Buying Time: The Delayed Crisis of Democratic Capitalism

by Wolfgang Streeck, Patrick Camiller (Translator), David Fernbach (Translator)

Overview

The aftershocks of the economic crisis that began in 2008 still rock the world, and have been followed by a crisis in democratic governance. The gravity of the situation is matched by a general paucity of understanding as to precisely what is happening and how it started.

In this new edition of a highly acclaimed book, Wolfgang Streeck revisits his recent arguments in the light of Brexit and the continued crisis of the EU. These developments are only the latest events in the long neoliberal transformation of postwar capitalism that began in the 1970s, a process that turned states away from tax toward debt as a source of revenue, and from that point into the ‘consolidation state’ of today. Central to this analysis is the changing relationship between capitalism and democracy—in Europe and elsewhere—and the advancing immunization of the former against the latter.

Product Details

ISBN-13:	9781781686195
Publisher:	Verso Books
Publication date:	06/03/2014
Sold by:	Penguin Random House Publisher Services
Format:	eBook
Pages:	288
File size:	3 MB

About the Author

Wolfgang Streeck is Director Emeritus at the Max Planck Institute for the Study of Societies in Cologne. He is a member of the Berlin Brandenburg Academy of Sciences and a Corresponding Fellow of the British Academy. His books include Buying Time and How Will Capitalism End?

Table of Contents

Preface to the Second Edition vii

Introduction: Crisis Theory, Then and Now lv

1 From Legitimation Crisis to Fiscal Crisis 1

A new type of crisis 6

Two surprises for crisis theory 10

The other legitimation crisis and the end of the postwar peace 20

The long turn: from postwar capitalism to neoliberalism 26

Buying time 32

2 Neoliberal Reform: From Tax State to Debt Statf 47

Financial crisis: a failure of democracy? 47

Capitalism and democracy in the neoliberal revolution 51

Excursus: capitalism and democracy 55

Starving the beast! 63

The crisis of the tax state 70

From tax state to debt state 72

Debt state and distribution 76

The politics of the debt state 79

Debt politics as international financial diplomacy 90

3 The Politics of the Consolidation State: Neoliberalism in Europe 97

Integration and liberalization 97

The European Union as a liberalization machine 103

Institutional change: from Keynes to Hayek 110

The consolidation state as a European multilevel regime 112

Fiscal consolidation as a remodelling of the state 117

Growth: back to the future 126

Excursus on regional growth programmes 134

On the strategic capacity of the European consolidation state 147

Resistance within the international consolidation state 156

4 Looking Ahead 165

What now? 165

Capitalism or democracy 172

The euro as a frivolous experiment 174

Democracy in Euroland? 177

In praise of devaluation 181

For a European Bretton Woods 185

Gaining time 188

Bibliography 191

Index 211

Editorial Reviews

A superbly provocative work of political economy.”
—Aditya Chakrabortty, Guardian

“For anyone interested in understanding the bind democracies are in, this is a vital if sobering book which has a troubling, if convincing, conclusion.”
—Matthew Lawrence, Prospect

“Is electoral democracy compatible with the type of economic policies the EU—backed at a distance by Washington and Wall Street—wants to impose? This is the question posed by the Cologne-based sociologist Wolfgang Streeck in Buying Time, a book that is provoking debate in Germany. Streeck argues that since Western economic growth rates began falling in the 1970s, it has been increasingly hard for politicians to square the requirements of profitability and electoral success; attempts to do so (‘buying time’) have resulted in public spending deficits and private debt. The crisis has brought the conflict of interests between the financial markets and the popular will to a head: investors drive up bond yields at the ‘risk’ of an election. The outcome in Europe will be either one or the other, capitalist or democratic, Streeck argues; given the balance of forces, the former appears most likely to prevail. Citizens will have nothing at their disposal but words—and cobblestones.”
—Susan Watkins, London Review of Books

“Streeck has here provided an excellent and challenging account of the current state of relations between capitalism and democracy. His concept of a state whose democratic responsibilities to voters are required systematically to be shared with and often trumped by those to creditors takes us a major step forward.”
—Colin Crouch, author of Coping With Post-Democracy

“Argues that ever since the 1970s, governments in the west have been ‘buying time’ for the existing social and political order … a timely corrective.”
— Larry Elliott, Guardian

“In its best parts—when political passion connects with critical exposition of the facts and incisive argument—Streeck’s sweeping and empirically founded inquiry reminds one of Karl Marx’s Eighteenth Brumaire of Louis Bonaparte.”
— Jürgen Habermas

“Logically organized, well argued, scholarly informed, and rich in theoretical references and statistical series covering nearly six decades.”
— Robert Boyer, ILR Review

“[Buying Time] reinvigorates the tradition to reflect on the inherent friction between democracy and capitalism in broad historical analyses … Without any doubt, Buying Time developes a fascinating and highly compelling narrative of the delayed crisis of capitalism. [One of the] must reads for everyone interested in the Eurozone crisis and critique of capitalism more broadly—with an academic background or as an interested citizen.”
—Elias Steinhilper and Haris Malamidis, European Political Science

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