NEOLIBERALISM: THE FANCY WORD FOR THE FANCY PROBLEM THAT SCREWED US ALL
Have you ever heard of neoliberalism? It sounds like a fancy word for a fancy problem. And let me tell you, dear reader, it is. But don't worry, I'm here to break it down for you in a way that's both informative and hilarious.
So, what is neoliberalism? Well, it's basically a political-economic system that emerged in the 1970s and made free markets the goal of all decision making and policy. Sounds great, right? Wrong. It's actually been a complete disaster for America. But hey, at least we can laugh about it...right?
Under neoliberalism, unions have been crushed, minimum wage increases are rare, and manufacturing jobs have been shipped overseas. The social welfare state has been rolled back, industries have been deregulated, taxes have been cut, and public services have been privatized. In other words, it's been a total shitshow.
And the cherry on top? The economy is measured by the stock market, which very few workers have a significant stake in. So while the rich get richer, the rest of us are left to fight over scraps. But don't worry, it gets better.
To sell this unpopular agenda to the masses, corporate leaders made the discussion about jobs and wages solely about education and training. Because why take responsibility for your own self-interested actions when you can blame it on the workers?
So we were told that we lived in a knowledge economy and that there were plenty of high-paying jobs out there, but we just didn't have the right degrees. According to business leaders and policy makers, the education system was failing and had to be reformed.
But here's the thing: the so-called knowledge economy is a complete myth. In Reagan's America, only a small minority of jobs required college degrees. And today, only two of the top 10 most numerous occupations in Minnesota require education beyond high school.
Yet we've bought into this myth hook, line, and sinker. And it's led to some seriously misplaced policies, including the gradual defunding of public higher education and a student debt crisis that's left many of us drowning in debt.
But wait, there's more! Neoliberalism has also destroyed public education. How, you ask? Well, let me tell you.
First off, neoliberalism imposed a market logic on education, where schools and students are measured and ranked by standardized tests and outcomes. This reduced the quality and diversity of education, and created a culture of competition, accountability, and punishment.
Secondly, neoliberalism advocated for the privatization and deregulation of public education, where schools are run by private entities or charter operators, and are subject to market forces and consumer choice. This undermined the public funding and governance of education, and increased the inequality and segregation among schools and students.
Lastly, neoliberalism treated education as a commodity and a human capital investment, where the value of education is determined by its economic returns and benefits. This eroded the civic and social purposes of education, and devalued the role of teachers and students as critical thinkers and democratic citizens.
So there you have it, folks. Neoliberalism in a nutshell: a disaster for America that's been sold to us under the guise of a mythical knowledge economy. But don't worry, we can still laugh about it...right?
THE DEFT DIVE
According to various sources, **neoliberalism** is a political and economic ideology that advocates for free market capitalism, deregulation, reduction in government spending, globalization, free trade, and privatization¹²⁴. It emerged in the 1970s as a reaction to the welfare state and Keynesian economics that dominated the post-war era². Some of the influential thinkers of neoliberalism include Friedrich Hayek, Milton Friedman, and Ludwig von Mises²³.
Neoliberalism has been criticized for its negative effects on social equality, public services, environmental protection, labor rights, and democracy². Some of the examples of neoliberal policies and reforms include the Thatcherism in the UK, the Reaganomics in the US, the structural adjustment programs imposed by the IMF and the World Bank on developing countries, and the Washington Consensus that promoted market-oriented reforms in Latin America²³.
The major principles of neoliberalism are:
- - **Free market competition**: Neoliberals believe that the market is the best mechanism for allocating resources and ensuring efficiency. They oppose any form of government intervention or regulation that distorts or restricts market forces¹²⁴.
- - **Economic growth**: Neoliberals view economic growth as the primary goal and measure of human progress. They argue that free markets and trade promote innovation, productivity, and development²⁴.
- - **Limited government**: Neoliberals advocate for a minimal role of the state in economic and social affairs. They favor reducing public spending, taxes, subsidies, and welfare programs, and privatizing state-owned enterprises and services¹²⁴.
- - **Globalization**: Neoliberals support the integration of the world's economies based on the principles of free trade, open markets, and capital mobility. They oppose any barriers or restrictions to international trade and investment²³⁴.
- These are some of the core ideas of neoliberalism, but there are also variations and nuances within the neoliberal school of thought. Some of the main schools of neoliberalism include:
- - **Ordoliberalism**: A German variant of neoliberalism that emerged in the 1930s and 1940s. It emphasizes the importance of a strong legal framework and a social market economy that balances free competition with social welfare².
- - **Monetarism**: A school of economic thought that emerged in the 1950s and 1960s, led by Milton Friedman. It focuses on the role of money supply and monetary policy in controlling inflation and stabilizing the economy²³.
- - **Neoclassical liberalism**: A school of political philosophy that emerged in the 1970s and 1980s, led by Robert Nozick. It defends a minimal state that protects individual rights and property, and rejects any redistribution or social justice as unjustified coercion².
- - **Neoliberal institutionalism**: A school of international relations theory that emerged in the 1980s and 1990s. It argues that international cooperation and institutions can enhance the benefits of globalization and mitigate its negative effects².
According to various sources, neoliberalism has failed America in several ways, such as:
- - **Increasing economic inequality**: Neoliberal policies have favored the rich and powerful, while reducing the income and bargaining power of the majority of workers. The tax cuts, deregulation, and privatization of neoliberalism have increased the concentration of wealth and market power among a few corporations and individuals, while eroding the social safety net and public services for the rest²³⁴.
- - **Undermining democracy**: Neoliberalism has weakened the role of government as a representative of the public interest, and increased the influence of money and corporate interests in politics. Neoliberalism has also promoted a narrow conception of freedom as individual choice, while neglecting the collective and social dimensions of freedom and justice²³⁵.
- - **Exacerbating social and environmental problems**: Neoliberalism has ignored or worsened the social and environmental costs of free market capitalism, such as poverty, homelessness, racism, sexism, health disparities, climate change, and pollution. Neoliberalism has also reduced the public investment and regulation needed to address these problems, and shifted the burden to individuals and communities²³⁴.
- - **Causing economic instability and crises**: Neoliberalism has increased the volatility and fragility of the economy, by creating financial bubbles, speculative booms, and busts. The deregulation and globalization of neoliberalism have also exposed the economy to external shocks and contagion effects, while reducing the policy tools and coordination needed to prevent or mitigate them²³⁴.
According to various sources, some of the major funders of the neoliberal agenda include:
- - **Wealthy individuals and corporations**: Neoliberalism has been supported by rich and powerful actors who benefit from its policies and ideology. Some of the prominent examples include the Koch brothers, Rupert Murdoch, George Soros, Bill Gates, and Jeff Bezos³⁵.
- - **Think tanks and foundations**: Neoliberalism has been promoted by a network of think tanks and foundations that produce and disseminate neoliberal ideas and influence policy makers. Some of the influential examples include the American Enterprise Institute, the Heritage Foundation, the Cato Institute, the Institute of Economic Affairs, the Centre for Policy Studies, and the Adam Smith Institute²³.
- - **International institutions**: Neoliberalism has been imposed by international institutions that have leverage over developing countries and regions. Some of the key examples include the International Monetary Fund, the World Bank, and the United States Treasury Department²⁴.
According to various sources, some of the ways that neoliberalism destroyed public education include:
- - **Standardizing and testing**: Neoliberalism imposed a market logic on education, where schools and students are measured and ranked by standardized tests and outcomes. This reduced the quality and diversity of education, and created a culture of competition, accountability, and punishment¹³⁵.
- - **Privatizing and deregulating**: Neoliberalism advocated for the privatization and deregulation of public education, where schools are run by private entities or charter operators, and are subject to market forces and consumer choice. This undermined the public funding and governance of education, and increased the inequality and segregation among schools and students¹²⁴.
- - **Commodifying and devaluing**: Neoliberalism treated education as a commodity and a human capital investment, where the value of education is determined by its economic returns and benefits. This eroded the civic and social purposes of education, and devalued the role of teachers and students as critical thinkers and democratic citizens¹³⁵.
Source: Conversation with Bing, 6/20/2023
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