Neoliberalism: Difference between revisions
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[[File:Thatcher-reagan.jpg|thumb|426x426px|[[United States of America|United States]] president [[Ronald Reagan]] along [[United Kingdom|British]] prime minister [[Margret Thatcher]]. Both of these figures' rise | [[File:Thatcher-reagan.jpg|thumb|426x426px|[[United States of America|United States]] president [[Ronald Reagan]] along [[United Kingdom|British]] prime minister [[Margret Thatcher]]. Both of these figures' leadership represent the rise of neoliberalism in the [[Western world|West]]. ]] | ||
'''Neoliberalism''' is the [[economic ideology]] and resulting [[macroeconomic policy|economic policy]] which defines the current and newest phase of global [[capitalism]]. Originally an economic philosophy influenced by [[heterodox economics|heterodox]] [[economic schools of thought]], including [[monetarism]] and [[neoclassical economics|neoclassicism]], neoliberalism rose from obscurity in the 1970s to present itself as a radical new solution to the unexpected [[Tendency of the rate of profit to fall|profitability crisis]] of [[Keynesianism|Keynesian]] [[embedded liberalism]]. The policies that followed in the [[United States]] and [[United Kingdom]] were highly successful at resolving the crisis through [[class war]] tactics including downward pressure on [[wages]], open attacks on the power and rights of [[labour unions]], and the cannibalization of state spending by private parties. The [[West]]ern powers were able to reproduce these results on a global scale in the 1980s and 1990s, imposing neoliberal policies through both violent and non-violent means in order to effectively loot the economies and state coffers of the world. | '''Neoliberalism''' is the [[economic ideology]] and resulting [[macroeconomic policy|economic policy]] which defines the current and newest phase of global [[capitalism]]. Originally an economic philosophy influenced by [[heterodox economics|heterodox]] [[economic schools of thought]], including [[monetarism]] and [[neoclassical economics|neoclassicism]], neoliberalism rose from obscurity in the 1970s to present itself as a radical new solution to the unexpected [[Tendency of the rate of profit to fall|profitability crisis]] of [[Keynesianism|Keynesian]] [[embedded liberalism]]. The policies that followed in the [[United States]] and [[United Kingdom]] were highly successful at resolving the crisis through [[class war]] tactics including downward pressure on [[wages]], open attacks on the power and rights of [[labour unions]], and the cannibalization of state spending by private parties. The [[West]]ern powers were able to reproduce these results on a global scale in the 1980s and 1990s, imposing neoliberal policies through both violent and non-violent means in order to effectively loot the economies and state coffers of the world.<ref>George Monbiot (April 15 2016). [https://www.theguardian.com/books/2016/apr/15/neoliberalism-ideology-problem-george-monbiot "Neoliberalism – the ideology at the root of all our problems"] ''The Guardian.''</ref> | ||
Core points of neoliberalization include [[deregulation]] in nearly every sphere from [[price controls]] to labour rights, a [[laissez-faire]] liberal economic policy, and domestic [[austerity]], all of which are held to be crucial to resolving [[economic crises]] and [[budgetary deficit]]s. Neoliberals typically also carry out [[privatization]] in the name of free market principles. However, neoliberalism is also connected to increased military and police spending, both necessary to stem the rise in crime and unrest which naturally follows.<ref>{{harvnb | Harvey | 2007 | p=100 }}: "De la Madrid then opened Mexico to the global economy by joining GATT and implementing an austerity programme. The effects were wrenching.... In Mexico City in 1985 this meant that resources were 'so scarce that expenditures on critical urban services in the capital plummeted 12 per cent on transport, 25 per cent on potable water, 18 per cent on health services, and 26 per cent on trash collection.' The crime wave that followed turned Mexico City from one of the more tranquil into one of the most dangerous of all Latin American cities within a decade. This was a rerun, though in many respects more devastating, of what had happened to New York City ten years before. Much later, in a symbolic event, Mexico City awarded a multi-million-dollar contract to [New York mayor] Giuliani's consultancy organization to teach them how to deal with crime."</ref>{{cn|reason=More here would be nice}} | Core points of neoliberalization include [[deregulation]] in nearly every sphere from [[price controls]] to labour rights, a [[laissez-faire]] liberal economic policy, and domestic [[austerity]], all of which are held to be crucial to resolving [[economic crises]] and [[budgetary deficit]]s. Neoliberals typically also carry out [[privatization]] in the name of free market principles. However, neoliberalism is also connected to increased military and police spending, both necessary to stem the rise in crime and unrest which naturally follows.<ref>{{harvnb | Harvey | 2007 | p=100 }}: "De la Madrid then opened Mexico to the global economy by joining GATT and implementing an austerity programme. The effects were wrenching.... In Mexico City in 1985 this meant that resources were 'so scarce that expenditures on critical urban services in the capital plummeted 12 per cent on transport, 25 per cent on potable water, 18 per cent on health services, and 26 per cent on trash collection.' The crime wave that followed turned Mexico City from one of the more tranquil into one of the most dangerous of all Latin American cities within a decade. This was a rerun, though in many respects more devastating, of what had happened to New York City ten years before. Much later, in a symbolic event, Mexico City awarded a multi-million-dollar contract to [New York mayor] Giuliani's consultancy organization to teach them how to deal with crime."</ref>{{cn|reason=More here would be nice}} | ||
Revision as of 00:12, 9 April 2024
Neoliberalism is the economic ideology and resulting economic policy which defines the current and newest phase of global capitalism. Originally an economic philosophy influenced by heterodox economic schools of thought, including monetarism and neoclassicism, neoliberalism rose from obscurity in the 1970s to present itself as a radical new solution to the unexpected profitability crisis of Keynesian embedded liberalism. The policies that followed in the United States and United Kingdom were highly successful at resolving the crisis through class war tactics including downward pressure on wages, open attacks on the power and rights of labour unions, and the cannibalization of state spending by private parties. The Western powers were able to reproduce these results on a global scale in the 1980s and 1990s, imposing neoliberal policies through both violent and non-violent means in order to effectively loot the economies and state coffers of the world.[1]
Core points of neoliberalization include deregulation in nearly every sphere from price controls to labour rights, a laissez-faire liberal economic policy, and domestic austerity, all of which are held to be crucial to resolving economic crises and budgetary deficits. Neoliberals typically also carry out privatization in the name of free market principles. However, neoliberalism is also connected to increased military and police spending, both necessary to stem the rise in crime and unrest which naturally follows.[2][citation needed]
Neoliberalism is the dominant variant of capitalism in the world today at least in the West, replacing the welfare systems which existed beforehand in the 1970s–1980s. and embodied in people such as Ronald Reagan and Margret Thatcher. Neoliberalism is a distinct form of liberalism from social democracy, in which the workers were given much more concessions whereas neoliberalism only distinguishes itself from traditional right-wing ideologies like conservativism, as more 'socially progressive', although this is usually just symbolic than actually addressing problems. Neoliberalization is directly connected to the phenomenon known as globalization, destroying domestic labour and commodity markets by reducing trade barriers and limits on foreign investment. Decades of neoliberal policy have led to a sharp crisis in the 2020s defined by political instability, economic crisis, and the inability of states to effectively respond to the COVID crisis. Neoliberalism is typically thought of a form of soft power from the imperial core against countries to implement its measures, in opposed to neoconservatism which uses hard power through military interventions such as in Iraq, Libya and Afghanistan; however, the two have historically been closely connected.[3][4]
Notes
References
- ↑ George Monbiot (April 15 2016). "Neoliberalism – the ideology at the root of all our problems" The Guardian.
- ↑ Harvey 2007, p. 100: "De la Madrid then opened Mexico to the global economy by joining GATT and implementing an austerity programme. The effects were wrenching.... In Mexico City in 1985 this meant that resources were 'so scarce that expenditures on critical urban services in the capital plummeted 12 per cent on transport, 25 per cent on potable water, 18 per cent on health services, and 26 per cent on trash collection.' The crime wave that followed turned Mexico City from one of the more tranquil into one of the most dangerous of all Latin American cities within a decade. This was a rerun, though in many respects more devastating, of what had happened to New York City ten years before. Much later, in a symbolic event, Mexico City awarded a multi-million-dollar contract to [New York mayor] Giuliani's consultancy organization to teach them how to deal with crime."
- ↑ Harvey 2007, pp. 6–7.
- ↑ Fishstein, Paul; Amiryar, Murtaza Edries; United States Institute of Peace (2015). Afghan economic policy, institutions, and society since 2001 (PDF). Washington, DC: United States Institute of Peace. OCLC 928366976.
Sources
- Harvey, David (2007). A Brief History of Neoliberalism. Oxford: Oxford University Press. ISBN 978-0-19-928327-9. OCLC 123453532.