Our shared #mainstreaming for the last 40 years has been built on the path of #neoliberalism a political and economic ideology that advocates for minimal state intervention in the economy, emphasizing free markets, deregulation, privatization, and a reduction in government spending on social programs. It emerged as a dominant force in the late 20th century, particularly from the 1980s onwards, under the influence of #MargaretThatcher in the UK and #RonaldReagan in the US.
Historical Context
After World War II, many European countries adopted social democratic policies, influenced by the pressure of strong socialist movements and the existence of socialist states like the #USSR, these provided extensive social benefits, full employment, free healthcare, and education. To avoid potential revolutions and maintain stability, European nations implemented social welfare programs internally while still engaging in exploitative economic practices externally in their former colonies.
Emergence of Neoliberalism
By the 1980s, the capitalist system faced renewed crises, including economic recessions, a decline in profitability. In response, the old fundamentalism of #classicliberalism renamed as #neoliberal pushed for a drastic reduction in government intervention and social spending. This shift was driven by the belief that previous social democratic concessions (the social safety net put in place due to communism) were no longer sustainable or needed and were hindering economic growth and profit margins.
Definition and Principles
Neoliberalism is a set of policies and ideas focused on:
- Deregulation: Removing government regulations to allow businesses total freedom in how they operate.
- Privatization: Transferring public services and assets to the private sector.
- Reduced Public Spending: Cutting government expenditures on social programs like welfare, healthcare, and education.
- Tax Cuts: Lowering taxes for corporations and the wealthy to encourage investment and economic growth.
- Free Markets: Promoting the idea that markets are the most efficient way to allocate resources and solve social problems.
Ideological Dogma
Neoliberalism “common sense” asserts that the market, left alone, will “naturally” regulate itself and provide the best outcomes for society. This belief extends to all areas of life, including education, healthcare, and social services, which should be subjected to market forces rather than people driven state control.
Consequences
Social and Economic Impact
- Increased Inequality: Neoliberal policies lead to income and wealth disparities as the rich benefit from tax cuts and deregulation while social safety nets are dismantled for the poor.
- Reduced Worker Protections: Labour unions and pro-labour legislation are weakened, leading to lower wages and worse working conditions.
- Privatization of Public Services: Essential services like healthcare and education become more expensive and less accessible to the poor.
- Environmental Degradation: Deregulation leads to pollution and environmental harm as companies prioritize profit over sustainability. We have pushed #climatechaos hard with this mess.
Global Impact
- IMF and World Bank Policies: Developing countries are subjected to structural adjustment programs by international financial institutions, which require them to implement neoliberal policies in exchange for loans. This leads to severe social and economic hardship in the developing world
- Exploitation of Developing Countries: Neoliberalism perpetuates global inequalities by maintaining exploitative relationships between wealthy and poorer nations.
Criticism and Opposition
Critics show that neoliberalism prioritizes the interests of the wealthy and corporations at the expense of the environment, working class and the poor. Undermining democracy by concentrating economic and political power in the hands of a few, leading to increased social unrest and current right-wing shift and resulting political and environmental instability.
Conclusion
The people pushing #neoliberalism, lied about economic efficiency and growth and the associated significant social costs, including increased inequality, reduced public welfare, and environmental degradation. Their focus on market solutions for all problems disregards the realities of social and economic life, leading to widespread criticism and calls for alternative approaches that prioritize social equity and sustainability.
In the era of #climatechaos, this shift to Neoliberalism was obviously a #deathcult that continues to shapes our “common sense” and has been central to our lives for the last 40 years. We can’t keep going down the path, you can find different paths here https://opencollective.com/open-media-network