Here some excerpts from the Pdf 'Five Lectures on The Present Age of Transformation - Karl Polanyi' on the occasion that the two German top parties lost big time in yesterday's elections and the Bavarian CSU in parts of Bavaria even bigger. At the same time, the AfD got 13% of the votes. In Saxony the AfD garnered 27% and is the strongest political party. Why is anybody surprised?
"In post-war Europe [i.e. post 1918] the separation of economics and politics developed into a catastrophic internal situation. The captains of industry undermined the authority of democratic institutions, while democratic parliaments continuously interfered with the working of the market mechanism. A state of affairs was reached when a sudden paralysis of both the economic and the political institutions of society was well within the range of the possible. The need for re-integration of society was apparent. This was the critical state of affairs out of which the fascist revolutions sprang. The alternative was between an integration of society through political power on a democratic basis, or, if democracy proved too weak, integration on an authoritarian basis in a totalitarian society, at the price of the sacrifice of democracy."
"a self-regulating market-system is a utopia. No society could stand its devastating effects once it got really going. Hardly had laissez-faire started when the State and voluntary organizations intervened to protect society through factory laws, Trade Union and Church action from the mechanism of the market.”
“If international division of labour is effected by competition and consequent elimination of the less efficient, then much will depend upon the rate at which the change proceeds as well as upon the dimensions of the units involved…. if whole countrysides, countries or continents compete, the elimination of the less efficient may involve the ruin and destruction of whole communities. Then the system, far from being a blessing, becomes a deadly danger and must be checked at all costs….While a slowly increasing division of labour effected by the market mechanism would be purely beneficial, a fast rate of change might work out as a machinery of sheer destruction."
"The more intense international cooperation was and the more close the interdependence of the various parts of the world grew, the more essential became the only effective organizational unit of an industrial society on the present level of technique: the nation. Modern nationalism is a protective reaction against the dangers inherent in an interdependent world”.
"The rise of fascism on the European continent was due to the fact that the vitally necessary reform of liberal capitalism could not be carried though under our democratic institutions. Such a reform was inevitable owing to the devastating effects of a separate, self-regulating economic system on the tissue of society."
Graph via Goofynomics |
(Red bars indicate former GDR states)
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