Debt securitization served as inadequate compensation for welfare-state dismantling

Evidence

So how will more financial engineering help us out of the hole left by the global crisis? Some say the working-class “democratization” was just feedstock so that Wall Street and the City could securitize ever-expanding volumes of debt (while getting it graded AAA and foisting it off onto gullible money-market funds) as inadequate compensation for the dismantling of the welfare state; but people like Shiller say that the poverty and inequality could actually be mitigated by further financial engineering. — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 963

Categorization

• XREF: Echoes the reader’s austerity/neoliberalism focus: welfare-state dismantlement rationalized through credit expansion — a core mechanism of the post-2008 survival. — connects to: Debt can be read as a failed attempt to reclaim stolen value — Max Haiven, Cultures of Financialization, 52; Neoliberal deregulation replaced social protection with credit and indebtedness — Wendy Brown, Undoing the Demos: Neoliberalism’s…, 746; Financialization replaced welfare-state collective security with individualized speculative insurance — Max Haiven, Cultures of Financialization, 92 (+5 more)

Broader Connections

• Neoliberal deregulation replaced social protection with credit and indebtedness #corroborates (0.92) — Wendy Brown, Undoing the Demos, 746
• Financialization replaced welfare-state collective security with individualized speculative insurance #corroborates (0.88) — Max Haiven, Cultures of Financialization, 92
• Neoliberal states redefined their mandate from welfare to securitization and control #expands (0.85)
• Financialization accelerated through 1970s-80s deregulation and state support #expands (0.82) — Andrew deWaard, Derivative Media, 488