Particularly problematic here is the tendency to see the welfare state as external to the risk dynamics of capitalism and to view its effects in terms of the decommodification of labor. Conceptually inclined historians such as Ewald (1986) and Castel (2003) have insisted, by contrast, that the midtwentieth-century welfare state was never external to the market but rather central in organizing its risk logic. The welfare state represented less a "balance" between a capitalist economy and a social-democratic polity than an integration of the population into the mechanisms of capitalism in ways that transformed those mechanisms at their core. If the work of these authors has focused mostly on Europe, such insights hold a fortiori for the United States, whose welfare state was always a capitalist institution in more overt ways. Class compromise was brokered not through the suppression of finance but precisely through its state-sponsored expansion. The most significant aspects of this were the creation of the so-called government-sponsored enterprises, which supported the ability of the financial system to flexibly extend various forms of household credit; and the institution of deposit insurance, which undercut the phenomenon of bank runs and so permitted a normalization of the role of commercial banks in everyday life. The post-New Deal era saw the progressive socialization of American workers into the mechanisms of credit and debt. The emergence of a Fordist regime of full employment and a living wage was never the foundation of an unindebted life or the suppression of finance, as many now imagine, but was precisely the basis on which households entered into contracts of consumer and mortgage credit. In an important sense, the New Deal was a key step in the direction of what under neoliberalism has become more recognizable as "the capitalization of almost everything" (Leyshon and Thrift 2007), the measurement of human capacities in terms of their ability to provide a flow of revenues (cf. Nitzan and Bichler 2009:158).
Martijn Konings, Capital and Time: For a New Critique of Neoliberal Reason











