Neoliberalism Its History, Its Discrepancy and Why It's Bad News for Americans! [Part 1]

Neoliberalism Has Been A Disaster For The American People, And The Effort Has Been A Bi-Partisan Endeavor.

With the meteoric rise of Democratic Socialist Bernie Sanders, the term Socialism is much in the news these days. With that said, another ISM is flying under the radar screen, Neoliberalism. Although somewhat hazy and hard to diagnose neoliberal dogma creeps in and infiltrates just about every aspect of our daily lives. Moreover, Neoliberalism is the ruling political ideology that both political parties have embraced for decades. 

Neoliberalism has mangled its way into our education system, our media, our think tanks, our corporations, and finical markets. Neoliberalism is dominating our state institutions, even our international institutions. 

Institutions like the WTO, the World Bank, and the IMF.

Neoliberalism is political. Neoliberalism is economics. It is a system of social relations and a set of values. 

What Are Neoliberal Values? 

• Strong Property Rights.
• The Free Markets Should Shape Society.
• The value of the free market exchange portrays itself as an ethic that no one or government should hinder in any way.
• The neoliberal doctrine says the contractual relations in the marketplace will encourage higher social well being. 

Therefore, Neoliberalist claim neoliberalism works to bring all parts of society into the market. It seeks to make everything and everyone a commodity. Neoliberalism affects both personal values and personal relationships, and most Americans do not even realize it. 

We are not only taught to brand ourselves as early as possible in order to make ourselves more attractive and marketable to prospective colleges and employers. We, ve managed to reduce our relationships to market transactions as well. For clarity, " I do something for you, you do something for me.  Johnny buys Sheila dinner Sheila gives Johnny sex. That type of thing. 

While individualism and personal responsibility are the mantra's that constantly get shoved down our throats, common corporate interest dominates this world. We speak of equality of opportunity; however, Neoliberalism depends on and creates staggering inequality. [See America The Land Of Inequality]

At its core, this inequality serves to concentrate vast amounts of wealth and power in the hands of the few. It does this through privatization, deregulation, austerity, like cuts to public spending and tax cuts for the rich.

Neoliberalism Mask Neo Mercantilism As Free Trade!

Neo Mercantilism Explained

It is the view of the House of Public Discourse that neoliberalism has brainwashed untold millions across the globe that whatever is suitable for the markets is good for society.

The History of Neoliberalism 

Adam Smith

Neoliberalism has its roots in classical liberalism and the political-economic theories laid out by Adam Smith in his groundbreaking text " Wealth of Nations." Smith argues that humans are naturally selfish and self-serving. Moreover, that organizing society around such characteristics will benefit all involved. Competition is the mechanism that keeps self-interest in check. A point often overlooked is what we have is a system where self-interest, therefore, becomes the motivator of economic activity. 

Competition is the regulator, and together with self-interest, they form this "invisible hand," which magically creates the perfect environment for efficient resource allocation. It sounds like Reagan's failed " trickle-down economics" to this writer. Neoliberalism takes this idea, puts it on steroids, and then distorts it and perverts it. What is left is this corrupt and wrapped system based not on individual self-interest but corporate interest.

The results and effectiveness of these factors have been nothing short of the complete devastation of the once vibrate American middle-class. Our research here in the House of Public Discourse uncovered the organization and implementation was a reaction to the embedded liberalism imposed after the Depression and World War II. 

Embedded liberalism was the system of embedding market forces into a  structure where the state could regulate them. This regulation by the state meant a considerable expansion of the Welfare State. Social Safety nets like public services, state-led planning, and nationalization of major industries of the economy like iron, steel, even automobiles. 

This system remained until the 1970s when stagflation took hold.

The Stagflation of the 1970s

In layman terms, stagflation means high inflation, high unemployment, and stagnant economic growth. The effects of this stagflation reverberated throughout the world. There are conflicting views as to what caused stagflation. However, one thing is for sure it did not help that in 1973 the OPEC countries placed an oil embargo on anyone thought to have been supporting Isreal in the Yom Kippur War. 

Countries included were Canada, Japan, the UK, the Netherlands, and the U.S...  However, after the United States threatened to blow Saudia Araba off the face of the earth, the OPEC countries agreed to recycle their excess petrol dollars. Through New York Invest Banks. 

The Banks then use this money for loans to foreign governments, and to organize bribes and coos against democratically elected governments in foreign countries. This activity happened in Nicaragua, Iran, Chile, and more recently Iraq, and Libya. [See WarPropaganda an American Tradition!]

The first thing to understand, this money helped install the first case for Neoliberalism.  

During the 1970s, America participated in an extensive covert activity in Chile. The purpose of this activity was to prevent and then subsequently sabotage Salvador Allende presidency. America was fearing a Marxist government arising and wanted to protect the United States interest and investments. 

The CIA planned out multiple plots to take down Allende. Including, bribing of high ranking officials, spreading propaganda, and ultimately assisting in the military coup that overthrew Allende. This coup brought Augusto Pinochet to power. 

Pinochet dismantled Congress. Banned all mostly left political parties, installed a military dictatorship and then used the Chicago Boys to install a neoliberal regime.

Milton Friedman's Boys

To understand the significance of this, we must rely on history to guide us. Back in 1956, the United States, as part of their plan to counter the spread of Communism to Latin America, invited 25 Chilean students to come to the University of Chicago to learn about monetarism. 

Monetarism Is One of the Basic Tenants of Neoliberalism. 

These students studied under Milton Friedman. Friedman, along with Friedrich Hayek and Ludwig von Mises spearheaded the neoliberal school of thought. They also formed the Mont Perlin Society. The primary purpose and goal were to spread the neoliberal ideology. These students became known as the Chicago Boys. After completing their studies, they returned home to work for various South American governments including and no surprise the now military dictatorship of Chile under Pinochet. 

What transpired was the complete engineering of neo-liberalization of the economy. This engineering resulted in the privatization of dozens of state enterprises. Deregulating financial and economic activity and removing barriers to imports. This activity proved to be beneficial for U.S. investments.

Regan and Thatcher

This experiment in Chile provided the first test case of Neoliberalism in practice. This meddling in the affairs of another country served as a blueprint for Regan and Thatcher in the 1980s. 

 Infiltrating our Institutions

Throughout the 1950s and 1960s, the Mont Pelerin Society garnered funding from various wealthy individuals and corporations. Neoliberal ideology slowly began to infiltrate our various institutions. Our schools, our universities, our courts, our media, and all our think tanks and institutions like the Cato Institute. 

The Cato Insititute and others were created explicitly for conducting research and performing arguments that favored the neoliberal policy. These institutions remained under the radar for the most part until the 1970s. It was in the 1970s when corporations banded together to fight off consumer protection legislation,  workers rights laws, and regulatory constraints. 

Also, these adherents of Neoliberalism and corporations sought to reform tax law and antitrust legislation. These neoliberal factions buddied up to the Republican Party formed political action committees and eventually bought their way into political favor. What we now know is in the present system of things, these same adherents and corporations have bought their way into both political parties establishments favor.

The Neoliberalist did a great job appealing to people's frustrations, fears, and insecurities. They achieved this by centering their message on freedom and liberty.  The neoliberal message is that society built on free-market principles, and ownership of private property deserves to be called free.

Free Planning, Regulation, and control are seen as a tax on this freedom and therefore deserve to be abolished. When Reagan and Thatcher took control, this is what precisely happened. With both these neoliberals now in charge of their perspective countries.  Thatcher in the United Kingdom and Reagan in the United States in the early 80s. What our research here in the House of Public Discourse found and history never lies a complete dismantling of the social safety nets put into place during the years of embedded liberalism.

We the People, saw mass deregulation in finance and industry take place and substantial tax cuts for the wealthy. There was an all-out assault on workers rights.[See Source]

Regan's showdown with Air-Traffic Controllers Is The House of Public Discourse Evidence In Support.

Under Regan, trade unions broke up, causing massive unemployment.[See Source] Privatization was the order of the day in the Regan Administration. We are talking about transportation, healthcare, education, water, even prisons — the prison industrial complex in the United States has become a billion-dollar industry. [See Source] 

Capitalism + Privatization + Prison Industrial Complex= Largest Prison Population In The World [See Source]

George Monbiot writes:

"Freedoms from trade unions and collective bargaining mean the freedom to suppress wages, freedom from regulation, to poison rivers, endanger workers, charge iniquitous rates of interest, and design exotic financial instruments. Freedom from tax means freedom from the distribution of wealth that lifts people out of poverty." 

Freedom does not exist but for the people who can afford it. [Johnny Hill-House of Public Discourse] 

The facts do not lie Neoliberalism has led to this truism personified, " The Rich Are Getting Richer, and The Poor Are Getting Poorer." What is even more striking and a major focal point of Sen.Bernie Sanders(I-VT) an Independent running for president in the Democratic Pary is the gap between the riches and the poorest continues to widen.[Read: Why Ending The Ills of Plutocracy Matter?]

In Russia, the privatization of state assets like steel mills and oil fields led to the concentration of wealth and the seven oligarchs.[See Source] Privatization of land in China led to an elite capitalist class formation. This formation came at the expense of nearly 180 million peasants. These peasants were forced from their homes. Carlos Slim became the richest man alive through monopolization of Mexico's telecommunications company Telmex. This monopolization was made possible when Mexico privatized the industry. 

Neoliberalism during the 1990s solidified its position as the Democrats in the United States and the Labor Party in the United Kingdom. Both Bill Clinton and Tony Blair adopted neoliberal policies. Bill Clinton, like more recently Barak Obama betrayed his traditional constituency. Clinton bought into the neoliberal agenda and became the champion of welfare reform. [See Source] You would think Republicans would love Bill Clinton. Moreover, this with multiple other factors is one reason the House of Public Discourse did not support or trust his then-first lady Hillary Clinton for her attempt at the White House in 2016. 

It was Bill Clinton along with support from other Democrats like then-Senator Joe Biden(D-DE) and later Vice-President of the United States in the Obama Administration. That implemented the disastrous three strikes crime bill. It is the viewpoint of the House of Public Discourse, one of the biggest blunders ever committed by an American president was the repeal of the Glass-Stegall Act by the Clinton Administration that played a part in 2008 financial crisis. What we are getting at here is all of these facts history tells the truth every single time served to deepen social and economic inequality. America's social policy effectively was put in the care of Wall Street bondholders. Once again, Republicans should love neoliberals like Bill and Hillary Clinton, and Joe Biden.

Another critical point, the justification for these neoliberal policies like deregulation of Finance is to create wealth at the top, which will trickle down to the bottom by some invisible hand.  If Adam Smith ever got anything right, it was the Invisible Hand. The hand remains invisible to this very day.[Johnny Hill-House of Public Discourse]

Trickel-Down Economics does not work; we have a vast history of empirical data to back this proclamation up history never lies wealth is not even being created. The main achievement of Neoliberalism is to redistribute rather than to generate wealth.[See Source]

The neoliberal lie is this redistribution will trickle-down to We the People, when in fact, this redistribution goes upward. There is a term associated with this upward flow of wealth called the "Accumulation by Disposition."  Accumulation by Disposition has happened through commodification and privatization of land and the violent removal of peasants in China, debt peonage, and the credit system. Instead of increasing wages and expanding workers rights unions, neoliberalism has created a system which Regan exploited to the fullest this writer knows because he saw it with his own eyes and had the debt to back it up, a system that says " Buy Now, Pay Later." 

 Personal debt soared under Republican GOD Ronald Regan.

It Is The View of the House of Public Discourse That Reaganomics Proved One Thing: Debt Is The Slavery of The Free.[Johnny Hill-House of Public Discourse]

 Personal debt has been a critical problem for American's. Debt essentially enslaves people and holds them captive to the neoliberalist future commodity " We the People's"  future labor. 

International Finance systems only protect the interest of the imperial creditor nations. We had a demonstration of this in 1982 with the Latin America debt crisis. Fed Chairman Paul Volcker radically increased interest rates overnight.[See Source] Mexico defaulted on its loans to the United States setting of a rippling effect across Latin America. Regan, with the help of the IMF, agreed to roll over the debt but only if Mexico agreed to structural adjustments. 

Structural Adjustment calls for the same shitty policies mentioned above that do not work — Austerity, Privatization, Deregulation, instead of domestic inequality, we have international inequality. 

Western countries have gotten rich at the expense of developing countries. Neoliberalism 101! [See Source] What behooves the House of Public Discourse is these neoliberalists then calls this exchange " Free Trade." No, this is not free-trade this is neo-mercantilism! The reason so is only one country is benefiting. Neoliberalism has meant the financialization of everything. Period! Deregulation, the opening up of borders to air flows of capital increased investments in stocks, property, and other assets.  

This activity created a shift in which the financial sector became more potent than the product and services. Big Corporations once focused solely on the production began to become more financial in their composition. Manufacturing Companies could now report losses in production offset by gains from finical investments. Investment and Speculation of epic proportions took place.[See Source]

New Markets sprang up based on futures trading, derivatives, and securitization. These markets led to riskier and riskier business practices. All American's know about the "Too Big To Fail," banking system. These factoids, and once again, history has 20/20 hindsight resulted in the 2008 financial crisis. 

If we have learned anything from the 2008 crisis, it is that those in power would rather watch the system collapse than give up any of these powers or wealth. 

The people responsible for the crisis in 2008 the financial institutions not only walk away unscathed and legally untouched they have gone on to double their bonuses.[See Source] These same financial institutions reaped enormous benefits from the breakdown of smaller businesses and individuals — neoliberalism 101. Not too much has changed since 2008. This non-action falls directly on the shoulders of the Obama/Biden regime who swore on the campaign trail they would do something and did nothing but bail them out. 

American Politicians Love Socialism When It Is To Their Benefit!

It is the view of the House of Public Discourse that it is just a matter of time before another collapse happens. When Bush II invaded Iraq, he claimed to be bringing freedom and democracy to the people. However, what BushII envisioned was a neoliberal state. 

The neoliberal States imagines freedom but freedom for whom? Private Corporations, Financial Institutions, and the wealthy. Neoliberalism does not mean freedom for the people who are its commodity. Moreover,  Neoliberalist decisions have had a devasting effect on the average everyday working individual.

The United States and the United Kingdom led a brutal assault against the  Iraqi people. This assault based on a manufactured neoliberal lie of " Weapons of Mass Destruction," as justification for this carnage. People were stripped from their homes, livelihoods, political affiliations,  all to ensure the open flow of Iraqi oil to British and American markets.  

It is the view of the House of Public Discourse that we see this same neoliberal play being executed in Venezuela. 

Our research here in the House of Public Discourse has identified a recurring theme with Neoliberalism. Time and time again it is the neoliberal doctrine that espouses limited to no government, however, in practice, we found exceptions and, in fact, encouraged state interventions as long as it serves the interest of capitalism. What we have found in our research is that the role of the neoliberal state is to ensure a pleasant business climate by any means necessary. If democracy needs suppressing to make the free-markets easier that is okay with the neoliberal. The main focus of Neoliberalism is to protect the corporate interest if this means force and violence that is okay with the neoliberalist.

Neoliberalism = By Any Coercive Means Needed!

What is paramount to the neoliberalist is to defend the property owner class and beat down all opposition. It is the view of the House of Public Discourse that Neoliberalism is one of the worse things ever in the experiment we call America.[Read: The American Experiment Is Under Crisis!

More and more people are starting to catch on to Neoliberalism. It is the view of the House of Public Discourse we must fight against Neoliberalism and the Droops who propagate it. 

No one politician or person can do it alone. Thanks to Bernie Sanders and " Our Revolution," we see a concerted effort by growing millions of American's who say " Enough is Enough." People are waking up. Important to realize is this fight is a dangerous one. Influential, wealthy people and corporations will not just give up this influence. We must reside ourselves not to remain silent any longer. Hence, this two-part essay by the House of Public Discourse.

Part one of this essay goal was to give some background and history of Neoliberalism. Part 2 will cover the many contradictions of Neoliberalism. 

Written By: Johnny Hill 

Are Liberals And Progressives One In The Same?

Are Liberals And Progressives One In The Same?

Photo Courtney of wsj.com

In modern politics particularly in the United States the terms Liberal and Progressive are often used interchangeably. These political positions are often treated as if they were one in the same. However, in fact, these terms are mutually exclusive.  Never has this truth become more apparent than in the present 2016 Democratic Party presidential race.

For the sake of clarity, definitions are in order.

Liberalism is a political philosophy or worldview founded on ideas of liberty and equality. Whereas classical liberalism emphasizes the role of liberty, social liberalism stresses the importance of equality. Liberals espouse a wide array of views depending on their understanding of these principles, but generally, they support ideas and programs such as freedom of speech, freedom of the press, freedom of religion, free markets, civil rights, democratic societies, secular governments, and international cooperation[See Source]

One of the major concepts of liberalism is self-ownership or individualism. This individualism includes personal liberty, equal opportunity, and the rule of law, economic freedom, free markets, and free trade. The liberal values freedom of expression and the right to assemble. Of course, this includes freedom of the press.

There should always be a quest for political freedom within a democratic society. 

Individualism is the moral stance, political philosophy, ideology, or social outlook that emphasizes the moral worth of the individual.  Individualists promote the exercise of one's goals and desires and so value independence and self-reliance and advocate that interests of the individual should achieve precedence over the state or a social group while opposing external interference upon one's own interests by society or institutions such as the government. Individualism is often contrasted with totalitarianism or collectivism.[See Source]

In short, Individualism is the root of being liberal. There is no greater desire of anyone who calls themselves a liberal than that of personal liberty. By definition, personal liberty is the freedom of the individual to do as he pleases limited only by the authority of politically organized society to regulate his action to secure the public health, safety, or morals or of other recognized social interests. [See Source]

So What Does Being A Progressive Mean Today?

This writer has no problem with labeling myself a progressive. However, regardless how I choose to label myself it's important to understand that labels are just that labels. Labels are nothing more than a word or words used to describe a concept or belief. Concepts and beliefs in and of themselves are not absolute truths. They are ideas we utilize in an attempt to describe shared experiences. Labels work well as guidepost but are extremely limited in being able to depict the human condition. For example, I may label myself to be progressive because most of my positions concerning politics tend to lean that way so the label tends to provide a point of reference. 

What Is The Central Message Of The Progressive?

The central message of the “Progressive Movement" is one of fairness and equality. From Theodore and Franklin Roosevelt to Dr. Martin Luther King, Jr and now Bernie Sanders Progressives feel that everyone gets a fair shot and that everyone plays by the same rules. What we mean by “fair shot" everyone deserves an equal shot at securing life, liberty, and the pursuit of happiness. What we are not talking about is free handouts. It is the desire to seek and achieve the common welfare for all. Progressives believe we all must do our fair share to help obtain this common good. This is achieved through education, hard work, and active participation in one's community. What Progressives mean by playing by the same set of rules is that there should be no special privileges for the rich and well connected. 

Freedom

The most profound belief of the Progressive is freedom. The concept of freedom may mean different things to different people. Freedom is a double edged sword. Freedom from and freedom to. All real Progressives believe that privacy is not a crime and that government intrusion in how they carry out their private affairs should be off limits. For example the right for a woman to have an abortion or the right to marry someone of the same sex or to smoke marijuana. Like Liberals, the Progressives have a strong belief in the concepts of freedom of speech, associations, and religion. Also, like Liberals the Progressives cherish their rights to make their own choices about their bodies and personal lives. 

Progressives also believe that all humans have the right to live a fulfilling life supported by the basic foundation of both economic and physical security. This belief holds that we all should be protected against bodily harm as well as adequate income from a fair and just living wage. Progressives believe that healthcare is a human right and that all citizens should get a solid advanced education. The real Progressive understands the importance of community and social programs like the police , fire departments, and the military. The Progressive has no problem with their taxes going to help rebuild and grow our nation's infrastructure. The real Progressive wants to expand Social Security not privatize it and embraces the need for universal healthcare. 

Opportunity

Any commitment to freedom by a society must provide an equal opportunity for humans that make up that society. Like freedom opportunity has two components. The first is political equality and the others are economic and social arrangements that enhance our lives. Political equality by default should never discriminate against its populist in any way fashion or form. Political equality should strive to achieve that all its citizens should be able to turn their talents and ambitions into a meaningful and productive life regardless of economic status or racial heritage. The second component to opportunity involves the conditions necessary for people to feel secure to reach their goals. Healthcare, education, a job that pays a good living wage workers rights and retirement are all fundamental in creating these conditions. 

Responsibility 

With great freedom and opportunity comes great responsibility. Once again there are two factors involved with responsibility. First, is personal responsibility and the second is our responsibility to one another and the common good. Personal responsibility requires us as individuals to do our part to add and not take away from the common good of our communities. Yes, this does entail working hard, educating ourselves and living an honest life. 

Responsibility to others and the common good requires a commitment to putting the public interest ahead of the interest of the rich and powerful and to combat their influence on our political process that has put our democracy on sale to the highest bidder. The real Progressive understands that strong families and communities are the foundation of a strong and productive society. As Progressives, we strive to achieve higher social standards and economic conditions that not only will help us as individuals but also help the community at large. 

This requires that each and every one of us demand an open and transparent governance and that we as a populist engage this attack by the wealthy to disenfranchise us from the process by buying off politicians who enact laws that are contrary to the will of the people. Citizens United ring a bell?

Cooperation

The Progressive understands that there must be cooperation with our political values in that cooperation is the foundation to coinciding with our most important social institutions, families, communities, civic and faith-based groups. Freedom without cooperation leads to a divided society that cannot work together to achieve common goals and improve the lives of all. Cooperation begs us to be open minded and sympathetic to others. Real Progressives know that we are all accountable and responsible for the well-being of all who are in our society. To achieve this cooperation is a must. Progressives believe if we blindly pursue our own needs and ignore those of others our society as a whole will fail like so many in the world's history. Progressives value interdependence on a larger scale and look beyond our own needs to help others while seeking to find global solutions to global problems.

Are You Progressive?

Being progressive is more than just following some ideology there is plenty of cognitive dissonances in both political party’s establishments and their authoritarian followers that being a real Progressive catapulted us from this affliction and what sets us apart from being lumped in with the Liberals.

Being Progressive is more than a way of life or way of thinking it's a way of being. If you are a real Progressive these factors are part of your DNA, not something your mom and dad or teacher or preacher instilled in you. It is your existence that says who you are as a person. Being progressive transcends party identification. [See Article]

Being progressive gets to the heart of what being human is all about in this writer's view. Contrary to what you hear coming from the religious right Progressives value human life above all else our value of a human life does not end after the birth of a human being. It's where it continues and intensifies. Progressives have the view that all people of all origins and backgrounds are connected and all add to the overall human experience. To Progressives there is no them there is only us. However, don't let this kindness be perceived as weakness push a Progressive and expect to be pushed back. Progressives do not react we respond. There is a difference. Being a responder as opposed to a reactor takes a level of restraint and discipline. These factors are vital whenever threat evaluation is part of the equation. By doing so Progressive will almost always land on the right side of history. Bernie Sanders position on the war in Iraq, as opposed to Liberal Hillary Clinton, bears this out. Being a real Progressive is not about being right it's about doing what is right. 

So, Are Liberals And Progressives One In The Same?