Exposing the Myths of Neoliberal Capitalism
C. J. Polychroniou: For the past 40 or so years, the ideology and policies of “free-market” capitalism have reigned supreme in much of the advanced industrialized world. Yet, much of what passes as “free-market” capitalism are actually measures designed and promoted by the capitalist state on behalf of the dominant factions of capital. What other myths and lies about “actually existing capitalism” are worth pointing out?
Ha-Joon Chang: Gore Vidal, the American writer, once famously said that the American economic system is “free enterprise for the poor and socialism for the rich.” I think this statement very well sums up what has passed for ‘free-market capitalism’ in the last few decades, especially but not only in the US. In the last few decades, the rich have been increasingly protected from the market forces, while the poor have been more and more exposed to them.
For the rich, the last few decades have been “heads I win, tails you lose.” Top managers, especially in the US, sign on pay packages that give them hundreds of millions of dollars for failing — and many times more for doing a decent job. Corporations are subsidised on a massive scale with few conditions — sometimes directly but often indirectly through government procurement programs (especially in defense) with inflated price tags and free technologies produced by government-funded research programs. After every financial crisis, ranging from the 1982 Chilean banking crisis through the Asian financial crisis of 1997 to the 2008 global financial crisis, banks have been bailed out with hundreds of trillions of dollars of taxpayers’ money and few top bankers have gone to prison. In the last decade, the asset-owning classes in the rich countries have also been kept afloat by historically low rates of interests.
In contrast, poor people have been increasingly subject to market forces.
In the name of increasing “labor market flexibility,” the poor have been increasingly deprived of their rights as workers. This trend has reached a new level with the emergence of the so-called “gig economy,” in which workers are bogusly hired as “self-employed” (without the control over their work that the truly self-employed exercise) and deprived of even the most basic rights (e.g., sick leave, paid holiday). With their rights weakened, the workers have to engage in a race to the bottom in which they compete by accepting increasingly lower wages and increasingly poor working conditions.Eggar, Pangolino, Live and Learn and 5 otherscanoeist52, azurnoir, ThouArtThat, Populist Prole, jwirr like thisIt ain't the things you don't know that hurts you, it's the things you know that ain't so.
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