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Monday, April 14, 2014

Karol says...

(Karol from The Standard refers readers to a useful article)

Maybe you need to read “the comprehensive activist guide to dismantling neoliberalism”

It starts oultining the ways neoliebralism has failed.

How many times do we have to witness deep economic declines, before realizing corruption and greed are intimately connected to an economic system based on individual advancement?

Another common refrain is that of “trickle-down economics” or the idea that money will “trickle-down” from rich individuals and corporations to everyone else.

However, this “trickle-down” doesn’t actually happen to a great extent, wealth accumulates in “pools” for the rich.

So as long as neoliberals continue to ignore the realities of their program, they will continue to ignore the deeply negative implications of their policies.


Paranormal said...

These anti-neo-liberal monologues quite nicely avoid any recognition of the role the state plays in the economic decline.

Lets look at the latest one. The left have already blocked the reason for the 2008 crash and a looking at everywhere except the cause. The basic issue is government dictat created a Sub Prime market of mortgage debt. The banks stuck with this sub prime debt moved it on as best they could - infecting the rest of the financial markets.

If the US government - particularly Jimmy Carter and then Clinton administrations hadn't mandated that banks had to provide mortgages to those that couldn't afford them, the 2008 collapse wouldn't have happened.

The scary thing is that mandate has not changed. The subprime market is still there, and now coupled with significant government debt from failed money printing, oops sorry, QE attempts are a bigger disaster waiting to happen.

All of this has nothing to do with neo-liberalism, but all to do with socialism gone wrong.

Philip Todd said...

Thats interesting as every country that has had a socialist government for some years escaped the worst effects of the crash. Scandinavia, Germany, France are just some yet the right wing UK and USA capitalist economies took a real hiding. Interestingly the banks in the UK are already trying to pay exorbitant bonuses to the very people who caused much of the problem. In reality the crash was caused by the movement of money from productive sectors into the unproductive banking and futures markets that fail to create anything. Bank managers earning multi million dollar salaries is just plain wrong considering what they do yet the likes of doctors who save lives everyday struggle to earn anything like those amounts. An observation I have just made is that the more you pay the CEO of a company the harder it is to talk to anyone in the company by phone. It seems they need to put firewalls in to protect themselves from the minions.

Paranormal said...

Are you serious PT? Germany is struggling and France is a basket case economically.

And what caused the move of funds from productive to unproductive sectors? Could it have been the US government intervention insisting banks provide mortgages to those that couldn't afford them.

As for what people are paid - that's between the shareholders/directors and the CEO's. If the shareholders are not getting value for money then they'll sort that out quick smart. The real issue is when public sector bosses think they're worth similar amounts when they only do half the job their private sector counterparts do.