ABSTRACT
The concept of a “legitimation crisis” is most closely associated with Jürgen Habermas, and recently, his 1970s book on crisis tendencies in postwar capitalism has provided a common reference point for discussion of various forms of political turmoil that have ensued in Europe and the U.S. since the 2008 financial crisis. This chapter explores the meaning of crisis and crisis consciousness under the financialized capitalism of the 21st century, showing how it might differ from the account given by Habermas. This chapter argues that what sets the current legitimation crisis apart—and what paves the way for a possible descent into illiberalism—stems from the way financialized capitalism is bound to secure legitimacy by hollowing out the political realm. In the process, it deprives citizens of the capacity to discursively come to terms with the consequences of major crisis, leaving them disempowered, alienated, and vulnerable to exploitation by charismatic leaders with illiberal agendas.
