The Tasks of Keynesianism Today: Green New Deals AsTransition Towards a Zero Growth Economy?

The world economy today is facing the juncture of two simultaneous crises: the deepest recession since the end of World War Two and an unprecedented world ecological crisis. Does Keynesianism offer viable ideas to face this combined crisis, alternative to the neoliberal policymaking that has prevailed during the last thirty years? Historically, if viewed from a longer-term perspective, the form of Keynesianism that has predominated, is military Keynesianism, defined as macro-economic policymaking by capitalist governments aimed at stimulating aggregate demand for goods. Thus deficit spending was already applied by the British government when it competed with other European states to gain world hegemony, in the late 17th and the 18th century. Again, whereas for a limited period of time after World War Two, a civilian type of Keynesianism has ‘coexisted’ with military Keynesianism, especially in Western Europe,— the military form of Keynesianism has clearly prevailed in the era of globalization, especially in the US. Keynesianism offers possibilities for a shift from current policymaking, but only if its mode of application is radically different from its historical modes. An ecological Keynesianism needs to fulfil both a social criterion — promotion of employment — and an ecological standard — countering capitalism’s inherent tendency to destroy its natural surroundings. Three examples of an ecological Keynesianism initially come to mind: the state’s use of transfer and investment measures so as to accelerate the shift from reliance on fossil fuels towards reliance on renewable energy; state intervention to discourage incineration of waste, and to enhance reliance on recycling; and conversion of military production facilities into units which produce for the sustenance of life on earth. The significance of these shifts can be illustrated by employing a model of social reproduction that diverges from Marx’s and Keynes’. Yet while an ecological Keynesianism does offer ample possibilities to address today’s combined crisis, the given policymaking needs to be understood as transitional. A solution to the world’s ecological crisis is only possible via the transition towards a stationary state — a zero growth economy at the world level which protects the interests of the global South.