Social Democratic Constitutionalism, New Economic Theory, and the Dangers of Neoliberalism’s Attacks on Rational Government Regulation

• Main Authors: Winston Nagan, Craig Hammer
• Format: Article
• Language: English
• Published: Risk Institute, Trieste- Geneva 2017-10-01
• Series: Cadmus
• Online Access: http://cadmusjournal.org/article/volume-3/issue-3/social-democratic-constitutionalism-new-economic-theory

This paper examines the foundations of economic neoliberalism and underlines the implications of the foundations of this economic theory in its reliance on economic value as ownership, property, and commodity which misdirects economic inquiry from the real value of human capital as the proper foundation of a viable economic system. It focuses on the role of a selective emphasis on rules of international law for the protection of private property. These rules indirectly influence economic theory in general in the sense that commodity is made to be near absolute, and to be insulated from regulation. The paper explores these ideas in the context of major neoliberal theorists and stresses flaws of the theory of ownership as well as the flaws in the myth of the market as a form of economic activity immune to rational regulation. The paper goes on to stress the emphasis of the destruction of the so called “deep state.” The attack on the deep state is reinforced by an academic interest group loosely styled “The Law and Economics Movement.” The paper emphasizes the politico economic costs of the the demolition of the so called deep state, which is essentially a social democratic state. One of the consequences of this form of economic advocacy is the possibility of rule by plutocracy. This will mean the destruction of the constitutional foundations of the state. The paper also underlines an important aspect of the jurisprudence of neoliberalism which is rooted in the theory that law must be done from the point of view of the bad man and be completely separated from basic morality and values. This is applied to economic theory and makes for a sharp chasm and basic human rights values. There is clearly a need for more effective forms of interest representation representing the vital importance of human capital.