Abstract

Extreme monetary policies successfully prevented the “Great Recession” of 2007–2009 from turning into a global depression. However, they did not address the underlying problems in global capitalism. In recent years prominent “insiders” of global capitalism have proposed reforms designed to remedy these defects. I argue that these proposals are inadequate, due in great part to a failure to acknowledge a profound change in the “deep structure” of capitalism. Technological change, which in the past has contributed so much to the dynamism of capitalism development, no longer does so. The need for extreme monetary policies in the aftermath of the Great Recession of 2007–2009, the failure of these policies, and the lack of plausible alternatives to them, are all symptoms of an underlying disease beyond cure. A path towards a democratic form of socialism must be forged for the simple yet compelling reason Rosa Luxemburg articulated: it is a matter of socialism or barbarism.