From 'free-market' to subsidised capitalism

[Celerity]

To deal with the climate crisis, governments must recognise that only the state has allowed the last three crises to be contained.

https://socialeurope.eu/from-free-market-to-subsidised-capitalism



There has been a revolutionary transformation of capitalism, the western economic system, in just over a decade. Four extraordinary events have demonstrated that, in most countries, the relationship between the state and the market has been transformed, radically altering the economic system. The impact on politics is being felt but has it has yet to be fully recognised, especially by progressives.

The first major change was the response of nation-states to the collapse in 2008 of the model of neoliberalism—of ‘rational’ actors operating in ‘free’ markets—with the financial crisis. The state rescue of private financial companies cost taxpayers in all countries vast sums. In the United Kingdom, the National Audit Office put the bailout of the banks at £1 trillion at its peak. In the United States, among many estimates, one figure of $500 billion was advanced. As for Ireland, it cost €64 billion—more than twice total tax revenue in 2010—to rescue its banks.

The pandemic precipitated a second massive intervention by states worldwide through business subsidies. In the US, for example, in one estimate this amounted to $600 billion directly—2.7 per cent of gross domestic product—plus $1,350 billion in interest and other supports.

The third crisis, of energy, has states once more intervening in the market to spend yet more billions in supports to business and to citizens. The US and European governments have been expending vast fortunes in subsidies to companies to continue operations and to citizens to pay their bills. Governments are also spending billions in rescuing key companies, such as Germany’s gas importer Uniper.

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[malaise]

1. The state has been subsidizing capitalism for eons

It is only when they intervene on behalf of the poor and working class that the Reagan/Thatcher supporters object.
They are fine with bailouts for industry or the banks.

[I_UndergroundPanther]

2. This worship of corporations and ceos needs to

End the sooner the better .greed is not good thing to base an economy on. Get rid of corporate personhood. Tax the wealthiest at 90 % like it was before.