Political Theory

Re: Free-market Capitalism and Neoliberalism: Differences

Nasikabatrachus — Mon, 10 Mar 2008 22:12:51 GMT

I think that the problem is a mixture of ignorance about free-market theories on the part of the lefties, and dishonest propaganda on the part of the "neoliberals".

Neoliberals : support our free market, capitalist policies of giving subsidies to Wal-Mart and centrally planning the global economy through the IMF!

Lefties : What are you, an idiot? Free market capitalism has clearly failed throughout history. Just look at Chile, where Pinochet used the military to torture and persecute tens of thousands of people! The "free" market in action, I tell you!

It all reminds me of my favorite Shakespeare quotation:

Out, out brief candle!
Life's but a walking shadow, a poor player
That struts and frets his hour upon the stage
And then is heard no more; it is a tale
Told by an idiot, full of sound of fury,
Signifying nothing.

-Macbeth, Act V, Scene 5

Re: Free-market Capitalism and Neoliberalism: Differences

Inquisitor — Mon, 10 Mar 2008 21:55:47 GMT

Ignorance? No, that's excusable. Outright lies and deliberate misinformation? Why that is what Marxists (and their associated ilk) have always excelled at.

Free-market Capitalism and Neoliberalism: Differences

Praxeo — Mon, 10 Mar 2008 21:51:14 GMT

Its seems that a major error has occurred in political science in recent years as far as two ideologies go: capitalism and neoliberalism. Leftist intellectuals in academia constantly conflate both capitalism and neoliberalism, treating the two as synonymous, interchangeable terms for our socio-economic status.

Yet when I read Austro-libertarian works on free-market capitalism and then survey the actions of neoliberal institutions such as the WTO, the World Bank, and the IMF, I'm struck at the differences between the two systems. The former recognizes natural rights and unregulated markets while the latter mouths support for private property but encourages corporate welfare, corporatist collaborations between government and business firms, and government financial support for overseas ventures.

I quote my flagrantly left-wing SJC professor Dr. Kenneth E. Bauzon in a Monthly Review article -

"Mainstream economic textbooks promote the idea that poor nations now at the bottom rung of the "development ladder" would eventually overcome their poverty if they embraced capitalist "free market principles." This means subscribing to the rules enforced by the World Trade Organization (WTO), including trade liberalization and privatization of both public assets and public services. Further, it also means acceptance of the conditionalities imposed by the World Bank (WB) and the International Monetary Fund (IMF), primary of which are structural reforms in conformity with the specifications demanded by the structural adjustment programs.

Contrary to proponents' claims, however, that capitalism has been the "greatest engine of production" that the world has ever known and raising the standard of living everywhere, capitalism has, in fact, failed miserably for the vast masses of citizens around the globe while benefiting only a few within each country (relative to its total population)."

What are capitalism and neoliberalism, why are they treated as equals when it seems they are anathema to each other and what accounts for the claim that mainstream economics textbooks promote capitalism?