Week 3 - Neoliberalism Flashcards
(19 cards)
What is Springer et al. (2016) definition of Neoliberalism + what is required to achieving Neoliberalism?
‘The new political, economic, and social arrangements within society that emphasize market relations, re-tasking the role of the state, and individual responsibility. Therefore, Neoliberalism is the extension of competitive markets into all areas of life, including the economy, politics, and society’ (Springer et al. 2016).
- ‘Key to this process is the attempt to instil a series of values and social practices in subjects’ (Springer et al. 2016).
What is Tarnoff (2016) definition of Neoliberalism? + Link to other topic
‘Neoliberalism is the idea that everything should run as a business - that market metaphors, metrics, and practices should permeate all fields of human life.’ (Tarnoff 2016)
- Links to loss of work-life balance as work is colonising our private lives.
What happened in the 1930s regarding Neoliberalism?
From Crisis of capitalism:
- International and domestic market growth undeniably leading to uneven growing wealth of many due to deregulation effects
- This led to serious economic issues, rise in unemployment, altruistic suicide
- Populist rights promised change.
30s - New kind of Liberal era - where there was a balance between free markets and government regulation, aiming to ensure equal opportunities.
What happened Post-War regarding Neoliberalism?
40s - Talks of Neoliberalism, but still marginal.
50/60s - Development to Keynesian consensus, levels of inequality and suffering are undesirable (British Disease), something needs to be done
- Consensus emerged for state intervention by increasing demand, to sustain certain level for prosperity for all
How did Keynesianism fail and Neoliberalism rise?
inflation in 1970s - Oil shocks, stagflation.
Thatcher/Reagan - they were inspired by neoliberalism, applying it on their economies
Washington Consensus - level of agreement between the International Monetary Fund (IMF), World Bank, and U.S. Department of the Treasury on economic policy recommendations.
- Free market, privatisation, free trade, macro-economic stability.
What is the ideology of Neoliberalism + when did Neoliberalism grow? + links to different policies
1980s / 1990s - Growth of Neoliberalism.
- Markets should be unrestrained - maximum efficiency and growth.
- Government intervention in the economy is undesirable.
- Monetarism rather than Keynesian )
Monetarist Policies (interest rate changes) vs Fiscal Policy (Gov. spending + corporate regulation) to stimulate consumer saving or demand for economic growth. - Influences politicians and important institutions (WB, IMF).
What are the forms of Capitalism in Neoliberalism?
- Privatisation.
- Deregulation.
- Low taxation.
- Weakening of Trade Unions.
- Globalisation.
- Financialization.
- Changes in welfare provision - less benefits for lower incomes, incentivises individualism
What are the Ways of conducting and managing people in Neoliberalism?
Ways of conducting and managing people:
- Competition between people is good even at the expense of inequality.
- Individualism and entrepreneurism - Link to Entrepreneurial Self
- Training, guidance, and monitoring.
How does Neoliberalism effect individual employees?
Up to the individual employees to work to gain higher incomes and better jobs.
- Need to upskill and train to earn higher incomes.
- Reduction in Trade Union power therefore less protection over wages and working conditions.
What are the 4 critical accounts of Power?
1st - Power of Resources.
2nd - Power of Processes
3rd - Power of Meaning
4th - Power of System
How does Neoliberalism effect each account of Power.
1 - Pof Resources - Resources of certain groups (business class, finance, wealthy) grew.
- Pof Process - Arguably, ability of certain groups (e.g. TU) to voice their grievances lowered.
- Pof Meaning - Neoliberal ideas shaping “common sense” (economic orthodoxy, proliferation through popular culture and media).
- Pof System - Emergence of new ways of understanding and shaping people
What are some critiques of Neoliberalism?
Neoliberalism critiques:
- Inequality rises as it is up to each individual and organisation to skill-up, with less regulation, taxes, etc.
- Causes economic crisis such as cost-of-living crisis through privatisation of public services such as healthcare, dentists. This combined with lack of Trade Union power to negotiate higher wages leads to lower wages relative to the increases in prices.
What is the fatal flaw of neoliberalism?
The belief that first order economic principles map onto a unique set of policies, approximated by a Thatcher-Reagan style agenda
What is one thing that links all the versions of neoliberalism together?
An emphasis on economic growth…….
In what way are neoliberalists correct in their arguments, and in what way are they wrong?
They are correct in the fact that they argue that our most cherished ideas are more likelt to be attained with a strong and thriving economy, however they are wrong to argue that there is a unique recipe for achieving such economic growth
How has the Neo-liberalistic shift affected higher education? + reference.
Universities acting more like businesses, aiming to compete for students, and market themselves against other universities
A lack of government funding means universities rely on students for most of revenue, and foreign students
A free market for higher education doesn’t 100% work, as students do not have freedom of choice to switch degrees
Tuition fee increase, treating students like consumers, as well as the NSS, are seen as forms of marketisation
shift from idea that higher education was good for wider society, to idea that it is an individual investment
(Chandler et al. 2016).
What impact does neoliberalism have on individuals?
Neoliberalism influences the management of people through emphasis on entrepreneurial self, emphasising increasing training and monotoring to optimise individual performance
The commidification of welfare benefits, as well as a reduction in trade union power to protect wages
In what way had neoliberalism shifted the power dynamics within society?
Growth of resources and influence of business elite
Reduction in trade union power
Increase in rentier capitalism, allowing privileged players to extract money from everyone else
How is Neoliberalism resilient? + reference
in light of crises, and calls for change, neoliberalism is still very much present, despite its tendency to generate these crises (Cahill and Konnings, 2017).
