Neo-Liberalism Impacts–Increases Poverty/Inequality
Neoliberal ideology creates structural relationships between the state and the economy which allow corporate power to go unchecked, leading to widespread poverty and political disenfranchisement.
Henry A. Giroux, Global TV Network Chair in Communications at McMaster University, 2004 [The Terror of Neoliberalism, 44-46]
It is virtually impossible to understand the rise of such multifaceted authoritarianism in American society without analyzing the importance of neoliberalism as the defining ideology of the current historical moment. While fascism does not need neoliberalism to develop, neoliberalism creates the ideological and economic conditions that can promote a uniquely American version of fascism. Neoliberalism not only undermines the vital economic and political institutions and public spaces central to a democracy, it also has no vocabulary for recognizing anti-democratic forms of power. Even worse, it accentuates a structural relationship between the state and the economy that produces hierarchies, concentrates power in relatively few hands, unleashes the most brutal elements of a rabid individualism, destroys the welfare state, incarcerates large numbers of its disposable populations, economically disenfranchises large elements of the lower and middle classes, and reduces entire countries to pauperization.
Under neoliberalism, the state now makes a grim alignment with corporate power, transnational corporations, and the forces of militarization. Gone are the days when the state “assumed responsibility for a range of social needs.” Instead, agencies of government now pursue a wide range of “deregulations,” privatizations, and abdications of responsibility to the market and private philanthropy.” Deregulations in turn, promote “widespread, systematic disinvenstment in the nation’s basic productive capacity.” Flexible production encourages wage slavery at home. And the search for ever greater profits leads to outsourcing, which accentuates the flight of capital and jobs abroad. Neoliberalism has now become the prevailing logic in the United States; indeed, according to Stanley Aronowitz, “the neoliberal economic doctrine proclaiming the superiority of free markets over public ownership, or even public regulation of private economic activities, ahs become the conventional wisdom, not only among conservatives but among social progressives.”
The ideology and power of neoliberalism also cuts across national boundaries. Throughout the globe, the forces of neoliberalism are on the march, dismantling the historically guaranteed social provisions provided by the welfare state, defining profit-making as the essence of democracy, and equating freedom with the unrestricted ability of markets to “govern economic relations free of government regulation.” Transnational in scope, neoliberalism now imposes its economic regime and market values on developing and weaker nations through structural adjustment policies enforced by powerful financial institutions such as the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO). Secure in its dystopian vision that there are no alternatives, as Margaret Thatcher once put it, neoliberalism obviates issues of contingency, struggle, and social agency by celebrating the inevitability of economic laws in which the ethical ideal of intervening in the world gives way to the idea that we “have no choice but to adapt both our hopes and our abilities to the new global market.” Coupled with a new culture of fear, market freedoms seem securely grounded in a defense of national security, capital, and property rights.
In its capacity to dehistoricize and depoliticize society, as well as in its aggressive attempts to destroy all of the public spheres necessary for the defense of a genuine democracy, neoliberalism reproduces the conditions for unleashing the most brutalizing forces of capitalism and accentuating the central elements of proto-fascism. As the late Pierre Bourdieu argued, neoliberalism is a policy of depoliticization, attempting to liberate the economic sphere from all government controls:
”Drawing shamelessly on the lexicon of liberty, liberalism, and degradation, it aims to grant economic determinisms a fatal stranglehold by liberating them from all controls, and to obtain the submission of citizens and governments to the economic and social forces thus liberated…[T]his policy has imposed itself through the most varied means, especially juridical, on the liberal—or even social democratic – governments of a set of economically advanced countries, leading them gradually to divest themselves of the power to control economic forces.”
At the same time, neoliberalism uses the breathless rhetoric of the global victory of free-market rationality to cut public expenditures and undermine those noncommodified public spheres that serve as the respository for critical education, language, and public intervention. Spewed forth by the mass media, right-wing intellectuals, and governments alike, neoliberal ideology, with its ongoing emphasis on deregulation and privatization, has found its material expression in an all-out attack on democratic values and on the very notion of the public sphere. Within the discourse of neoliberalism, the notion of the public good is devalued and, where possible, eliminated as much as possible in order to maximize their personal profit. Public services such as health care, child care, public assistance, education, and transportation are now subject to the rules of the market. Construing the public good as a private good and the needs of the corporate and private sector as the only source of investment, neoliberal ideology produces, legitimates, and exacerbates the existence of persistent poverty, inadequate health care, racial apartheid in the inner cities, and growing inequalities between the rich and the poor.
EMPIRICALLY, NEOLIBERALISM PRODUCES ONLY POVERTY AND STAGNATION
Conn Hallinan, Policy Analyst for Foreign Policy in Focus, 2002, [12/28/02 http://www.iht.com/articles/2002/12/28/edconn_ed3_.php]
Free trade and open markets, however, have inflicted ruinous damage on poor countries in Latin America and Africa. When added to the recently passed farm bill that increases U.S. export subsidies, the plan to tie aid to U.S. political and economic rules is likely to make a bad situation worse.
.To see why, just look at the record.
.After 15 years of free markets, Latin America has a growth rate of 1.5 percent, far less than the 4 percent required to alleviate poverty. The wreckage caused by neoliberalism is strewn across the continent: Argentina recently defaulted on its international debt; Brazil is wresting with a currency crisis brought on by debt; Uruguay's economy is teetering; Chile has an unemployment rate frozen at 10 percent; Bolivia, Peru and Ecuador, deep in economic crisis, face social unrest.
.In Latin America and elsewhere, misguided U.S. economic policies — privatization of government-owned companies and services, abolishing controls on financial flows, and rapid trade liberalization, including reduced protection for local farmers — are contributing to rising economic and social problems. Yet these are the same policies that poor countries are now being challenged to enforce if they want U.S. "millennium aid."
Pressured by Washington, countries have been lowering their trade barriers and as a result are drowning in a flood of cheap, subsidized U.S. goods. Cheap Nebraskan corn, for instance, has largely replaced native Peruvian corn. The U.S. corn is cheaper not because Peruvian farmers don't work hard, but because taxpayer subsidies keep U.S. corn prices 20 percent below world prices. This is hardly the "level playing field" that U.S. trade negotiators demand for U.S. exports.
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