Original to:
https://www.theguardian.com/news/2021/sep/02/covid-and-the-crisis-of-neoliberalism


Covid and the crisis of neo-liberalism

by Adam Tooze https://www.theguardian.com/profile/adam-tooze
The Guardian, Thursday 2 Sep 2021



If one word could sum up the experience of 2020, it would be disbelief. Between 
Xi Jinping’s public acknowledgment of the coronavirus outbreak on 20 January 
2020, and Joe Biden’s inauguration as the 46th president of the United States 
precisely a year later, the world was shaken by a disease that in the space of 
12 months killed more than 2.2 million people and rendered tens of millions 
severely ill. Today the official death tolls stands at 4.51 million 
https://www.bbc.co.uk/news/world-51235105 . The likely figure for excess deaths 
is more than twice that number. The virus disrupted the daily routine of 
virtually everyone on the planet, stopped much of public life, closed schools, 
separated families, interrupted travel and upended the world economy.

To contain the fallout, government support for households, businesses and 
markets took on dimensions not seen outside wartime. It was not just by far the 
sharpest economic recession experienced since the second world war, it was 
qualitatively unique. Never before had there been a collective decision, 
however haphazard and uneven, to shut large parts of the world’s economy down. 
It was, as the International Monetary Fund (IMF) put it, “a crisis like no 
other 
https://www.theguardian.com/books/2020/may/07/we-are-living-through-the-first-economic-crisis-of-the-anthropocene
 ”.

Even before we knew what would hit us, there was every reason to think that 
2020 might be tumultuous. The conflict between China and the US was boiling up. 
A “new cold war” was in the air. Global growth had slowed seriously in 2019. 
The IMF worried about the destabilising effect that geopolitical tension might 
have on a world economy that was already piled high with debt. Economists 
cooked up new statistical indicators to track the uncertainty that was dogging 
investment. The data strongly suggested that the source of the trouble was in 
the White House.
The US’s 45th president, Donald Trump 
https://www.theguardian.com/us-news/donaldtrump , had succeeded in turning 
himself into an unhealthy global obsession. He was up for reelection in 
November and seemed bent on discrediting the electoral process even if it 
yielded a win. Not for nothing, the slogan of the 2020 edition of the Munich 
Security Conference – the Davos for national security types – was 
“Westlessness”.

Apart from the worries about Washington, the clock on the Brexit 
https://www.theguardian.com/politics/eu-referendum  negotiations was running 
out. Even more alarming for Europe as 2020 began was the prospect of a new 
refugee crisis. In the background lurked both the threat of a final grisly 
escalation in Syria’s civil war and the chronic problem of underdevelopment. 
The only way to remedy that was to energise investment and growth in the global 
south. The flow of capital, however, was unstable and unequal. At the end of 
2019, half the lowest-income borrowers in sub-Saharan Africa were already 
approaching the point at which they could no longer service their debts.

The pervasive sense of risk and anxiety that hung around the world economy was 
a remarkable reversal. Not so long before, the west’s apparent triumph in the 
cold war, the rise of market finance, the miracles of information technology, 
and the widening orbit of economic growth appeared to cement the capitalist 
economy as the all-conquering driver of modern history. In the 1990s, the 
answer to most political questions had seemed simple: “It’s the economy, 
stupid.” As economic growth transformed the lives of billions, there was, 
Margaret Thatcher liked to say, “no alternative”. That is, there was no 
alternative to an order based on privatisation, light-touch regulation and the 
freedom of movement of capital and goods. As recently as 2005, Britain’s 
centrist prime minister Tony Blair could declare that to argue about 
globalisation 
https://www.theguardian.com/world/2017/jul/14/globalisation-the-rise-and-fall-of-an-idea-that-swept-the-world
  made as much sense as arguing about whether autumn should follow summer.

By 2020, globalisation and the seasons were very much in question. The economy 
had morphed from being the answer to being the question. A series of deep 
crises – beginning in Asia in the late 90s and moving to the Atlantic financial 
system in 2008, the eurozone in 2010 and global commodity producers in 2014 – 
had shaken confidence in market economics. All those crises had been overcome, 
but by government spending and central bank interventions that drove a coach 
and horses through firmly held precepts about “small government” and 
“independent” central banks. The crises had been brought on by speculation, and 
the scale of the interventions necessary to stabilise them had been historic. 
Yet the wealth of the global elite continued to expand. Whereas profits were 
private, losses were socialised. Who could be surprised, many now asked, if 
surging inequality led to populist disruption 
https://www.theguardian.com/news/2019/jan/10/we-the-people-the-battle-to-define-populism
 ? Meanwhile, with China’s spectacular ascent, it was no longer clear that the 
great gods of growth were on the side of the west.

And then, in January 2020, the news broke from Beijing. China 
https://www.theguardian.com/world/china  was facing a full-blown epidemic of a 
novel coronavirus. This was the natural “blowback” that environmental 
campaigners had long warned us about, but whereas the climate crisis caused us 
to stretch our minds to a planetary scale and set a timetable in terms of 
decades, the virus was microscopic and all-pervasive, and was moving at a pace 
of days and weeks. It affected not glaciers and ocean tides, but our bodies. It 
was carried on our breath. It would put not just individual national economies 
but the world’s economy in question.

As it emerged from the shadows, Sars-CoV-2 had the look about it of a 
catastrophe foretold. It was precisely the kind of highly contagious, flu-like 
infection that virologists had predicted. It came from one of the places they 
expected it to come from – the region of dense interaction between wildlife, 
agriculture and urban populations sprawled across east Asia. It spread, 
predictably, through the channels of global transport and communication. It 
had, frankly, been a while coming.

There have been far more lethal pandemics. What was dramatically new about 
coronavirus in 2020 was the scale of the response. It was not just rich 
countries that spent enormous sums to support citizens and businesses – poor 
and middle-income countries were willing to pay a huge price, too. By early 
April, the vast majority of the world outside China, where it had already been 
contained, was involved in an unprecedented effort to stop the virus. “This is 
the real first world war,” said Lenín Moreno, president of Ecuador, one of the 
hardest-hit countries. “The other world wars were localised in [some] 
continents with very little participation from other continents … but this 
affects everyone. It is not localised. It is not a war from which you can 
escape.”

Lockdown is the phrase that has come into common use to describe our collective 
reaction. The very word is contentious. Lockdown suggests compulsion. Before 
2020, it was a term associated with collective punishment in prisons. There 
were moments and places where that is a fitting description for the response to 
Covid. In Delhi, Durban and Paris, armed police patrolled the streets, took 
names and numbers, and punished those who violated curfews. In the Dominican 
Republic, an astonishing 85,000 people, almost 1% of the population, were 
arrested for violating the lockdown.

Even if no violence was involved, a government-mandated closure of all eateries 
and bars could feel repressive to their owners and clients. But lockdown seems 
a one-sided way of describing the economic reaction to the coronavirus. 
Mobility fell precipitately, well before government orders were issued. The 
flight to safety in financial markets began in late February. There was no 
jailer slamming the door and turning the key; rather, investors were running 
for cover. Consumers were staying at home. Businesses were closing or shifting 
to home working. By mid-March, shutting down became the norm. Those who were 
outside national territorial space, like hundreds of thousands of seafarers, 
found themselves banished to a floating limbo.

The widespread adoption of the term “lockdown” is an index of how contentious 
the politics of the virus 
https://www.theguardian.com/news/2021/apr/08/among-covid-sceptics-we-are-being-manipulated-anti-lockdown
  would turn out to be. Societies, communities and families quarrelled bitterly 
over face masks, social distancing and quarantine. The entire experience was an 
example on the grandest scale of what the German sociologist Ulrich Beck 
https://www.theguardian.com/education/2015/jan/06/ulrich-beck  in the 80s 
dubbed “risk society”. As a result of the development of modern society, we 
found ourselves collectively haunted by an unseen threat, visible only to 
science, a risk that remained abstract and immaterial until you fell sick, and 
the unlucky ones found themselves slowly drowning in the fluid accumulating in 
their lungs.

One way to react to such a situation of risk is to retreat into denial. That 
may work. It would be naive to imagine otherwise. Many pervasive diseases 
https://www.theguardian.com/society/2020/may/01/cholera-and-coronavirus-why-we-must-not-repeat-the-same-mistakes
  and social ills, including many that cause loss of life on a large scale, are 
ignored and naturalised, treated as “facts of life”. With regard to the largest 
environmental risks, notably the climate crisis, one might say that our normal 
mode of operation is denial and willful ignorance on a grand scale.

Facing up to the pandemic was what the vast majority of people all over the 
world tried to do. But the problem, as Beck said, is that getting to grips with 
the really large-scale, all-pervasive risks that modern society generates is 
easier said than done. It requires agreement on what the risk is. It also 
requires critical engagement with our own behaviour, and with the social order 
to which it belongs. It requires a willingness to make political choices about 
resource distribution and priorities at every level. Such choices clash with 
the prevalent desire of the last 40 years to depoliticise, to use markets or 
the law to avoid such decisions. This is the basic thrust behind neoliberalism, 
or the market revolution – to depoliticise distributional issues, including the 
very unequal consequences of societal risks, whether those be due to structural 
change in the global division of labour, environmental damage, or disease.

Coronavirus glaringly exposed our institutional lack of preparation, what Beck 
called our “organised irresponsibility”. It revealed the weakness of basic 
apparatuses of state administration, like up-to-date government databases. To 
face the crisis, we needed a society that gave far greater priority to care. 
Loud calls issued from unlikely places for a “new social contract” that would 
properly value essential workers and take account of the risks generated by the 
globalised lifestyles enjoyed by the most fortunate.

It fell to governments mainly of the centre and the right to meet the crisis. 
Jair Bolsonaro in Brazil and Donald Trump in the US experimented with denial. 
In Mexico, the notionally leftwing government of Andrés Manuel López Obrador 
also pursued a maverick path, refusing to take drastic action. Nationalist 
strongmen such as Rodrigo Duterte in the Philippines, Narendra Modi in India, 
Vladimir Putin https://www.theguardian.com/world/vladimir-putin  in Russia, and 
Recep Tayyip Erdoğan in Turkey did not deny the virus, but relied on their 
patriotic appeal and bullying tactics to see them through.

It was the managerial centrist types who were under most pressure. Figures like 
Nancy Pelosi and Chuck Schumer in the US, or Sebastián Piñera in Chile, Cyril 
Ramaphosa in South Africa, Emmanuel Macron, Angela Merkel, Ursula von der Leyen 
https://www.theguardian.com/world/ursula-von-der-leyen  and their ilk in 
Europe. They accepted the science. Denial was not an option. They were 
desperate to demonstrate that they were better than the “populists”.

To meet the crisis, very middle-of-the-road politicians ended up doing very 
radical things. Most of it was improvisation and compromise, but insofar as 
they managed to put a programmatic gloss on their responses – whether in the 
form of the EU’s Next Generation programme or Biden’s Build Back Better 
programme in 2020 – it came from the repertoire of green modernisation, 
sustainable development and the Green New Deal.

The result was a bitter historic irony. Even as the advocates of the Green New 
Deal, such as Bernie Sanders and Jeremy Corbyn, had gone down to political 
defeat, 2020 resoundingly confirmed the realism of their diagnosis. It was the 
Green New Deal that had squarely addressed the urgency of environmental 
challenges and linked it to questions of extreme social inequality. It was the 
Green New Deal that had insisted that in meeting these challenges, democracies 
could not allow themselves to be hamstrung by conservative economic doctrines 
inherited from the bygone battles of the 70s and discredited by the financial 
crisis of 2008. It was the Green New Deal that had mobilised engaged young 
citizens on whom democracy, if it was to have a hopeful future, clearly 
depended.

The Green New Deal had also, of course, demanded that rather than endlessly 
patching a system that produced and reproduced inequality, instability and 
crisis, it should be radically reformed. That was challenging for centrists. 
But one of the attractions of a crisis was that questions of the long-term 
future could be set aside. The year 2020 was all about survival.

The immediate economic policy response to the coronavirus shock drew directly 
on the lessons of 2008. Government spending and tax cuts to support the economy 
were even more prompt. Central bank interventions were even more spectacular 
https://www.theguardian.com/business/2020/apr/14/how-coronavirus-almost-brought-down-the-global-financial-system
 . These fiscal and monetary policies together confirmed the essential insights 
of economic doctrines once advocated by radical Keynesians and made newly 
fashionable by doctrines such as Modern Monetary Theory (MMT) 
https://www.theguardian.com/business/2019/mar/17/as-recession-looms-could-mmt-be-the-unorthodox-solution-modern-monetary-theory
 . State finances are not limited like those of a household. If a monetary 
sovereign treats the question of how to organise financing as anything more 
than a technical matter, that is itself a political choice. As John Maynard 
Keynes once reminded his readers in the midst of the second world war: 
“Anything we can actually do we can afford.” The real challenge, the truly 
political question, was to agree what we wanted to do and to figure out how to 
do it.

Experiments in economic policy in 2020 were not confined to the rich countries. 
Enabled by the abundance of dollars unleashed by the Fed, but drawing on 
decades of experience with fluctuating global capital flows, many emerging 
market governments, in Indonesia and Brazil for instance, displayed remarkable 
initiative in response to the crisis. They put to work a toolkit of policies 
that enabled them to hedge the risks of global financial integration. 
Ironically, unlike in 2008, China’s greater success in virus control left its 
economic policy looking relatively conservative. Countries such as Mexico and 
India, where the pandemic spread rapidly but governments failed to respond with 
large-scale economic policy, looked increasingly out of step with the times. 
The year would witness the head-turning spectacle of the IMF scolding a 
notionally leftwing Mexican government for failing to run a large enough budget 
deficit.

It was hard to avoid the sense that a turning point had been reached. Was this, 
finally, the death of the orthodoxy that had prevailed in economic policy since 
the 80s? Was this the death knell of neoliberalism? As a coherent ideology of 
government, perhaps. The idea that the natural envelope of economic activity – 
whether the disease environment or climate conditions – could be ignored or 
left to markets to regulate was clearly out of touch with reality. So, too, was 
the idea that markets could self-regulate in relation to all conceivable social 
and economic shocks. Even more urgently than in 2008, survival dictated 
interventions on a scale last seen in the second world war.

All this left doctrinaire economists gasping for breath. That in itself is not 
surprising. The orthodox understanding of economic policy was always 
unrealistic. In reality, neoliberalism had always been radically pragmatic. Its 
real history was that of a series of state interventions in the interests of 
capital accumulation, including the forceful deployment of state violence to 
bulldoze opposition. Whatever the doctrinal twists and turns, the social 
realities with which the market revolution had been entwined since the 1970s 
all endured until 2020. The historic force that finally burst the dykes of the 
neoliberal order was not radical populism or the revival of class struggle – it 
was a plague unleashed by heedless global growth and the massive flywheel of 
financial accumulation.

In 2008, the crisis had been brought on by the overexpansion of the banks and 
the excesses of mortgage securitisation. In 2020, the coronavirus hit the 
financial system from the outside, but the fragility that this shock exposed 
was internally generated. This time it was not banks that were the weak link, 
but the asset markets themselves. The shock went to the very heart of the 
system, the market for American Treasuries, the supposedly safe assets on which 
the entire pyramid of credit is based. If that had melted down, it would have 
taken the rest of the world with it.

The scale of stabilising interventions in 2020 was impressive. It confirmed the 
basic insistence of the Green New Deal that if the will was there, democratic 
states did have the tools they needed to exercise control over the economy. 
This was, however, a double-edged realisation, because if these interventions 
were an assertion of sovereign power, they were driven by crisis. As in 2008, 
they served the interests of those who had the most to lose. This time, not 
just individual banks but entire markets were declared too big to fail. To 
break that cycle of crisis and stabilising, and to make economic policy into a 
true exercise in democratic sovereignty, would require root-and-branch reform. 
That would require a real power shift, and the odds were stacked against that.

The massive economic policy interventions of 2020, like those of 2008, were 
Janus-faced. On the one hand, their scale exploded the bounds of neoliberal 
restraint and their economic logic confirmed the basic diagnosis of 
interventionist macroeconomics back to Keynes. When an economy was spiralling 
into recession, one did not have to accept the disaster as a natural cure, an 
invigorating purge. Instead, prompt and decisive government economic policy 
could prevent the collapse and forestall unnecessary unemployment, waste and 
social suffering.

These interventions could not but appear as harbingers of a new regime beyond 
neoliberalism. On the other hand, they were made from the top down. They were 
politically thinkable only because there was no challenge from the left and 
their urgency was impelled by the need to stabilise the financial system. And 
they delivered. Over the course of 2020, household net worth in the US 
increased by more than $15tn. Yet that overwhelmingly benefited the top 1%, who 
owned almost 40% of all stocks. The top 10%, between them, owned 84%. If this 
was indeed a “new social contract”, it was an alarmingly one-sided affair.

Nevertheless, 2020 was a moment not just of plunder, but of reformist 
experimentation. In response to the threat of social crisis, new modes of 
welfare provision were tried out in Europe, the US and many emerging market 
economies. And in search of a positive agenda, centrists embraced environmental 
policy and the issue of the climate crisis as never before. Contrary to the 
fear that Covid-19 would distract from other priorities, the political economy 
of the Green New Deal went mainstream. “Green Growth”, “Build Back Better”, 
“Green Deal” – the slogans varied, but they all expressed green modernisation 
as the common centrist response to the crisis.

Seeing 2020 as a comprehensive crisis of the neoliberal era – with regard to 
its environmental, social, economic and political underpinnings – helps us find 
our historical bearings. Seen in those terms, the coronavirus crisis marks the 
end of an arc whose origin is to be found in the 70s. It might also be seen as 
the first comprehensive crisis of the age of the Anthropocene 
https://www.theguardian.com/environment/2019/may/30/anthropocene-epoch-have-we-entered-a-new-phase-of-planetary-history
  – an era defined by the blowback from our unbalanced relationship to nature.

The year 2020 exposed how dependent economic activity was on the stability of 
the natural environment. A tiny virus mutation in a microbe could threaten the 
entire world’s economy. It also exposed how, in extremis, the entire monetary 
and financial system could be directed toward supporting markets and 
livelihoods. This forced the question of who was supported and how – which 
workers, which businesses would receive what benefits or which tax break? These 
developments tore down partitions that had been fundamental to the political 
economy of the last half-century – lines that divided the economy from nature, 
economics from social policy and from politics per se. On top of that, there 
was another major shift, which in 2020 finally dissolved the underlying 
assumptions of the era of neoliberalism: the rise of China.

When in 2005 Tony Blair scoffed at critics of globalisation, it was their fears 
that he mocked. He contrasted their parochial anxieties to the modernising 
energy of Asian nations, for which globalisation offered a bright horizon. The 
global security threats that Blair recognised, such as Islamic terrorism, were 
nasty. But they had no hope of actually changing the status quo. Therein lay 
their suicidal, otherworldly irrationality. In the decade after 2008, it was 
that confidence in the robustness of the status quo that was lost.

Russia was the first to expose the fact that global economic growth might shift 
the balance of power. Fuelled by exports of oil and gas, Moscow re-emerged as a 
challenge to US hegemony. Putin’s threat, however, was limited. China’s was 
not. In December 2017, the US issued its new National Security Strategy, which 
for the first time designated the Indo-Pacific as the decisive arena of great 
power competition. In March 2019, the EU issued a strategy document to the same 
effect. The UK, meanwhile, performed an extraordinary about-face, from 
celebrating a new “golden era” of Sino-UK relations in 2015 to deploying an 
aircraft carrier 
https://www.theguardian.com/world/2021/jul/30/china-royal-navy-south-china-sea-warning-beijing
  to the South China Sea.

The military logic was familiar. All great powers are rivals, or at least so 
goes the logic of “realist” thinking. In the case of China, there was the added 
factor of ideology. In 2021, the CCP did something its Soviet counterpart never 
got to do: it celebrated its centenary. While since the 80s it had permitted 
market-driven growth and private capital accumulation, Beijing made no secret 
of its adherence to an ideological heritage that ran by way of Marx and Engels 
to Lenin, Stalin and Mao. Xi Jinping 
https://www.theguardian.com/world/xi-jinping  could hardly have been more 
emphatic about the need to cleave to this tradition, and no clearer in his 
condemnation of Mikhail Gorbachev for losing hold of the Soviet Union’s 
ideological compass. So the “new” cold war was really the “old” cold war 
revived, the cold war in Asia, the one that the west had in fact never won.

There were, however, two major differences dividing the past from the present. 
The first was the economy. China posed a threat as a result of the greatest 
economic boom in history. That had hurt some workers in the west in 
manufacturing, but businesses and consumers across the western world and beyond 
had profited immensely from China’s development, and stood to profit even more 
in future. That created a quandary. A revived cold war with China made sense 
from every vantage point except “the economy, stupid”.

The second fundamental novelty was the global environmental problem, and the 
role of economic growth in accelerating it. When global climate politics first 
emerged in its modern form in the 90s, the US was the largest and most 
recalcitrant polluter. China was poor and its emissions barely figured in the 
global balance. By 2020, China emitted more carbon dioxide than the US and 
Europe put together 
https://www.forbes.com/sites/rrapier/2018/07/01/china-emits-more-carbon-dioxide-than-the-u-s-and-eu-combined/?sh=4b1b8255628c
 , and the gap was poised to widen at least for another decade. You could no 
more envision a solution to the climate problem without China than you could 
imagine a response to the risk of emerging infectious diseases. China was the 
most powerful incubator of both.

In 2020, the green modernisers of the EU were still trying to resolve this 
double dilemma in their strategic documents by defining China all at the same 
time as a systemic rival, a strategic competitor and a partner in dealing with 
the climate crisis. The Trump administration made life easier for itself by 
denying the climate problem. But Washington, too, was impaled on the horns of 
the economic dilemma – between ideological denunciation of Beijing, strategic 
calculation, long-term corporate investments in China and the president’s 
desire to strike a quick deal. This was an unstable combination, and in 2020 it 
tipped. China was redefined as a threat to the US, strategically and 
economically. In reaction, the intelligence, security and judicial branches of 
the American government declared economic war on China. By closing markets and 
blocking the export of microchips and the equipment to make microchips, they 
set out to sabotage the development of China’s hi-tech sector, the heart of any 
modern economy.

It was to a degree accidental that this escalation took place when it did. 
China’s rise was a long-term world historic shift. But Beijing’s success in 
handling the coronavirus and the assertiveness that it unleashed were a red 
flag to the Trump administration. Meanwhile, it was growing increasingly clear 
that the US’s continued global strength in finance, tech and military power 
rested on domestic feet of clay. As Covid-19 painfully exposed, the US health 
system was ramshackle and its domestic social safety net left tens of millions 
at risk of poverty. If Xi’s “China dream” came through 2020 intact, the same 
cannot be said for its American counterpart.

The general crisis of neoliberalism in 2020 thus had a specific and traumatic 
significance for the US – and for one part of the American political spectrum 
in particular. The Republican party and its nationalist and conservative 
constituencies suffered in 2020 what can best be described as an existential 
crisis, with profoundly damaging consequences for the American government, for 
the American constitution and for America’s relations with the wider world. 
This culminated in the extraordinary period between 3 November 2020 and 6 
January 2021, in which Trump refused to concede electoral defeat, a large part 
of the Republican party actively supported an effort to overturn the election, 
the social crisis and the pandemic were left unattended to, and finally, on 6 
January, the president and other leading figures in his party encouraged a mob 
invasion 
https://www.theguardian.com/us-news/2021/jan/06/us-capitol-trump-mob-election-democracy
  of the Capitol.

For good reason, this raises deep concerns about the future of American 
democracy. And there are elements on the far right of American politics that 
can fairly be described as fascistoid. But two basic elements were missing from 
the original fascist equation in the US in 2020. One is total war. Americans 
remember the civil war and imagine future civil wars to come. They have 
recently engaged in expeditionary wars that have blown back on American society 
in militarised policing 
https://www.theguardian.com/world/2020/jun/05/why-are-some-us-police-forces-equipped-like-military-units
  and paramilitary fantasies. But total war reconfigures society in quite a 
different way. It constitutes a mass body, not the individualised commandos of 
2020.

The other missing ingredient in the classic fascist equation is social 
antagonism – a threat from the left, whether imagined or real, to the social 
and economic status quo. As the constitutional storm clouds gathered in 2020, 
American business aligned massively and squarely against Trump. Nor were the 
major voices of corporate America afraid to spell out the business case for 
doing so, including shareholder value, the problems of running companies with 
politically divided workforces, the economic importance of the rule of law and, 
astonishingly, the losses in sales to be expected in the event of a civil war.

This alignment of money with democracy in the US in 2020 should be reassuring, 
but only up to a point. Consider for a second an alternative scenario. What if 
the virus had arrived in the US a few weeks sooner, the spreading pandemic had 
rallied mass support for Bernie Sanders and his call for universal health care, 
and the Democratic primaries had swept an avowed socialist to the head of the 
ticket rather than Joe Biden https://www.theguardian.com/us-news/joebiden ? It 
is not difficult to imagine a scenario in which the full weight of American 
business was thrown the other way, for all the same reasons, backing Trump in 
order to ensure that Sanders was not elected. And what if Sanders had in fact 
won a majority? Then we would have had a true test of the American constitution 
and the loyalty of the most powerful social interests to it. The fact that we 
have to contemplate such scenarios is indicative of the extremity of the 
polycrisis of 2020.

The election of Joe Biden and the fact that his inauguration took place at the 
appointed time on 21 January 2021 restored a sense of calm. But when Biden 
boldly declares that “America is back”, it has become increasingly clear that 
the next question we need to ask is: which America? And back to what? The 
comprehensive crisis of neoliberalism may have unleashed creative intellectual 
energy even at the once-dead centre of politics. But an intellectual crisis 
does not a new era make. If it is energising to discover that we can afford 
anything we can actually do, it also puts us on the spot. What can and should 
we actually do? Who, in fact, is the we?

As Britain, the US and Brazil demonstrate, democratic politics is taking on 
strange and unfamiliar new forms. Social inequalities are more, not less 
extreme. At least in the rich countries, there is no collective countervailing 
force. Capitalist accumulation continues in channels that continuously multiply 
risks. The principal use to which our newfound financial freedom has been put 
are more and more grotesque efforts at financial stabilisation. The antagonism 
between the west and China divides huge chunks of the world, as not since the 
cold war. And now, in the form of Covid, the monster has arrived. The 
Anthropocene has shown its fangs – on an as yet modest scale. Covid is far from 
being the worst of what we should expect – 2020 was not the full alert. If we 
are dusting ourselves off and enjoying the recovery, we should reflect. Around 
the world the dead are unnumbered, but our best guess puts the figure at 10 
million. Thousands are dying every day. And 2020 was a wake-up call.

Adapted from Shutdown: How Covid Shook the World’s Economy by Adam Tooze, 
published by Allen Lane on 7 September

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