Neoliberalism on the Defensive: Austerity As a New Form of Common-Sense

Since the global financial crisis, the extensity of resistance to global forms of neoliberalism has been marked, with economists being at the forefront in demonstrating how austerity is unsustainable as a means of production. Both radicals and Keynesian economists, alongside a wide variety of political and social movements, which were already prevalence during the preceding decades since the end of the cold war became more prominent in their attacks and criticisms of neoliberalism. These have included social movements such as the Occupy campaign, regional political movements such as those in Latin America, reactionary nationalist groups and religious-based organisations, which have all been explicit in their attacks on the hegemony of neoliberalism.

In response, the notion of austerity has flourished as a concept in order to keep such criticisms at bay. This paper will argue that the notion of austerity has developed into a defensive ideology, geared around the rejection of comprehensive alternatives to the crisis. Instead, it is geared upon the idea of presenting austerity as a compulsory painful measure, required in order to re-stimulate growth and confidence in the economy. It will also suggest that this narrative has been strengthened by the failure of its criticisms to adequately construct a viable hegemonic alternative that might replace the status-quo. As a result, austerity has assumed a character that can be understood as a form of ‘common-sense’ in the wider Gramscian tradition. It serves as providing a set of norms and conditions which are understood as being both ‘natural’ and ‘universal’ in many ways. This paper will conclude that it is through this articulation of common-sense that neoliberalism has (as least to date) managed to survive and to go on the defensive. Such  a position that was not seen possible merely five years ago.