What is Neoliberalism?
What is Neoliberalism?
A Brief Definition for Activists
Publisher Name:
National Network for Immigrant and Refugee Rights
"Neo-liberalism" is a set of economic policies. you can see the effects of neo-liberalism here as the rich grow richer and the poor grow poorer.
"Neo" means we are talking about a new kind of liberalism. So what was the old kind? Adam Smith, a Scottish economist advocated the abolition of government intervention in economic matters.
• No restrictions on manufacturing, '
• no barriers to commerce,
• no tariffs,
he said; free trade was the best way for a nation's economy to develop.
Such ideas were "liberal" in the sense of no controls. This application of individualism encouraged "free" enterprise," "free" competition -- which came to mean, free for the capitalists to make huge profits as they wished.
Economic liberalism prevailed in the United States through the 1800s and early 1900s. Then the Great Depression of the 1930s led Keynes to a theory that challenged liberalism as the best policy for capitalists.
He said, in essence, that full employment is necessary for capitalism to grow and it can be achieved only if governments and central banks intervene to increase employment. These ideas had much influence on President Roosevelt's New Deal -- which did improve life for many people. The belief that government should advance the common good became widely accepted.
But the capitalist crisis over the last 25 years, with its shrinking
profit rates, inspired the corporate elite to revive economic liberalism.
A memorable definition 1996 he said: "what the Right offers is to turn the world into one big mall where they can buy Indians here, women there ...." and he might have added, children, immigrants, workers or even a whole country like Mexico."
The main points of neo-liberalism:
1. THE RULE OF THE MARKET. Liberating "free" enterprise or private enterprise from any bonds imposed by the government (the state) no matter how much social damage this causes.
a. Greater openness to international trade and investment, as in NAFTA.
b. Reduce wages by de-unionizing workers and eliminating workers' rights that had been won over many years of struggle.
c. No more price controls.
d. total freedom of movement for capital, goods and services.
To convince us this is good for us, they say "an unregulated market is the best way to increase economic growth, which will ultimately benefit everyone." It's like Reagan's "supply-side" and "trickle-down" economics -- but somehow the wealth didn't trickle down very much.
2. CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES like
a. education and
b. health care.
c. REDUCING THE SAFETY-NET FOR THE POOR, and even
d. maintenance of roads, bridges, water supply --
again in the name of reducing government's role.
Of course, they don't oppose government subsidies and tax benefits for business.
4. DEREGULATION. Reduce government regulation of protecting the environment and safety on the job.
5. PRIVATIZATION.
• Sell state-owned enterprises, goods and services to private investors.
• This includes
o banks,
o key industries,
o railroads,
o toll highways,
o electricity,
o schools,
o hospitals and even
o fresh water.
Although usually done in the name of greater efficiency, privatization has mainly had the effect of concentrating wealth even more in a few hands and making the public pay even more for its needs.
6. ELIMINATING THE CONCEPT OF "THE PUBLIC GOOD" or "COMMUNITY" and replacing it with "individual responsibility." Pressuring the poorest people in a society to find solutions to
• their lack of health care,
• education and
• social security
all by themselves -- then blaming them, if they fail, as "lazy."
Around the world, neo-liberalism has been imposed by powerful financial institutions like
• the International Monetary Fund (IMF),
• the World Bank and
• the Inter-American Development Bank.
some of the worst effects in Mexico where wages declined 40 to 50% in the first year of NAFTA while the cost of living rose by 80%.
Over 20,000 small and medium businesses have failed and more than 1,000 state-owned enterprises have been privatized in Mexico. As one scholar said, "Neoliberalism means the neo-colonization of Latin America."
In the United States neo-liberalism is
• destroying welfare programs;
• attacking the rights of labor (including all immigrant workers); and
• cutbacking social programs. \
The Republican "Contract" on America is pure
neo-liberalism. Its supporters are working hard to deny protection to
• children,
• youth,
• women,
• the planet itself –
and trying to trick us into
acceptance by saying this will "get government off my back."
The
beneficiaries of neo-liberalism are a minority of the world's people. For
the vast majority it brings even more suffering than before: suffering
without the small, hard-won gains of the last 60 years, suffering without
end.
Elizabeth Martinez is a longtime civil rights activist and author of several books, including "500 Years of Chicano History in Photographs."
What is Neoliberalism?
A Brief Definition for Activists
Publisher Name:
National Network for Immigrant and Refugee Rights
"Neo-liberalism" is a set of economic policies. you can see the effects of neo-liberalism here as the rich grow richer and the poor grow poorer.
"Neo" means we are talking about a new kind of liberalism. So what was the old kind? Adam Smith, a Scottish economist advocated the abolition of government intervention in economic matters.
• No restrictions on manufacturing, '
• no barriers to commerce,
• no tariffs,
he said; free trade was the best way for a nation's economy to develop.
Such ideas were "liberal" in the sense of no controls. This application of individualism encouraged "free" enterprise," "free" competition -- which came to mean, free for the capitalists to make huge profits as they wished.
Economic liberalism prevailed in the United States through the 1800s and early 1900s. Then the Great Depression of the 1930s led Keynes to a theory that challenged liberalism as the best policy for capitalists.
He said, in essence, that full employment is necessary for capitalism to grow and it can be achieved only if governments and central banks intervene to increase employment. These ideas had much influence on President Roosevelt's New Deal -- which did improve life for many people. The belief that government should advance the common good became widely accepted.
But the capitalist crisis over the last 25 years, with its shrinking
profit rates, inspired the corporate elite to revive economic liberalism.
A memorable definition 1996 he said: "what the Right offers is to turn the world into one big mall where they can buy Indians here, women there ...." and he might have added, children, immigrants, workers or even a whole country like Mexico."
The main points of neo-liberalism:
1. THE RULE OF THE MARKET. Liberating "free" enterprise or private enterprise from any bonds imposed by the government (the state) no matter how much social damage this causes.
a. Greater openness to international trade and investment, as in NAFTA.
b. Reduce wages by de-unionizing workers and eliminating workers' rights that had been won over many years of struggle.
c. No more price controls.
d. total freedom of movement for capital, goods and services.
To convince us this is good for us, they say "an unregulated market is the best way to increase economic growth, which will ultimately benefit everyone." It's like Reagan's "supply-side" and "trickle-down" economics -- but somehow the wealth didn't trickle down very much.
2. CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES like
a. education and
b. health care.
c. REDUCING THE SAFETY-NET FOR THE POOR, and even
d. maintenance of roads, bridges, water supply --
again in the name of reducing government's role.
again in the name of reducing government's role.
Of course, they don't oppose government subsidies and tax benefits for business.
4. DEREGULATION. Reduce government regulation of protecting the environment and safety on the job.
5. PRIVATIZATION.
• Sell state-owned enterprises, goods and services to private investors.
• This includes
o banks,
o key industries,
o railroads,
o toll highways,
o electricity,
o schools,
o hospitals and even
o fresh water.
Although usually done in the name of greater efficiency, privatization has mainly had the effect of concentrating wealth even more in a few hands and making the public pay even more for its needs.
6. ELIMINATING THE CONCEPT OF "THE PUBLIC GOOD" or "COMMUNITY" and replacing it with "individual responsibility." Pressuring the poorest people in a society to find solutions to
• their lack of health care,
• education and
• social security
all by themselves -- then blaming them, if they fail, as "lazy."
Around the world, neo-liberalism has been imposed by powerful financial institutions like
• the International Monetary Fund (IMF),
• the World Bank and
• the Inter-American Development Bank.
some of the worst effects in Mexico where wages declined 40 to 50% in the first year of NAFTA while the cost of living rose by 80%.
Over 20,000 small and medium businesses have failed and more than 1,000 state-owned enterprises have been privatized in Mexico. As one scholar said, "Neoliberalism means the neo-colonization of Latin America."
In the United States neo-liberalism is
• destroying welfare programs;
• attacking the rights of labor (including all immigrant workers); and
• cutbacking social programs. \
The Republican "Contract" on America is pure
neo-liberalism. Its supporters are working hard to deny protection to
• children,
• youth,
• women,
• the planet itself –
and trying to trick us into
acceptance by saying this will "get government off my back."
The
beneficiaries of neo-liberalism are a minority of the world's people. For
the vast majority it brings even more suffering than before: suffering
without the small, hard-won gains of the last 60 years, suffering without
end.
Elizabeth Martinez is a longtime civil rights activist and author of several books, including "500 Years of Chicano History in Photographs."
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