NEOLIBERALISM

By jk—6/07

There is an evil afoot, neoliberalism.  It is neither new nor liberal.  It is a theory of unregulated economics and social irresponsibility given wings by the lackeys of the multinational corporations and international banks.  It is a reworking of the theories used during the age of the Robber Barons.  In the developed nations the flat worlders (from a book The World is Flat by Thomas Friedman) have been the principle contributors to the politicians and parties that support their nations-without-border and social net policies.  In the third world by using the WTO, IMF, and World Bank they have set out a broad agenda and won support of the principle political parties by making loans--of which a portion is siphoned off.  These loans come with clauses that require adopting flat-world policies:  Policies that require the opening up the resources, the media, the utilities, the banking, the borders, and the very market places to infiltration by international banks and corporations.  They call it deregulation.   These polices are promulgated through trade treaties with titles such as NAFTA, CAFTA, AFTA, MEFTA. etc.  (The Iraq war is about MEFTA—opening up the Middle East markets).  There are in NAFTA 900 pages of clauses that permit the overriding of local environmental, safety, drug, labor, commerce, and tariff laws, and sets up its own court system to accomplish this.  National sovereignty has been sold for political donations and loans.  Today’s new Robber Barons are not the monopoly capitalists like Rockefeller, Gould, and Morgan, but a much bigger global fish.  Business ethics hasn't changed, only the size of the board upon which it is played, for now it covers our planet.

These flat-world (neoliberal) policies have resulted in the out sourcing of jobs, the flood of tariff-free goods, the flood of undocumented workers, the reduction in the pay for skilled and unskilled labor, the breaking of unions, the reduction of social services, and a shift of the tax burden by a reduction of corporate taxes and the tax on the top 1%.  In the past 30 years productivity has gone up over 40%; yet real wages (including benefits) have gone down.  Why aren’t workers getting a share of their increased productivity?  Family income has remained level because now two earn the income of one.  In 1950s, there were very few working mothers. Through their media, the new Robber Barons paint a rosy picture, but the facts thunder a different storm.   

In the pursuit of their short-term and global interests the neoliberals are having us revisit 1929:  they have brought this nation to the brink of economic collapse.  Financial market speculation has increased at phenomenal rates.  The daily volume of foreign exchange transactions has risen to $2.7 trillion dollars daily. The U.S. has a greater foreign debt (measured as a percentage of GDP) than was held by those nations that have in the last 2 decades, because of economic crisis, defaulted upon their foreign-debt obligations.  Servicing government debt is now the third biggest item (over $398 billion) in our budget.  And our nation is being bought up by foreigners made fat by our trade deficit ($657 billion in 04, and rising).  The manufacturing foundation of our economy has been eroded to under 15% of employment.  All this increases the likelihood of an economic crisis (collapse).

From 2000 to 2006, the dollar has depreciated against principle foreign currency the EURO by 38%--thus giving an illusion of rising oil and mineral prices.  In 2006 the total value of the EURO in circulation surpassed the USD.  This drop in the dollar along with rising interest rates occurs to keeps foreign dollars in this country.  Our government must sell new T-bills for to raise the funds to replace those that have matured.  Foreign nations and banks hold over $1.2 trillion.  Our instability is making the EURO the global currency.  But the flat worlders have a global agenda. 

Since 1972 disposable income of workers has steadily dropped, even though their productivity has increased 45%--where has this gain gone?   The U.S. ranks 4^th in GDP per capita, yet is 92^nd in distribution of key benefits—UN stats.  All this has occurred to our nation because neoliberal policies have rolled back the wisdom that got us out of the Great Depression and carried us forward following WWII. The multinational corporations have been changing, through political alliances, the soil of government regulations; thus like a foreign weed they are chocking out native industries, principle through their imports.  These corporations, many of them homegrown, are no more American than Toyota and Shell Oil.  They have moved their corporate head quarters off shore to avoid taxes, and their factories overseas for its cheap labor.  Yes, a flat world is good for them, but not for our nation.

The market place needs regulations:  regulations for safe and effective drugs, safer, energy efficient, & more dependable cars, safer work place, clean air and water, honest advertising, etc.  Capitalism needs regulation to assure a decent wage, medical benefits, retirement benefits, and decent working conditions.  All these regulations affect costs, and business is about maximizing profits.  There is a fundamental, centuries-old conflict between profits and people.  There is a need for commerce laws to protect local industries from cheaper imports based upon 3^rd world wages.  But the treaties our government has signed have done away with tariff laws, environmental laws, labor laws, etc.  It’s all about globalization. 

Neoliberals tell us of the virtues of unrestricted capitalism.  They promise developed nations cheap goods and more technocratic jobs, and they promise the 3^rd world peoples more manufacturing jobs and tariff free imports to the developed nations.    They make the arguments and promises of a sales person pleasing their prospects.  They have delivered neither.  They have outsourced technocratic jobs, and continue the traditionally low wages in the 3^rd world.  Thirty years of stagnation and worse proves the case against them.  What they are about is globalization, for they represent business and banking on a global level. 

Where is our 2-party system—in bed with the Robber Barons.  The Democrats passed NAFTA, and Bush & Chaney sleep with Wolfowitz—whom they made head of the WTO.  The combination of political donations and corporate media has made political success dependent upon the support of the neoliberal Robber Barons. 

Greed is greed, and what benefits one group comes at an expense to the remainder of society.  They have fed the people a false data basis—propaganda and advertising work. Our corporate media have sold the public on the virtues of neoliberalism and the elimination of economic regulations.  The nation’s richest 1 percent of the population is holds financial wealth (which excludes equity in owner occupied houses) that is more than four times as much as the bottom 80 percent of the population.  And our government has drastically lowered the tax rate for the top 1%, and also for corporations—a shift in burden.  Neoliberalism is not about the public weal, but globalization and the top 1%.  They and their media wear a much different face.

*   Source for federal spending:  http://nationalpriorities.org at http://nationalpriorities.org/index.php?option=com_content&task=view&id=285&Itemid=333

NNP figures in billions for fiscal budget 08:  military $598, health $428, and debt $398

Afterword

California Skeptics are publishing articles which show why you shouldn’t be sold on neoliberal policies.  Their economic results speak of their failures.  In a few South American countries, populist movements have elected governments that reject these policies.  Articles on this opposition, on economics, the WTO have been published by us.  California skeptic supports the public weal; our politicians don’t!

            The term neocons and neoconservative I find mislead.  Because neoliberalism is a disease that effect all are elected politicians.  Those labeled neocons are most severely infected.  To label most of the Republican Party as neocons confuses the problem, because Democrats also propose and pass legislation that falls within the flatworlder’s sphere.  They, for example, passed NAFTA.  As long as the dollars flow, both parties will dance their tune. 

            There is a conflict of interest when the legislators are dependent on election funding upon the very parties whom the policies they pass affect.  And in particular international corporations have very, very deep pockets. 

The Canadian government has addressed the problem that funds buys votes--both of legislators' and the public's.  First the Broadcasters Guidelines and CRTC rules require that each broadcaster make available up to 390 minutes for political parties to purchase.  This 390 minutes is divided  according to voter’s registration—there are 4 substantial parties in Canada.  Second a limit on spending is set per district (riding) according to the size of the electorate and the number of districts with candidates.  The 4 major parties each had a limit of $18,278,278.64.  In 2004 the law was amended so that if a party received more than 2% of the national vote and 5% in the ridings it contested, then it would qualify for payment equal to 60% of its election expenses (22.5% in 2000).  There is in addition a limit on donations made by third parties (individuals and groups) to $3,000 for each constituency and $150,000 for a national advertising campaign—set in 2000.  (These limits have been adjusted for inflation.)  Condensed from http://www.sfu.ca/~aheard/elections/laws.html by jk

Must watch:

Parts of Europe (such ask Netherlands and Denmark) use small local electricity generation plants, which permits the use of the byproduct heat for heating.  In one example they use all he CO2 generated to supply 4,000 hectares of green houses.   The combined heating and energy production (CHP) is a proven technology that lowers the energy consumption for electricty and heating by over 50%.   British (BBC) documentary on this http://www.youtube.com/watch?v=klooRS-Jjyo&mode=related&search

Teddy Roosevelt's advice that, "We must drive the special interests out of politics. The citizens of the United States must effectively control the mighty commercial forces which they have themselves called into being. There can be no effective control of corporations while their political activity remains."