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Crisis Capitalism and the Crisis in our Minds.

How Capitalism at its worst, impacts our emotional worlds.


Crisis capitalism refers to the practice of exploiting economic, political, or environmental crises for profit, often intensifying the hardship experienced by ordinary people. Many argue that this form of capitalism (one that appears to be on the increase) is born primarily by the debasement of currency. That is to say the ever reducing value of the pound or dollar, due to money printing by Central Banks. Fabio Vighi writes extensively on this subject and is concerned with how the conversation around this phenomena is largely pushed underground or absent from the waking narratives that shape our lives.


The term Crisis capitalism, was perhaps popularized by Naomi Klein in her book *The Shock Doctrine*, where she refers to the process by which governments and corporations exploit crises—whether economic, political, or environmental—for financial gain and power consolidation.


Anxiety and Insecurity


One of the most immediate emotional impacts of crisis capitalism is a heightened sense of anxiety. When a crisis hits—whether it's a financial crash, a natural disaster, or a pandemic—people's lives are thrown into uncertainty. Jobs are lost, housing becomes precarious, and access to essential services may be disrupted. In crisis capitalism, these upheavals are often exacerbated by policies such as austerity measures, deregulation, or privatization, which prioritize profit over the well-being of the population. As a result, people face an ongoing struggle to secure basic needs like healthcare, education, and social welfare, which can leave them in a constant state of stress.


This emotional strain is not limited to the duration of the crisis itself. Crisis capitalism tends to create long-lasting precarity, as the aftermath often involves permanent changes that favor the wealthy and powerful. For example, after the 2008 financial crisis, millions of people around the world faced years of economic uncertainty while banks and corporations received bailouts and tax breaks. This uneven recovery creates a lingering sense of vulnerability, as people come to feel that the systems meant to protect them—like governments and financial institutions—are unreliable or, worse, actively working against their interests.


Disillusionment and Distrust


As people experience the effects of crisis capitalism, another emotional consequence is the erosion of trust in institutions and leaders. In many cases, crises are manipulated or even engineered to push through unpopular policies, often without democratic oversight or consultation. When people see governments and corporations prioritizing profits over their well-being, it breeds a sense of disillusionment. This can lead to a growing distrust of political and economic systems, as well as feelings of betrayal by those in power.


For example, after natural disasters, there is often a push to privatize public services, like water, electricity, or healthcare, under the guise of “rebuilding.” While these changes are presented as solutions, they often result in higher costs and reduced access for the general population. When the very systems designed to support people in times of crisis instead deepen their suffering, a widespread sense of alienation can emerge. People may feel that they have no voice in decisions that profoundly affect their lives, leading to political disengagement or radicalization as they search for alternative ways to express their frustration.


Resentment and Anger


The inequalities that crisis capitalism amplifies also lead to powerful feelings of resentment and anger. Crises tend to reveal the stark divide between those who benefit from the system and those who suffer because of it. While the wealthy may use crises as opportunities to expand their influence and wealth, the majority of people are left to deal with the consequences—job losses, wage stagnation, and diminishing access to essential resources.


This growing inequality fosters a deep sense of injustice. The anger isn't just about economic disparity but also about the moral and ethical implications of a system that seems to reward exploitation and disregard human suffering. Over time, this resentment can lead to social unrest, protests, and movements aimed at challenging the status quo, as people seek to reclaim power and assert their rights. However, even these movements can be co-opted or suppressed, further deepening the cycle of disillusionment and emotional exhaustion.


Psychological Effects: Depression, Burnout, and Helplessness


The ongoing pressure of living in a system driven by crisis capitalism can have severe psychological effects, often manifesting in chronic stress, burnout, and depression. The constant need to adapt to new economic realities, combined with the erosion of social safety nets, leaves many people in a state of emotional fatigue. The sense of being stuck in an unending cycle of crisis—where each new event feels like a continuation of the last—can lead to feelings of helplessness and hopelessness.


In many ways, crisis capitalism creates the conditions for a collective emotional burnout. When basic survival becomes a daily struggle, there is little room for emotional recovery. People may experience a sense of paralysis, feeling unable to affect change in their own lives or the broader society. This emotional numbness is compounded by the perception that crises are inevitable and uncontrollable, reinforcing the idea that the individual has little agency in a world dominated by powerful economic and political forces.


Erosion of Community and Social Cohesion


Another significant emotional impact of crisis capitalism is the erosion of community and social cohesion. In times of crisis, people often look to their communities for support. However, crisis capitalism frequently undermines collective solidarity by promoting individualism and competition. When resources are scarce and the future is uncertain, people may be forced to prioritize their own survival over the well-being of others. This can lead to a breakdown in trust and cooperation within communities, as people become more isolated and protective of what little they have.


This erosion of social bonds can leave people feeling more alone and disconnected. Without strong community ties, individuals may struggle to find emotional support, which can exacerbate feelings of isolation and despair. Crisis capitalism, in this way, not only affects people's material conditions but also damages the social fabric that helps individuals navigate hardship.


Crisis capitalism has profound and far-reaching emotional effects on individuals and communities. It creates a pervasive sense of anxiety, insecurity, and powerlessness, while also fostering resentment, anger, and disillusionment. The psychological toll—chronic stress, burnout, depression—further weakens people's ability to cope with ongoing crises, leaving many feeling trapped in an inescapable cycle of hardship. By prioritizing profit over people, crisis capitalism undermines the emotional and social well-being of societies, creating conditions that perpetuate inequality and emotional distress. Ultimately, it is not just an economic or political issue but a deeply human one, affecting the emotional core of how people experience the world and their place in it.

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