- David Harvey argues that neoliberalism involves "creative destruction", destroying existing social and economic systems to drive innovation and competition. - Key premises of neoliberal theory include that free markets maximize well-being, and the state's role is to enforce private property rights, individual liberty, free markets, and free trade. - Harvey argues that in practice, neoliberal policies have mainly resulted in wealth redistribution to a smaller elite class, rather than generating broader prosperity.

1. Globalization and Culture
Neoliberalism
Week 5
February 21, 2018

2. David Harvey: Neoliberalism
What does Harvey mean by creative
destruction?

3. David Harvey: Neoliberalism
What does Harvey mean by creative
destruction?
● Neoliberalism destroys previously existing
ways of life, social relations, forms of
production
● Neoliberalism also constantly requires new
innovation, destroying its own forms to keep
ahead of competition

4. David Harvey: Neoliberalism
Premises of neoliberalism as a theory

5. David Harvey: Neoliberalism
Premises of neoliberalism as a theory
● market forces will maximize human
well-being
● for that to happen, we need an
institutional framework of private property
rights, individual liberty, free markets, and
free trade
● the state’s job is to create and preserve
that framework

6. Keynesianism
● Named after John Maynard Keynes
● Keynes called for state intervention - especially
government spending during economic crisis to
raise employment and stimulate consumption
● State has to balance market forces
● Broadly, Keynesianism describes a philosophy
that is put in action as “social welfare state”
policies
● Social welfare includes state spending on
schools, education, health, employment.

7. Naturalization of Neoliberalism

8. Naturalization of Neoliberalism
Neoliberal economic theory becomes attached
to principles of individual freedom and liberty
● In US, this takes on an especially strong
libertarian tone
● Harvey argues that business elites join
forces with the Christian Right (“moral
majority”) in the 1980s - what was the result
of this partnership?

9. Redistributive vs Generative

10. Redistributive vs Generative
Harvey argues that neoliberal policies have not
actually produced greater wealth. Instead, the
net result of neoliberal policies has been a
redistribution of wealth to a smaller and smaller
elite class.

11. Wealth Distribution in the US

12. Accumulation by Dispossession
On page 15, Harvey discusses Marx’s notion of
“accumulation by dispossession.”
What did Marx mean by that term, and how
does Harvey update it for the contemporary
moment?
What examples does Harvey give us?

13. Shock Doctrine
What does the concept “shock doctrine”
describe?

14. Shock Doctrine
What does the concept “shock doctrine”
describe?
Milton Friedman: Periods of traumatic crisis
are ideal time to make massive neoliberal
policy changes.
Changes are along three lines: privatization,
deregulation, defunding of social programs.

15. Shock Doctrine
How does Klein’s theory about the expansion of
neoliberal policies differ from the usual free
market story?

16. Shock Doctrine
How does Klein’s theory about the expansion of
neoliberal policies differ from the usual free
market story?
Classic liberal economic theory: free markets
systems are superior and will naturally
spread
Neoliberal addendum: Democracy and free
market go hand-in-hand

17. Disaster Capitalism Complex
Military Industrial Complex

18. Disaster Capitalism Complex
Military Industrial Complex
Eisenhower: warned about danger when
profit motives are introduced to war

19. Disaster Capitalism Complex
Military Industrial Complex
Eisenhower: warned about danger when
profit motives are introduced to war
How is disaster complex related, and how is it
different?

20. Disaster Capitalism Complex
Military Industrial Complex
Eisenhower: warned about danger when
profit motives are introduced to war
How is disaster complex related, and how is it
different?
privatization of disaster causes and
responses; outsourcing of “core” government
activities

21. Syria and the Disaster Complex?
Report by the Public Accountability Initiative, as
reported by Democracy Now, October 18, 2013