Neo-liberalism

“The Luckiest Nut in the World”

What is Neo-liberalism Neoliberalism, in theory, is essentially about making trade between nations easier. It is about freer movement of goods, resources and enterprises in a bid to always find cheaper resources, to maximize profits and efficiency.

Requirements Neoliberalism requires the removal of various controls deemed as barriers to free trade, such as: Tariffs Regulations Certain standards, laws, legislation and regulatory measures Restrictions on capital flows and investment

Main Points The rule of the market — freedom for capital, goods and services, where the market is self-regulating allowing the “trickle down” notion of wealth distribution. It also includes the de-unionizing of labor forces and removals of any impediments to capital mobility, such as regulations. The freedom is from the state, or government. Reducing public expenditure for social services, such as health and education, by the government Deregulation, to allow market forces to act as a self-regulating mechanism Privatization of public enterprise (things from water to even the internet) Changing perceptions of public and community good to individualism and individual responsibility.

Guiding Principles Sustained economic growth is the way to human progress Free markets without government “interference” would be the most efficient and socially optimal allocation of resources Economic globalization would be beneficial to everyone Privatization removes inefficiencies of public sector Governments should mainly function to provide the infrastructure to advance the rule of law with respect to property rights and contracts.

Lori Wallach, Free Trade—The Price Paid

Going Global Freedom of trade in goods and services Freer circulation of capital Freer ability to invest

Outcomes many innovative products Growth and development for some have been immense Some 3 billion people — or half of humanity — live on under 2 dollars a day 86 percent of the world’s resources are consumed by the world’s wealthiest 20 percent

Endgame: Divergent Views The underlying assumption then is that the free markets are a good thing. From a power perspective, “free” trade in reality is seen by many around the world as a continuation of those old policies of plunder.

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