A people’s bailout?

Since the beginning of 2020, we’ve entered an extraordinary new era. There is still a great deal of fear and uncertainty about what lies ahead, and most countries are undergoing a kind of social and political revolution that is unprecedented in the post-war period.

But amidst the tragedy and suffering of those affected by Covid-19, there is also a reawakening of hope about the future possibilities of this epochal moment. Political campaigners of every type are rolling out their progressive agendas, envisioning the crisis as an inflection point that could potentially kickstart a more just and sustainable economy.

The reasons for optimism are in plain view. With major economies temporarily frozen, state interventions on a colossal scale have directly contradicted the prevailing ideology of our time. The free market creed that has run the world for almost 40 years is, once more, effectively defunct; in its place, governments are forced to undertake huge feats of economic planning in order to avert an economic catastrophe.

Right across the Western world, state-imposed lockdowns have necessitated social solidarity policies that were previously unthinkable. Rescue programmes vary greatly in terms of social protection measures, cash assistance and workers’ rights, but there is no alternative to governments stepping in to secure the livelihoods of millions of people.

Despite the shortcomings of many schemes, together they have dramatically busted the myth that governments cannot afford to implement radical pro-social investments. Never has there been such a case for guaranteeing everyone’s right to an adequate standard of living during the current crisis and beyond, particularly by rolling back punitive austerity measures and the privatisation of essential public services.

Even a universal basic income has suddenly resurged in popular interest and been seriously discussed by policymakers of all political persuasions. From every quarter, the calls are ringing out for a different kind of economy to be built that recognises the limitations of the market, and that places finance at the service of basic human rights.

But the worst of the pandemic is still to come, and it’s too early to tell how events will unfold. An implosion of global financial markets is an imminent possibility, with a global recession of perhaps record dimensions a near certainty. What will happen then for social safety nets and economic priorities?

Excerpted from: 'Will Covid-19 Spur a Peoples’ Bailout for the World’s Poorest?'

Commondreams.org