Pluralistic: Austerity creates fascism (13 Apr 2026)


Today's links

  • Austerity creates fascism: We can't afford to not afford nice things.
  • Hey look at this: Delights to delectate.
  • Object permanence: The Server of Amontillado; Flapper's Dictionary; Mastercard v rec.humor.funny; Philippines electoral data breach; A front page from the Trump presidency; Spike Lee x Bernie Sanders; France v password hashing; Algorithms as Central European folk-dances; Save Comcast; Lex Luthor v export controls; Zuckerberg in the dock.
  • Upcoming appearances: Toronto, San Francisco, London, Berlin, NYC, Hay-on-Wye, London.
  • Recent appearances: Where I've been.
  • Latest books: You keep readin' em, I'll keep writin' 'em.
  • Upcoming books: Like I said, I'll keep writin' 'em.
  • Colophon: All the rest.


A line of Nazis at the Nuremburg rally, throwing Nazi salutes. Their backs are to us. Facing them is a hand-tinted group of child laborers from the early 20th century, squinting suspiciously at them.

Austerity creates fascism (permalink)

I'm worried about AI psychosis. Specifically, I'm worried about the psychosis that makes our "capital allocators" spend $1.4T on the money-losingest technology in the history of the human race, in pursuit of a bizarre fantasy that if we teach the word-guessing program enough words, it will take all the jobs. That's some next-level underpants-gnomery:

https://pluralistic.net/2026/03/12/normal-technology/#bubble-exceptionalism

The thing that worries me about billionaires' AI psychosis isn't concern for their financial solvency. No, what I worry about is what happens when the seven companies that comprise a third of the S&P 500 stop trading the same $100b IOU around while pretending it's in all of their bank accounts at once and implode, vaporizing a third of the US stock market.

My concern about a massive collapse in the capital markets isn't that workers will suffer directly. Despite all the Wonderful Life rhetoric about your money being in Joe's house and the Kennedy house and Mrs Macklin's house, the reality is that the median US worker has $955 saved for retirement. You could nuke the whole financial system and not take a dime out of most workers' pockets:

https://finance.yahoo.com/news/955-saved-for-retirement-millions-are-in-that-boat-150003868.html

No, the thing that has me terrified about AI is that when it craters and takes the economy with it, that we will respond the same way we have during every financial crisis of the 21st century: with austerity, and austerity breeds fascism.

There's a direct line from every K-shaped recovery to every strong-man who's currently sending masked gunmen into the streets. The Hungarian dictator Viktor Orban rose to power after people who'd been suckered into denominating their mortgages in Swiss francs lost their houses when the currency markets moved suddenly, because the swindlers who'd sold them those mortgages took the position that wanting to live somewhere automatically made you an expert in forex risk, so caveat fuckin' emptor, baby.

Back in America, Obama decided to bail out the banks and not the people. His treasury secretary Tim Geithner told him the banks were headed for a catastrophic crash and could only be saved if he "foamed the runways" with everyday Americans' mortgages. Millions of Americans lost their homes to foreclosure as banks, flush with public cash, threw them out of their homes and then flipped them to investment banks who became the country's worst slumlords:

https://pluralistic.net/2022/02/08/wall-street-landlords/#the-new-slumlords

Americans were understandably not entirely happy with this outcome. So when Hillary Clinton replied to Donald Trump's "Make America Great Again" with "America is already great," her message was, "Vote for me if you think everything is great; vote for Trump if you think everything is fucked":

https://www.politico.com/blogs/2016-dem-primary-live-updates-and-results/2016/03/clinton-america-is-already-great-220078

"Austerity begets fascism" is one of those things that makes a lot of intuitive sense, but it turns out that there's a good empirical basis for believing it. In "Public Service Decline and Support for the Populist Right" four economists from the LSE and Bocconi provide an excellent look at the linkage between austerity and support for fascists:

https://catherinedevries.eu/NHS.pdf

Here's how they break it down. Political scientists have assembled a large, reproducible body of evidence to show that "public service provision is crucial to people’s perceptions of their quality of life and living standards." Good public services are the basis for "the social contract between rulers and the ruled" – pay your taxes and obey the laws, and in return, you will be well served.

When public services go wrong, people don't always know who to blame, but they definitely notice that something is going wrong, so when public services fail, people stop trusting the state, and that social contract starts to fray. They start to suspect that elites are lining their pockets rather than managing the system, and they "withdraw their support" for the system.

Fascists thrive in these conditions. Fascists come to power by mobilizing grievances. By choosing a scapegoat, fascists can create support from people who are justifiably furious that the services they rely on have collapsed. So when you can't get shelter, or health care, or elder care, or child care, or an education for your kids, you become a mark for a fascist grifter with a story about "undeserving migrants" who've taken the benefits that should rightly accrue to "deserving natives."

(This is grimly hilarious, given that the wizened, decrepit rich world is critically dependent on migrants as a source of healthy, working-age workers who pay massive amounts into the system while barely making use of it, many of whom plan on retiring to their home countries when they do reach the age where they're likely to extract a net loss to the benefits system.)

Enter the NHS, a beloved institution that is hailed as the pride of the nation by both the political left and the right. The majority of Britons use the NHS, with only 12-14% of the population "going private," so when the NHS declines, everybody notices (what's more, even people with private care use the NHS for many of their needs).

Britons love the NHS and they want the government to spend more on it. There's "a broad public consensus that the government is not going far enough when it comes to funding." That's because generations of cuts to the NHS have left it substantially hollowed out, with major parts of the service handed over to for-profit entities who overcharge and underserve.

The most tangible and immediate evidence of this slow-motion collapse comes when your local general practitioner ("family doctor" or "primary care physician" in Americanese) shuts down. The UK has lost 1,700 GP practices since 2013.

Reasoning that a GP closure would make people angry at the system, the economists behind the paper wanted to see what happened to people's political beliefs when their GP's office shut. They relied on the GP Patient Survey, a longitudinal study run by NHS England and Ipsos Mori. The survey asks a statistically significant random sample of patients from every GP practice in the NHS and then weights the results "to reflect the demographic characteristics of the local population according to UK Census estimates." It's good data.

The researchers cross-referenced this with various high-quality instruments that measured the political views of Britons, like the U Essex Understanding Society Panel, drawing on 13 years' worth of surveys from 2009-2022, gaining access to a protected version of the dataset with fine-grained geographic information about survey respondents, which allowed them to link responses to the "catchment areas" for specific GPs' office. They combined this data with the British Election Study panel, which has surveyed voters 29 times since 2014.

Most of the paper describes the careful work the researchers did to analyze, cross-reference and validate this data, but what interested me was the conclusion: that people who see a severe degradation in the quality of the services they rely on switch their political affiliation to one of Britain's fascist parties – UKIP, the Brexit Party, or Reform – parties that have called for ethnic cleansing in Britain.

This is what has me scared. We can see the looming economic crises in our near future. If it's not the AI crash that triggers the next wave of austerity, it'll be the oil crisis created by Trump's bungling in the Strait of Epstein. And of course, we could always get a twofer, because the Gulf States that were pouring hundreds of billions into AI data-centers now need every cent to rebuild the LNG shipping terminals and oil refineries that Iran blew up after Trump, Hegseth and Netanyahu started murdering all the schoolgirls they could target. Once they nope out of the AI bubble, that could trigger the collapse.

This is a study about the NHS, but it's not just about the NHS. It's perfectly reasonable to assume that people react this way when they experience cuts to their road maintenance, their schools, their community centers, and any other service they rely on. Fascism – what Hannah Arendt called 'organized loneliness' – can only take root when people stop believing that their society will reward their lawfulness with an orderly and humane existence.

The crisis is coming, but whether we do austerity when it gets here is our choice. Everywhere we turn, political leaders are rejecting generations of failed austerity in favor of "sewer socialism" – the idea that you get people to trust their government by earning that trust. Zohran Mamdani is fixing 100,000 potholes in the first 100 days, despite the multi-billion dollar deficit that outgoing Mayor Eric Adams created by "running the city like a business":

https://prospect.org/2026/04/10/zohran-mamdani-getting-new-york-city-believe-in-government/

In Canada and the UK, party leaders like Avi Lewis (NDP) and Zack Polanski (Greens) are vowing to fight the coming crises by spending, not cutting. Compare that with UK fascist leader Nigel Farage, who says that if he's elected, he'll create a "paramilitary style" British ICE, building concentration camps for 24,000 migrants, with the hope of deporting 288,000 people per year:

https://www.thenerve.news/p/reform-deportation-operation-restoring-justice-data-surveillance-palantir-uk-labour

"Socialism or barbarism" isn't just a cliche – it's actually a choice on the ballot.

Hey look at this (permalink)


A shelf of leatherbound history books with a gilt-stamped series title, 'The World's Famous Events.'

Object permanence (permalink)

#25yrsago The Server of Amontillado https://web.archive.org/web/20070112024841/http://www.techweb.com/wire/story/TWB20010409S0012

#25yrsago Mastercard threatens the moderator of rec.humor.funny https://www.netfunny.com/rhf/jokes/01/Apr/mcrhf.html

#15yrsago Sweden exports sweatshops: Ikea’s first American factory https://web.archive.org/web/20190404035900/https://www.latimes.com/business/la-xpm-2011-apr-10-la-fi-ikea-union-20110410-story.html

#15yrsago Canada’s New Democratic Party promises national broadband and net neutrality https://web.archive.org/web/20110412064952/https://www.michaelgeist.ca/content/view/5734/125/

#15yrsago Flapper’s dictionary: 1922 https://bookflaps.blogspot.com/2011/04/flappers-dictionary.html

#15yrsago Toronto’s Silver Snail to leave Queen Street West https://web.archive.org/web/20110409181737/http://www.thestar.com/entertainment/article/970520–the-silver-snail-comics-icon-sold-to-move

#15yrsago WI county clerk whose homemade voting software found 14K votes for Tea Party judge is an old hand at illegal campaigning https://web.archive.org/web/20110412121323/http://host.madison.com/wsj/news/local/govt-and-politics/elections/article_7e777016-62b2-11e0-9b74-001cc4c002e0.html

#15yrsago Canadian Tories’ campaign pledge: We will spy on the Internet https://web.archive.org/web/20110412125250/https://www.michaelgeist.ca/content/view/5733/125/

#15yrsago France to require unhashed password storage https://www.bbc.com/news/technology-12983734

#15yrsago Central European folk-dancers illustrated sorting algorithms https://www.i-programmer.info/news/150-training-a-education/2255-sorting-algorithms-as-dances.html

#10yrsago Save Comcast! https://www.eff.org/deeplinks/2016/04/save-comcast

#10yrsago Goldman Sachs will pay $5B for fraudulent sales of toxic debt, no one will go to jail https://web.archive.org/web/20160412155435/https://consumerist.com/2016/04/11/goldman-sachs-to-pay-5b-to-settle-charges-of-selling-troubled-mortgages-ahead-of-the-financial-crisis/

#10yrsago How could Lex Luthor beat the import controls on kryptonite? https://lawandthemultiverse.com/2016/04/11/batman-v-superman-and-import-licenses/

#10yrsago Congresscritters spend 4 hours/day on the phone, begging for money https://www.youtube.com/watch?v=Ylomy1Aw9Hk

#10yrsago Philippines electoral data breach much worse than initially reported, possibly worst ever https://www.infosecurity-magazine.com/news/every-voter-in-philippines-exposed/

#10yrsago A cashless society as a tool for censorship and social control https://web.archive.org/web/20260311032317/https://www.theatlantic.com/technology/archive/2016/04/cashless-society/477411/

#10yrsago Boston Globe previews a front page from the Trump presidency https://s3.documentcloud.org/documents/2797782/Ideas-Trump-front-page.pdf

#10yrsago Spike Lee interviews Bernie Sanders: Vermont, Trump, Clinton, guns and Brooklyn https://www.hollywoodreporter.com/movies/movie-features/bernie-sanders-interviewed-by-spike-lee-thr-new-york-issue-880788/

#5yrsago Youtube blocks advertisers from targeting "Black Lives Matter" https://pluralistic.net/2021/04/10/brand-safety-rupture/#brand-safety

#5yrsago Google's short-lived data-advantage https://pluralistic.net/2021/04/11/halflife/#minatory-legend

#1yrago Zuckerberg in the dock https://pluralistic.net/2025/04/11/it-is-better-to-buy/#than-to-compete

#1yrago The most remarkable thing about antitrust (that no one talks about) https://pluralistic.net/2025/04/10/solidarity-forever-2/#oligarchism

Upcoming appearances (permalink)

A photo of me onstage, giving a speech, pounding the podium.


A screenshot of me at my desk, doing a livecast.

Recent appearances (permalink)


A grid of my books with Will Stahle covers..

Latest books (permalink)


A cardboard book box with the Macmillan logo.

Upcoming books (permalink)

  • "The Reverse-Centaur's Guide to AI," a short book about being a better AI critic, Farrar, Straus and Giroux, June 2026 (https://us.macmillan.com/books/9780374621568/thereversecentaursguidetolifeafterai/)

  • "Enshittification, Why Everything Suddenly Got Worse and What to Do About It" (the graphic novel), Firstsecond, 2026

  • "The Post-American Internet," a geopolitical sequel of sorts to Enshittification, Farrar, Straus and Giroux, 2027

  • "Unauthorized Bread": a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, 2027

  • "The Memex Method," Farrar, Straus, Giroux, 2027


Colophon (permalink)

Today's top sources:

Currently writing: "The Post-American Internet," a sequel to "Enshittification," about the better world the rest of us get to have now that Trump has torched America. Third draft completed. Submitted to editor.

  • "The Reverse Centaur's Guide to AI," a short book for Farrar, Straus and Giroux about being an effective AI critic. LEGAL REVIEW AND COPYEDIT COMPLETE.

  • "The Post-American Internet," a short book about internet policy in the age of Trumpism. PLANNING.

  • A Little Brother short story about DIY insulin PLANNING

This work – excluding any serialized fiction – is licensed under a Creative Commons Attribution 4.0 license. That means you can use it any way you like, including commercially, provided that you attribute it to me, Cory Doctorow, and include a link to pluralistic.net.

https://creativecommons.org/licenses/by/4.0/

Quotations and images are not included in this license; they are included either under a limitation or exception to copyright, or on the basis of a separate license. Please exercise caution.

How to get Pluralistic:

Blog (no ads, tracking, or data-collection):

Pluralistic.net

Newsletter (no ads, tracking, or data-collection):

https://pluralistic.net/plura-list

Mastodon (no ads, tracking, or data-collection):

https://mamot.fr/@pluralistic

Bluesky (no ads, possible tracking and data-collection):

https://bsky.app/profile/doctorow.pluralistic.net

Medium (no ads, paywalled):

https://doctorow.medium.com/

Tumblr (mass-scale, unrestricted, third-party surveillance and advertising):

https://mostlysignssomeportents.tumblr.com/tagged/pluralistic

"When life gives you SARS, you make sarsaparilla" -Joey "Accordion Guy" DeVilla

READ CAREFULLY: By reading this, you agree, on behalf of your employer, to release me from all obligations and waivers arising from any and all NON-NEGOTIATED agreements, licenses, terms-of-service, shrinkwrap, clickwrap, browsewrap, confidentiality, non-disclosure, non-compete and acceptable use policies ("BOGUS AGREEMENTS") that I have entered into with your employer, its partners, licensors, agents and assigns, in perpetuity, without prejudice to my ongoing rights and privileges. You further represent that you have the authority to release me from any BOGUS AGREEMENTS on behalf of your employer.

ISSN: 3066-764X

Join the Discussion at ChinWag