Crack-Up Capitalism by Quinn Slobodian
Market Radicals and the Dream of a World Without Democracy.
Crack-Up Capitalism by Quinn Slobodian is a fascinating book that explores the phenomenon of “crack-up” capitalism, which is the fracturing of conventionally understood national power and boundaries into distinct zones. Slobodian critically examines the authoritarianism and exploitation that often masquerades as “liberty” within conservative think tanks and online discourse. By delving into the ideas of influential figures like Milton Friedman and the utopian visions of radical libertarians, Slobodian provides a thought-provoking analysis of the changing landscape of capitalism in today’s world.
Friedman argued that economic freedom was a necessary condition for civil and political freedom, contending that political freedom was not essential for the realization of economic and civil liberties. This perspective laid the groundwork for the emergence of a radical strand of libertarianism that embraced the possibilities offered by the internet. Inspired by thinkers like Murray Rothbard and William Rees-Mogg, these libertarians began to envision a world without the conventional constraints of democracy and national boundaries.
“Paleo-libertarians wished for a capitalist anarchist future but they did not foresee an amorphous mas of atomised individuals. Rather, people would be nested in collectives scalling upward from the heterosexual nuclear family in what Edmund Burke called, in an often repeated quote, the “little platoons we belong to in society.” It would taken for granted that these little platoons would divide according to race.”__Quinn Slobodian
Slobodian’s case studies in “Crack-Up Capitalism” shed light on the explicit champions of crack-up capitalism within the libertarian and neoliberal intellectual circles. Figures like Peter Thiel, Curtis Yarvin, Balaji Srinivasan, and Patri Friedman (grandson of Milton Friedman) emerged as key players promoting the ideas and practices associated with investment zones. These individuals have played significant roles in advocating for policies that prioritize foreign trade, attract foreign investment, and foster innovation through the establishment of distinctive territorial areas known as investment zones.
The concept of investment zones is central to understanding crack-up capitalism. Slobodian navigates the reader through these zones, which “perforate” the conventional economic and political edifice of nation-states. These zones come in various legal and political forms, often created through tax incentives, deregulation, and imbalances that favour capital over labour. Within these zones, individuals effectively renounce certain rights as the cost of entry, leading to an economic landscape reminiscent of a jungle. Unfortunately, this jungle-like environment can result in the exploitation of workers and resources, exacerbating inequality as economic growth primarily benefits a privileged few.
While investment zones offer potential benefits, such as foreign investment and innovation, they can also impose significant costs on governments. There is a delicate balance that governments must strike when considering the implementation of investment zones, but frequently, when balancing possible benefits and costs, they fail to take into account the available resources and the price that workers have to pay for economic growth.
Slobodian argues that the proliferation of investment zones is a reactionary response to the increasing strength and independence of the Global South. These zones have become fundamental to understanding how capitalism has evolved since the 1980s and 1990s. This period witnessed significant changes in the global economy, including the growth of IT investment and misguided attempts to achieve cheap growth. Investment zones emerged as a means to navigate these new challenges and opportunities, often with unforeseen consequences.
“After all the talk in the 1990s about democracy and capitalism going together, one thing that nation-branding consultans discovered early on was how little value democracy added when it came to a country’s reputation. In fact, it was undemocratic countries like Dubai and Singapore that ranked especially high with tourists and invetors. There was an important lesson to be learned here. Winning the capitalist game globbaly seemed to have little to do with abstract question of democratic liberty.” __ Quinn Slobodian
One of the most thought-provoking aspects of “Crack-Up Capitalism” is Slobodian’s exploration of the market radicals’ fatalism about democracy and, at times, outright contempt for it. The book exposes the limitations of the experiments favoured by free-market enthusiasts and questions whether crack-up capitalism truly has a track record of success despite the grand claims made on its behalf. Slobodian’s observations present an alarming glimpse into a possible future, where democracy is undermined by the pursuit of unrestrained market forces.
The future of market capitalism lies not in blind adherence to outdated and extreme ideologies but in our ability to adapt, learn, and reimagine economic systems that prioritize both individual freedom and collective well-being.