The Death of Neo-Liberalism
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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.
Comments
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Finally, the truth
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Once agai some asshat pin head here to analyze the things already know that suck. Is IQ slipping backwards cuz I know mine is when I play these videos hoping for an educated professional solution. I know we have been at some sort of human plateu of the same chit as the 50's. I mean cars still have 4 wheel and a steering wheel and burn fossil fuel. Not to mention plastics and all the other amenities we done already had back den. Yep its fully slipped into straight up redneck. One hella wealthy has his own bank ta loan out moneys to them that have lost it. So hopefully somebody will move us forward into the 22 century. So until then ima keep playin your system Robin Hood style oh wait Im some more stimulous. Nope its just Maybell. Anyway Dunno bout yall but I was taught thinken men come up solutions instead of spendin all your time runnin down the same trouble we already knew bout. So when you get to the equity of the peeps without the welfare state. Stop screwin over them indigenous people and sending all the kids what cant find a job over to use their "Choke Hand" in foreign lands we will be here to listen with our hands to help that govt machine listen to yall. We got some trifle n to do ip there at that big white house anyway. Seem some o them cant eun they own Co. so givem ye tax dollars cuz they already wealthy Goldman Sachs employees get themselves some of the country tit off of you an me. I believe we should aim at rustling them outa town on a rail. You tell ol Trump make sure there is a door in dat wall so we can send them fools down there gettum a good ol education. IDC who ya are if dat dont just piss on your candle hotter then a june bug in july by golly maybe you should consider that door too? we will make an unfair trade cuz I like people work hard care about people. Ima sick of bailout BS. sounds weak and un merican ya hear?
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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).
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Euro is the product of neoliberalism thats why no country can't print it.
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gotta love the white socks !
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Legend in portuguese please!! :D
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When you start off from a false premise everything that follows is nonsense. This is the case with Monsieur Gerard Dumenil. Neoliberalism is alive and well, thanks so much. The most neo liberal countries in the world, the USA, UK and Germany have more successful economies than the more socialist countries of Europe. It would have been more apt for him to write a book about the death of European socialism. His idea that neo liberalism caused the financial crisis of 2008 is nonsense. The extension of credit to people who couldn't afford it was the cause of the financial crisis and it was social democratic parties in the USA and UK who promoted that policy.
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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.
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Great interview.
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see This.
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