Slavoj Zizek -The empowerment of the Right, the dissolution of the Left

The public sector is facing severe economy measures.  The budgets for culture, education and health care are being cut.  The measures are implemented by the political right.  The political left, in this period of turmoil, does not seem to be able or willing to meet force with force and turn the tide.  Has the left become unsettled?  Does the binary division between left and right still apply to read the current political developments and state of flux?  Can the left reinvent itself and find an answer to the spreading attitude of rigidity and xenophobia?