Profit Over People: Neoliberalism and the Global Order

Neoliberalism, an economic ideology that has dominated the global economy since the 1980s, has had a profound impact on societies around the world. Its core tenets - free markets, deregulation, and privatization - have been advanced as the path to economic growth and prosperity. However, critics argue that neoliberalism has prioritized profit over people, leading to widespread inequality, environmental degradation, and political instability.

Profit Over People: Neoliberalism and Global Order

by Noam Chomsky

4.6 out of 5

Language	:	English
File size	:	1245 KB
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Print length	:	177 pages

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The Rise of Neoliberalism

Neoliberalism emerged in the aftermath of the post-World War II economic boom. As economies began to slow in the 1970s, governments and economists sought new ways to stimulate growth. Neoliberal ideas, which had been developed by economists such as Milton Friedman and Friedrich Hayek, offered a solution. They argued that government intervention in the economy was stifling growth and that free markets should be given freer rein.

Neoliberalism gained traction in the 1980s, when it was adopted by conservative governments in the United States, the United Kingdom, and other countries. These governments implemented policies such as tax cuts for corporations and the wealthy, deregulation of industries, and privatization of public services. The goal was to create a more competitive and efficient economy that would lead to greater economic growth.

The Key Tenets of Neoliberalism

Neoliberalism is based on a set of core beliefs about the economy. These beliefs include:

• Free markets are the most efficient way to allocate resources. Neoliberals believe that the government should not intervene in the economy, as this will lead to inefficiency and waste. They argue that the market will naturally self-correct and that competition will lead to lower prices and better quality goods and services.
• Deregulation is necessary to promote economic growth. Neoliberals believe that government regulations stifle innovation and entrepreneurship. They argue that deregulation will allow businesses to operate more freely and efficiently, leading to increased investment and job creation.
• Privatization is the best way to improve the efficiency of public services. Neoliberals believe that private companies are more efficient than government-run services. They argue that privatization will lead to lower costs, better quality services, and greater innovation.

The Consequences of Neoliberalism

Neoliberalism has had a significant impact on the global economy. It has led to increased economic growth in some countries, but it has also exacerbated inequality, environmental degradation, and political instability.

Increased Inequality

One of the most significant consequences of neoliberalism has been increased inequality. The policies of neoliberalism have led to a widening gap between the rich and the poor. This is because the benefits of economic growth have been disproportionately captured by the wealthy, while the poor have been left behind.

For example, in the United States, the richest 1% of the population now owns more wealth than the bottom 90% combined. This inequality has led to social unrest and political instability in many countries.

Environmental Degradation

Neoliberalism has also had a negative impact on the environment. The ideology's emphasis on deregulation has led to a decline in environmental protections. This has allowed corporations to pollute with impunity, leading to air and water pollution, deforestation, and climate change.

The effects of environmental degradation are already being felt around the world, in the form of extreme weather events, rising sea levels, and the loss of biodiversity.

Political Instability

Neoliberalism has also contributed to political instability. The ideology's emphasis on privatization and deregulation has led to a decline in the power of governments. This has allowed corporations to wield more and more influence over public policy, often at the expense of the public interest.

The decline in government power has also led to a rise in populism and nationalism. In many countries, people have lost faith in the ability of governments to solve their problems. This has led to the election of authoritarian leaders who promise to restore order and protect national interests.

Neoliberalism has been a dominant force in the global economy for over four decades. It has led to significant economic growth in some countries, but it has also exacerbated inequality, environmental degradation, and political instability. It is time for a new economic paradigm that puts people over profit.

Profit Over People: Neoliberalism and Global Order

by Noam Chomsky

4.6 out of 5

Language	:	English
File size	:	1245 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
X-Ray	:	Enabled
Word Wise	:	Enabled
Print length	:	177 pages

FREE