Posts Tagged 'neoliberalism'

A democratic answer to neoliberalism and authoritarianism

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Bryn Jones

MikeODonnellJPG

Mike O’Donnell

Bryn Jones and Mike O’Donnell, editors of Alternatives to neoliberalism,  examine the problems of authoritarian nationalism and explain that the best hope for greater equality and quality of life lies with people themselves, and in more, not less democracy. The paperback of Alternatives to neoliberalism is out now.

When the hardback edition of our co-edited book was published in early 2017, it was the long, harsh aftermath of the 2007-8 financial crisis and subsequent recession – encapsulated in the term ‘austerity’ – that we challenged and sought answers to.

Along with a growing number of progressive critics and politicians, we named the extreme free-market ideology of neoliberalism as the underlying cause of the economic and social disruption that still persists. Alternatives to neoliberalism offers a range of democratic and egalitarian alternatives from progressive academics and policy practitioners. Their answers apply now even more urgently and provide a concrete vision of a participative society in which power is exercised by citizens, routinely in the communities and institutions in which they engage, and through robust systems of accountability at regional and national levels.

In the last year the need to defend and extend democracy and social justice has become even more acute. The neoliberal theorist, Fredrick Hayek, was a proponent of ‘the free-market’ but tended towards political and social authoritarianism so that business could be executed with the minimum of inconvenience. One man’s freedom…

“Liberal capitalist regimes, especially neoliberal ones, tend to respond to economic crisis and the social protest it provokes, with a shift to authoritarianism.”

However, the current resurgence of authoritarianism in many parts of the world, notably in the United States, Eastern Europe and Russia, and the Philippines, is not significantly the product of theoretical thinking – rather the opposite.  Liberal capitalist regimes, especially neoliberal ones, tend to respond to economic crisis and the social protest it provokes, with a shift to authoritarianism. Thus, they impose austerity on the majority in order to pay off debts caused mainly by financial speculation. The cry ‘we are all in this together’ rings out and populist nationalism is offered as the antidote to ‘the peoples’ complaints.

In reality, political turbulence following economic chaos serves to obscure the real causes of crisis and misleads popular opinion. ‘Taking back control’ in terms of sustained democratic participation is a fair description of what is least likely to happen. Alternatives to neoliberalism seeks to make these processes transparent and to offer solutions.

“…populist leaders and supportive media frame ‘the solution’ in terms of a supposed long-suffering national majority and ‘others’.”

Authoritarian nationalism typically couches the promise of restoring economic prosperity in terms of cultural inclusion and exclusion. These two aspects are rhetorically conflated as populist leaders and supportive media frame ‘the solution’ in terms of a supposed long-suffering national majority and ‘others’, frequently recent migrants or more established but easily differentiated and scapegoated groups. This was the scenario in inter-war Germany and is currently being played out in numerous parts of the world, if for now in somewhat less brutal terms. Why ‘we’ behave in this way is not best explained in terms of the psychopathology of the few – although that has some traction – than in the exploitation of insecurity and want.

It need not be so. The message of our book is fundamentally optimistic. Sceptical of the sustained intentions of remote elites to deliver on electoral promises, we believe that the best hope for greater equality and quality of life lies with people themselves, in more, not less democracy.  However, we mean this not in terms of current populist bombast but in the extension of citizens’ engagement and rights.

Thomas Marshall’s classic book on citizenship published in 1950 chronicles the development of a trilogy citizen’s rights in Britain; civil (legal), political and social. We advocate a fourth phase in the accretion of citizen’s rights: the development and implementation of democratic participation and accountability from the bottom to the top of society. Already many community and voluntary organisations as well as more formal organisations such as trade unions and small businesses contribute to sustain their localities.

Anna Coote, a contributor to the book, argues for a ‘new social settlement’ that would channel capital and resources ‘upstream’ drawing on civic organisation and vitality, leaving to residents more control of expenditure and development be it, for instance, in social care, additional educational and leisure facilities, community enterprise, and the maintenance and protection of the environment.  A complementary policy presented in the book would require supermarkets to negotiate and contract for the provision of certain services such as sourcing a minimum quota of local produce and/or meeting enhanced environmental standards.

“Such redistribution of power as we are currently seeing is into the hands of populist politicians.”

Building a more participative society will take organisation. Like any major change it has a political as well as a socio-economic dimension. It requires a redistribution of power. An increase in democratic participation in locally based institutions of, for instance, big business, education and in budget allocation will cumulatively have major regional and national implications. If sustained it will create a participative democratic society. Such redistribution of power as we are currently seeing is into the hands of populist politicians.

After the virulently totalitarian inter-war bout of authoritarianism and the war required to defeat it, there was a widespread desire for social reform. That reform, Marshall’s third phase of citizens’ rights, has been pushed back and as a priority must be defended and re-established. But beyond necessity awaits the tantalising possibility of a society of meaningful participation and opportunity.

Jones_Alternatives to neoliberalism [FC]Alternatives to neoliberalism edited by Bryn Jones and Mike O’Donnell is available with 20% discount on the Policy Press website. Order here for £20.79.

Find out more about impact, influence and engagement at Policy Press here.

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The views and opinions expressed on this blog site are solely those of the original blog post authors and other contributors. These views and opinions do not necessarily represent those of the Policy Press and/or any/all contributors to this site.

10 ways we can reverse inequality in Britain

Professor Roger Brown Book launch Liverpool Hope 16.4.13

Roger Brown

Roger Brown, author of The inequality crisis, explains how economic inequality in Britain and other advanced Western countries has got so bad, and highlights the measures we need to undertake that will start to reverse this devastating trend.

“Almost every day now the media carries stories about inequality and its effects.

In the past few weeks, the Department for Health has confirmed that the health gap between rich and poor in England is growing.

Reports by Lloyds Bank and the Social Market Foundation have drawn attention to our disparities in wealth, with a tenth of adults owning half of the country’s wealth while 15% own nothing or have negative wealth.

Respected independent ‘thinktanks’ like the Institute for Fiscal Studies and the Resolution Foundation have repeated their warnings that, at a time when wages generally are only growing slowly, the combination of tax cuts and cuts in welfare benefits means that income inequality will increase further over the next few years.

“Economic inequality has increased in nearly every advanced Western country…”

This is not just an English or British issue. In March, International Monetary Fund (IMF) researchers estimated that the US economy had lost a year of consumption growth because of increased income polarisation. And of course inequality was a major factor in the Brexit vote and in the election of President Trump.

My interest in the subject was first aroused by my work on the introduction of markets into higher education. I found that the associated increase in competition through mechanisms like tuition fees had exacerbated the inequalities between universities and the constituencies they serve, without any significant compensating benefits. This led me to wonder if there might be parallels in the economy and society more generally.

What I established was that economic inequality has increased in nearly every advanced Western country over the past thirty or so years, and that this has led to a huge range of costs and detriments. Moreover, these costs and detriments are not only social. As the IMF research confirms, increased economic inequality has an economic cost as well. Above all, growing inequality is disabling democratic politics as the concentration of economic power is increasingly reflected in a concentration of political power (as can be seen most clearly in the US).

“Growing inequality is disabling democratic politics…”

But whilst nearly everyone agrees that – to paraphrase Dunning’s famous 1780 Parliamentary motion, economic inequality has increased, is increasing, and ought to be reduced – there is no agreement on how this should be done.

Broadly speaking, there are two schools of thought:

One – the ‘market’ view – is that increased inequality is the inevitable outcome of underlying structural developments such as globalisation, skill-biased technological change, and financialisation (the growing economic role of such processes as banking and securities trading) over which individual countries and governments have little control. These changes are leading to what have been termed ‘winner-take-all’ markets where those at the top gain rewards out of all proportion to their contribution to society.

The alternative, ‘institutional’, theory is that it is due to the political choices made in individual countries, and especially the neoliberal policies of deregulation, privatisation, tax reductions, welfare cutbacks and deflation pursued in most Western countries since the mid- to late-70s, but particularly associated with Margaret Thatcher and Ronald Reagan.

I believe that it is the combination of these underlying structural developments with those neoliberal policies that has driven the post-80s rise in inequality, with the US and Britain well above the other wealthy Western countries in the extent to which inequality has grown there over that period.

So the key to reversing, halting or slowing inequality lies in the first place in reversing these neoliberal policies, but without losing the benefits of properly regulated market competition in sectors where it is appropriate.

The following is a short list of measures that would start to reverse inequality in Britain:

  1. Require the potential impact on inequality to be a major test of every other policy or programme introduced by the Government.
  2. Show that we are serious about tax avoidance by reversing the long-term decline in the number of professional HMRC officials.
  3. Progressively adjust the balance between direct and indirect taxation (VAT), increasing the former and reducing the latter.
  4. Increase the income tax rates for higher earners (say, above £60,000).
  5. Introduce some form of wealth tax.
  6. Begin the rehabilitation of the trade unions by repealing most of the 2016 Trade Union Act.
  7. Reverse the cuts in welfare benefits made by the Coalition and Cameron Governments.
  8. Introduce measures that really will force companies to take account of interests wider than those of top management.
  9. Begin to end segregation in education by removing the charitable status of the private schools.
  10. Focus macroeconomic policy on demand and wage growth rather than inflation and corporate profits.

The Labour election manifesto has some proposals on these lines, but no political party has yet really got its mind round the full range of measures that are needed to combat inequality.

Until they do, inequality will continue to increase.

 

The inequality crisis by Roger Brown is available with 20% discount on the Policy Press website.  Order here for just £10.39.

Find out more about impact, influence and engagement at Policy Press here.

Policy Press newsletter subscribers receive a 35% discount – sign up here.

The views and opinions expressed on this blog site are solely those of the original blog post authors and other contributors. These views and opinions do not necessarily represent those of the Policy Press and/or any/all contributors to this site.

A General Election to challenge – or intensify – neoliberalism?

Bryn Jones and Michael O’Donnell, authors of Alternatives to neoliberalism, argue that a ‘hard Brexit’ under a Tory government would strengthen, not challenge, the neoliberal agenda.

Mike O’Donnell

Bryn Jones

Public sector retrenchment, deregulated markets and corporate takeovers of public and civil society spheres are contested topics in this election. Yet the protagonists do not directly acknowledge that these arise from the disruptive effects of the generation-long, neoliberal system.

Neoliberalism still underlies the current social unrest and political crisis; but its ideological hegemony is under threat. Trump, neo-nationalist populism across Europe and Brexit, all express popular angst caused by neoliberal processes: de-industrialisation, public sector austerity, worsened living standards, insecure and/or poorly paid employment.

“Trump, neo-nationalist populism across Europe and Brexit, all express popular angst caused by neoliberal processes.”

Continue reading ‘A General Election to challenge – or intensify – neoliberalism?’

Election focus: how can the Left re-engage the people?

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Simon Winlow

In the second of our blog pieces focusing on the fast-approaching General Election, Simon Winlow, co-author of The rise of the right asks how it can be that, against a background of social, financial and environmental catastrophe, a political party dedicated to the neoliberalism seem set to secure a large majority. How can the Left get the people on side again?

There’s a terrible air of nihilism, cynicism and acceptance about the upcoming election. The Conservatives have made huge gains in the local council elections, and UKIP and Labour have lost quite badly. Of course, the general election could be very different. More people will vote, and the local issues that can sway council elections tend to be forgotten as the big issues of the day take precedence.

Theresa May has clearly timed the election to take advantage of disarray in the Labour Party, and in the hope carrying a large mandate into the upcoming Brexit negotiations. Pollsters are predicting a landslide for the Tory party, with UKIP disappearing as an electoral force and Labour continuing its slide toward oblivion.

Continue reading ‘Election focus: how can the Left re-engage the people?’

Understanding the Trump Moment: Reality TV, Birtherism, the Alt Right and the White Women’s Vote

Jessie Daniels

Jessie Daniels

Policy Press author Jessie Daniels on understanding the Trump moment, and what led to it. Originally posted on Racism Review.

Many of us woke up to a November 9 that we never could have imagined. Donald J. Trump, real estate developer and reality TV celebrity, is president-elect of the United States.

Over the last 18 months of his campaign, he has engaged in explicitly racist, anti-Semitic, anti-immigrant, anti-Muslim language that has both shocked and frightened people. The implications of what a Trump presidency could mean for ginning up racial and ethnic hatred are chilling.

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But first, it’s important to understand the Trump moment, and what led to it. This is an election that will spawn a thousand hot-takes and reams of academic papers, but here’s a first draft on making sense of this victory. Continue reading ‘Understanding the Trump Moment: Reality TV, Birtherism, the Alt Right and the White Women’s Vote’

Trump, Brexit and the EDL: the left’s failure to capture the electorate’s trust

The US election results have brought out aggression and hostility from supporters of both the right and the left. In particular, the left seems to be contentiously repeating one question: 

“Why did so many people feel safer putting their trust in Trump rather than in Clinton? “

Many people are quick to blame racism and bigotry, but there are deeper reasons. Simon Winlow, Steve Hall and James Treadwell, authors of The rise of the right, discuss the ways in which the left has failed to capture the trust of much of the electorate. 

 

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Simon Winlow

The mainstream liberal media outlets are outraged. For the liberal commentariat, Trump is the embodiment of all that ails the world. A racist, homophobic and misogynistic billionaire, a climate change denier, a man who apparently inspires loathing throughout the free world, a cocky and self-confident, tax-avoiding bigot whose election suggests the end of progressive liberal multiculturalism and dawning of a new Dark Age.

How could a man such as this win a clear mandate to govern the world’s most powerful nation?

Already our mainstream liberal media elites are asking what it all means. Political activists on the left look crestfallen as they call for a new solidarity in the face of adversity.

Now we need to ask why

Initial analyses tend to suggest that Trump has been voted into office by tens of millions of racist, homophobic and misogynistic white men who are angry about the erasure of their traditional power. Such analyses, fuelled by justifiable ire and shock, offer us only simplistic and predictable cultural reductionism.

What we need are careful empirical and theoretical analyses of the forces that appear set to carry us all into a new era of right-wing nationalism. Why are so many people angry at our established political elites? Why has fear come to play such an important role in the new politics? Why is there such a popular desire to move beyond the established parameters of marketised liberal democracy? What is it that inspires such open hostility towards minorities? These are important questions that demand a clear and objective response shorn of sentimentality and free from the usual academic constraints and injunctions.

 

“What we see at EDL protests, and what we see with Brexit and the election of Trump, is an inverted and distorted mirror-image of our own ideological failure.”

Continue reading ‘Trump, Brexit and the EDL: the left’s failure to capture the electorate’s trust’


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