Neoliberalism Flashcards
What was the global economic system like after World War I?
Nations were in financial trouble, stock market crash in 1929 resulted in the Dirty Thirties (Great Depression).
What did social liberalism and welfarism try to do?
Tried to mitigate the highs and lows of the market.
What were the 3 main ideas behind social liberalism/welfarism?
- Capitalist markets are unstable for inheret reasons.
- Anyone can fall on hard economic times.
- Citizens have a right to a minimum standard of living (social rights).
Why do social liberalists claim that capitalist markets are inherently unstable?
Governments need to step in and provide social programs, there must be welfare, housing, health care, education, EI, disability payments, and food stamps.
What are the 2 kinds of welfare?
- Preventative.
2. Reactionary.
John Maynard Keynes said that states should do 2 things.
- Tax when the market is doing well.
2. In times of economic downturn, government should invest in building projects that would create jobs.
What are some criticisms of social liberalism and John Maynard Keynes’ ideas?
- Highs and lows are natural, and you just have to wait them out.
- Government has no business intervening.
When did social liberal states exist?
Between 1920-1970.
What were some reasons for the switch to neoliberalism in the 1970’s?
- Oil prices were high (OPEC Crisis).
- Deficit in the U.S. (Vietnam War).
- Large trade deficit in the U.S..
- Stag-flation,
- Some blamed social liberalism.
Despite their names, liberalism and neoliberalism are two very different ideas. What are the 2 things that liberalism and neoliberalism have in common.
- Idea of freedom.
2. Reverence to the individual.
What are the 3 main views on neoliberalism?
- Set of principles.
- Political interest.
- World view.
How can neoliberalism be viewed as a set of principles? There are 3 evaluations.
- Privatization- markets are more effective than governments in delivering G&S.
- Liberalization- governments hsould remove all barriers to the movement of G&S and investments (such as tariffs).
- Deregulation- govenrnments should scale back all measures that restrict companies (such as environmental laws).
How can neoliberalism be viewed as a political interest?
Neoliberalism is a prokect to concentrate wealth among the few. Richest individuals in the most developed countries benefit. Social programs only help weak people, and unequal distribution of wealth is desirable.
Give some statistics that support income inequality.
Richest 1% control 43% of the world’s assets. Richest 10 control 83. Bottom 50 control 2.
How can neoliberalism be viewed as a world view?
Justifies disparity in wealth as individuals should be held responsible for their own economic well being. Social Darwinism, suffering of the poor can motivate them to escape poverty.
