CRACK-UP CAPITALISM

A review of libertarian threats to democracy and a debunking of the myth that nation-states govern the world.

In this richly documented exposé, Slobodian, professor of the history of ideas at Wellesley and author of Globalists: The End of Empire and the Rise of Neoliberalism, describes the thinking behind attempts to create pockets of unfettered capitalism that turn citizens into consumers and governments into afterthoughts. Free market radicals, writes the author, long for “an agile, relentlessly mobile fortress for capital, protected from the grasping hands of the populace seeking a more equitable present and future.” This utopia is to be achieved using “zones of exception” where taxes are minimal, if not wholly eliminated, government regulations have been eviscerated, labor laws are nonexistent, and investors can conceal their assets. These duty-free districts, charter cities, innovation hubs, gated communities, enterprise zones, and tax havens currently number over 5,400 around the world, and more than 1,000 have appeared in the past decade. “Capitalism works by punching holes in the nation-state,” writes Slobodian, so that the “the lineaments of a future society without a state [can] come into definition.” The author draws on the ideas of such “neoliberal luminaries” as Milton Friedman, Paul Romer, and Balaji Srinivasan, noting their fascination with the political fragmentation of the Middle Ages and the capital-friendly confines of Hong Kong, Singapore, Liechtenstein, and Dubai. Slobodian also explains how their ideas have intersected with development corporations in London; the gated community of Sea Ranch in California, whose planner called it “a kibbutz without the socialism”; the opportunities posed by the dissolution of the Soviet Union; and the cryptocurrency fantasies of tech libertarians. Behind many of these anarcho-capitalists’ most revered examples, however, are tightly organized authoritarian regimes, as opposed to government’s absence. This, though, is simply another reason to reject democracy.

An insightful piercing of the veil of nation-states to reveal capitalism’s frightening, anti-democratic tendencies.