Globalization & NeoLiberalims

[Nonson]

Neo-Liberalism

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A brief definition:


"Neo-liberalism" is an economic concept that has become near world-spanning during the last 25-plus years. Even though the word is rarely spokened in the United States, one clearly sees the effects it has produced here as the rich get richer and the poor get poorer.

"Liberalism" is a referent of political, economic, and religious ideas. In the U.S. political liberalism is used as a strategy of preventing social conflict on a grand scale and over a wide spectrum of issues. To the homeless and working-class people it is presented as Progressive as opposed to Conservative. But Economic liberalism is a different creature altogether. And Conservative politicians who say they hate "liberals" -- meaning the political type -- find no problems with economic liberalism, including freedom kiling neoliberalism.

Today we are talking about a new kind of liberalism. But first a brief explanation of the old kind? In 1776 Adam Smith published THE WEALTH OF NATIONS, and the liberal school of economics became famous in Europe. He and other thinkers of the day strongly advocated the abolition of all governmental 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, in the sense of no controls, were "liberal". This application of individualism encouraged "free" enterprise," "free" competition -- which came, as we understand it today to mean, free for the capitalists to garner profits off nearly slave labor.

Economic liberalism engulfed the United States during the 1800s and early 1900s. Then came the Great Depression of the 1930s, and out of it emerged an economist named John Maynard Keynes, who gave birth to a theory that challenged liberalism as the best applicable ideas for the capitalists. He theorized, in essence, that full employment was a necessity if capitalism was to grow, and that it could be achieved only by governmental and central banking intervention to increase employment. These ideas greatly influenced President Roosevelt's New Deal -- which did, of course, improve living conditions for many people. It was here that the belief that government should advance the common good became widely accepted.

But the crisis over the last 25 years in Capitalism, with an ever-shrinking profit margins, caused corporate elites worldwide to revive economic liberalism. Now, with the rapid globalization of the capitalist economy, we are seeing neo-liberalism on a global scale.

The main Headings of neo-liberalism are:


1) THE MARKETS RULE. Liberating enterprise or private enterprise from THE IMPOSITION of bonds by the government (the state) regardless of how much social damage is caused. Efforts toward an openness of international trade and investment, as in NAFTA. wage reduction by de-unionizing workers and eliminating workers' rights that were gained by years of struggle. Elimination of price controls. In all, a total freedom of movement of capital, goods, and services. To convince the people that it is good for them, the capitalists say "an unregulated market is the best way to increase economic growth, which will ultimately benefit everyone." Identical to Reagan's "supply-side" and "trickle-down" economics -- bu the wealth never trickled down to the lower levels of society.

2) REDUCING GOVERNAMENTAL EXPENDITURE FOR SOCIAL SERVICES, education, and health care. SHRINKING THE SAFETY-NET FOR THE POOR, and not investing in the infrastructure such as maintenance of roads, bridges, water supply -- again in the name of getting the government out of business. But, of course, there is no opposition to government subsidies and tax benefits for business.

3) DEREGULATION. Remove, as much as possible, governmental regulation of everything that might hurt profit margins, including the protection of the environment, and on job safety of workers.

4) PRIVATIZATION. Sell at bargain prices all state-owned enterprises, goods, and services to private investors. In particular banks, key industries, railroads, toll highways, electricity, schools, hospitals, and, for certain, even fresh water sources. All done in the name of greater efficiency, which often is/was needed. Privatization is the main engine in the concentrating of wealth in the hands of the few, and in forcing the public to pay ever-increasing prices for its needs.

5) ELIMINATIION OF THE IDEOLOGY OF "THE PUBLIC GOOD" or "COMMUNITY" by replacing it with "individual responsibility." Slamming the poorest people in our society up afainst a wall of no solutions to their lack of health care, education and social security. Saying to them that they alone are responsible for their plight, that they fail because they are "lazy."

Globally, neo-liberalism is being imposed on the people by powerful and greedy financial institutions like the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank. It is in the process of destroying Latin America. A clear example is seen at work in Chile. After the CIA-supported coup against the popularly elected Allende regime in 1973, other Latin countries fell in quick succession, with the most brutal effects seen in Mexico where wages declined 40 to 50% in the first year of NAFTA, and this while the cost of living rose by 80%. Over 20,000 small and medium businesses failed, and far more than 1,000 state-owned enterprises were privatized. As one scholar said, "Neoliberalism means the neo-colonization of Latin America."

In the United States neo-liberalism policies as applied by both Democratic and Republican political parties is destroying welfare programs; producing unending attacks on the rights of labor; and cut-backs in social programs spending. The Republican "Contract With America" was/is pure neo-liberalism. Even today party supporters work hard to deny to children, youth, women, the planet itself the needed protection -- and attempting to lull the people into an acceptance of the policies by saying it will "get government off our backs." The only beneficiaries of neo-liberalism are a very small minority of predators. For the rest of the people it brings ever-greater suffering: suffering without a perceivable end.

Nonson
1.19.01