Pettit: Two Extreme Responses to Financial Crisis

There are two extreme responses that the financial crisis and its aftermath have provoked. One is to say that all will be well if our governments stop trying to anticipate and deflect the movements of the tiger by propping up and bailing out the bodies that they judge too big to fail. This approach, exemplified in the stance of the Tea Party in the United States, amounts to pre‐emptive surrender in face of the profit‐seeking ventures of credit and capital. It gives government the task of law and order and calls for the abdication of the state in the sphere of production, commerce and employment.

This first response would downsize and marginalize government, letting the market rule unimpeded in the financial and material economy. The second radical response would recommend the very opposite. It would support a rejection of dependence on the sort of beast that the international financial system constitutes. Where the first approach would give the tiger free range, this would simply kill the animal. Those attracted to the response complain that that so long as the tiger survives, we all live at its mercy. They recommend that we should reject dependency on impersonal market forces and reclaim our status as a democratic people, our standing as rulers of our individual and collective lives.

Because they are simple, these two responses have a natural attraction at a time of extreme crisis. It is comforting to think that all will be well if we can only liberate the power of the market or if we can only re‐assert our will as a people. But because the responses are simplistic, we should back away from each.

Philip Pettit (2011) “Republican Reflections on the 15-M Movement“, Books and Ideas.net.

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