2. How Neoliberalism Benefits the Few.
• It can restore the power
and profits of the upper
classes or create the
conditions needed to
create a political elite.
• They are the ones who
have the capitol needed
to invest in the new
markets created.
3. How Neoliberalism can Disadvantage
the Many.
• There is little evidence that Neoliberalism
stimulates worldwide growth.
• Privatisation takes resources away from the
many and can lead to unregulated costs.
4. Other Negative Impacts of
Neoliberalism on the Many
• As well as financially hurting the majority
Neoliberalism also takes away what we would often
define as their basic rights, such as access to welfare
and public healthcare.
• Makes failure an individual’s fault and responsibility.
5. Conclusion.
• Despite the claims of neo-liberalists, this
system usually ends up benefiting the few
members of the elite rather than the majority.
• It is often believed that if an individual does
not prosper in this system it is due to their
own failings.
• The majority will often also experience
cutbacks in the areas of public health and
welfare which impact them even further.
Editor's Notes
The idea that neoliberalism redistributes wealth more evenly throughout society is its main selling point, it claims that by increasing entrepreneurial liberties there will be more opportunities for individuals to make a profit. This claim however is inaccurate, with ample evidence to the contrary proving that neoliberalism, despite its possible good intentions, actually has the effect of maintaining, restoring or even creating the powerful elite it claims to bring back into a more equal majority. In contrast there is evidence that neoliberalism actively disadvantages the majority of citizens by making any failings their own fault and removing their right to government support in such instances.
Neoliberalism benefits the existing wealthy elite in two ways:
It has either “restored class position to the ruling elites” in situations where their power and profits were experiencing a downturn (Harvey, 2006, p. 28) “or created conditions for capitalist class formations” (Harvey, 2006, p. 34). This often happens because…
The elite are the ones who have the means to invest in new markets. This point almost goes without saying but, even today, starting a business requires an initial investment which not everyone has. If you cannot create a business in accordance with the neoliberal ideal all you can do is sell your labour, which will not yield as high a return.
Harvey writes that neoliberalism’s “record in stimulating economic growth is dismal”, citing ever-falling aggregate growth rates to show that as far as “restoring the conditions of general capital accumulation” goes, neoliberalism has had only a very weak positive impact if any at all (Harvey, 2006, p. 33).
Another issue with neoliberal privatisation is the selling off of public resources that the state looks after but which actually belong to the people, i.e. commodities like land and water, to private companies. Not only does this subtract from the collective wealth of the citizens but it also paves the way for unregulated markets which push up the price of accessing such resources so that the private owners can garner more profits.
By selling off measures to support and protect the public such as health care and welfare systems, the state makes an individual’s unsuccessfulness in the neoliberal economy the fault of that individual. As already mentioned this type of privatisation has the potential to increase costs the of services like basic healthcare until it is no longer accessible to all, but it also scraps the support network that is the welfare system, leaving people more vulnerable than ever and increasing the presence of inequality in society. This makes not thriving in the system squarely the responsibility of individuals due to their own failings like lack of education and effort, and frees the state from any responsibility.
Despite the claims of neo-liberalists, this system usually ends up benefiting the few members of the elite rather than the majority and gives rise to the belief that if an individual does not prosper in this system it is due to their own failings. This is made worse by the privatisation of systems designed to support people experiencing difficulties such as public health and welfare which can increase the price of accessing these services or eliminate them all together.
References:
And then we told them the wealth would trickle down [Image]. Retrieved 20 May, 2014, from http://creativeresistance.shintai-z.com/context/the-rise-of-neoliberalism/
Harvey, David. (2006). Neoliberalism as creative destruction. Annals of the American Academy of Political and Social Science, 610, 22-44.
I see nothing, I hear nothing, I say nothing [Image]. Retrieved 20 May, 2014, from http://borisanisimov.blogspot.com.au/
Mutual aid [Image]. Retrieved 20 May, 2014, from http://www.polyp.org.uk/wealth-poverty_cartoons/cartoons_about_wealth_and_poverty.html
