When All Social Problems Become Financial Problems

Sarah Quinn –

When it comes to government programs, credit support is often cheaper and less controversial than direct expenditures. Understand this, and you can understand why government officials have an incentive to define all sorts of social problems as financial ones.

Government officials face considerable pressure to promote credit markets. Wall Street firms leverage money, expertise and status to “capture” regulators. It is not only the rich and powerful who make demands on the state for easier access to credit: Farmers in the late 18th century, black activists fighting against redlining in the postwar era, access to credit cards in the 1930s– all have demanded that the governmental help them gain access to credit. When wages are low and welfare state support is stingy, families rely on easy credit to ride out hard times or even meet daily expenses. In the context of neoliberalism, credit access can be a kind of destructive consolation prize for workers with stagnant wages and frayed safety nets, as other scholars have noted.

Demands for easy credit are a crucial part of the story of credit allocation in any political economy, but they do not tell the whole story. That is because lawmakers have their own reasons for turning to credit as tool of statecraft, and those reasons help determine how, when and why government officials move credit and promote financial markets.

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Debtor Organizing Against Neoliberalism

NB: This post is part of an ongoing series on LPE & Social Movements. For the framing pieces, see here and here

Luke Herrine – 

social-movementsNeoliberalism is in crisis. For the first time in decades, alternatives of both terrifying and exhilarating varieties are on the table. The more democratic and humane alternative will only prevail if well organized social movements directly challenge the ruling class’s material base of power.

What will those movements look like? If history is any guide, they will have to be collectives of people whose everyday suffering can be transformed into relatively short-term campaigns for material betterment, medium-term campaigns for legal reform, and the longer-term work of building solidarity necessary to put truly transformative change on the table. The green shoots in the labor movement, the formations in and around the Movement for Black Lives, and increasingly energetic climate activism, among others, provide some reason for hope. Less discussed has been the possibility of debtor organizing, the subject of an inspiring new report from the Institute on Inequality and Democracy authored by Hannah Appel, Sa Whitley, and Caitlin Klein. The report should be read carefully by LPE sympathizers with an interest in creative practice: potential for legal strategies abound.

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