Hope in Europe?

Results over the weekend bring hope that the neoliberal stranglehold on European political and economic life might be loosening. First, was the expected victory of Socialist party leader Francois Hollande over the increasingly racist and xenophobic neoliberal Sarkozy: CNN. While hatred of Sarkozy among the French played a large role in the election, it is also clear that they have grown weary of the worsening economic climate for the average citizen; and maybe the hatred used toward political ends (though Le Pen did garner 20% in the initial election tally). Similar news emerged from Greece, where European Union austerity measures to save a country in a serious debt crisis (which arguably is not all of their own making, but heavily complemented by questionable Morgan Stanley practices) have led to massive unemployment (22% at last check), cuts in wages, pensions and benefits and essentially a shrinking economy. The main center-right party, which marginally won the election (with 18% of the votes in parliament), was unable to establish a coalition government and have now left that task to the leftist Syriza coalition, who have three days to accomplish the feat (CNN). 

While these are only two incidents in a continent that has moved considerably to the right in the past two decades, general discontent with their shift away from social democracy is palpable. This is clearly true in England, where Cameron is instituting his own severe austerity measures with little popular support, and was rebuffed in midterm elections, in Italy, where in local elections the left and protest groups did well and even in Germany, where Merkel was rebuffed in state elections. Spain also appears to be suffering from increasing discontent as the conservative party they elected has done little to stem the tide of economic collapse and crisis. 

In America, the attempt to unseat Scott Walker together with a continue push to keep the Occupy Wall Street fervor alive could be telling indicators of where we are headed as a country, though the push to solidify anti-gay-marriage, anti-immigrant and anti-woman legislation across the country certainly bodes poorly for any notion that we are really moving in a progressive direction. The election this year should tell us whether Americans finally believe that government could do them some good or continue to abide the lie that the market and the noblesse oblige of the wealthy is the only answer to our economic plight. Of course, other factors could play a huge role including the fear and hatred saturated campaign we can expect the Republican party to run, particularly as they have endless corporate cash at their disposals.

The reality of the world today is those economies that are doing best tend to have strong central governments that contribute to economic prosperity and equality of educational outcome. We see this in Sweden, Norway and Finland (three of the few remaining "social democracies" of Europe), in China and South Korea (where the government subsidizes key industries, funds education at high levels and erects barriers to imports) and in the other BRIC countries (Brazil, India and Russia -- where corrupt governments undermine any notion of "free" markets). In a different way, one can make similar arguments about Germany, where labor continues to have considerable decision-making power, there is relative parity in wages across the country and where manufacturing continues to persist (unlike the rest of the West where it has essentially been exported). In any case, the neoliberal argument continues to persuade millions that government is bad and markets good -- even as the reality that surrounds them contradicts this absurdity at every turn. Could the people be waking up from the less-than-noble lie?