The war socialism of the American right
By Michael Lind
Salon.com
When American conservatives denounce Keynesianism and socialism, it is difficult not to detect a note of jealous resentment on their part. After all, since Reagan, the American right has made Keynesian fiscal policy and the socialization of American industry its own specialty. Conservatives are rhetorical libertarians but operational Keynesians, when they are not operational socialists -- military socialists.
The old Republican Party of Robert Taft and Dwight Eisenhower was a fiscally conservative party of Northeasterners and Midwesterners who favored balanced budgets and viewed foreign wars and military spending with suspicion; recall Eisenhower’s warning about the "military-industrial complex." The Republican Party of Ronald Reagan and his successors is based in the Southern and Western "Gun Belt," whose economy of military contracting and subsidized agriculture and energy was largely created by New Deal Democrats in World War II and the Cold War. The Republican Party seeks a permanent alliance with the Wall Street financial industry, which, however, flirts with neoliberal Democrats like Bill Clinton and Barack Obama.
Both the Wall Street and the red state wings of the GOP depend on right-wing Keynesianism and right-wing socialism, in different forms. Right-wing Keynesianism for Wall Street consists of low interest rates that stimulate speculation and encourage inflation of the assets of the rich, like stocks and bonds. Right-wing socialism for Wall Street consists of "too big to fail" policies, which guarantee that over-leveraged financiers can keep their profits, while any losses will be socialized and paid for by the public.
(More here.)
Salon.com
When American conservatives denounce Keynesianism and socialism, it is difficult not to detect a note of jealous resentment on their part. After all, since Reagan, the American right has made Keynesian fiscal policy and the socialization of American industry its own specialty. Conservatives are rhetorical libertarians but operational Keynesians, when they are not operational socialists -- military socialists.
The old Republican Party of Robert Taft and Dwight Eisenhower was a fiscally conservative party of Northeasterners and Midwesterners who favored balanced budgets and viewed foreign wars and military spending with suspicion; recall Eisenhower’s warning about the "military-industrial complex." The Republican Party of Ronald Reagan and his successors is based in the Southern and Western "Gun Belt," whose economy of military contracting and subsidized agriculture and energy was largely created by New Deal Democrats in World War II and the Cold War. The Republican Party seeks a permanent alliance with the Wall Street financial industry, which, however, flirts with neoliberal Democrats like Bill Clinton and Barack Obama.
Both the Wall Street and the red state wings of the GOP depend on right-wing Keynesianism and right-wing socialism, in different forms. Right-wing Keynesianism for Wall Street consists of low interest rates that stimulate speculation and encourage inflation of the assets of the rich, like stocks and bonds. Right-wing socialism for Wall Street consists of "too big to fail" policies, which guarantee that over-leveraged financiers can keep their profits, while any losses will be socialized and paid for by the public.
(More here.)
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