The Battle Over Austerity Measures Moves From The Suites To The Streets

Greek protests turned riots. Photo: Jesse Garcia (CC)

Greek protests turned riots. Photo: Jesse Garcia (CC)

William Shakespeare put a key question this way: “To Be Or Not To Be?” Today’s economists and policy makers pose a different choice: to spend or not to spend.

Governments throughout the west are in a panic as debt mounts and economies contract. Their solution is cut, cut, cut, in the name of a doctrine called austerity. They are slashing budgets, trimming public payrolls and arguing fatalistically in the spirit of Margaret Thatcher’s philosophy, “There Is No Alternative.” (TINA.)

Austerity is the other name for it, Confronting massive deficits fearful of losing investor confidence. European governments are pulverizing budgets and shutting down public services. The plan by England’s new Tory government is considered among the most painful, if not draconian. It is justified as absolutely necessary.

This view is being challenged in the realm of the ideas and with a growing spasm of street protests rocking European cities.

You have probably seen the pictures: A bloodied former Minister in Athens as rioters denounce the IMF which is demanding concessions from their government. Strikes in France, Spain, Portugal, The Czech Republic and Italy had the SWAT teams out in force. A meeting this week in Germany by Eurozone Ministers is unlikely to please anyone.

At time when most people are saying the path out of the financial crisis and European debt problem is for individuals and governments around the world to cut back, the American economist Paul Krugman wants us to spend, spend, spend.

What’s behind the fervor for austerity, he asks?

“The answer,” he writes, is “to reassure the markets — because the markets supposedly won’t believe in the willingness of governments to engage in long-run fiscal reform unless they inflict pointless pain right now. To repeat: the whole argument rests on the presumption that markets will turn on us unless we demonstrate a willingness to suffer, even though that suffering serves no purpose.”

This argument has moved off the op-ed pages and into the streets. These protests conjuring up a revival of the class war confrontations of the 1930’s are erupting in many countries.

The marches are becoming more militant and bitter, as clashes between the police and angry protesters grow in intensity marked by scattered violence.

Symbolically, the one incident that received massive coverage was a student attack on British Royalty when Prince Charles car was attacked with some protesters chanting, “off with their heads.”

Reported the Telegraph,

“Demonstrators kicked the Rolls-Royce as it traveled to the Royal Variety Performance in central London. White paint and bottles were thrown over the car and a window shattered.

The Prince and Duchess (Camilla Parker-Bowles) were “unharmed” and continued with their engagement at the London Palladium, a Clarence House spokesman said.

The attack, caught on amateur video showed a how startled the Royal couple was even though afterwards “the Duchess, later laughed off the attack, When asked how she was as she left the London Palladium, the Duchess said: ”I’m fine thanks – first time for everything.”

It may have been the first time but as more austerity measures are expected, it is unlikely to be the last.

These protests reflect more that dissatisfaction with a single issue but seem to be a reflection of growing public disenchantment with unresponsive government, an untrustworthy media and a failing economy.

So far, conservative governments are ignoring the criticisms and moving forward with their slashing of worker and unemployment benefits and the social safety net. In England, the Parliament voted to raise tuitions — cap is set to rise to $14,500 by 2012, higher than the current average of $7,605 at U.S. state universities– but the student protests are surprising officials by their tenacity.

Just watch the passion of this 15 year old speaking at a rally the University of London:

Student activists like this are becoming radicalized and can become contagious, argues Gary Younge in the Guardian:

“As these protests intensify – as they are bound to – we can expect them to be routinely disparaged on the right as either privileged kids acting out or innocents led astray by revolutionaries

…That students and youth in Europe have erupted at this moment, however, should come as no surprise. More than one in five people under the age of 25 in the EU is unemployed. In Spain the figure is 43%; in Greece 30%; in Italy 26%. Meanwhile the principle that education is a public good, to which all are entitled, all contribute, and all benefit through a more competitive economy, is in its death throes.”

In the United States, A Republican-dominated Congress, swept into power on the backs of right wing Tea Party activism spurred by Fox News and other fear-driven conservative media, promises to roll back government programs even as it “compromises” with Dems to keep tax cuts for millionaires and billionaires.

So far, there has been little street activism in the United States. Perhaps it’s because of the Christmas shopping season, the inundation of entertainment shows and sporting events or just so little oppositional leadership, especially among Democrats unwilling to challenge a Democratic President who has just negotiated a compromise deal with Republican tax cutters.

Only one senator, Bernie Sanders, the independent from Vermont had the guts to take on Barack Obama  in an 8 hour and 37 minute near filibuster speech that drove up the ratings of CSPAN, the congressional TV channel.

Commented blogger David Seth Michaels:

“it was the most important political speech– by far– of the past two years. Seldom, if ever, has anyone seized the spotlight to discuss and examine so thoroughly the plundering of the nation by its wealthiest citizens. And to demand so clearly that the government provide genuine relief for the millions of Americans who are now suffering the consequences of the plunder.”

But his supporters did not pour into the streets, at least not yet. Sanders has been challenging what he calls his “progressive friends” on these very issues, saying, “I have long been concerned that some progressive activists do not stand up and fight effectively or pay enough attention to the needs of ordinary Americans.”

When they do speak out, many prefer sending emails or organizing Facebook pages. Where is the outrage and sense of solidarity or militancy? The unions are quiescent, most pols seem incapable of inspiring anyone. Has this generation been seduced by their Ipads and smartphones?

Has everyone forgotten that call to get involved? Remember the dicta, “It’s not the ship that makes the waves, it’s the motion on the ocean.” It may take time, but it is likely in the not too distant future that American activists will emulate the movements now emerging in Europe.

Governments have the power to impose their austerity measures, but not without a fight. As things get worse, Bob Dylan’s pithy blast from the past may be back to characterize the times ahead: “A Hard Rain Is Going To Fall?”

Filmmaker and News Dissector Danny Schechter edits Mediachannel.org.
For more on his film Plunder: The Crime of Our Time and companion book The Crime Of Our Time: Why Wall Street Is Not Too Big To Jail, visit plunderthecrimeofourtime.com.

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  • Ironaddict06

    I have a question for the readers from England. What are your thought on royality-the Queen, King, Prince, etc.? Do you all look up to them or do you all despise them for not working and living off the peoples hard work?

  • Ironaddict06

    I have a question for the readers from England. What are your thought on royality-the Queen, King, Prince, etc.? Do you all look up to them or do you all despise them for not working and living off the peoples hard work?

    • Hadrian999

      you could make that same argument for any government officials

      • Ironaddict06

        Yes there are career politicans but they are not considered Royality or above the average person. In America actors and actress are treated like royality and for the most part act like it. The average person looks up to these people, want to be these people. That is why I would like comments from people from England. Do English people still look up to Royality(they are special) or are peoples oppinion changing seeing them feeding off the system?

        • Neeuq

          F*&^ the Queen and her fascist regime. You say you want democracy i say how with a queen?

    • Over the pond

      There’s a mixture of feeling, from on extreme to another. The actual cost to the taxpayer in terms of the Civil List (the ‘allowance’ paid to the Royal Family by government, anually) is only in the tens of millions, but the rub comes from the fact that the Queen is one of the biggest landowners in Britain, and one of the wealthiest women in the world. Land in Britain is scarce and expensive. Personally, I think this is a morally untenable situation.

  • Cerebralcaustic

    I’m really confused by almost everything Schechter writes. He doesn’t seem to be *for* anything; rather, he seems to be *against* everything. At least with many Disinfonauts it’s possible to follow their line of reasoning. But Schechter seems to embrace Hegelian “logic,” which, in turn, explicitly rejects the principle of noncontradiction.

    Thus, we have an article that laments government cutting programs, without mention of the source of ALL government funding: taxes.

    If governments cut programs, they’re accused of treating their citizens poorly.

    If governments raise taxes, they’re accused of crushing the middle class and stifling business.

    Embracing both positions, simultaneously, is, of course, a double bind; trying to believe both those positions at once could likely lead to cognitive dissonance.

  • Hadrian999

    you could make that same argument for any government officials

  • Hadrian999

    you ignore the fact that that these social and public programs could fully funded by cutting other programs that are useless to citizens, like military aid to dictators, imagine what we could do with 1% of the 2010 us military budget of $533,000,000,000 yes of course cutting services is the only way to save money

  • Ironaddict06

    Yes there are career politicans but they are not considered Royality or above the average person. In America actors and actress are treated like royality and for the most part act like it. The average person looks up to these people, want to be these people. That is why I would like comments from people from England. Do English people still look up to Royality(they are special) or are peoples oppinion changing seeing them feeding off the system?

  • rtb61

    More accurately the rich gambled, got bailed out globally and got tax cuts so they could keep the profits from the bail out. Here’s a hint, we are in this society together, not one preying upon the other, if this society can afford mansions, mega yachts and super cars for some, than it can afford free medical care, free education, reasonable jobs, reasonable accommodation for the majority.
    Truth is if we can no longer afford a reasonable life style for the majority, then we can damn well no longer afford the rich and greedy, let’s eliminate them prior to impoverishing the lifestyle of the majorities children and grandchildren, it ain’t wealth re-distribution it is the confiscation of the proceeds of crime, the crime global treason to line their own pockets.

  • Anonymous

    More accurately the rich gambled, got bailed out globally and got tax cuts so they could keep the profits from the bail out. Here’s a hint, we are in this society together, not one preying upon the other, if this society can afford mansions, mega yachts and super cars for some, than it can afford free medical care, free education, reasonable jobs, reasonable accommodation for the majority.
    Truth is if we can no longer afford a reasonable life style for the majority, then we can damn well no longer afford the rich and greedy, let’s eliminate them prior to impoverishing the lifestyle of the majorities children and grandchildren, it ain’t wealth re-distribution it is the confiscation of the proceeds of crime, the crime global treason to line their own pockets.

  • blagger56

    He really is an arse, reminds me a lot of william hague as a snotty 16 yeqr old at a conservative conference some years ago.
    He was the darling future of the right, this litttle sh*t is obviously the darling future of the left

  • blagger56

    He really is an arse, reminds me a lot of william hague as a snotty 16 yeqr old at a conservative conference some years ago.
    He was the darling future of the right, this litttle sh*t is obviously the darling future of the left

  • Over the pond

    There’s a mixture of feeling, from on extreme to another. The actual cost to the taxpayer in terms of the Civil List (the ‘allowance’ paid to the Royal Family by government, anually) is only in the tens of millions, but the rub comes from the fact that the Queen is one of the biggest landowners in Britain, and one of the wealthiest women in the world. Land in Britain is scarce and expensive. Personally, I think this is a morally untenable situation.

  • Neeuq

    F*&^ the Queen and her fascist regime. You say you want democracy i say how with a queen?

  • Hadrian999

    you ignore the fact that that these social and public programs could be fully funded by cutting other programs that are useless to citizens, like military aid to dictators, imagine what we could do with 1% of the 2010 us military budget of $533,000,000,000 yes of course cutting services is the only way to save money

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