. First of all, throughout the years known as the war on terror, or economically speaking the security bubble, global GDP rose from $36 trillion dollars in 2000 to $70 trillion in 2006, largely driven by profits in the financial sector (2010:xii). Secondly, at the time of the crisis in 2008, the largest company in the world with assets of £1.9 trillion was a bank, the Royal Bank of Scotland. This is significant because the UK’s GDP in 2008 was only £1.7 trillion (22). By any standard these figures are extraordinary. However, considering that regulation of the financial sector was negligible there was little if any oversight of this anabolic growth. This was because, according to Robert Lucas, Chicago University professor and 1995 Nobel prize winner, ‘the “central problem of depression-prevention […] has been solved”’ (in Krugman 2008:9). This supposedly overcame the need for state regulation or intervention in line with the old Keynesian model. The market alone – run by and for an oligarchy of plutocrats also known as the ‘Super Rich’ – was sufficient. Even more disturbing is that despite the crisis, and not withstanding some minor technical adjustments, nothing has really changed. Even if we exit this crisis that is still to be played out in the sovereign debt crises of the Euro-zone and the US, many economists believe that a second crash will not be far off.

The roots of the crisis stem from an ideology of privatisation and free markets that goes back a long way. The idea that the pursuit of private interests in a free market of goods and services is the best way to achieve the common good can be traced back to the eighteenth-century liberalism of Adam Smith, but the idea that common land is more productive under private ownership dates back to the seventeenth century and the work of William Petty and John Locke. Locke in particular gave the philosophical justification for the enclosure of common land and resources that, aside from war (or increasingly in conjunction with war), remains capitalism’s primary means of accumulation. However, while this long-standing privileging of the private is integral to our current socio-economic condition the most proximate causes of the crisis are quite recent, stemming from the financialisation of the economy that began in the 1970s with the Thatcher government in the UK and the Reagan administration in the US. At that time conditions emerged for the ideology of free market economics to gain a much greater and more radical purchase on our political imagination. The media constantly relayed bulletins promoting competition, consumer choice, council house sales, upward mobility, credit, privatisation, deregulation, designer labels, branding, gentrification, and the democracy of share options. Everyone was encouraged to join in the fiction of this new wealth and the seemingly endless supply of money created by the great sell off. Even the UK’s pop stars were dressing up like bankers. We all lived in the brave new world of the Square Mile. Likewise in the US, the counter-culture that a decade earlier had preached resistance and the importance of finding onseself were now seamlessly folded into the niche-marketing of lifestyle choices and the new individualism.

By 1997 the emergence of New Labour in the UK under the leadership of Tony Blair came to signal the completion of a consensus around financialisation and privatisation that had shifted from the terrain of ideology to increasingly become part of a new common sense. By this I mean to say something akin to the popular folklore that Antonio Gramsci (1971:419) attributes to this term: something that is shaped by a coherent ideology, in turn supported by ‘the great systems of traditional philosophy’ (420), in this case utilitarianism and positivism, but remains ‘ambiguous, contradictory and multiform’ (423), retaining elements of nationalism, and racism, for example, mixed in with the new language of supposedly neutral, free market universalism. Nevertheless, despite elements of incoherence this new common sense projected a dominant conception of the world, one in which socialism, certainly, but even the postwar Welfare State and the politics of the New Deal were seen to be out of date. In this respect the use of the financial crisis to make a renewed case against public spending was the key to getting rid of the anachronistic, yet stubborn element of welfarism that had continued to survive in a much reduced capacity within it. Although the New Labour government claimed to be pursuing a social democratic agenda and believed in a public sector of sorts, Blair had been converted to the ‘truth’ of market fundamentalism, and like the Democratic presidency of Bill Clinton in the United States did much to further entrench the power of private forces both nationally and globally. Tony Blair’s zeal for all things private and the Labour Party’s conversion to the truth of market forces can also be explained in part by Gramsci’s understanding of common sense because, as he points out, with common sense being ‘crudely neophobe and conservative’, the ability to bring about ‘the introduction of a new truth is a proof that the truth in question has exceptional evidence and capacity for expansion’ (423).

During the 1980s and 1990s, then, there was a great deal of debate amongst academics and activists about the nature of this new truth that was rapidly dismantling socialised economies around the globe and the cultures not predicated on consumption that stubbornly stood in its way. At a time when diversity and plurality were seen as democratic ideals to be promoted, and social and cultural theory was dominated by the discourses of hybridity and flow, it became increasingly apparent that powerful Western nations such as the USA and the UK, together with transnational capitalist institutions such as the WTO, the World Bank, and the IMF were becoming increasingly less tolerant of any form of social life that resisted the dogma of the global free market. Despite the ascendancy of multiculturalism free market capitalism increasingly became the only model for social organisation. In effect you can have free market capitalism with any kind of topping, but the stipulation is that you must have free market capitalism. For some, like many of the evangelical Christian communities in the US, an anti-state commitment to privatisation is an integral component of their cultural expression, for many others, however, it was an aside, and as long as the system permitted differentiated cultural expression the shape of the economy was of only a minor concern. For theorists like Michael Hardt and Antonio Negri (2000) the acceptance and encouragement of a variety of cultures went hand in hand with the post-Fordist model of capitalist growth via niche production and marketing where each cultural difference comes with its own glossy magazine. Rather than standing for something that countered a centralised dogma the ‘multi’ of multiculturalism underpinned the global extension of the free market and was used to legitimate it.

On this point it can be noted that one reason why radical Islam is so intolerable for the West is not because, as is primarily claimed, it threatens to role back centuries of political liberalism, but because it is opposed to economic liberalism and posits a clear alternative to our current economic formation. I would go so far as to say that even if a form of Islam emerged that supported many of the political freedoms the West recognises today – what we understand to be tolerance has its roots in Islamic civilisation after all – the West would remain as vehemently opposed to it precisely because of its challenge to current forms of socio-economic power. For example, while Christians (via Clavin) have conveniently found a way to forget the injunction against usury, it remains a pillar of Islamic economics. Thus, while the world has been increasingly opened up by travel, migration, cultural exchange and new technologies creating a heightened sense of global complexity and connectivity I believe the real effect has been a closing down of possible ways to approach, interpret, and be in the world. In other words, the opening up taking place under globalisation is really the enclosing of the world within the dominant neo-liberal model, a process that Ulrich Beck (1999) has called ‘globalism’. This enclosing of the world is in line with the absurd idea that history ended in 1989 and all that remained was to roll out a formally democratic, free market capitalism across the entire globe. Any country that didn’t voluntarily engage in the new common sense of privatisation would be forced to do so through military intervention if necessary.

Our current socio-economic condition, and one must add political and cultural condition, can therefore be defined by this increasingly dogmatic rejection of any alternative to the ideology of privatisation and markets that now frames what is deemed to be both legitimate and true. Quite bizarrely this rejection of alternatives takes place in the name of democracy, a topic I will need to return to in the final chapter. Although the so-called ‘Arab Spring’ indicates the possibility of alternatives it is unclear yet how these uprisings, even if they liberate themselves from the tyranny of autocratic dictatorship, will escape the clutches of the plutocratic oligarchy that disseminates free market dogma around the globe and practices the wholesale enclosure of the commons. If the revolutions result in something more recognisably Western it is certain that liberalisation will be primarily economic. The alter-globalisation movement(s) that have found their most recent expression in the call to occupy Wall Street also present alternatives, and as the international take up of the call indicates this is a cause that can still resonate around the world and arouse significant forms of identification and solidarity. Detractors, however, were quick to point out that the globalising Occupy movement failed to come up with an alternative to neo-liberal capitalism, and it failed not because a properly democratic alternative will necessarily take time to arise from the deliberative practices of those involved, but simply because there isn’t one. For years now those with alternative views of society, whether idealist or materialist, have been derided as naïve, sometimes mad, but almost certainly adrift from ‘reality’, but the enclosure that is taking place today – and one that became evident with the eviction of the occupiers – is one where any kind of radicalism is increasingly equated with criminality, if not terrorism. Today even the poor are regarded as a threat to security.

There are always alternatives, of course there are, but the enclosure, marginalisation, or repression of radical choices is regularly secured through the announcement that there are none. In fact, as the financial crisis of 2008 showed, we are tied to the activities and the interests of a capitalist oligarchy to such an extent that the necessary changes to the system would have such far-reaching consequences that change becomes increasingly difficult. Developed countries in particular (where developed increasingly signals the establishment of mature consumer cultures) have been taken so far into the world of financial speculation that finding a way out is increasingly problematic. Our credit-fuelled lifestyles are unsustainable, but it has become the world we know. For the vast majority of people living in the so-called advanced economies credit and the objects and experiences credit supplies have been woven into the fabric of our everyday lives. Given that for the last three decades we have been told that credit is our ‘flexible friend’ or that as consumers we are sovereign, demanding changes to people’s everyday habits and expectations will be justifiably met with considerable resistance. As I will argue below, this imbrication of financial capital into the very tissue of everyday practices has affected who we think we are in the sense that, especially for those born since 1980, it has become part of our very being. This means that thinking about alternatives is more of an ontological problem than an epistemological one. Knowing that the system is deeply flawed doesn’t necessarily help me change things, because who I am remains intimately tied to the world in which I live.

Capitalist subjectivity is predicated on the empty signifier of ‘choice’, a term that can seemingly be attached to anything and increasingly determines how we view economics, politics and culture as arenas for the pursuit of personal satisfaction. This is also mediated by an array of commodities to which our sense of self is increasingly tied. We have come to understand life as a consumerist adventure in which we scroll through various lifestyle options to find the one that best expresses the inner truth of our individuality. Many people might now be aware that this has all been done with an unstable surfeit of credit, but because change will necessarily bring with it the demand to reappraise how we live and who we think we are, which in turn generates profound anxiety, there is a tendency to carry on regardless. As I will show this means identification with a crisis-ridden system cannot be reduced to false consciousness. As I have already said, it is not an epistemological problem. It is not the case that we do not know. It is rather that thinking about the necessary change instigates an ontological disturbance that makes us want to forget that we do know. This problem, however, should not be interpreted as an excuse for resigning ourselves to things as they are, or a political quietism. Quite the contrary, we have to change the way our economy and our society works. The time has come for different ways of thinking and doing beyond the market fundamentalism that has dominated the last 30 years, and has threatened, or in some instances directly brought about social devastation (depending on which part of the world you live in, and to which ‘class’ you belong), but to do this it is necessary to understand why such an evidently crisis-ridden fundamentalism can still attract us like moths to a flame. This means retaining an element of ideology critique, especially as offered by Louis Althusser, but supplementing this with an ontological analysis, most notably the one developed by Martin Heidegger in Being and Time to account for why the irruption of a crisis invariably calls for the reinforcement of the world as it is.

This will be taken up in more detail in the second half of this chapter, but it does raise a couple of other issues about the shape of the book as a whole. Firstly, there is the concern that the free market dogma that privileges the private accentuates this tendency to reinforce the world as it is. Arguably, one of the most important aspects of Heidegger’s analysis was the way in which he explained our tendency for closing ourselves off to any radical questioning of the world as it has already been interpreted. As already noted, because our sense of self cannot be separated from the world we inhabit, any challenge to that world is a direct challenge to us. Such a situation invariably leaves us in an extremely vulnerable position from which we try to extricate ourselves by building fortifications against that challenge rather than permitting ourselves to be undone. By giving primacy to the sovereign individual and conferring veracity on the self-interested, socially closed monad current ideology only exaggerates this tendency. Having sought to eradicate any sense of dependency on or responsibility for others our vulnerability has been presented as a communist myth designed to legitimate the increased role of the state. Against this, free market capitalism putatively supports the full flowering of the impervious individual in the socio-economic system best suited to the satisfaction of each and every desire. It is hardly surprising, then, that when the crisis hits and our vulnerability resurfaces it is met with even greater shock and more widespread denial. To this effect the latter part of this chapter uses Heidegger’s work to give a more detailed account of this personal denial, while chapters 4 and 5 show how any questioning is socially curtailed through the advent of managerialism and the new technologies of distraction.

This leads, then, on to the second point, namely that it is not my intention in this book to set out an alternative economics but to consider in detail the nature of this dogma and show how it has come to flood the entire social field. As I will argue in chapters 2 and 3 it is an ideology that ruthlessly and relentlessly privileges the private, rendering any reference to the public a heresy, and any use of the public a social evil. The fact that this system only now survives because of an enormous public intervention has rendered any claim that only the private is good entirely spurious. At least it should have. However, as a dogma and an increasingly totalising common sense, the inconsistency or irrationality of the privateers’ argument becomes invisible; and it becomes invisible to such an extent that those who benefit most from the current system are able to invert causality and portray the public realm as the problem. Much in keeping with what Naomi Klein (2007) has called ‘disaster capitalism’ the collapse of the capitalist system has been re-imagined as a failing of big government. Very soon after the crisis became public (at least as measured by discussion on BBC Radio 4’s Today programme) the discourse very rapidly moved from the greed, recklessness and irresponsibility of bankers, to the need for a public bailout, and then within the course of a few days to the lack of public money, to excessive government spending, and a ‘bloated’ public sector. While the financial sector remains largely unchanged, a situation that has even orthodox economists bewildered, the public sector is now having wholesale reforms imposed on it.

In the UK, with the election of a Tory government in 2010, it was as if the anti-state party suddenly had its own 9/11. In the way that the events of 11 September 2001 were seized upon by the Bush administration to invade any country it felt it could, the events of 2008 have been seized on by British Conservatives as a once in a lifetime opportunity to complete the privatisation of public services that has been the policy challenge for every British government since Margaret Thatcher, irrespective of their ‘right’ or ‘left’ lineage. Options for socio-economic organisation have been closed down to such an extent that a crisis brought about by the privileging of the private and a commitment to deregulation is responded to by further rounds of privatisation and deregulation. For the high priests of the dogma, which includes a range of actors both inside and outside the corporate world, the crisis has in no way interrupted their worldview, but has instead been taken as a further opportunity to extend it. The belief in privatisation has taken on a certain religiosity where no empirical evidence to the contrary can shake the blind faith in market solutions. The aim of this book, therefore, is to give a sense of the implications of this dogma in the areas of economics, politics and culture, but to also show why, despite the attempted closure of alternatives, the world can and will be opened up again.

MARKETS IN EVERYTHING

To get a sense of this dogma’s ethos we need only look at what I had assumed was the nadir of this cult, namely the FutureMAP project, dubbed the ‘market in death’ by indignant US senators who felt uncomfortable about a futures market being used to predict security risks in the Middle East, and terrorist threats potentially becoming a lucrative trade for Wall Street. According to Robin Hanson, ‘strategic decisions depend upon the accurate assessment of the likelihood of future events. This analysis often requires independent contributions by experts in a wide variety of fields, with the resulting difficulty of combining the various opinions into one assessment. Market-based techniques provide a tool for producing these assessments’ (see hanson.gmu.edu). Although the FutureMAP programme was closed there remains a desire to use futures markets in this way and others have appeared (and continue to appear) that bear a passing resemblance to FutureMAP. However, while profiting from terror might have upset the good taste of US senators, profiting from society’s most needy does not seem to generate such a reaction.

Most recently, and despite the collapse of the financial system, the use of Social Impact Bonds in the UK has been floated as a solution to the problems associated with poverty. Pioneered by Social Finance, an organisation created in 2007 to ‘build a social investment market in the UK [and] combine a deep understanding of social issues with expertise in financial modelling’, Social Impact Bonds continue to be promoted as financial tools designed to pull in money from non-governmental investors for preventative projects aimed at early intervention in issues ranging from mental health, youth offending and re-offending, to school truancy and exclusion. These investments are designed to replace government spending by driving ‘significant non-government investment into addressing the causes of deep-rooted social problems with returns generated from a proportion of the related reduction in spending on acute services’ (Social F...

Table of contents

• Cover
• Title page
• Copyright page
• Contents
• 1. Enclosing the World, or Idiotism
• 2. The Ideology of Idiotism
• 3. Idiotism and Economics
• 4. Idiotism and Politics
• 5. Idiotism and Culture
• 6. Opening the World, or Democracy
• Bibliography
• Index