Filed under: Austerity, Greece, inequality, Neoliberalism Tagged: Austerity, crisis, Greece, neoliberalism
The New Wave of Financial Instability
by MIKE WHITNEY
Global stocks were hammered on Friday for a second straight day on news of a slowdown in China and turbulence in emerging markets. The Dow Jones Industrials suffered its worse drubbing in more than two years, tumbling 318 points on Friday to end a 490 point two-day rout. Emerging markets currencies were whipsawed by capital flight as foreign investors fled to the safety of U.S. Treasuries. Turkey’s lira and the Argentine peso were particularly hard hit setting record lows in the 48 hour period. The scaling back of the Fed’s (Read more…)
“Privatizing gains and socializing losses” could be the motto for the neoliberal era. Alongside this and “there is no alternative”, few slogans better capture the ideology that has been so successfully diffused throughout the world over the past several decades.
Five years after latest financial crisis, this motto rings true as ever. To say that the losses stemming from the crisis were large is a heroic understatement; indeed, not only were they humongous, their exact size remains a tad fuzzy. Meanwhile, across the world in the aftermath of the crisis, stock markets have rebounded, wealth and income inequalities have grown (Read more…)
Were I of Dr. Pangloss’ rosy outlook and believed that this is the best of all possible worlds, I might have some sympathy for people like Industry Minister James Moore who, as most will probably have heard, recently opined that it is not his job to feed his neighbour’s child, an inapt remark for which he subsequently apologized.
He did add, at the time of his original offending remarks, that “We’ve neven been wealthier as a country than we are right now. Never been wealthier,” and boasted of his government’s job-creation program.
And therein lies the problem. Mr. Moore and (Read more…)
The past few days have not been great for public services in Canada. Canada Post will be phasing out home delivery of mail. Expansion of the Canada Pension Plan was scuttled at the finance ministers’ meeting. In the grand scheme of things, however, these are not extreme cutbacks. It’s not as if Canada Post is to be dismantled completely or our public pension fund to run completely dry. This government has long brought us death by a thousand paper cuts and those from the past days are just a continuation of the strategy.
There is a particular common thread that (Read more…)
Twenty years since its passage, NAFTA has displaced workers on both sides of the U.S.-Mexico border, depressed wages, weakened unions, and set the terms of the neoliberal global economy.
By Jeff Faux, December 13, 2013.
Foreign Policy In Focus is partnering with Mexico’s La Jornada del campo magazine, where an earlier version of this commentary appeared, to publish a series of pieces examining the impacts of the North American Free Trade Agreement (NAFTA) 20 years since its implementation. This is the first in the series.
The North American Free Trade Agreement, or NAFTA, was the door through (Read more…)
Americanized Labor Policy Is Spreading in Europe – NYTimes.com.
While most of the debate over Europe’s response to the financial crisis has focused on the budget austerity enveloping the Continent, the comparatively unheralded erosion of worker protection is likely to have at least as big and lasting an impact on Europe’s social contract.
Filed under: Austerity, Europe, Exploitation, Labour, Neoliberalism Tagged: Collective bargaining, European Union, Labour law, labour relations
The marketisation of our universities: Economic criteria get precedence over what’s good in human terms | British Politics and Policy at LSE.
Business criteria, not education or the public good, drive what marketised universities do, writes Luke Martell. Universities are restructuring for the new era, ploughing money into marketing and glitzy buildings, designed to appeal to applicants as much as function for those that use them. It’s a revolution in what the university’s about, and a counter-revolution is needed.
In 2010 the UK government announced 100 percent cuts to the funding of most teaching at universities. To fill the gap, students’ contributions (Read more…)
The Council of Europe Commission for Human Rights has published a report documenting the various ways in which austerity is negatively impacting on human rights across Europe. I have copied the summary of the report below:
Europeans are living through the deepest economic recession since the Second World War. What began as a meltdown of the global financial systemin 2008 has been transformed into a new political reality of austerity which threatens over six decades of social solidarity and expanding human rightsprotection across Council of Europe member states. The initial government responses to the economic crisis were characterised by unprecedented (Read more…)
Check out @chakrabortty’s Tweet: https://twitter.com/chakrabortty/status/409810696763760640
Filed under: Uncategorized Tagged: Austerity, Conservatism, neoliberalism
In reading Karl Polanyi’s 1944 classic, The Great Transformation, I’ve come across some passages regarding the persistence of the doctrines of economic liberalism (what we would today refer to as neo-liberalism) despite the onset of economic crisis. Despite being written almost 70 years ago, it sounds like it could have been written today:
‘Secular tenets of social organization embracing the whole civilized world are not disloged by the events of a decade. Both in Great Britain and in the United States millions of independent business units derived their existnce from the principle of laissez-faire. Its spectacular failure in one (Read more…)
I came across this gem while reading Hayek’s discussion of private monopoly and competition in Law, Legislation and Liberty. Hayek is discussing the relationship between competition and economic rationality, disputing those who argue that economic rationality or the ‘commercial spirit’ needs to exist for competition to work. In contrast, Hayek argues that the relationship works the other way round: bring in competition and people will be forced to embrace economic rationality in order to survive:
This should be remembered particularly by those who are inclined to argue that competition will not work among people who lack the spirit of enterprise: (Read more…)
Orthodox economists have failed their own market test | Seumas Milne | Comment is free | The Guardian.
From any rational point of view, orthodox economics is in serious trouble. Its champions not only failed to foresee the greatest crash for 80 years, but insisted such crises were a thing of the past. More than that, some of its leading lights played a key role in designing the disastrous financial derivatives that helped trigger the meltdown in the first place.
Plenty were paid propagandists for the banks and hedge funds that tipped us off their speculative cliff. Acclaimed figures in (Read more…)
Crash! A brief history of modern global capitalism – audio slideshow | Comment is free | theguardian.com.
An amazing slideshow of a century of capitalist development and economic crisis narrated by one of my former professors, Leo Panitch, author of The Making of Global Capitalism.
Filed under: Capitalism Tagged: Austerity, Capitalism, crisis, neoliberalism
Debt and Deficit as Shock Therapy » CounterPunch: Tells the Facts, Names the Names.
When Naomi Klein published her ground-breaking book The Shock Doctrine (2007), which compellingly demonstrated how neoliberal policy makers take advantage of overwhelming crisis times to privatize public property and carry out austerity programs, most economists and media pundits scoffed at her arguments as overstating her case. Real world economic developments have since strongly reinforced her views.
Using the unnerving 2008 financial crash, the ensuing long recession and the recurring specter of debt default, the financial oligarchy and their proxies in the governments of core capitalist countries (Read more…)
The grip of privatisation on our vital services has to be broken | Seumas Milne | Comment is free | The Guardian.
Any doubts about who really controls Britain should have now been dispelled. Any thought that the financial crisis might have broken the neoliberal spell, rebalanced the economy or chastened the deregulators and privatisers can be safely dismissed. October has been the month when the monopolies, City hedge funds and foreign-owned cartels put the record straight. It’s they who are calling the shots.
In the past week, a Swiss-based tax exile announced the closure of the Grangemouth petrochemicals plant, a crucial slice (Read more…)
I heard Brand’s interview late last week, and I’ve been stewing on it ever since. On a lot of topics, I have to say that I agree with Brand’s frustration. The existing power structures are not healthy – in fact I would argue that they have been subverted by a series of forces and factors over a very long time. Yes, there are enormous problems with environmental destruction, income inequality and political power distribution in general. I agree with Russell Brand on these principals – these issues deserve our attention, and to be addressed on the political stage. (Read more…)
“(In)visible Dialogue”. Installation by Wang King Road. 2011. Wikipedia Commons.
(This post was written by Alex and Jordan Himelfarb; an abridged version appeared in the Star here.)
We don’t like paying taxes. This is not big news: we don’t much like paying any bills, and there’s probably never been a time when we didn’t grumble in particular about taxes. But somehow “tax” has gone from irritant to four-letter word, not to be uttered in public and certainly not to be discussed favourably in politics. It seems the Canadian political consensus is that you’d have to be nuts to talk (Read more…)
Econ 101 is killing America – Salon.com.
In the Middle Ages, people looked to the Church for certainty. In today’s complex, market-based economies, they look to the field of economics, at least for answers to questions concerning the economy. And unlike some disciplines, which acknowledge that there’s a huge gap between the scholarly knowledge and policy advice, economists have been anything but shy about asserting their authority.
As we can see from the current dismal state of economic affairs, economies are incredibly complex systems, and policymakers who are forced to act in the face of this uncertainty (Read more…)
“A Corporate Trojan Horse”: Obama Pushes Secretive TPP Trade Pact, Would Rewrite Swath of U.S. Laws | Democracy Now!.
Crucial information on the secretive Trans-Pacific Partnership — Looks like a strengthened version of the failed FTAA from 2001.
Filed under: Capitalism, Democracy, Neoliberalism Tagged: Democracy, neoliberalism
I’m not sure what to make of the hoopla going on in the US right now. I’m inclined to think it’s all just political theatre, as Gerald Celente calls it, designed to distract the people from the real issues – the central one being, who controls the government and the nation? Wall Street, the big […]
A conservatism is spreading that the Tories can’t fathom | John Harris | Comment is free | The Guardian.
A month or so ago, when the public’s opposition to any intervention in Syria was revealed, the stock explanation of their views was pretty simple – boiling down to Iraq, the unhinged premiership of Tony Blair, and people’s instinctive understanding of what is now known as ”overstretch”.
But something else was in the air: a very British kind of scepticism, coupled with an instinctive belief that other nations’ wars are usually best left alone, and a general sense of people turning inward in (Read more…)
Check out @EurozoneCrisis’s Tweet: https://twitter.com/EurozoneCrisis/status/383338023402090496
Filed under: Uncategorized Tagged: Austerity, Democracy, Eurozone Crisis, neoliberalism