Neo-liberalism

Neo-liberalismThe Luckiest Nut in the World

What is Neo-liberalismNeoliberalism, in theory, is essentially about making trade between nations easier. It is about freer movement of goods, resources and enterprises in a bid to always find cheaper resources, to maximize profits and efficiency.

RequirementsNeoliberalism requires the removal of various controls deemed as barriers to free trade, such as:TariffsRegulationsCertain standards, laws, legislation and regulatory measuresRestrictions on capital flows and investment

Main PointsThe rule of the market freedom for capital, goods and services, where the market is self-regulating allowing the trickle down notion of wealth distribution. It also includes the de-unionizing of labor forces and removals of any impediments to capital mobility, such as regulations. The freedom is from the state, or government.Reducing public expenditure for social services, such as health and education, by the governmentDeregulation, to allow market forces to act as a self-regulating mechanismPrivatization of public enterprise (things from water to even the internet)Changing perceptions of public and community good to individualism and individual responsibility.

Guiding PrinciplesSustained economic growth is the way to human progressFree markets without government interference would be the most efficient and socially optimal allocation of resourcesEconomic globalization would be beneficial to everyonePrivatization removes inefficiencies of public sectorGovernments should mainly function to provide the infrastructure to advance the rule of law with respect to property rights and contracts.

Lori Wallach, Free TradeThe Price Paid

Going GlobalFreedom of trade in goods and servicesFreer circulation of capitalFreer ability to invest

Outcomesmany innovative productsGrowth and development for some have been immenseSome 3 billion people or half of humanity live on under 2 dollars a day86 percent of the worlds resources are consumed by the worlds wealthiest 20 percent

Endgame: Divergent ViewsThe underlying assumption then is that the free markets are a good thing.From a power perspective, free trade in reality is seen by many around the world as a continuation of those old policies of plunder.

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