From Philip Mirowski’s Never Let a Serious Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown
p54-5 “The thorny issue of just what sort of ontonological entity the neoliberal market is, or should be … The ‘radical subjectivist’ wind of the Austrian School of economics attempted to ground the market in a dynamic process of discovery by entrepreneurs of what consumers did not yet even know what they wanted, due to the fact that the future is radically unknowable. Perhaps the dominant version … emanated from Hayek himself, wherein the ‘market’ is posited to be an information processor more powerful than any human brain, but essentially patterned upon brain/computation metaphors…. Another partially rival approach to defining the market emanated from German ordoliberalism, which argues that competition in a well-functioning market needs to be directly organized by the state, by embedding it in various other social institutions.” Both sides “seem overly preoccupied with what it purportedly does, while remaining cavalier about what it actually is. For the neoliberals, this allows the avoidance of a possible deep contradiction between their constructivist tendencies and their uninflected appeal to a monolithic market that has existed throughout all history and indifferently across the globe; for how can something be ‘made’ when it is eternal and unchanging? This is solved by increasingly erasing any distinctions among the state, society and the market, and simultaneously insisting their political project is aimed at reformation of society by subordinating it to the market.”
p. 65-6 The neoliberal program ends up vastly expanding incarceration and the carceral sphere in the name of getting government off our backs. Members of the Mont Pelerin Society were fond of Benjamin Constant’s adage: ‘The government, beyond its proper sphere ought not to have any power; within its sphere, it cannot have enough of it.’ …. This is central to understanding the fact that neoliberal policies lead to unchecked expansion of the penal sphere, as has happened in the United States. … a definition of crime as inefficient attempts to circumvent the market. The implication is that intensified state power in the police sphere (and a huge expansion of prisoners incarcerated) is fully complementary with the neoliberal concept of freedom. …. there is also a natural stratification in what classes of law are applicable to different scofflaws: ‘the criminal law is designed primarily for the nonaffluent; the affluent are kept in line, for the most part, by tort law.”
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