#'anti-capitalist media produced in a way that benefits capitalism' like... true... and that's depressing

[arielmagicesi]

as hard as it may seem to believe, just because a film has Janelle Monae in it doesn’t mean it’s a deep and meaningful film that’s deconstructing modern society. Glass Onion can just be a fun silly murder mystery with exciting little twists that says “Elon Musk is an idiot” and nothing more in the “theme and message” section, and I think that’s fine. but yes Janelle Monae is in it which elevates it to Film That Has Janelle Monae In It

[disembodiedapparition]

Neoliberalism: explained

Neoliberalism is a concept that has largely shaped the world we live in today. First popularized in the 1980s by world leaders like Ronald Reagan and Margaret Thatcher, it was the successor to the Keynesian economic system that most developed nations had adopted post World War 2. However, for a system as influential as it is, there’s still a great deal of confusion about what it really stands for and whether it’s ideal for a strong economy or not.

Neoliberalism is a school of thought that believes that every human interaction is driven by greed. In other words, people’s actions, relationships, and choices are all motivated by what that person might gain economically from them. Neoliberalism argues that self-interest is the driving force for any economy and for human progress as a whole, and that it should be encouraged rather than treated as a vice. It also posits that the competition an individual may face while propelling their self-interests would only encourage them to work harder and produce a product or service that meets a much higher standard. Without adequate competition, people are less motivated to do the very best they can – their consumers simply have no alternative to buy from.

Although this particular school of thought is often referred to as “capitalism”, it’s important to remember that by definition, a capitalist system is simply a system that aims to acquire capital, or profit. Neoliberalism, the system that many developed countries still incorporate into their economic systems today, is a type of capitalism – it promotes economic gain by increasing market competition and advocating for more privatized industries over public (government owned) ones.

The term “neoliberalism” in today’s context can be a little confusing, especially since the word “liberal” is commonly associated with civil rights and social equality advocacy (the ideals that these movements revolve around actually support government run industries and propose a tilt of the current economic model towards socialism). However, the “liberalism” that the term originated from referred to economic liberation – that is, a transfer of economic power from the government to individuals. It was popularized in the 19th  century, and has dominated the global economy ever since.

After the Cold War, the people were largely turned off by capitalism. The economic crises and recessions of the 1920-30s were fresh in mind, and it was clear that a new system, that would prevent the economy from crashing periodically, had to be drawn up. Robert Dahl and Charles Lindblom concluded that “both socialism and capitalism [were] dead”, and the Keynesian economic system subsequently adopted a blend of the two – it recognized the importance of market competition and individual economic liberty, while also implementing policy interventions aimed to curb the inherent flaws in capitalism that so often resulted in financial breakdowns, depressions, or mass unemployment epidemics. This system soon began rising in popularity in previously neoliberal nations, and for good reason. Their economies were booming, and growing at consistent rates.

However, in the early 1970s, the Keynesian system started to see another recession coming its way. The reasons for this recession were external and had little to do with the economic model being followed, but the economic elites who previously profited off capitalism began panicking, worried that their wealth may be in danger. The elites understood that a compromise was necessary following the devastating impacts of the war, and they were willing to share their wealth with the masses. However, once they felt that this wealth was in danger, they began advocating reverting to the old capitalist system – marketed to the people as a new one called neoliberalism.

The idea posited by Keynesian economists that government regulation was necessary to keep big industries in check, avoid future economic breakdowns, and protect the interests of the environment, the society, and every individual was rebranded as an overextension of power and an attack on individual liberties. It’s also important to note that during this time, the anti- Vietnam war crowd was also resentful of the restrictions that were placed on behavior and thought, and the way that government mandated controls were being implemented all over the country. This greatly contributed to the rhetoric that government intervention was bad and needed to be shut down.

All of this was only talk, however, until neoliberal leaders like Thatcher and Reagan were elected into office. They each began reforming their respective governments – loosening regulations on industries, de-centralizing certain industries (like telecommunication or energy production), and cutting down taxes on the people, mainly the economic elites. By the time Reagan was out of office, the highest tax that an individual in the U.S could pay dropped from 70% to 28%. The rationale was that the wealthiest people in society, when taxed less by the government, would use their wealth to make larger investments that would, in turn, lead to astronomical economic growth which would benefit everyone. This proposed chain of events is often called the trickle- down economic theory, and is still referenced today (U.S. President Donald Trump used it to justify his tax cuts on the wealthy).

However, as Owen Zidar has recently shown in a research study published in the Journal of Political Economy, the assumption that the wealthy would use saved tax dollars to create jobs, foster economic growth, or bridge the gap between the rich and poor is a fallacy. Instead, he found that they are actually more likely to simply hoard their wealth. The U.S, which currently taxes its billionaires at a rate of 23% (while the average tax rate for the public is 28%), is one of the best examples of the massive wealth inequalities triggered by relying on trickle-down economics – as of 2013, the top 10% possessed 76% of the country’s wealth, while the bottom 50% only possessed 1%. Back when the ultra-rich were taxed heavily, the government implemented welfare programs which sought to stabilize this gap, but neoliberal economic policies provided a way for the wealthy to keep national wealth all to themselves – which doesn’t promote economic growth at all.

Today, neoliberalism’s biggest advocates are right wing or conservative parties, although the term itself might indicate otherwise. However, not many openly identify with the label, as it’s gained a bad reputation because of leaders like Pinochet, the former President of Chile. Although Chile’s economy did much better than her Latin American counterparts and she experienced a sharp decrease in poverty levels, the rampant inequality that neoliberalism inevitably triggered led to a divide between the business/political elite and the people of Chile, sparking nationwide protests and a call for more public provisions and greater taxes on the wealthy. However, the ideas of unregulated industries, privatized businesses, and minimal government interference are still hugely popular. Countries like the U.S, which were founded on individualist over monarchial government systems, often claim that the free market capitalism that neoliberalism champions is one of the core values of the nation, and cannot be compromised on.

Not only has neoliberalism led to an increase in wealth and income inequality, but it has also stripped power away from governments and given it to powerful and wealthy multinational companies. For example, the way that governments were forced to immediately fold and bail the banks out in the wake of the financial crisis of 2008, and the inability of governments to prevent social media platforms from infringing on the integrity of their own elections - or even force them to attempt to do so. Governments are becoming increasingly powerless in comparison to the ultra-rich. Ironically, even though neoliberal ideals acknowledge that the government still plays a small role in the economy, the nature of the system enables large corporations to accumulate enough wealth and power to influence the few decisions that the government actually gets to make. For example, a corporation that is essentially a pillar of the economy – providing millions of jobs and paying a large percent of the tax the government receives from its people – could threaten to relocate to a different country if they don’t comply with their demands.

Neoliberalism is a very unique system of organizing society. It’s played a massive role in shaping the world we live in today, and even though the label has been defamed, the ideas that propelled the revolution are still highly popular today. Today, political parties remain conflicted over whether Keynesian or Neoliberal economics are the best way to minimize adversity and maximize economic growth. David Harvey has classified neoliberalism as “a project to achieve the restoration of class power”, and unfortunately, this holds true. Decades of neoliberal reforms have stacked the odds increasingly in favor of the ultra-rich and the billionaires, and have dug the economic lower and middle classes further into poverty and debt. In addition, the idea has changed the way we think about the world, and invited us to view society as a market, where every interaction is made out of self-interest, and where economic gain is the only kind of gain you could ever hope to make in your lifetime.

“Neoliberalism is the flood that raises those who can afford ships and drowns those who cannot.”