The rhetoric and reality of neo-liberalism.
U.S. National debt
The outstanding public debt as of 01 May 2010
The national debt has continued to increase an average of $ 4.07 billion per day since September 28, 2007. (a wonderful result of neo-liberalism)
“Neo-Liberalism is a system of economic thought [ideology] embracing the efficient markets hypothesis, the inherent good of deregulation and the natural impediment of government regulation, the necessity of free trade and globalization, the supremacy of the corporation over the individual person in the social economy.” Lambert.
On this may 1st 2010, news story;
“Athens, the Greek capital, witnessed riots, with police using tear gas to disperse demonstrators who threw firebombs and stones in a large May Day rally against austerity measures needed to secure loans for near-bankrupt Greece.”
We have seen what the “inherent good of deregulation” has done to the U.S. economy, haven’t we? More shining examples of deregulation (anarcho-capitalism) are coming forward. Greece, Portugal, Spain and more to follow. The United States and other Western countries are still rushing to impose this proven failure of a system on third world countries.
Those governments who might be unwilling to open their countries to become a neo liberal heaven of unregulated economy stand to face a coordinated attack as countries that do not honor individual rights and freedom of speech. Actually, according to Arthur Macewan, “By reducing explicit social regulation of private economic activity and ‘leaving things to the market’, neo-liberalism prevents the implementation of programs that would allow people to exercise political control over their economic affairs, involve people in solving their own economic problems, and serve the material needs of the great majority”.
What neo-liberalism has created in the U.S. is a super rich class in the financial sector who made billions of dollars in “profits” by gambling in derivatives, by putting a wager on the failure of the U.S. housing market, by trading in stocks, bonds, and currencies. In the process it killed the creation of “wealth”. In the United States, manufacturing had accounted for about twenty percent of GDP in 1980, and in 2010, manufacturing stands at less than ten percent of the Gross Domestic Product of the U.S. economy.
Ways of imposing neo liberal policies on developing countries:
* Neo liberalism could be imposed on a third world country through brutal means. As in the cases of Chile and Argentina in the 1970s, (military coups by the support of the U.S. and the complicity of local agents).
* Neo liberalism could inject its exploitative venom via
colour revolutions, with the active participation of NGOs, the
VOA, and local agents.
* Neo liberalism could also be imposed by using the financial prowess of the IMF and the World Bank.
* Neo liberalism could be installed through invasion, like in Iraq. With the exception of oil, neo liberal policy leads to full ownership rights to foreign firms of Iraqi businesses, the opening of Iraqi banks to foreign control, and to full privatization of publicly owned companies.
“America’s financial system failed in its two crucial responsibilities: managing risk and allocating capital. The industry as a whole has not been doing what it should be doing … and it must now face change in its regulatory structures. Regrettably, many of the worst elements of the US financial system … were exported to the rest of the world.” Joseph Stiglitz.
So, one wonders, why does the U.S. want to forcefully shove this system of profit over humanity on the rest of the world?
Could David Harvey have a point? “Beyond the speculative and often fraudulent froth that characterizes much of neo-liberal financial manipulation, there lies a deeper process that entails the springing of ‘the debt trap’ as a primary means of accumulation by dispossession. Crisis creation, management and manipulation on the world stage has evolved into the fine art of deliberative redistribution of wealth from poor countries to the rich.”
Professor Mekonen Haddis.