Nancy Fraser in Dissent:
Trump’s victory is not solely a revolt against global finance. What his voters rejected was not neoliberalism tout court, but progressive neoliberalism. This may sound to some like an oxymoron, but it is a real, if perverse, political alignment that holds the key to understanding the U.S. election results and perhaps some developments elsewhere too. In its U.S. form, progressive neoliberalism is an alliance of mainstream currents of new social movements (feminism, anti-racism, multiculturalism, and LGBTQ rights), on the one side, and high-end “symbolic” and service-based business sectors (Wall Street, Silicon Valley, and Hollywood), on the other. In this alliance, progressive forces are effectively joined with the forces of cognitive capitalism, especially financialization. However unwittingly, the former lend their charisma to the latter. Ideals like diversity and empowerment, which could in principle serve different ends, now gloss policies that have devastated manufacturing and what were once middle-class lives.
Progressive neoliberalism developed in the United States over the last three decades and was ratified with Bill Clinton’s election in 1992. Clinton was the principal engineer and standard-bearer of the “New Democrats,” the U.S. equivalent of Tony Blair’s “New Labor.” In place of the New Deal coalition of unionized manufacturing workers, African Americans, and the urban middle classes, he forged a new alliance of entrepreneurs, suburbanites, new social movements, and youth, all proclaiming their modern, progressive bona fides by embracing diversity, multiculturalism, and women’s rights. Even as it endorsed such progressive notions, the Clinton administration courted Wall Street. Turning the economy over to Goldman Sachs, it deregulated the banking system and negotiated the free-trade agreements that accelerated deindustrialization. What fell by the wayside was the Rust Belt—once the stronghold of New Deal social democracy, and now the region that delivered the electoral college to Donald Trump. That region, along with newer industrial centers in the South, took a major hit as runaway financialization unfolded over the course of the last two decades. Continued by his successors, including Barack Obama, Clinton’s policies degraded the living conditions of all working people, but especially those employed in industrial production. In short, Clintonism bears a heavy share of responsibility for the weakening of unions, the decline of real wages, the increasing precarity of work, and the rise of the two–earner family in place of the defunct family wage.