Fascism or the Radical Left?

Two Stratfor articles, "Geopolitical Journey: An Empty Highway in Spain," and "Europe: Unemployment and Instability," suggest that there is an underlying problem of social distance and lack of empathy that leads political elites, and the German public, to continue to insist on austerity, because they don't feel the effects the recession is having on others. Germans, for example, can get judgmental about the shiftless southern Europeans, and insist that only they know what's good for everyone: more austerity.

The US faces a similar problem, because of the widening disparity of wealth. The call for austerity among Republicans expresses the preferences of the very wealthy, who want lower taxes and see no utility in "coddling" what Romney labeled the dependent 47%. So, unemployment is not perceived as a problem, either in Germany (as yet), nor among Wall Street bankers, or their socioeconomic cousins, the very wealthy. That's why almost all the debate in Washington centers on austerity: how to accomplish the Sequester more rationally, how to cut more from social programs like SNAP (food-stamps), so that debt and deficits can be reduced. This debate continues, even though there is stubbornly high unemployment, and especially high long-term employment. "Conservatives" see no reason to stimulate job growth, since the stock market is surging, profits are high, and housing prices are rising.

In Europe, the result very well could be radical politics--or worse. Not only has Italy given 25% of its votes to a new untried political party, The Five Star Movement, led by a comedian, but Hungary's right-wing government has passed a law banning all political opposition!

Unemployment rates of 27% (Greece and Spain), or even around 15% (Lithuania, Portugal, Ireland) begins to look really scary, especially when you have youth unemployment at or more than double those rates. As the Stratfor articles mention, this was the climate that created Fascism and Nazism after WWI. The response this time could be as radical, and of either the right or the left (Greek extremist parties are at both ends of the political spectrum).

The apparent quiescence in Spain and other European nations in recession could easily explode, given the seeming hopelessness faced by the unemployed, especially the youth. If I were in their shoes, I'd be tinder for anyone who started yelling that he/she could solve it.

Meanwhile, austerity and the Sequester are destroying the future of both regions.

What this may mean is that the economic/political system in which we exist could undergo radical transformation sometime soon, and it might not be pretty. However, our elites (European, American, Chinese) don't seem to have a clue, which makes all our political systems that much more vulnerable to upheaval.

If there is no transformation, we could go the way of the Late Roman Empire: monopolized wealth by today's equivalent of Roman Senators, and immiseration for everyone else.