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Capitalism and the Real

‘Capitalist realism’ is not an original coinage. It was used as far back as the 1960s by a group of German Pop artists and by Michael Schudson in his 1984 book Advertising, The Uneasy Persuasion, both of whom were making parodic references to socialist realism. What is new about my use of the term is the more expansive – even exorbitant – meaning that I ascribe to it. Capitalist realism as I understand it cannot be confined to art or to the quasi-propagandistic way in which advertising functions. It is more like a pervasive atmosphere, conditioning not only the production of culture but also the regulation of work and education, and acting as a kind of invisible barrier constraining thought and action.

If capitalist realism is so seamless, and if current forms of resistance are so hopeless and impotent, where can an effective challenge come from? A moral critique of capitalism, emphasizing the ways in which it leads to suffering, only reinforces capitalist realism. Poverty, famine and war can be presented as an inevitable part of reality, while the hope that these forms of suffering could be eliminated easily painted as naive utopianism. Capitalist realism can only be threatened if it is shown to be in some way inconsistent or untenable; if, that is to say, capitalism’s ostensible ‘realism’ turns out to be nothing of the sort.

Needless to say, what counts as ‘realistic’, what seems possible at any point in the social field, is defined by a series of political determinations. An ideological position can never be really successful until it is naturalized, and it cannot be naturalized while it is still thought of as a value rather than a fact. Accordingly, neoliberalism has sought to eliminate the very category of value in the ethical sense. Over the past thirty years, capitalist realism has successfully installed a ‘business ontology’ in which it is simply obvious that everything in society, including healthcare and education, should be run as a business. As any number of radical theorists from Brecht through to Foucault and Badiou have maintained, emancipatory politics must always destroy the appearance of a ‘natural order’, must reveal what is presented as necessary and inevitable to be a mere contingency, just as it must make what was previously deemed to be impossible seem attainable. It is worth recalling that what is currently called realistic was itself once ‘impossible’: the slew of privatizations that took place since the 1980s would have been unthinkable only a decade earlier, and the current political-economic landscape (with unions in abeyance, utilities and railways denationalized) could scarcely have been imagined in 1975. Conversely, what was once eminently possible is now deemed unrealistic. ‘Modernization’, Badiou bitterly observes, ‘is the name for a strict and servile definition of the possible. These ‘reforms’ invariably aim at making impossible what used to be practicable (for the largest number), and making profitable (for the dominant oligarchy) what did not used to be so’.

At this point, it is perhaps worth introducing an elementary theoretical distinction from Lacanian psychoanalysis which Žižek has done so much to give contemporary currency: the difference between the Real and reality. As Alenka Zupancic explains, psychoanalysis’s positing of a reality principle invites us to be suspicious of any reality that presents itself as natural. ‘The reality principle’, Zupancic writes,

is not some kind of natural way associated with how things are ... The reality principle itself is ideologically mediated; one could even claim that it constitutes the highest form of ideology, the ideology that presents itself as empirical fact (or biological, economic...) necessity (and that we tend to perceive as non-ideological). It is precisely here that we should be most alert to the functioning of ideology.

For Lacan, the Real is what any ‘reality’ must suppress; indeed, reality constitutes itself through just this repression. The Real is an unrepresentable X, a traumatic void that can only be glimpsed in the fractures and inconsistencies in the field of apparent reality. So one strategy against capitalist realism could involve invoking the Real(s) underlying the reality that capitalism presents to us.

Environmental catastrophe is one such Real. At one level, to be sure, it might look as if Green issues are very far from being ‘unrepresentable voids’ for capitalist culture. Climate change and the threat of resource-depletion are not being repressed so much as incorporated into advertising and marketing. What this treatment of environmental catastrophe illustrates is the fantasy structure on which capitalist realism depends: a presupposition that resources are infinite, that the earth itself is merely a husk which capital can at a certain point slough off like a used skin, and that any problem can be solved by the market (In the end, Wall-E presents a version of this fantasy – the idea that the infinite expansion of capital is possible, that capital can proliferate without labor – on the off world ship, Axiom, all labor is performed by robots; that the burning up of Earth’s resources is only a temporary glitch, and that, after a suitable period of recovery, capital can terraform the planet and recolonize it). Yet environmental catastrophe features in late capitalist culture only as a kind of simulacra, its real implications for capitalism too traumatic to be assimilated into the system. The significance of Green critiques is that they suggest that, far from being the only viable political-economic system, capitalism is in fact primed to destroy the entire human environment. The relationship between capitalism and eco-disaster is neither coincidental nor accidental: capital’s ‘need of a constantly expanding market’, its ‘growth fetish’, mean that capitalism is by its very nature opposed to any notion of sustainability.

But Green issues are already a contested zone, already a site where politicization is being fought for. In what follows, I want to stress two other aporias in capitalist realism, which are not yet politicized to anything like the same degree. The first is mental health. Mental health, in fact, is a paradigm case of how capitalist realism operates. Capitalist realism insists on treating mental health as if it were a natural fact, like weather (but, then again, weather is no longer a natural fact so much as a political-economic effect). In the 1960s and 1970s, radical theory and politics (Laing, Foucault, Deleuze and Guattari, etc.) coalesced around extreme mental conditions such as schizophrenia, arguing, for instance, that madness was not a natural, but a political, category. But what is needed now is a politicization of much more common disorders. Indeed, it is their very commonness which is the issue: in Britain, depression is now the condition that is most treated by the NHS. In his book The Selfish Capitalist, Oliver James has convincingly posited a correlation between rising rates of mental distress and the neoliberal mode of capitalism practiced in countries like Britain, the USA and Australia. In line with James’s claims, I want to argue that it is necessary to reframe the growing problem of stress (and distress) in capitalist societies. Instead of treating it as incumbent on individuals to resolve their own psychological distress, instead, that is, of accepting the vast privatization of stress that has taken place over the last thirty years, we need to ask: how has it become acceptable that so many people, and especially so many young people, are ill? The ‘mental health plague’ in capitalist societies would suggest that, instead of being the only social system that works, capitalism is inherently dysfunctional, and that the cost of it appearing to work is very high.

The other phenomenon I want to highlight is bureaucracy. In making their case against socialism, neoliberal ideologues often excoriated the top-down bureaucracy which supposedly led to institutional sclerosis and inefficiency in command economies. With the triumph of neoliberalism, bureaucracy was supposed to have been made obsolete; a relic of an unlamented Stalinist past. Yet this is at odds with the experiences of most people working and living in late capitalism, for whom bureaucracy remains very much a part of everyday life. Instead of disappearing, bureaucracy has changed its form; and this new, decentralized, form has allowed it to proliferate. The persistence of bureaucracy in late capitalism does not in itself indicate that capitalism does not work – rather, what it suggests is that the way in which capitalism does actually work is very different from the picture presented by capitalist realism.

In part, I have chosen to focus on mental health problems and bureaucracy because they both feature heavily in an area of culture which has becoming increasingly dominated by the imperatives of capitalist realism: education. Through most of the current decade, I worked as a lecturer in a Further Education college, and in what follows, I will draw extensively on my experiences there. In Britain, Further Education colleges used to be places which students, often from working class backgrounds, were drawn to if they wanted an alternative to more formal state educational institutions. Ever since Further Education colleges were removed from local authority control in the early 1990s, they have become subject both to ‘market’ pressures and to government-imposed targets. They have been at the vanguard of changes that would be rolled out through the rest of the education system and public services – a kind of lab in which neoliberal ‘reforms’ of education have been trialed, and as such, they are the perfect place to begin an analysis of the effects of capitalist realism.