I was delighted I could persuade Andreea Petre-Goncalves to write this piece, which offers a penetrating and compelling critique of the doctrine of ‘economism.’ ‘Scientism’ is the cloaking of an ideological position in the garb of scientific language, giving it an aura of sanctity that places it beyond the reach of ordinary folk. Economism is the application of this method to all matters economic – as Andreea puts it so beautifully, an ‘invisibility cloak’ which presents economics ‘as a reassuring scientific base for progress.’ What Andreea offers instead is a contemporary version of an ancient injunction – that economics should serve humans and not other way around. But she says it more eloquently than I could ever hope to!
Every dogma has its day – and its thought police
Contributed by Andreea Petre-Goncalves
It’s the economy, stupid. There’s no magic money tree [stupid]. The age of irresponsibility is giving way to the age of austerity [stupid]. Disagree with this if you dare [but clearly you must be stupid]. Let me explain what is possible [stupid].
“I think people in this country have had enough of experts, from organisations with acronyms […]” Michael Gove, June 2016
We are in the dying days of neoliberal capitalism. Its rulebook lies abandoned, its promises ridiculous, the science behind the doctrine evidently inexact. COVID-19 has hit us hard, when our defences were low. A decade of austerity had depleted our healthcare systems and weakened our social safety nets. The multilateral architecture had been enfeebled by much macho posturing. The free markets were no match for a pesky little virus, global supply chains faltering instantly, and all emergency actions undertaken by the public, not the private sector. When the chips were down, our lives took precedence over our economies, solidarity over profit. When we re-emerge, we will be poorer, more vulnerable and less willing to believe that the invisible hand can glue the pieces of our broken world back together. We won’t be told there’s no alternative. Our re-construction will be deliberate, collective, and have people and planet at the heart.
No one doubts the role that the discipline of neoliberal economics has played in ordering our societies. What we often misunderstand is how it has done that. We assume it was by way of offering a scientific pathway for prosperity and development. Yet benefits we may have derived from its learnings come second to its most powerful contribution – that of sustaining and policing the enforcement of a very particular moral system of assumptions, values and restrictions on behaviour. Economics, like religion once upon a time, has long delineated what we are permitted to think. John Rapley describes this eloquently here.
Tony Judt portrayed the way these limits operate on our imagination in his moving and incisive testament ‘Ill Fares the Land’:
‘Today, we are encouraged to believe in the idea that politics reflects our opinions and helps us shape a shared public space. Politicians talk and we respond – with our votes. But the truth is quite other. Most people don’t feel as though they are part of any conversation of significance. They are told what to think and how to think it. They are made to feel inadequate as soon as issues of detail are engaged; and as for general objectives, they are encouraged to believe that these have long since been determined.’
The scientific aura of economics has helped cement a highly ideological way of ordering society around the key idea that an individualist meritocracy is an evidence-based way of delivering social justice, of making sure there is fairness and balance in the world. This evidence base was always thin at best and not unequivocal. Economics has helped enforce an individualist, competitive worldview by meting out disdain and derision on any alternatives, deemed unscientific, backward and ideological. And frankly, stupid.
Stupidity became the new sinfulness
Stupidity, in the context of a moral order built on striving for progress, is a breach, a contravention, something to be controlled through thought policing and ridicule. In older moral orders, sinfulness would have played the role that stupidity or backwardness play in pre-COVID 19 neoliberal economism.
So successful was this narrative strategy in disciplining ideas that old left-right political divisions became irrelevant in the 1990s (in the era of Clinton, Blair, Schroder and others) as all of politics re-aligned itself with the assumptions of the neoliberal market-first, business-first, justice-through-individual-merit consensus. Anything else began to feel stupid, and risible. Progress was going to be attained through scientific method, not old-fashioned ideology, via purely rational, technocratic processes.
The political contest itself became a managerial competition, a patronising politics of progressive knowledge over backwards ideological conviction, of educating the stupid and looking down on the uncouth. The content of politics was no longer something to be debated, only the competence, the actors and the methods. Embarrassed by the ideological backwardness and stupidity of talking about structural economic injustice, the left dedicated its energy instead to identity politics and individual liberties, unwittingly reinforcing neoliberalism’s individualist filter with entirely noble aims. It simply stopped telling its own moral story, limiting itself to a slightly softer version of the core neoliberal narrative, with the free, worthy individual at the heart. No wonder its constituency grew ever smaller, as ordinary folk chose the main brand over the bleeding-heart imitation.
The success of neoliberal ideology was measured by how ubiquitous it had become, protected by the invisibility cloak of economics as a reassuring scientific base for progress.
Sic transit
In neoliberal societies, the moral order sits on a justice story which, put simply, says ‘the worthy individual does well’. If you are worthy (through effort, genius, brilliance), you will be successful. If you are not, you will not enjoy rewards. Conversely if you are successful, you must surely have deserved it. And if you are not, it’s probably your own fault. This is what justice looks like. Economics provides the proof (by stating that individuals are self-interested and competitive above all else). It also offers the means for operationalising the justice narrative, by prioritising market competition as a way of determining worthiness. Scientific socialism played a similar role in sustaining the communist totalitarian moral order across many parts of the world after WWII.
With both neoliberal capitalism and totalitarian communism, the narrative held best for as long as it did not sit too uncomfortably with reality. In my native country of Romania, totalitarian Communism didn’t feel awfully scientific or progressive during the hungry years of the mid to late 1980s, when the shops were empty, milk and meat a rare luxury and butter an improbable-sounding invention, the stuff of fairy-tales, surely. The ‘scientific’ bit of socialism felt a bit unlikely when waiting for hours in queues for petrol, so you can drive your Dacia (the only car available), two out of four weekends a month, specifics depending on whether your number plate was an odd or even number.
A similar thing happened in neoliberal capitalist societies in the aftermath of the 2008 crisis. Living standards declined as austerity programmes bit hard. Millions upon millions of people joined the ever-increasing ranks of what Guy Standing termed ‘The Precariat’, a pay cheque away from destitution, living lives of insecurity on low-wage, no-rights, zero-hour contracts. Competing in this callous job market meant that for an increasing number, the reward for worthiness never came. The housing market, clearly an inadequate way of supplying one of the most essential public goods (roofs over heads) pushed a large mass of bodies into ever-shrinking, inadequate, soul-crushing accommodation, rents ever-rising and home ownership a fata morgana.
This affected people from all walks of life, not just the destitute. A few years ago, my senior NGO salary only stretched as far as 85% of our London rent and childcare costs. My reward for worthiness was hand-to-mouth living with a sprinkling of psychological exhaustion and feelings of failure.
The moral order, propped up as it may be by grey-suited economists preaching appropriate thinking, cannot hold indefinitely in dissonance with the lived experience and prevailing mood – one of ever more wintery discontent.
So when Michael Gove cynically told us that people had had enough of experts back in 2016, he was onto something. He knew it with confidence of course, as he was steering a Russian-backed strategy to capitalise on that discontent and shake-up the political (if not economic) consensus. The moral order cannot hold forever if the promised justice looks implausible and undeliverable. If you are looking to gain political ground, it makes sense to cast doubt on the validity of a weakened moral narrative. This is exactly what populist movements have done in Europe and beyond since 2015 (I include Brexit and Trump here). And true to form, the mainstream response was exactly what the economistic neoliberal narrative prescribed: ‘these guys must be some kind of stupid’.
A new story is emerging
Our new COVID-19 reality means a return to neoliberal economism will not go unchallenged. When the Netherlands insists on fiscal responsibility before solidarity in the worst crisis Europe has known since WWII, the moral order starts looking distinctly strained. We all know we can’t judge Italy as a miscreant during the COVID-19 crisis, as many did Southern Europe every time it was bailed out after 2008. Its predicament is not a result of stupidity or immorality, it has not breached the moral order. It has simply been terribly hit by a very contagious disease with a high mortality rate. We are seeing the callousness of the neoliberal dogma exposed. The perceived desire and collective need for solidarity means the Netherlands are singing a dissonant tune, from a film that has already finished.
This crisis is the very definition of Laclau and Mouffe’s’s discursive dislocation, a momentous event via which the fabricated aspects of a narrative construction become visible. We see our old dogma in its hollowness. Its political aspects are suddenly obvious, when for decades they were veiled in the illusion of economic science or technocratic common sense. We can see we were making a choice, although we didn’t realise we had a choice. It was our choice to allow a topsy-turvy world where profit came first and justice came never, but we didn’t realise there was an alternative. And we didn’t want to look stupid.
We are creating collective meaning out of shared trauma. After this our societies will not accept private profit as an instrument for delivering social justice. Our new world will be built to deliver the common good. Individuals will not have to compete for survival, they will have a right to thrive and live without fear and humiliation, in a world where our wealth is our common.
This is not utopia. Altruism and community living are the very story of human evolution. Individualist man was humanity’s embarrassing mid-life crisis, all fast cars and inappropriate lovers. As we stare into the rubble of our old world, smoke clearing from the debris, our debts to each other and our planet are clear as day. A new story is being woven, and in this one knowledge from economics or other disciplines will help us deliver on our values, not limit our imaginations. Politics will not disguise itself as technocracy again. This selfish dogma has had its day. We will do much, much better when we re-emerge.
Andreea Petre-Goncalves is President and Co-founder of Flare Governance
Follow the Lockdown Diaries on Youtube and all other podcast platforms.