A path to do this is to step away from the #mainstreming mess. In 2024, the Nobel Prize in Economics was awarded to Daron Acemoglu, Simon Johnson, and James Robinson. The prize recognised their work on how institutions shape prosperity, most famously through their book Why Nations Fail. The timing matters, it matters a lot.
This award lands at exactly the moment we should be asking why Institutional Economics – the respectable face of #mainstreaming – has spent the last fifteen years pushing us to keep kneeling at the altar of the #deathcult of #neoliberalism.
For more than a decade after the 2008 financial crisis – a crisis that should have finished neoliberal economics for good – our liberal institutions quietly stepped in to rescue the doctrine. Not by defending it openly, but by reframing its failures. This wasn’t accidental. It’s central to the mess we’re living in now.
The 2008 crash began with the collapse of Lehman Brothers and rapidly spread from finance into the real economy. It triggered the largest global contraction since World War II. Advanced economies saw GDP falls of over 10%. In the US alone, more than $16 trillion in household wealth vanished.
The shock was so extreme that Queen Elizabeth II famously asked economists at the London School of Economics why nobody had seen it coming, the profession replied that it was a “failure of the collective imagination”. That answer was revealing and evasive. Because imagination hadn’t been lacking before the crash. Throughout the 1990s and early 2000s, #neoliberalism dominated economics. Its core beliefs were simple, absolute, and aggressively enforced:
- Markets are efficient
- Deregulation increases productivity
- Financial innovation reduces risk
- Macroeconomic instability has been solved
These ideas were institutionalised across universities, central banks, and international organisations. Nobel Prizes were handed out to models built on perfectly rational actors and self-correcting markets. Central bankers talked confidently about a “Great Moderation”: stable inflation, steady growth, forever.
Economics became “scientific”, self-referential, and closed to challenge. This wasn’t wisdom, it was a pile of shit built on mathematical abstraction – a classic #geekproblem – detached from lived social reality. Financial fantasies were celebrated. Subprime mortgages were reframed as inclusion. Mortgage-backed securities were said to spread risk. Collateralised debt obligations were hailed as marvels of modern finance.
They were, in reality, weapons of mass financial destruction. The #deathcult was warming up. When the system collapsed, neoliberal economics should have been held to account. No theory in modern history had failed so completely, so quickly, with such devastating consequences. Instead, it reinvented itself.
The first move was redefinition. Under the Obama administration, the US abandoned laissez-faire dogma overnight. Banks were declared “systemically important”. Corporations were bailed out. Trillions were injected into markets through quantitative easing. Socialism for the rich was revealed as normal.
This should have been the moment it became obvious that #neoliberalism was never about principles. It was always about power. Markets, models, and theories were tools – not truths – used to maintain capital’s dominance over society. But what we got was the normal mess of denial, spin, and fragmentation.
Once stability returned, denial followed. Economists claimed victory. The crisis was blamed on interest rates, oil prices, China’s savings – anything except the theory itself. The line became: “The models failed to predict the crisis, but the solutions worked.” That sleight of hand kept neoliberalism alive.
Instead of lifting our heads and walking away, we fell for the smoke and mirrors. The priesthood fragmented neoliberalism into subfields, and our #fashionista classes filled the space. Game theory analysed distressed financial institutions without asking why they were distressed.
Behavioural economics blamed low-income borrowers’ “biases” while ignoring policies that made housing unaffordable. Feminist economics debated unpaid labour while leaving capital accumulation untouched.
Each critique was partial. Each acted as a distraction. None threatened the altar we were still collectively worshipping. The strongest shield, however, came from Institutional Economics – the respectable centre of #mainstreaming liberal thought.
Why, Why Nations Fail succeeds, it “common sense” argues that prosperity comes from “inclusive institutions” – markets, property rights, patents – supported by political institutions like democracy and the rule of law. “Extractive institutions”, we’re told, lead to stagnation.
This framework was easy to accept in the common-sense fog of the #fashionista class. It sounded critical while leaving capitalism intact. Weak, procedural democracy was sold as the mechanism that could tame markets.
What it ignored – completely – is that democracy inside highly unequal societies is easily captured by capital. Elections reproduce power relations far more often than they correct them. By declaring any market outcome produced through elections legitimate, the #nastyfew who this mess served grabbed and twisted “democratic” approval.
At a moment of global instability – Eurozone debt crises, austerity, mass unemployment – #mainstreaming economics offered a comforting story: the problem wasn’t capitalism, just “bad institutions”.
The reality on the ground, in Europe, austerity devastated entire societies. Greece lost over a quarter of its GDP. Youth unemployment passed 50%. Public assets were stripped. Debt increased. Today, a six-day work week is framed as “responsibility”.
In the United States, recovery was brutally unequal. Between 2009 and 2019, the top 1% captured 40% of all income growth. Asset prices exploded while wages stagnated. Private equity gutted industries. In the world of the #dotcons, gig work replaced stability. Neoliberalism didn’t retreat. It consolidated.
There was, however, a different path. China – worshipping a different cult – ignored neoliberal assumptions after 2008. Instead of monetary inflation, it pursued fiscal stimulus, infrastructure investment, R&D, and industrial policy. Growth remained high. Manufacturing expanded. Living standards improved. China became the world’s largest economy by purchasing power parity more than a decade ago.
Western institutions urged “liberalisation”, framed through #mainstreaming economics. Political reform was demanded – meaning access for Western capital. China refused. When China’s property bubble burst in 2021, contagion was contained. Capital was redirected into technology and manufacturing. Industrial dominance accelerated.
This success could not be acknowledged, so institutional economics reframed it as “extractive”, unsustainable, and destined to collapse. Yet the facts contradict the story. Inequality is far higher in the US. China’s overproduction lowers global prices and stabilises living standards. Without it, global inequality would already be politically explosive.
So why are we still stuck, #Neoliberalism survives not because it works, but because it controls the story of what is possible. It offers legitimacy without transformation, democracy without redistribution, reform without power shifts.
Worse, over the last forty years it has reshaped education, work, identity, and the value of human life itself. It trained people to see themselves as assets, competitors, and risks. It normalised insecurity and abstraction. That’s why we’re facing collapse now: a system that has exhausted its social, ecological, and moral foundations.
Yes, it’s a mess, you probably need a shovel #OMN













