Neoliberalism is the defining political and economic model of our world today. Yet, most people really can't define it, nor do they know the results of it on the world because the world-elite, its advocates, have put a scientific and scholarly veil over its true consequences. Originally adopted during the Ronald Reagan and Margaret Thatcher era, neoliberalism refers to the policies and processes in which a relative few large private interests are encouraged to control vast resources and influence over the world in order to build extreme wealth for themselves and a few others. Advocates come from every side of the political spectrum and the US pushes these principals on the entire world. In reality it does not matter whether we get Romney or Obama or Gingrich or Paul (well maybe a little :) ), they all serve the same interest. Bush did, Clinton did, Obama does, it really isn't their choice, they are puppets.
On the surface and in the political rhetoric, neoliberalism is characterized as a free-market system, that encourages private enterprise and maximizes consumer choices. The system claims to reward entrepreneurs and professionally responsible businesses. In its most exaggerated state, neoliberalism claims to help the poor, the needy, the environment, and everyone else while in reality it is only advancing the interest of very few. But this is all bologna. It is a line of bull.
Realistically, neoliberal policies feed the public a bunch of petty issues to argue over, acting as if they are truly important to the individual, while both sides are actually pursuing the same pro-business policies. Politicians talk about gay marriage, abortion, entitlement systems, political scandals and the such as if those things truly matter. They don't. Gay marriage is not the cause of poverty, or war, or starvation, or advances in technology. But if the public is arguing about trivial nonsense, then the parties can advance businesses interest in the background.
The other result of these trivial debates that are headlined on every TV station is that people just don't care, voter turnout plummets. And what demographic doesn't vote? Disproportionately the poor don't, the people most affected by the pro-business policies. This affect is sought for and encouraged by the machine. Policies that would unveil the truth or actually help people in need are quickly suppressed by the large interests in Washington. Policies that would excite people to get involved and informed are not offered. Long, boring legislation is passed that we cannot read nor even start to understand the implications of, usually because it doesn't have any real implications for the individual. And if it does, it usually isn't good. Which is why we are not involved. Too much b.s to weed through to get the truth.
Governments, and specifically the US government, are central to the cause of neoliberalism. Not only by distracting our attention but also by lavishly subsidizing big corporations. The corporations take this tax-payer money and spend it on what benefits their board members and partners interest. You saw this in the bailout in 2008 on a major scale, but this happens every year, with hundreds of corporate subsidies. Corporations cross boarders to steal other country's resources with tax-payer money. Think of corporations like Monsanto, Halliburton, Bechtel... they have all been subsidized many times by the US government. Subsidized to exploit the poor.
This crossing of borders by big business, is part of what is known as globalization. In reality, it is the main component and driving factor. As I have put in other blogs, this is the US forcing huge loans on countries through the huge economic institutions such as the World Bank, IMF, and WTO. This allows huge corporations to essentially control the world's resources and populations without owing anything to the people of that country. Because of capitalism, the only thing that matters is that companies bottom line and not the welfare and safety of the large majority of the world. In Indonesia, the Philippines, Ecuador, Brazil, Argentina, Mexico, the United States, Iraq, everywhere in the world, corporations exploit the resources and people of the world. Indonesia, the Philippines, and Ecuador pay over half of their government's budget to these economic institutions in the repayment of loans and interest. How is a country supposed to develop and provide essential needs for it's people? And why don't we hear about this?
That's where big-businesses alliance with the media and academia comes in. The corporate media, the PR industry, academics and intellectuals play a central rule in advancing the illusions of neoliberal policies. They serve as forums to make this situation seem necessary, rational and benevolent. Using institutional mechanisms, these ideas are passed on to journalists and intellectuals as the best possible way things can be. These institutions give no room for improvement because the policies are accepted and the direction of the research and reporting goes toward advancing the interests of those who already benefit from the status quo no matter the consequences for the rest of us.
The economic consequences of these policies have been disastrous as we have seen in the examples all around the world. There has never been so much poverty and desperation in the world. Every day, almost 16,000 children die from hunger-related causes. That is horrible yet it is accepted as the best possible system. There is a massive discrepancy between rich and poor in almost all countries and in the world. The environment is being destroyed and extreme wealth is running rampant for the greedy few. We all know the stats. The richest 20 percent control almost 80 percent of the world's wealth. Almost 2 billion people live under 730 dollars per year while there are while one family is worth 75 billion dollars.
This wealth has total control over the implementation of social and economic policy. If we look solely at the United States, the stats are hard to ignore. Rarely is a President elected that had raised less money than his competitor. Total campaign contributions almost always dictate who the President is going to be. In the US, the richest one-quarter of one percent make 80 percent of campaign contributions. Corporations outspend labor 10 to 1. This makes a true electoral democracy impossible. Only those who can raise money and spend money in elections will see their interests advanced. Participatory democracy and capitalism do not work together, they can't. It doesn't make ideological sense.
This is true for social and economic equality as well. Markets are almost never competitive. The ones with the power just garner more power. This is one of my main disagreements with Ron Paul, and everyone knows how much I like him. But this is a major issue. Most of the economy is being controlled by very few massive corporations, therefore they are ensuring that there will be no competition. If you control a huge part of the market, you are able to drive prices lower then any other small company that cannot afford to do so, weeding out competition. This is fact even though our economic textbooks and literature may argue differently.
I just want to have an A.D.D moment for a second and talk about Gross National Product (GNP). These textbooks and politicians always point to the rise in GNP as economic growth. But they always fail to ignore 2 major factors on GNP; inflation and wealth of one. Inflation may go up, which reflects in peoples income but that does not mean the country is getting wealthier, it actually means the opposite most of the time. Second, if one person is to double their income, then GNP rises for the entire country. If you use this model on the US, you see that huge corporations and the wealthy few getting even more wealthy is characterized as economic growth for the nation, but it isn't. The poor could be getting poorer but as long as the rich are getting much richer, it will always show a growth in GNP.
So back to a democratic nation. For a democracy to be effective, it requires people to feel a connection to each other and the political process, neither of which the US has. Neoliberal democracy takes dead aim at eliminating non-market organizations and institutions intended to bring people closer to each other and the process. It only advocates market organizations and institutions. Instead of communities, the market economy provides shopping walls, wall-street elitists, and Hollywood millionaires. Instead of citizens of a political society, it creates consumers. People more interested in what their buck will get them then how to benefit the world. The result of this process is a disengaged population that feels disconnected and powerless.
The world elite and corporate board rooms know that this is happening as a consequence of their benefit. They know this and they feel that they cannot be questioned or challenged. That is why they are so ruthless with their drive for extreme wealth. This business community spends endless amounts of money, funding a PR apparatus that has convinced most that this is the best possible world we can have.
This notion that this is the best possible world that we can create is more far-fetched than ever. With all the advancements in technology, medicine, and communication. There are so many of these advancements that could be used to benefit the human condition so significantly but they aren't. They aren't because most feel it is too hard, that we are too ingrained in this system, or that this is the best we can do. This is simply wrong. Every major advancement in human society has had to face the same obstacle. From ending slavery to the establishment of the first democracy, each had to conquer the idea that it was impossible because it has never been done before or that we are doing our best.
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