Reply #252: Neoliberalism is an economic policy and causes much confusion because it really is not "liberal"

[PA Democrat]

as far as how people traditionally think about that term. Reagan's presidency was classic neoliberalism. Check out the definition of neoliberalism and I'm sure you would agree. I worked in the financial services sector during the 80s and it was a common topic of discussion. I became a "liberal" in the traditional sense of the word based upon my concerns over what I saw happening with corporate influence on the government.

Reagan was a train wreck. Bush I more of the same. Clinton, I believe had good intentions, but gave in on welfare reform, deregulation (he sign the overturn of the Glass-Steagall Act), trade policy, and privatization (he expanded Bush I's privatiztion of the military).


The main points of neo-liberalism include:

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. Greater openness to international trade and investment, as in NAFTA. Reduce wages by de-unionizing workers and eliminating workers' rights that had been won over many years of struggle. No more price controls. All in all, 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.

CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES like education and health care. REDUCING THE SAFETY-NET FOR THE POOR, and even 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.

DEREGULATION. Reduce government regulation of everything that could diminsh profits, including protecting the environmentand safety on the job.

PRIVATIZATION. Sell state-owned enterprises, goods and services to private investors. This includes banks, key industries, railroads, toll highways, electricity, schools, hospitals and even fresh water. Although usually done in the name of greater efficiency, which is often needed, 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.

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."

http://www.corpwatch.org/article.php?id=376