The Death of Neo-Liberalism

The financial crisis of 2008 was not a run of the mill recession. In the words of Gerard Dumenil, a Director of Research at the Centre National de la Recherche Scientifique in Paris, it reflected a “structural crisis,” such as those affecting the course of capitalism about every forty years, namely the late 19th century, the Great Depression, and the 1970. Above all else, it reflects a crisis in the prevailing neo-liberal paradigm, which has dominated policy-making for the past 40 years. According to Dumenil, neoliberalism is a social order, a new form of capitalism, that can be explained by recognising that there are now three classes or “social orders” in contemporary capitalism: the capitalists; the “popular class” made up of wage workers and lower-level salaried employees; and in between there is what Dumenil describes as the “managerial class”. The social order changes when the managerial class sides with one or other of the other two. Thus in the 1930s and in the post war period, the managerial class sided with the popular class against the capitalist class and we had the welfare state etc. In the neoliberal era, the managerial class has sided with the capitalist financial class and the popular class has been on the back foot. With the crisis of neoliberalism, we could look to a new realignment of this ‘social order’, with the managers swinging back again toward the popular class as their position continues to be eroded and their standards of living threatened.
Repairing our economy will require a dramatic reversal of the free market ethos that’s enveloped most of the world over the past few decades. Most importantly, it will require a downsizing of the financial sector, as the financialization of the economy has meant that finance has become central to the daily operations of the economic system. More precisely, the private nonfinancial sectors of the economy have become more dependent on the smooth functioning of the financial sector in order to maintain the liquidity and solvency of their balance sheet, and to improve and maintain their economic welfare. For example, households have increased their use of debt to fund education, healthcare, housing, transportation, and leisure, and they have become more dependent on interest, dividends and capital gains as a means to maintain and grow their standard of living.
But simply reviving the discredited policies of the last 40 years will not lead to a lasting recovery; free markets cannot turn worthless lead into gold. In addition, as the experience of the early 1930s tells us, if left alone to deal with the current problems, market mechanisms will lead to massive deflation, massive bankruptcies, massive destructions of physical assets, and enormous unemployment. This will continue until the debt structure is simplified and the underlying structure of the economy is radically changed. In the process, social unrest will grow to the point that the entire socio-economic system will be threatened.

[@aquious953]

Yah, neoliberalism has been rejected outright by the majority. However, we do not have a democratic majority rule system. We have a corporate democracy where corporations vote on and enact economic and social policy.

[@Adrian-qi5ii]

bullshit

[@aquious953]

@@Adrian-qi5ii excellent argument. Thanks for the comment 👍

[@Adrian-qi5ii]

@@aquious953 yeah, no need to go deep 👍

[@TheAvtrey]

Homie, what do you think Neoliberism is? You say it's been rejected, and then go on to say how companies rule over us.

[@Commonchaffinch2]

Finally, the truth

[@fennwenn3317]

It is due to the failure of the American educational system that when I scroll down, I keep finding people who mistake neoliberalism, a fundamentally right-wing ideology, as being something they can point to and say "yes, liberals bad, anything the left does is bad". It'd be funny if it wasn't tragic, really. I know that the colloquial use of the word "liberal" in the USA does refer to someone left-leaning, but *neo*-liberalism is a very specific and separate ideology. It's like trying to explain the difference between "modern" (ie new) art and Modern (ie Modernist) art. Neoliberalism is associated with privatization, deregulation, globalization, free trade, and austerity in government spending. This ideology is relatively *conservative* and *extremely capitalistic* in its goals and methods. Which means that the conservatives in the comments section who are nodding and going "bad! very bad!" a) didn't watch the video (or didn't comprehend it), and b) are likely neoliberal-leaning in their own politics, ironically enough.

[@pr0newbie]

@Anurag Chakraborty Both socialism and capitalism must be used in tandem. Natural resources should be state owned while the rentier class cannot be allowed to grow powerful with their invisible tax on innovation and productivity. Strict anti-monopoly laws will also help ensure the healthy functioning of capitalism. If not for the bailouts and MMT in 2008 to delay the inevitable, unadulterated capitalism would have crashed by now. Basic services like health and infrastructure must have socialism at its base, with capitalism at the top end to spur innovation and services for the wealthy. Right now, the average American gets one of the worst returns per tax dollar. That, and the rentier class, is causing the huge divide within the nation. And that's why the West uses Russia and China as a means to unite their people.

[@pr0newbie]

@Anurag Chakraborty India's problem is not socialism.. It's plutocracy, protectionism and dare I say it.. Democracy. Too fast too soon to an uneducated populace and it becomes bread and circuses to begin with.

[@solgato5186]

@Anurag Chakraborty growth is cancer

[@ahmadag1820]

neoliberalism is a heresy on progressive it takes progressive logic and throws conservative assumptions into to justify it's disgusting outcomes

[@ahmadag1820]

@@pr0newbie it took the US 140 years to figure it out

[@Jay-mc7vq]

Great interview.

[@satori-in-life]

Wonderful interview. Thank you.

[@dinnerwithfranklin2451]

Good interview thank you.

[@DavidTheSommer]

I dunno, I think he seems like a decent enough guy who wants to help out. Maybe you disagree with his vision of the economy, but he seems to argue in good faith.

[@amyjones2490]

In neoliberal economics who do they think will be their products if the mass of people can barely afford food housing and transportation?

[@stvwds61]

They don't care about this market long term! Globalism has changed the game. They are now focusing on growing markets, like China. Where GDP has been growing regularly at 4 times or so of ours. Meaning their citizens incomes are rising in turn. Resulting in their growing consumerism

[@dinnerwithfranklin2451]

Well said!

[@vanillaglue]

@@stvwds61 and what happens when all emerging markets have emerged and their consumers matured?

[@stvwds61]

@@vanillaglue Do we have the natural resources for that to occur and sustain? Will technology advance swiftly enough to compensate?

[@woolygan1529]

Go read “a brief history of neoliberalism” by David Harvey

[@jeffsmith9420]

Good discussion but the audio is off.

[@SuperLooneyrooney]

gotta love the white socks !

[@penelopegreene]

"I don't need a taxi, I need weapons. -- Neoliberalism XD

[@mickcostigan8042]

Maggie t. Carried Hayek book around in her handbag

[@TheAvtrey]

Just checked. Companies still control the wheel of the ship. Neoliberism is not dying its actually on track. I love licking the boot!

[@kurtriker9141]

Negative interest rates will kill neoliberalism. Max Kaiser said on his program.

[@MrMarinus18]

I don't know. Japan has done that pretty frequently and it still is very neo-liberal.

[@monkeytrousers6180]

This aged well.

[@tedrobinson372]

Neo Liberalism remains alive and well. The resulting political madness in 2022 could not have been predicted in 2015.

[@robertalexanderho5268]

Hope so.

[@simonfarre4907]

Lol. He said Yanis said the solution was to go out of the euro. I don't think the Frenchman understand English well enough because that is not what Yanis said

[@coopsnz1]

Taxes & redtape increase in Germany since the 80s , why less manufacturing in northern Europe today that socialism policy to blame not capitalism

[@LaureanoLuna]

Can't understand why in speaking about the impact of globalization on labor he doesn't mention immigration. No wonder if workers vote FN.

[@stuartwray6175]

Interesting how immigration has become an issue among many voters that turned a blind eye to the export of manufacturing jobs in the 1980s and 1990s, and furthermore supported wars of foreign intervention.

[@Daq94]

@@stuartwray6175 Immigration is populisms favorite strawman. Everything is boiled down to ethnicity and whom is deemed a worthy recipient of public spending. Exportation of jobs went hand in hand with budget cuts to public spending. And now they cry wolf everytime they can pin some statistic in relation to migration based on their skewed perception of the world.

[@NathansHVAC]

@@Daq94 you mean the left strawman. The left is the one that burns it.

[@Daq94]

@@NathansHVAC Populism goes both right and left it's not a bipartisan issue it's a universal phenomenon that holds a lot political weight when weaponized through discourse

[@coopsnz1]

Why middle class shrink in Germany is increasing income tax " vat tax " excise taxes that socialism policy

[@RochelleHansen]

Legend in portuguese please!! :D

[@jimsykes6843]

Hit 'like' if you're still waiting for neoliberalism to die!

[@RicardoSilva-hk2er]

Talking about neoliberalism without define it is useless. In a exam this guy would have fail because he does not explain the premises he is using to justify his conclusion. What does neoliberalism propose? who is neoliberal? What is the difference of neoliberalism and liberalism? He talks about high interest rates in 1979 and relates them with neoliberalism, how?! how is monetary policy related with neoliberalism? I never heard anyone making this relation before. The problem is that even in academia and historically the expression neoliberalism has 4 or 5 definition and this individual give us a really vague definition (to say the least).

[@mrmtn37]

Yep total pinhead. Not sure why they keep rehashing and not coming up with solutions so we can slap it to that government and get some better times rollin.

[@profd65]

Shut the fuck up. We all know what neoliberalism is.

[@johnstockwellmajorsmedleyb1214]

profd65 Yep, pinhead jagaloons one and all. Why is it we require govt. of any brand, or monetary systems? Mankind flourished for hundreds of thousands of years without either. The sheeple just march on brainwashed to the hilt, believing that, central banking, genocide, war racketeering, and imperialism, capitalism, are just peachy and should continue on down the road to perdition. I am frothing at the mouth for the next crash, Marx was so right. Glad I am awake, locked and loaded for, wool suits, mercedes, ATM's, All banks(not credit unions), and fuckwads that have any delusions that this system works. FTW Call me old fashioned but the system will be ANARCHY if me and mine have any say. If its worked to enrich the West by smashing everyone else around the globe, then this goose is taking the ganders shit. Do something Plutocrat Oligarch Wimps, I dare you lil bitch, yeah get to the gym thatll help. Your security wont last long when I double their pay after we take all you've stolen ya lil pussy. All this shit is dumb, I say Mad Max rulz, ready, set, GO!!!!

[@ThorsMjollnir0341]

Jesse Fruhwirth so how are we in a neoliberal age? All the things you mention that characterize neoliberalism are a drop in the bucket compared to the progressive policies that have dominated since the 1930s.

[@gigiduru125]

yeah, I also found that association of high interest rate with start of neo-liberalism funny. Maybe it's some kind of knee-jerk reaction like "goddam these money lenders, they got so greedy all of a sudden"

[@andresfernandes5906]

Have these guys ever heard of China, or anywhere outisde of Europe and the US?

[@artoftheheart11011]

Meanwhile there are several neoliberal thinktanks in China too, which are gaining more and more power and market radicalization is geting worse.

[@voranartsirisubsoontorn9010]

People who called themselves any kind of Liberalism in this past decade, to me, are not for free people liberty but for each group indulgent which i cannot think of myself as any liberal now and actually have to turn to the conservative to balance the negativity of liberalism out.

[@KarmaKittyFubarZen]

You need to look up the definition of neo liberalism. It doesn’t mean what you think it does. It has nothing to do with “liberals”. It is an economic policy.

[@MarkoKraguljac]

Could "neo liberalism" be explained as an attempt to equalize material well-being of as many people as possible, considering outrageous inter-country inequalities and the fact that we inhabit a planet with limited resources? Accent is on attempt.

[@Paul.Morgan]

+Marko Kraguljac Yes, I agree and this is how the political left find themselves in an intellectual bind. They cannot support international solidarity and protect their own nations poor at the same time.

[@MarkoKraguljac]

+keypointist I wish I could hear more frequently political/economic debates of this depth.. instead of usual, boring, small talk, sensationalist stuff.

[@Unprotected1232]

But also as a response to the crisis of the 70s...

[@kasaduhallo]

+Marko Kraguljac No,neo liberalism would rather be explained as an attempt to maximize profit,and destroying the welfare state.Let the market run it´s course=more money to the rich,financed by higher taxes for the poor.But you knew all this already,deep down,right?

[@JamesOGant]

We don't live on a planet with limited resources as much as we have designed our systems of energy and production extremely inefficiently. For example everyone on the planet can live in the State of Texas and if arranged in to families live on 5 acres of land. Obviously that is never going to happen. But the impact of human systems on the world and the environment really is the point. If we have a positive impact or a near zero impact we could have a civilization that last rather indefinitely. Neoliberalism is the assumption that what works well in the private sector works well in the public sector and is often sold on the rhetoric of "freedom and liberty and free markets" etc. But all that happens is market fixing, Trade deals which extract economies and put all economies in to debts which the population and the government often cannot pay back. Neoliberalism is basically the worldview that the banks should rule all societies and that all societies should run on a scarcity of money assumption and have to rely on the lenders and creditors to survive to borrow from them to keep going. In this way the lending class indentures people into a new kind of peasantry or serfdom. They trick us into thinking that they actually contribute to society in any way other than just having money often for free from the government and then moving money around and betting on other pools of money.

[@GaidexVillerX13]

see This.

[@kikkihiiri6515]

you wish

[@celtman58]

Presque tous les commentaires en anglais sont des conneries américaines.

[@celtman58]

je prefere a dire merde, mais je Google Translate non ha permit.

[@mr.mcfife4131]

Hahaha yeah sure

[@jb.drills]

Long Live Neoliberal Culture

[@x15Lovex]

Lol no.

[@velvetrest4566]

Death to neo liberalism

[@nevadataylor]

End capitalism now. Its all a complete shitshow, no matter what adjective you use.