by Prabhat Patnaik
People’s Democracy | July 13, 2020
What had been only a suggestion by several prescient members of the capitalist establishment till now, has become official policy, at least in Britain where Prime Minister Boris Johnson has announced that his government will undertake public investment to stimulate the economy, as FD Roosevelt had done under the New Deal in the 1930s in the US. In fact, Johnson specifically referred to Roosevelt’s New Deal, and expressed his intention of increasing taxes on the rich if necessary. Amusingly, he prefaced his speech by the remark “I am not a Communist”.
It does Johnson credit to have recognised that neoliberal capitalism has reached a dead-end and that the system now needs State intervention, so vilified under neoliberalism, to lift itself from its present crisis. This basic point continues to elude the Modi government in India, which still keeps repeating like a broken record the old and tiresome clichés about incentivising the “wealth creators”. The problem however is that a New Deal cannot be simply switched on at will even by Johnson or any other western leader.