The Crisis of Neoliberal Democracy

This chapter explores the limitations and crises of neoliberal democracy after the GFC. It shows that, given the political, institutional and other fragilities of neoliberal democracy, the stresses caused by the most severe economic crisis since 1929 created deep fractures in society, that could not be healed easily. These tensions worsened with the decision of many AE governments to push for ‘fiscal austerity’. In this context, the longstanding limitations of neoliberal democracy created favourable conditions for the emergence of ‘spectacular’ political leaders associated with an authoritarian and radicalised version of neoliberalism. Examination of the circumstances behind the rise of these leaders, and the constraints under which they operate, allows the identification of the paradox of authoritarianism, that is, the limitations of democracy spawn ‘spectacular’ leaders but their rule is intrinsically unstable and it opens spaces for new forms of fascism.