Searching for Understanding in the face of Power and Propaganda – Part Two : ‘It’s the economy, stupid!’

In looking at the pandemic from an economic and political perspective I will proceed from what might be seen as the ABC of a critical analysis.

  • It is necessary to ground what we are looking at in the specific circumstances of the time.
  • In doing so we should be mindful also of the historical context if this seems pertinent and we might allow ourselves a speculation about the future if appropriate.
  • Additionally we must situate the phenomenon being scrutinised in the power relations of society. Cui bono? Whose interests are served by the way in which the object of our concern is characterized; by the way in which governments respond; by the way in which the people respond and so on?

My starting point is both simple and profound. The COVID-19 pandemic expresses first and foremost a crisis of capitalism’s health, much less so a crisis of our individual and collective physical health.  I shall seek to give substance to this assertion which if true has enormous consequences both for our day-to-day existence and the ongoing struggle to create an autonomous and democratic society.

As for weighing up what’s going on in 2021, I’ll go back no further historically than the Second World War. I acknowledge the following sketch is rough and ready but it’s no more than a starter for a critical exchange of views.I wonder if such a proposal to be argumentative makes any sense in these dualist and censorious times.

The Social-Democratic Consensus

Aneurin Bevan – a chief architect of the NHS

As the war came to an end the capitalist class was afeard. Talk of radical and revolutionary change hung in the acrid air. To retain their overall control they conceded the following:

  • An acceptance of the mixed economy, public and private cooperation, the nationalisation of basic utilities – water, electricity and so on.
  • An agreement that the leaders of the working class should have a seat at the table,
  • A recognition of the value of universal free education, social and health care.
  • However grudging, an allowance that the individual, the social and the political are inextricably intertwined.

The Neoliberal Fightback

Margaret Thatcher – the enemy within

Thirty years later influential sections of the ruling class were increasingly unhappy about the post-war social contract. Certainly, they were concerned to restore their share of the profits but were also deeply troubled by the growing pressure exerted by working-class militancy and the rise of the social movements demanding equality and justice. To retain their control they set in motion a counter-offensive. Its cornerstones were:

  • A rejection of the mixed economy and an explicit commitment to the primacy of the ‘free’ market as being the ultimate expression of what is good for everyone, rich or poor.
  • The utter necessity to undermine the autonomous organisation of the working class and the social movements, exemplified by the 1984/85  violent assault on the National Union of Mineworkers and the softer seduction of leaders and activists from the women’s, black and gay movements into managerial roles serving the neoliberal project.
  • The launch of an extraordinarily ambitious social engineering project designed to alter our very personalities; to privatise our existence, turning us in on ourselves as individuals and away from collective understandings of our situations; to see ourselves as passive consumers rather than active citizens.

Neoliberalism in crisis

The 2008 banking collapse served notice that the neoliberal economic model was broken. An opportunity of resistance beckoned. In the marginal world of youth work, I argued that we should reassert youth work as open, volatile and voluntary in opposition to the increasingly taken-for-granted closed, imposed, scripted version – youth work as intuition rather than youth work by numbers.

On the broader front, significant protest raged across the world but it was fragmented and largely contained. Nevertheless, the ruling class was shaken and stirred. Across the next decade, it was forced to act pragmatically, bailing out the banks with a massive infusion of ‘public’ money, whilst trying to work out a longer-term strategy that served its interests and maintained its power. The sticking plaster of quantitative easing hid the reality of unsustainable debt, the austerity-imposed immiseration of millions and the obscenity of the rich getting ever richer.

The United Nations poverty adviser, Philp Alston compared contemporary Tory policy to that which had created the workhouses of the nineteenth century. Research undertaken at the University of Bristol led by David Gordon illustrated that in the UK [population 69 million] 18 million people could not afford adequate housing; 12 million were too poor to engage in many forms of social activity; whilst 4 million children and adults were not fed properly. However, austerity was not too austere for the richest 1,000 in the UK, who increased their wealth by 60 billion pounds in a single year, 2017/18.

My guess is that from a ruling class perspective these themes have dominated their many extravagant meetings in snowy Swiss or sunny Mediterranean resorts.

Why Davos?
  • A compelling shift to believing that some form of global governance had to be achieved. The vision would require ‘scientific’ regulation, a central role for experts and the obedience of the senior management representing compliant states.
  • Hindering such a sweeping move would be nation-states with notions of autonomy and democracy itself, even in its limited representative guise, along with dissident collectives and dangerous maverick individuals.
  • How might an alienated population, exhausted from work, deprived of work, retired from work be persuaded to go along with a major restructuring of social relations in favour of the powerful at the expense of the powerless?

Towards a global-led technocratic and surveillance capitalism

The reference group for grasping the strategic thinking of the powerful in a period of profound social, political and economic crisis is the World Economic Forum [WEF], which in its own words is “the global platform for public-private cooperation, of partnerships between businessmen, politicians, intellectuals and other leaders of society to define, discuss and advance key issues on the global agenda.” On board amongst many are Amazon, Google, Facebook, Barclays, Deutsche Bank, Morgan Chase, AstraZeneca, Pfizer, the Gates and Rockefeller Foundations – all powerhouses on the international scene – not to mention the World Health Organisation and International Monetary Fund.

Our experts and leaders

Somewhat in passing I find it intriguing that to comment on the intimate social connections between these corporations is often now dismissed as a sign of that neurotic condition, ‘conspiritatis’. Similarly it is seen almost as a cheap trick to pursue the money, to scrutinise the financial chicanery of these shakers and movers. When, to my mind, these avenues of inquiry are the basis of investigative journalism and social research, of speaking truth to power, if you will forgive such a hackneyed phrase.

To return to the question of the elite’s thinking, sections within its ranks have long felt that some sort of global overview of the social, political and economic order was necessary. To take but one example, Zbigniew Brzezinski, later Jimmy Carter’s Security Advisor, in his 1970 book ‘Between Two Ages: America’s Role in the Technetronic Era’. wrote:

The technetronic era involves the gradual appearance of a more controlled society. Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen and maintain up-to-date complete files containing even the most personal information about the citizen. These files will be subject to instantaneous retrieval by the authorities.”

“The nation-state as a fundamental unit of man’s organized life has ceased to be the principal creative force: International banks and multinational corporations are acting and planning in terms that are far in advance of the political concepts of the nation-state”


This globalising technology-led tendency has gathered pace in the last decade with the WEF at the forefront of proceedings. The following are but a few quotes from Klaus Schwab, the founder and executive chairman of the World Economic Forum contained in his 2016 book, The Fourth Industrial Revolution.

Klaus Schwab

“Fourth Industrial Revolution technologies are truly disruptive—they upend existing ways of sensing, calculating, organizing, acting and delivering. They represent entirely new ways of creating value for organizations and citizens”.

“Sooner than most anticipate, the work of professions as different as lawyers, financial analysts, doctors, journalists, accountants, insurance underwriters or librarians may be partly or completely automated…”

“Drones represent a new type of cost-cutting employee working among us and performing jobs that once involved real people” 

“Already, advances in neurotechnologies and biotechnologies are forcing us to question what it means to be human”

We are at the threshold of a radical systemic change that requires human beings to adapt continuously. As a result, we may witness an increasing degree of polarization in the world, marked by those who embrace change versus those who resist it.

Enter the Pandemic

Whether the consequence of zoonotic transfer or laboratory leak, the COVID-19 virus has failed to live up to the catastrophic expectations of half a million deaths in the UK based on Neil Ferguson’s discredited computer modelling. It was never the 21st century version of the Black Death. Indeed WEF’s Kurt Schwab and Thierry Malleret in a book, The Great Reset, published in July 2020, allow that COVID-19 is “one of the least deadly pandemics the world has experienced over the last 2000 years”, adding that “the consequences of COVID-19 in terms of health and mortality will be mild compared to previous pandemics”. 

Nevertheless they cannot contain their delight at the opportunities opened up by its emergence.

“It is our defining moment”, “Many things will change forever”. “A new world will emerge”. “The societal upheaval unleashed by COVID-19 will last for years, and possibly generations”. “Many of us are pondering when things will return to normal. The short response is: never”.

“The pandemic is clearly exacerbating and accelerating geopolitical trends that were already apparent before the crisis erupted”.

Amongst the themes running dizzily through their excitement are:

  • The crucial need for the financial sector, together with the corporate, technological and pharmaceutical giants, to be the enlightened leadership of the way forward in tackling the world’s problems. “The combined market value of the leading tech companies hit record after record during the lockdowns, even rising back above levels before the outbreak started… this phenomenon is unlikely to abate any time soon, quite the opposite”.
  • The necessity of digitally transforming our private and public existence, whether through shopping, via a shift to on-line banking; on-line education, tele-medicine or even e-sport “Online banking interactions have risen to 90 percent during the crisis, from 10 percent, with no drop-off in quality and an increase in compliance.”;“In the summer of 2020, the direction of the trend seems clear: the world of education, like for so many other industries, will become partly virtual”; “The necessity to address the pandemic with any means available (plus, during the outbreak, the need to protect health workers by allowing them to work remotely) removed some of the regulatory and legislative impediments related to the adoption of telemedicine”;“For a while, social distancing may constrain the practice of certain sports, which will in turn benefit the ever-more powerful expansion of e-sports. Tech and digital are never far away!”
  • The requirement that our physical and psychological presence on earth is subject to the policing and surveillance of what we do and what we think – see also Shoshanna Zuboff’s ‘The Age of Surveillance Capitalism’. In the wake of the lockdowns, vaccine passports, physical muzzling and ideological censorship, I’ll visit the biosecurity state and freedom of thought and movement in Part Three.
  • The demand that we speed up becoming identifiable, immunised, traceable, card-carrying, cash-less consumers.“The current imperative to propel, no matter what, the ‘contactless economy’ and the subsequent willingness of regulators to speed it up means that there are no holds barred

These developments are revealing but leave unanswered a nagging question, why would the ruling class, hardly noted for its humanity, close down society in the name of our common good? Back in the twentieth century Castoriadis warned against the illusion of ‘perpetual production and ceaseless consumption’, which as it is shattered will invite the rise of authoritarianism. More immediately, in the midst of the pandemic itself, Fabio Vighi ponders “why the usually unscrupulous ruling elites decide to freeze the global profit-making machine in the face of a pathogen that targets almost exclusively the unproductive, the over 80s?”

Age Infection Survival Rate of COVID [STANFORD STUDY ON COVID INFECTION MORTALITY RATES – A study by Cathrine Axfors and John P.A. Ioannidis from the Departments of Medicine, of Epidemiology and Population Health, of Biomedical Data Science, and of Statistics, Stanford University, July 2021

0-19 99.9973%

20-29 99.986%

30-39 99.969%

40-49 99.918%

50-59 99.73%

60-69 99.41%

70+ 97.6% (non-inst.)

70+ 94.5% (all)

Given there is precious little evidence that lockdowns have been the compelling riposte to the virus, it is intriguing to follow Vighi’s line of thought.

  • Above all lockdowns were imposed because the financial markets were yet again collapsing. In order to rescue the markets with another massive injection of cash the real economy had to be halted, everyday business transactions and the need for credit postponed. In this way capitalism buys time as it seeks to revive itself. Such a holding tactic is likely to be played again – see the constant references to new variants, unexpected emergencies. In this stuttering scenario one winner is without doubt Big Pharma. The sickly pharmaceutical giants, whose profits were waning, have been given a new lease of life via the oxygen of public funds provided to develop and then purchase the vaccines.
  • Reinventing itself is an utter necessity for capitalism as the old certainties disappear. Workers are thrown out of the workforce as automation takes over and increasingly they cannot find a way back into the fold of employment. In general the mass of the population will slide into relative debt and poverty. A chilling question surfaces, to what extent is a significant part of the working and middle classes surplus to requirements?

When push comes to shove the measures taken to counter the pandemic are part of necessary paradigm shift if capitalism is to survive. The taken-for-granted model of endless production and consumption, of inexorable economic progress is heading for compulsory redundancy. Vighi comments that as of now, “ capitalism is increasingly dependent on public debt, low wages, centralisation of wealth and power, a permanent state of emergency and financial acrobatics.”

George Orwell

As for the future it smells dystopian. The WEF’s  economic and political programme, the nightmare of stakeholder capitalism or more aptly technocratic neo-feudal capitalism, is a regime of rule by experts. It disdains democracy. It spurns the active, critical citizen. It prefers we settle for being contemporary serfs, obedient and grateful. If you think I exaggerate, look around at the compliance of so many, not least amongst the professional classes, during a manufactured pandemic.

In part Three I will visit the State of Fear created by a toxic mix of company-bound scientists and stenographers disguised as journalists – ‘the’ Science and the supine mass media.

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