He's Right. Yanis Varoufakis on Why Liberal Democracy Must Jettison Neoliberalism.

He's the most interesting fellow that the Greek Syriza movement produced, its former finance minister until his resignation in July, 2015.

Now, Yanis Varoufakis is warning of two insurgencies underway.


A clash of two insurgencies is now shaping the west. Progressives on both sides of the Atlantic are on the sidelines, unable to comprehend what they are observing. Donald Trump’s inauguration marks its pinnacle.

One of the two insurgencies shaping our world today has been analysed ad nauseum. Donald Trump, Nigel Farage, Marine Le Pen and the broad Nationalist International that they are loosely connected to have received much attention, as has their success at impressing upon the multitudes that nation-states, borders, citizens and communities matter.

However, the other insurgency that caused the rise of this Nationalist International has remained in the shadows: an insurrection by the global establishment’s technocracy whose purpose is to retain control at all cost. (See here and here) Project Fear in the UK, the troika in continental Europe and the unholy alliance of Wall Street, Silicon Valley and the surveillance apparatus in the United States are its manifestations.

The era of neoliberalism ended in the autumn of 2008 with the bonfire of financialisation’s illusions. The fetishisation of unfettered markets that Margaret Thatcher and Ronald Reagan brought to the fore in the late 1970s had been the necessary ideological cover for the unleashing of financiers to enable the capital flows essential to a new phase of globalisation in which the United States deficits provided the aggregate demand for the world’s factories (whose profits flowed back to Wall Street closing the loop nicely).

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Thatcher’s and Reagan’s neoliberalism had sought to persuade that privatisation of everything would produce a fair and efficient society unimpeded by vested interests or bureaucratic fiat. That narrative, of course, hid from public view what was really happening: a tremendous buildup of super-state bureaucracies, unaccountable supra-state institutions (World Trade Organisation, Nafta, the European Central Bank), behemoth corporations, and a global financial sector heading for the rocks.


After the events of 2008 something remarkable happened. For the first time in modern times the establishment no longer cared to persuade the masses that its way was socially optimal. Overwhelmed by the collapsing financial pyramids, the inexorable buildup of unsustainable debt, a eurozone in an advanced state of disintegration and a China increasingly relying on an impossible credit boom, the establishment’s functionaries set aside the aspiration to persuade or to represent. Instead, they concentrated on clamping down.

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The only weapon we have to defend liberal democracy against the nationalist and technocratic insurgencies is a restoration of progressivism, progressive democracy.

It was against this insurgency of a cornered establishment that had given up on persuasion that Donald Trump and his European allies rose up with their own populist insurgency. They proved that it is possible to go against the establishment and win. Alas, theirs will be a pyrrhic victory which will, eventually, harm those whom they inspired. The answer to neoliberalism’s Waterloo cannot be the retreat to a barricaded nation-state and the pitting of “our” people against “others” fenced off by tall walls and electrified fences.

The answer can only be a Progressive Internationalism that works in practice on both sides of the Atlantic. To bring it about we need more than fine principles unblemished by power. We need to aim for power on the basis of a pragmatic narrative imparting hope throughout Europe and America for jobs paying living wages to anyone who wants them, for social housing, for health and education.

Only a third insurgency promoting a New Deal that works equally for Americans and Europeans can restore to a billion people living in the west sovereignty over their lives and communities.