Social democrats and neoliberals Flashcards
Social democratic approach…
Social democracy is the strand of socialism closest to the centre of the political spectrum. In terms of economic policy, social democrats believe strongly in the virtues of co-operation between the government, the unions and management.
The level of wealth created within society should be reallocated via a combination of progressive taxation, an extensive welfare state programme and a significant role for both the public and private sector.
Social democrats approach to social change…
Social democrats favour a gradual approach to social change.
Unlike revolutionary socialists and marxists, they firmly reject the view that the means towards a better society is one that necessitates political violence.
Unlike other strands of socialist thought, social democrats stipulate that capitalism can and should be humanised.
The creation of a society built around social justice and equality does not therefore require a mass programme of nationalisation and state control as advocated by democratic socialists; nor the revolution predicted by Marxists.
Policies…
Policies such as a national minimum wage, health and safety legislation, full employment, anti-discrimination laws, employment tribunals, paid maternity leave and meaningful negotiations between unions and management over pay and conditions.
This combination of policies ensure that the owners of capital cannot exploit those who work for them, particularly when the power of the trade unions is strengthened via collective bargaining.
Unsuccessful?…
Those further to the left of the political spectrum are still tainted by past electoral failures; notably that of the 1983 General Election manifesto memorably described by a Labour MP as “the longest suicide note in history.”
A policy platform of unilateral nuclear disarmament, abolition of private schools, mass nationalisation (opposite of privatisation), and other fervently left-wing proposals proved a disaster for the party and one that was roundly rejected by the public.
What is social democracy?…
Revolutionary socialist parties such as the Socialist Party of Great Britain have even less electoral appeal.
However, the main problem with a Marxist position is that revolutions are inevitably associated with bloodshed and chaos. It seems inconceivable that the agents of the state and other powerful forces with a vested interest in the status quo would simply step aside and accept the inevitable victory of socialism.
In terms of the Labour Party and to a lesser extent the labour movement, social democracy is the dominant strand of thought amongst those who wish to substitute capitalism with something better.
Are social democrats sellouts?…
Those further to the left of the political spectrum have claimed repeatedly that social democrats have sold-out the core values of socialism to placate powerful capitalist interests.
Within the labour movement and particularly the Labour Party itself, there is a habit of vilification between social democrats and those further along the left. At times, this has led to open divisions.
During the Blair/Brown years those on the left were dismayed at the party’s drift towards the centre of the political spectrum. The surprise election (and re-election) of Jeremy Corbyn as party leader was to some extent a reaction to the perceived ideological drift away from socialism during the era of New Labour.
What is neoliberalism?…
Neoliberalism is a pro-capitalist economic theory which believes that the ‘free market’ in capitalist economies is the best basis for organising society. Free market economies are based upon the choices individuals make when spending their money.
The general principle is that if you ‘leave everything to the market’, then businesses will provide what people demand – because businesses want to make a profit and they can’t make a profit if they don’t provide what people want.
Market forces…
Market forces also encourage competition – when people see high demand for a product, they are encouraged to produce and sell that product – and the better product they can make and the cheaper they can sell it for, then the more profit they make.
Advantages of the free market…
> Individual Freedom – They are based on the principle of allowing individuals to be free to pursue their own self-interest – this is seen as the best way to pursue the maximum good in society.
> They are efficient – businesses try to be efficient in order to maximise profit.
> Innovation – Competition and the profit motive encourage people to produce new products to stimulate demand – we probably wouldn’t have had the iPad without Capitalism.
> Economic Growth and jobs – The end result of leaving businesses free to do business is more wealth and more jobs.
Neoliberals linked to policy…
Neoliberals believe that governments should play a reduced role in managing the economy and in controlling people’s lives.
In Neoliberal thought, the free market knows best, and individuals should be allowed as much freedom as possible to go about their businesses should be allowed more freedom to compete with each other in order to make profit.
Deregulation and fewer protections…
Deregulation – Removing restrictions on businesses and employers involved in world trade – In practice this means reducing tax on Corporate Profits, or reducing the amount of ‘red tape’ or formal rules by which companies have to abide – for example reducing health and safety regulations.
Fewer protections for workers and the environment – For the former this means doing things like scrapping minimum wages, permanent contracts. This also means allowing companies the freedom to increasingly hire ‘flexible workers’ on short-term contracts.
Privatisation and taxes…
Privatisation – selling to private companies industries that had been owned and run by the state.
Cutting taxes – so the state plays less of a role in providing welfare – social security, education and health for example.
In most neoliberal theory, the state does have a minimal role to play – it needs to protect private property – given that profit is the main motive, the system won’t work if anyone can steal or vandalise anyone else’s property – and so the state needs to maintain control of law and order.
Similarities between neoliberals and the New Right…
The new right fight for:
> The introduction of free market principles into many areas of life (Like Neoliberalism) – The best example of this is the Marketisation of Education, and we also see it with academies.
> Reduced Spending by the State (Like Neoliberalism) – The 1979 Conservative government cut taxes on the highest income earners and the current conservative government is cutting public services massively.
> An emphasis on individual freedom and responsibility (Like Neoliberalism) – The New Right have cut welfare spending enormously – believing that welfare breeds dependency. Similarly, tax breaks for the rich are seen as promoting self-interest.
Differences between neoliberals and the New Right…
A strong state in terms of upholding law and order – we see this in ‘Right Realist’ ideas of crime control – with Zero Tolerance Policing and increasing use of Prison as a form of punishment – this links with the above idea of holding people responsible for their own actions (rather than blaming their backgrounds like other perspectives might).
A stress on the importance of traditional institutions and values (unlike neoliberalism). The New Right believe in maintaining some traditions, as they see this as the basis for social order and stability – they strongly support the traditional nuclear family as the backbone of society for example, and still support the idea of a National Curriculum, set by the government, which sets the agenda in education.
