What is Neoliberalism?
A Brief Definition for Activistsby Elizabeth Martinez and Arnoldo Garcia, National Network for Immigrant and Refugee Rights
"Neo-liberalism" is a set of economic policies that have become widespread during the last 25 years or so. Although the word is rarely heard in the United States, you can clearly see the effects of neo-liberalism here as the rich grow richer and the poor grow poorer.
"Liberalism" can refer to political, economic, or even religious ideas. In the U.S. political liberalism has been a strategy to prevent social conflict. It is presented to poor and working people as progressive compared to conservative or Rightwing. Economic liberalism is different. Conservative politicians who say they hate "liberals" -- meaning the political type -- have no real problem with economic liberalism, including neoliberalism.
"Neo" means we are talking about a new kind of liberalism. So what was the old kind? The liberal school of economics became famous in Europe when Adam Smith, an English economist, published a book in 1776 called THE WEALTH OF NATIONS. He and others 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 an economist named John Maynard 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. That's what makes it "neo" or new. Now, with the rapid globalization of the capitalist economy, we are seeing neo-liberalism on a global scale.
A memorable definition of this process came from Subcomandante Marcos at the Zapatista-sponsored Encuentro Intercontinental por la Humanidad y contra el Neo-liberalismo (Inter-continental Encounter for Humanity and Against Neo-liberalism) of August 1996 in Chiapas when 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 include:
"Neo-liberalism" is a set of economic policies that have become widespread during the last 25 years or so. Although the word is rarely heard in the United States, you can clearly see the effects of neo-liberalism here as the rich grow richer and the poor grow poorer.
"Liberalism" can refer to political, economic, or even religious ideas. In the U.S. political liberalism has been a strategy to prevent social conflict. It is presented to poor and working people as progressive compared to conservative or Rightwing. Economic liberalism is different. Conservative politicians who say they hate "liberals" -- meaning the political type -- have no real problem with economic liberalism, including neoliberalism.
"Neo" means we are talking about a new kind of liberalism. So what was the old kind? The liberal school of economics became famous in Europe when Adam Smith, an English economist, published a book in 1776 called THE WEALTH OF NATIONS. He and others 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 an economist named John Maynard 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. That's what makes it "neo" or new. Now, with the rapid globalization of the capitalist economy, we are seeing neo-liberalism on a global scale.
A memorable definition of this process came from Subcomandante Marcos at the Zapatista-sponsored Encuentro Intercontinental por la Humanidad y contra el Neo-liberalismo (Inter-continental Encounter for Humanity and Against Neo-liberalism) of August 1996 in Chiapas when 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 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."
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. It is raging all over Latin America. The first clear example of neo-liberalism at work came in Chile (with thanks to University of Chicago economist Milton Friedman), after the CIA-supported coup against the popularly elected Allende regime in 1973. Other countries followed, with 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."13101310Arnoldo Garcia is a member of the Oakland-based Comite Emiliano Zapata, affiliated to the National Commission for Democracy in Mexico.13101310Both writers attended the Intercontinental Encounter for Humanity and against Neoliberalism, held July 27 - August 3,1996, in La Realidad, Chiapas.
My questions:
- What can be inferred about the effects of the neoliberalism in countries?
- Who started with this new kind of thought and what are the ideas that were generated?
- According to the article what can be inferred about Liberalism?
- What are the mains points that neoliberalism includes?
- Who imposes the neoliberalism politics in Latin America?
- What are some consequences in countries where these politics had been applied?
- What are some consequences of the application of neoliberalism in USA?
- What do you think about the politics of neoliberalism in countries of Latin America?
11 comments:
1- The rich get richer and the poor get poorer.
2- Adam Smith and his idea was:No restrictions on manufacturing, no barriers to commerce, no tariffs, free trade was the best way for a nation's economy to develop.
3- It is to let people "rich" do whatever they want in the interprise.
4-Liberating "free" enterprise or private enterprise from any bonds imposed by the government (the state) no matter how much social damage this causes.
5-John Maynard.
6-
1. The rich grows richer and the poor grows poorer.
2. This new kind ot thought was started by Subcomandante Marcos at the Zapatista-sponsored Encuentro Intercontinental por la Humanidad y contra el Neo-liberalismo (Inter-continental Encounter for Humanity and Against Neo-liberalism).
3. "Liberalism" can refer to political, economic, or even religious ideas.
4.
a.THE RULE OF THE MARKET.
b.CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES.
c.REDUCING THE SAFETY-NET FOR THE POOR.
d.DEREGULATION.
e.PRIVATIZATION.
f.ELIMINATING THE CONCEPT OF "THE PUBLIC GOOD" or "COMMUNITY."
5. International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank.
6. Other countries followed, with 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.
7. In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutbacking social programs.
8. I think politics of neoliberalism make the countries of Latin America become poorer.
1. The effect of the neoliberalism in countries is inferring that the rich grow richer and the poor grow poorer.
2. It came from Subcomandante Marcos at the Zapatista-sponsored Encuentro Intercontinental por la Humanidad y contra el Neo-liberalismo (Inter-continental Encounter for Humanity and Against Neo-liberalism)
3. Liberalism encouraged "free" enterprise," "free" competition -- which came to mean, free for the capitalists to make huge profits as they wished.
4. The main points of neo-liberalism include:
THE RULE OF THE MARKET.
CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES.
REDUCING THE SAFETY-NET FOR THE POOR,
DEREGULATION.
PRIVATIZATION.
ELIMINATING THE CONCEPT OF "THE PUBLIC GOOD" or "COMMUNITY" and replacing it with "individual responsibility."
5. Neo-liberalism has been imposed by powerful financial institutions like the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank.
6. 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.
7. In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutbacking social programs.
8. As one scholar said, "Neoliberalism means the neo-colonization of Latin America." I think Neoliberalism makes countries of Latin America poorer and worse.
1.The effect of the neoliberlism according to the article is that rich grow richer and the poor grow poorer. It may be inferred neoriberalism affects the economic condition of a society giving advantages to the person who is part of the high class and few or any advantages to the person of the low class.
2.If the new kind of thought is the old liberalism which is really the basis of neoliberalism, also called economic liberalism, it was introduced by Adam Smith, an English economist, who supports the idea that the government should not have intervention in economic matters. However, if the new kind of thought refers to the liberalism-capitalism, it was introduced by John Maynard Keynes whose theory stated that 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.
3.neoliberalism is a new concept raised by the strength that globalization is making in the world.
4.-The rule of market.
-Cutting public expenditures for social services.
-Reducing the safety-net for the poor.
-Deregulation.
-Privatization.
-Eliminating the concept of the public good or community.
5.neo-liberalism has been imposed by powerful financial institutions like the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank.
6.Small and medium businesses have failed, state-owned enterprises have been privatized, wages declined.
7.In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutbacking social programs.
8.I think business may have freedom to do and to compete without government control or restriction. However, when it freedom affect medium or small business then there is the problem and the government should interfere. Privatization is not a good think because it lead to a monopoly, however, government can contract private service and improve their state-owned enterprises.
What a difficult article!
1-It was inferred that neo-liberalism will make suffer poor people. This will bring bad influence to the society such as destroying welfare programs, atacking the rights of labor.
2-Adam Smith. The ideas are that reducing the restriction on manufactureing is the best way for nation`s development. Or in general, this indicates "the sence of no controls."
3-First, liberalism looked like leading benefits for society. But as time goes by, gradually the effect has been declining.
4-*free enterprise from any bonds
*cut public expenditure
*reduce the safety-net for the poor
*reduce the government`s regulation of everything
*sell for private investors
*break the concept of that public is good
5-Allende
6-First, the salary declined about 50% and the living cost rose by 80%. Second, over 20,000 business have failed. Finaly, it was seemed to be like "neo-colonization."
7-It is destroying weflare programs, attacking the rights of labor.
8-I think neoliberalism will not help to develop Latin American countries. In my opinion, this will just make the difference between the rich and the poor. We can not see any successful result from this strategy. If I were the president I would achieve the abundant welfare system like Tony Blair in UK.
1. We can see the effect of the neoliberalism as the rich grow richer and the poor grow poorer.
2. Adam Smith did. They are no restrictions on manufacturing, no barriers to commerce, no tariffs, since Adam Smith thought free trade was the best way for a nation's economy to develop.
3. Liberalism can refer to political, economic, or even religious ideas.
4. THE RULE OF THE MARKET,CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES REDUCING THE SAFETY-NET FOR THE POOR DEREGULATION, PRIVATIZATION, ELIMINATING THE CONCEPT OF "THE PUBLIC GOOD" or "COMMUNITY"
5. Powerful financial institutions like the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank.
6. In Mexico wages declined 40 to 50% in the first year of NAFTA while the cost of living rose by 80%,and over 20,000 small and medium businesses have failed and more than 1,000 state-owned enterprises have been privatized.
7. In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutbacking social programs.
8. I think it makes not only a difference between rich and poor, but also some conflictions or disputes, taking advantage of workers in those countries. I think the goverment of those countries abandon neoliberalism, then take better ism for them.
1. The rich get richer but the poor get poorer
2. Adam Smith.This idea is about to reduce the restriction on manufacturing and it will be help in the development of a nation.
3. liberalism let people to have their own right on political, economic, or even religious ideas.
4. The main points are
THE RULE OF THE MARKET.
CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES.
REDUCING THE SAFETY-NET FOR THE POOR,
DEREGULATION.
PRIVATIZATION.
ELIMINATING THE CONCEPT OF "THE PUBLIC GOOD" or "COMMUNITY" and replacing it with "individual responsibility."
5. John Maynard.
6. The salary of people declined 40% to 50% and the living cost rose by 80%. Over 20,000 small and medium businesses have failed and more than 1,000 state-owned enterprises have been privatized.
7. In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutbacking social programs.
8. The idea of Neoliberalism did not bring an benefit to Latin America but adversely affect the country.
hi lily, i am sorry about giving you the rest of my answers late, but i hope you see them before 4 o'clock
6- wages declined,small and medium businesses have failed, and more than 1,000 state-owned enterprises have been privatized.
7- In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor.
8- it makes it wors.
1.The effects is the rich grow richer and the poor grow poorer.
2.What did "this new kind of thought" refer to? Is it the neoliberalism?
In 1776, Adam Smith, an English economist, published a book called THE WEALTH OF NATIONS. He and others 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. But, when the Great Depression happened, something was changed. After the capitalist crisis, corporate revive economic liberalism.
So, Subcomandante Marcos a memorable definition is neoliberalism.
3."Liberalism" can refer to political, economic, or even religious ideas. But this article mainly talked about the economic liberalism.No restrictions on manufacturing, no barriers to commerce, no tariffs and free trade.
4.The main points of neo-liberalism include:
THE RULE OF THE MARKET.
CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES.
REDUCING THE SAFETY-NET FOR THE POOR,
DEREGULATION.
PRIVATIZATION.
ELIMINATING THE CONCEPT OF "THE PUBLIC GOOD" or "COMMUNITY" and replacing it with "individual responsibility."
5.powerful financial institutions in Latin America
6. 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.
7. In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutbacking social programs.
8.I think people should be against this policy.
1. The rich get richer and the poor get poorer.
2. Adam Smith. His idea was that reducing the restriction on manufacturing will be helpful in the development of a nation.
3. Liberalism can refer to political, economic, or even religious ideas.
4.
-The rule of market.
-Cutting public expenditures for social services.
-Reducing the safety-net for the poor.
-Deregulation.
-Privatization.
-Eliminating the concept of the public good or community.
5. Powerful financial institutions like International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank.
6. 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.
7. In the United States neoliberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutbacking social programs.
8. I think the neoliberalism policy of Latin American conturies is one of the most important causes of economic polarization. Not only Latin American conturies, but the whole of the world suffer from neoliberalism.
1.The rich grows richer and the poor grows poorer.
2.Adam Smith
this idea :No restrictions on manufacturing, no barriers to commerce, no tariffs
3.liberalism can refer to political, economic, or even religious ideas
4.The rule of market.
Cutting public expenditures for social services.
Reducing the safety-net for the poor.
Deregulation.
Privatization.
Eliminating the concept of the public good or community.
5.the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank.
6.
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.
7.In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutbacking social programs.
8.In my opinion,neoliberalism will not bring good result on poor countries.
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