Week 2: Neoliberalism Flashcards
What does Harvey argue about neoliberlism?
- that it didn’t lead to economic growth or solve economic crisis
- that it did restore (european countries) or create economic power for the elites (Russia, China)
- that it thus created a more unequal distribution of wealth.
What are the differences in the theories between Adam Smith, John Maynard Keynes and Karl Marx
- Adam Smith: Believed in free markets where an “invisible hand” guides economic success. 🏷️
- John Maynard Keynes: Supported active government intervention to stabilize the economy and maintain employment. 🏦
- Karl Marx: Argued that capitalism would inevitably lead to class struggles and its own collapse. ⚔️
Who Was the Mont Pelerin Group , when were they founded and what was their Influence ?
- A group formed in 1947, led by Friedrich von Hayek. 🧑🏫
- Included economists and philosophers advocating for free-market capitalism and opposing state interventions. 💬
- They significantly influenced neoliberal thought and policies through connections with think tanks and political movements. 🌐
What does Harvey claim are Neoliberlisms paradoxes?
- Neoliberalism claims to promote individual freedom and limit state power but paradoxically relies on a strong state to protect property rights and enforce rules
- This creates contradictions where the ideology doesn’t align with its practices, such as supporting monopolies. 🔄
What was the Volcker Shock, and when did it happen?
- ## Paul Volcker raised interest rates drastically to combat inflation, leading to a recession, in 1979
What is Monetarism?
- An economic theory that focuses on controlling the money supply to manage inflation and economic stability. 💵
What Is Stagflation?
An economic situation where inflation and unemployment rise simultaneously, leading to stagnation. ⚖️
Why was Raegans victory over Carter curcial in the rise of neoliberalism?
- Reagan fully embraced neoliberal policies such as tax cuts and deregulation, unlike Carter’s hesitant moves. 🏛️
- Provided strong political backing for Volcker’s anti-inflation strategies. 📉
What was the OPEC Oil Crisis and Its Effects?
- In 1973, OPEC’s oil embargo (reducing production) increased oil prices, giving oil-producing nations significant financial power
- US pressured Saudi Arabia and others to recycle their revenues through US banks, which found new global investment opportunities.
- Led to the expansion of lending to developing countries, opening them to neoliberal policies and debt. 🌍
Why did CEOs become key figures in Neoliberal class power ?
- Ceos: compensated thorugh stock-options, blending ownership with management
- Focus of management shifted to financial gains, driving decisions and solidifying upper-class power.
What is harvey’s Critique of the Use of the Word “Freedom”?
- Harvey argued that neoliberal “freedom” is selective, benefitting elites while limiting social equality. ⚖️
- The term was used to justify policies that favored corporations over public welfare. 🏢
Why Was Neoliberalism Taking Off?
- Reaction to the 1970s economic crisis (stagflation, oil shocks). 🛢️
- Belief in free markets to restore growth. 📊
What role did student protests play in the rise of Neoliberlism?
- Student protests in the 1960s and 1970s demanded more individual freedoms, indirectly fostering a move towards liberal policies. ✊
What is the american Concept of Freedom?
- Emphasis on individual liberties
- often equated with market freedoms and minimal government intervention. 🇺🇸
When did neoliberalism find its way to Iraq?
- US-led invasion in 2003 brought neoliberal reforms through Paul Bremer, who promoted privatization and deregulation. 🏛️
