Forces of Change

Photo by Adam Schultz

Cedric Durand in Sidecar:

The extent of the break with neoliberalism initiated by the Biden administration will depend upon both the unfolding of Washingtonian politics and the impact of mobilizations from below. Yet in the background, impersonal forces will continue to affect the metamorphosis of capitalism through its successive stages. It is from these structural constraints and opportunities that the fabric of the current conjuncture is woven. What can contemporary political economy tell us about them? Beyond the sphere of mainstream liberal thought, an array of recent theoretical contributions have tried to diagnose the current moment by situating it in the long-term rhythms of capitalist development. They offer a fresh light, if not a magic key, for understanding the systemic shift represented by Bidenomics.

Such forces of change are routinely ignored by liberal economists. Market exchange is viewed as a sphere of activity that depends solely on itself; conscious collective intervention must not interfere with the invisible hand or spontaneous order. However, it is increasingly clear that this faith in self-equilibrating market adjustment cannot provide a general theory of rapid socioeconomic change, nor a specific explanation of our present political turbulence. Recognizing this limitation, The Economist recently rejected neoclassical equilibrium modelling and Friedmanite instrumentalism in favour of evolutionary economics, which ‘seeks to explain real-world phenomena as the outcome of a process of continuous change’. ‘The past informs the present’, it declared. ‘Economic choices are made within and informed by historical, cultural and institutional contexts’.

This intervention signals the weakened grip of neoclassical economics on the profession as a whole. Yet the evolutionary schema nonetheless retains a deep loyalty to bourgeois ideology, premised on the belief that Natura non facit saltum, ‘nature does not make jumps’. For this school of thought, evolution is always incremental.

More here.