Greece’s Fire Sale Proves That Neoliberalism Survived It’s Own Collapse.

The 2008 financial crash was seen by many as another example of capitalism’s self-destructive nature. Deregulation and the limitless pursuit of growth caused our interconnected economy to crumble. Again. There are no excuses- this boom and bust has happened before.

 The Great Depression of 1929 was a lifetime ago, but the fallout that brought fascism and war shouldn’t be erased from our memories. We didn’t learn. Thatcher and Reagan’s deregulation brought about a global economic ‘boom’ built on debt that gave us fair warning of it’s impending collapse in the Asian Financial Crisis of 1997. The West managed to ride out that wave out but it only delayed the inevitable. Economists again told our governments what was around the corner. Greed deafened them.

Western consumerism blinded the working classes to our falling wages and savings. Despite the West’s massive trade deficit, banks increased the amount of lending to meet the demand of counties that consume far more than they produce.

In the wreckage of the crash, ordinary people were again left to salvage what was left and pay for what was lost. We were forced to bail out the bankers and tighten our belts while we vowed to never let it happen again.

Yet, the people we elected to fix the mess are cut from the same neoliberal cloth. They argue that this was an ‘accident’ caused by ‘mistakes’, they promise that austerity and sacrifice will bring about riches once more. They claim that you wouldn’t stop driving cars because of road accidents. You would if every affordable car in the world simultaneously drove you off a cliff every twenty years or so.

Neoliberalism’s continued hegemonic dominance is apparent nowhere more so than in Greece, where the IMF and ECB are forcing a radical government with a full democratic mandate for investment and prosperity to their knees. Instead of protecting pensions and wages, global superpowers are holding a Big Fat Greek Fire Sale of the public’s assets. Ports and national industries that make the government money to pay for welfare are to be sold off to the highest bidder, energy industries are to be deregulated to allow corporations to exploit the country’s natural resources and tax relief for disadvantaged or rural Greeks are to be cut.

While the German-led EU dismantle and privatize Greece’s water utilities, many German cities are re-nationalizing theirs. They cite the damaging effects that privatization of essential services has on communities. They may not realize that they are highlighting the hypocrisy and maliciousness of the austerity drive that suffocates their European allies.

And what is the return for these massive sacrifices for the Greek people? A loan of €85 billion plus interest that can never be paid off and handing over sovereignty to unaccountable bodies intent on further ideological attacks. Greece’s debt has risen from just over 100% of GDP when the crash hit to around 175% as a result of neoliberal austerity measures shrinking their economy and these massive debts that are being taken on. From the creditors perspective, the purpose of the debts is not to eventually be paid off, but to maintain control of the Greek economy and fiscal policy.

And with further privatization, Greece will soon slide further into the control of corporations, many based overseas with little accountability to the Greek people and with the primary motive of making profit. It is this false trust in private greed as a driver for global prosperity that has got us into this mess.

This attack is not only being perpetrated 1,500 miles away on the banks of the Mediterranean. Our Thatcherite government, like the ones before them, are selling off our crown jewels as well. George Osborne’s mates rates sale of the Royal Mail and RBS are only the most recent in a long line of shrewd business deals that leave the people of this country collectively far poorer than the generations before. Our spiraling national debt leaves us even more vulnerable to the next financial crash, which our newly re-privatized banks are back on track to causing.

We have learned from Syriza that solidarity in the streets alone is not enough. History shows us that isolated socialism in one country is doomed to fail. This is even more likely now, when the fall of the USSR leaves American corporate-capitalism the world’s dominant economic model and states like Greece that are under attack have no powerful allies to protect them. 

Disorganization on the left has allowed the Neoliberals to consolidate power when they should have been at their weakest after capitalism’s collapse. They were allowed to divide us and scapegoat immigration and overspending to allow the real culprits off the hook. If we do our bit in Scotland, and hope that others across Europe can also succeed, we can build a network of support and challenge an ideology of oppression.

By Hugh Cullen