neoliberalism-free-market-fundamentalism-or-corporate-power

13-01-19 11:19:00,

Neoliberalism: Free Market Fundamentalism or Corporate Power?

Richard MOSER

I’ve been hearing about neoliberalism for a long time now and never could make much sense of it. It turns out the story we tell about neoliberalism is as contradictory as neoliberalism itself. Two currents within the critique of neoliberalism offer different analyses of the current economy and suggest different strategies for dealing with the gross exploitation, wealth inequality, climate destruction and dictatorial governance of the modern corporate order.

These opposing currents are not just different schools of thought represented by divergent thinkers. Rather they appear as contradictions within the critiques of neoliberalism leveled by some of the most influential writers on the subject. These different interpretations are often the result of focus. Look at neoliberal doctrine and intellectuals and the free market comes to the fore. Look at the history and practice of the largest corporations and the most powerful political actors and corporate power takes center stage.

The most influential strain of thought places “free market fundamentalism” (FMF) at the center of a critical analysis of neoliberalism. The term was coined by Nobel Prize winner and former chief economist of the World Bank itself – Joseph Stigliz. FMF is usually how neoliberalism is understood by progressives and conservatives alike. In this view, an unregulated free market is the culprit and the oft cited formula — de-regulation, austerity, privatization, tax cuts — is the means used to undermine the public commons.

David Harvey’s, A Brief History of Neoliberalism, is perhaps the single most influential book and the author begins with the free market. Harvey sets it up like this:

And it is with this doctrine…that I am here primarily concerned. Neoliberalism is…a theory of political economic practices that proposes that human wellbeing can be best advanced by liberating individual entreprenaurial freedoms and skills within an institutional framework characterized by strong private property rights, free markets and free trade. The role of the state is to create… an institutional framework appropriate to such practices. [1]

Not a mention of the massive modern corporation just those 19th century individuals and institutions that are the stock characters of FMF. But to be fair, Harvey moves on to the “paradox:” neoliberalism is a political project that needs state power.

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