The neoliberal program never achieved more than mediocrity and overall it has failed even on its own terms. Worse, it has corrupted government, fractured society and visited destruction upon the Earth. This failure flows from two false premises at the heart of neoliberalism: the libertarian claim that people should be rugged individualists, and the neoclassical claim that free markets usually will automatically optimise an economy.
Behind the votes for Brexit and Trump lies a simple perception: the system is rigged in favour of the rich. That perception is accurate. People may lash out at scapegoats and follow false prophets, but their disgust and alienation are quite justified. Trump promised to break up the cozy club at the top, and many people said Yes.
Two extracts published at Pearls and Irritations, here and here.
Many Americans and Brits are struggling to come to terms with the votes for Trump and Brexit. We haven’t had the same shock in Oz, but we have a creeping version of the same disease.
Chip Giller, the founder of Grist magazine, which insists on humour in the face of general insanity, tells how recently he was moved to tears by Harry Potter. Yes, the fictional boy wizard. It’s a powerful story, that’s why it’s so popular. Harry chose to stand for what’s right, against impossible odds. Then a lot of Harry’s friends chose to stand with him, validating the love among them, and perhaps creating a glimmer of hope.
Giller was reminded that if enough Americans of good heart and good will stand together they might resist the forces of fear being marshalled by Donald Trump.
Suddenly our leaders and their lackies are all over the airwaves warning the unwashed hordes of the perils of rejecting the glorious benefits of free markets and free trade, as those ingrates have done in the US and UK.
Their favourite line is “Twenty five years of uninterrupted economic growth.” You hear it almost every day. It represents unparalleled economic success. It is uniquely Australian, because no other country avoided the 2008-9 recession. It’s all because of Australia’s lean, deregulated, open, agile economy, managed brilliantly by [insert current Treasurer].
Except for two little caveats. Australia’s economic performance during the neoliberal era has never matched that in the post-war decades to the early 1970s. And we avoided severe recession in 2008-9 only because the Rudd Government intervened heavily in the economy.