Tag Archives: neoliberalism

Was the Rise of Neoliberalism the Root Cause of Extreme Inequality?

Financial meltdown, environmental disaster and even the rise of Donald Trump – neoliberalism has played its part in them all.
By George Monbiot – Imagine if the people of the Soviet Union had never heard of communism.

The ideology that dominates our lives has, for most of us, no name. Mention it in conversation and you’ll be rewarded with a shrug. Even if your listeners have heard the term before, they will struggle to define it. Neoliberalism: do you know what it is?

Its anonymity is both a symptom and cause of its power. It has played a major role in a remarkable variety of crises: the financial meltdown of 2007‑8, the offshoring of wealth and power, of which the Panama Papers offer us merely a glimpse, the slow collapse of public health and education, resurgent child poverty, the epidemic of loneliness, the collapse of ecosystems, the rise of Donald Trump. But we respond to these crises as if they emerge in isolation, apparently unaware that they have all been either catalyzed or exacerbated by the same coherent philosophy; a philosophy that has – or had – a name. What greater power can there be than to operate namelessly?

So pervasive has neoliberalism become that we seldom even recognize it as an ideology. We appear to accept the proposition that this utopian, millenarian faith describes a neutral force; a kind of biological law, like Darwin’s theory of evolution. But the philosophy arose as a conscious attempt to reshape human life and shift the locus of power.

Neoliberalism sees competition as the defining characteristic of human relations. It redefines citizens as consumers, whose democratic choices are best exercised by buying and selling, a process that rewards merit and punishes inefficiency. It maintains that “the market” delivers benefits that could never be achieved by planning.

Attempts to limit competition are treated as inimical to liberty. Tax and regulation should be minimized, public services should be privatized. The organization of labor and collective bargaining by trade unions are portrayed as market distortions that impede the formation of a natural hierarchy of winners and losers.

Inequality is recast as virtuous: a reward for utility and a generator of wealth, which trickles down to enrich everyone. Efforts to create a more equal society are both counterproductive and morally corrosive. The market ensures that everyone gets what they deserve. more>

Rescuing Economics From Neoliberalism

By Dani Rodrik – As even its harshest critics concede, neoliberalism is hard to pin down. In broad terms, it denotes a preference for markets over government, economic incentives over social or cultural norms, and private entrepreneurship over collective or community action.

The term is used as a catchall for anything that smacks of deregulation, liberalization, privatization, or fiscal austerity. Today it is reviled routinely as a short-hand for the ideas and the practices that have produced growing economic insecurity and inequality, led to the loss of our political values and ideals, and even precipitated our current populist backlash.

The use of the term “neoliberal” exploded in the 1990s, when it became closely associated with two developments, neither of which Charles Peters mentions. One was financial deregulation, which would culminate in the 2008 financial crash—the first that the United States had experienced since the interwar period—and in the still-lingering euro debacle. The second was economic globalization, which accelerated thanks to free flows of finance and to a new, more ambitious type of trade agreement. Financialization and globalization have become the most overt manifestations of neoliberalism in today’s world. more>

The quitting economy

When employees are treated as short-term assets, they reinvent themselves as marketable goods, always ready to quit

BOOK REVIEW
Down and Out in the New Economy: How People Find (or Don’t Find) Work Today, Author: Ilana Gershon.

By Ilana Gershon – Saying that ‘the market is the best way to organize or determine value’ overlooks many sorts of life dilemmas.

Inspired by the Nobel Prize-winner Gary Becke in adopting the market idiom, business writers began to talk about how people need to think about investing in themselves, and viewing themselves as an asset whose value only the market could effectively determine. Over time, a whole body of literature emerged advocating that people should view themselves as a business – a bundle of skills, assets, qualities, experiences and relationships to be managed and continually enhanced.

Not so long ago, business people thought that companies provided a wide variety of benefits to a large number of constituents – to upper management, to employees, to the local community, as well as to shareholders. Many of these benefits were long-term.

But as market value overtook other measures of a company’s value, maximising the short-term interests of shareholders began to override other concerns, other relationships. Quarterly earnings reports and stock prices became even more important, the sole measures of success.

How companies treated employees changed, and has not changed back.

In general, to keep stock prices high, companies not only have to pay their employees as little as possible, they must also have as temporary a workforce as their particular business can allow. The more expendable the workforce, the easier it is to expand and contract in response to short-term demands. These are market and shareholder metrics. Their dominance diminished commitment to employees, and all other commitments but to shareholders. more> https://goo.gl/vAoBxe