Raising interest rates to fight inflation is a crazy idea (tags)
A wrong analysis of the causes of inflation leads to wrong countermeasures. Wage restraint means a loss of purchasing power and does not change the increased energy prices. Higher interest rates will make loans more expensive, lead to less investment, eg renewable energies.
On the Power of Money: Three by Eugen Drewermann (tags)
Only faith (as in a religion), the "invisible hand," the "law" of the "free" market can judge everything. State interventions can only be annoying. The market itself is allegedly "social". Everyone acts according to his advantage. The system is not social but criminal and unjust.
How Misguided Financial Policy Strengthens the Right-Wing (tags)
Capitalism has shown how democratic processes can be easily evaded. The Chicago boys carried out their radical reform program that was known as shock therapy. This included dismantling social state structures, opening the market to foreign investors and shattering unions
Neoliberalism and Authoritarianism - A Symbiotic Pair (tags)
Rightwing populist parties mix the conventional rightwing authoritarian political style with neoliberal economic ideas emphasizing the free unregulated market and the sleek but strong state. For Hayek, unions allegedly threaten democracy and force a just redistribution policy.
The Fairy-tale of the End of the Financial Crisis (tags)
Between 2008 and 2010, the EU Commission approved state aid of 4.3 trillion euros. The potential crisis of the global economy has grown and not declined. A system crash was prevented by the actions of central banks and states.
The Totalitarianism of the Market (tags)
Neoliberalism demands reeducation for its implementation like command socialism. The neoliberal view of the person is exemplified by the figure of the Homo Oeconomicus and is the antipole of the socialist person. All persons are entrepreneurs of themseves.
Casino Capitalism and Profit Maximization (tags)
In the 1960s the average holding time for stocks was 10 years. Now the holding time is not 9 months but 22 seconds. Like shareholder value, profit maximization leads to exploding inequality and the waste of resources. States are weakened by tax cuts.
Reviews: Submission as Freedom. Life in Neoliberalism (tags)
The challenge of neoliberalism took an offensive form in the global North with the victories of Reagan and Thatcher. No coup and no dictatorship were needed to gain mass support for carrying out the political ideological hegemony Stagnation, unemployment and futurelessness
Living and Working Differently and Self-Optimization (tags)
How did neoliberal policy gain a mass influence? To neoliberalism, we must soon oppose a great alternative narrative of freedom, democracy and solidarity before the social dislocations neutralize the positive resources amid a collapsing world climate.
Casino Capitalism and Profit Maximization (tags)
“The state is consciously weakened to speed up the redistribution from bottom to top because that corresponds to the dogmas of the neoliberal ideology.” Our state was systematically weakened in the last 15 years by extensive tax cuts. I remember the lowering of the top income tax rate.
Out of the Slump: The Only Road (tags)
A real analysis of the United State’s economic history is rarely discussed by politicians or media alike, since the conclusions that would be inevitably drawn would be out of step with what politicians are currently advocating.
The World Social Forum (Feb 6-11, 2011) (tags)
"Another world is possible," Susan George declared at Porto Alegre. 80,000 activists came to Dakar. The world has changed, not only through the financial crisis that showed the market often causes more problems than it solves. The WSF has become a source of hope for a just world.
The End of the "Golden Age" of Capitalism and the Rise of Neoliberalism (tags)
"The central point is that the financial sphere has the potential of developing into an autonomous subsystem of the whole economy with an enormous capacity of self-expansion..Like cancer, it has no internal control mechanism. It can only be brought under control by external interventions"
Ruling on Behalf of Wall Street's "Super Rich": The Financial End Time has Arrived (tags)
"Alas, the Obama administration has backed the Geithner-Bernanke policy that “the economy” cannot recover without saving the debt overhead. The reality is that it is the debt overhead that is destroying the economy. So we are dealing with the irreconcilable fact that the Obama position threatens to lower living standards from 10% to 20% over the coming few years – making the United States look more like Greece, Ireland and Latvia than what was promised in the last presidential election. Something has to give politically if the economy is to change course. More to the point, what has to give is favoritism for Wall Street at the expense of the economy at large. What has made the U.S. economy uncompetitive is primarily the degree to which debt service has been built into the cost of living and doing business. Post-classical “junk economics” treats interest and fees as payment for the “service” for providing credit. But interest (like economic rent and monopoly price extraction) is a transfer payment to bankers with the privilege of credit creation. The beneficiaries of providing tax favoritism for debt are the super-rich at the top of the economic pyramid – the 2% whom Mr. Obama’s tax giveaway will benefit by over $700 billion. If the present direction of tax “reform” is not reversed, Mr. Obama will shed crocodile tears for the middle class as he sponsors the Deficit Reduction Commission’s program of cutting back Social Security and revenue sharing to save states and cities from defaulting on their pensions. One third of U.S. real estate already is reported to have sunk into negative equity, squeezing state and local tax collection, forcing a choice to be made between bankruptcy, debt default, or shifting the losses onto the shoulders of labor, off those of the wealthy creditor layer of the economy responsible for loading it down with debt."
Building community centers could be a way to learn from O Canada and break from the false religion of the market and profit. When the market and competition are made absolute, they become idols. CEOs are called job creators and workers "cost-factors."
Appalachia and Colombia: The People Behind the Coal --an interview with Aviva Chomsky (tags)
Aviva Chomsky is a professor of history and Latin American Studies at Salem State College in Massachusetts, and is a founder of the North Shore Colombia Solidarity Committee, which has been working since 2002 with Colombian labor and popular movements, especially those affected by the foreign-owned mining sector. She just returned from a Witness for Peace delegation (May 28 – June 6) that traveled to two regions devastated by coal mining: the state of Kentucky and to northern Colombia.
Chicago Boys' Curse Comes Home to Wall Street (tags)
The famous school of economics at the University of Chicago led by the late Milton Friedman spread its market fundamentalism worldwide. Greed, selfishness, individualism and short-termism were conflated with freedom and democracy and elevated to the status of moral philosophy.
World Bank and IMF Policies Caused Food Crisis (tags)
The IMF changed its economic direction and took a market radical neoliberal economic course at the beginning of the 1980s with the rise of monetarism. Hunger inthe world can only be overcome with long-term sustainable strategies, not with the short-term horizon of Wall Street.
On the Anti-Democratic Character of Neoliberalism (tags)
Privatization, deregulation and cuts in social spending is the trinity of the free market, Naomi Klein explains. The consciou8s production of unemployment is anti-democratic. The conscious worsening of income- and assets distribution is anti-democratic.
"Capitalism and Freedom" Unmasked (tags)
The dark side of Milton Friedman's economics.
Reviewing Naomi Klein's "The Shock Doctrine" (tags)
The human wreckage of disaster capitalism.
The Underrated Power of Economists (tags)
During the Great Depression between the two world wars, the Brit John Maynard Keynes came to an insight that was implemented in the 1960s. The state must guide the economy by its spending to avert the danger of depression.
Pinochet is dead! It is time to kill the system that spawned him! (tags)
The fact that the death of Pinochet on Sunday sparked off celebrations in Chile and around the world should surprise no one. He was a hated figure, a living symbol of the real face of the bourgeoisie. In "normal" times the capitalists prefer to govern through "democratic" parliamentary means, so long as their fundamental interests are guaranteed. But the capitalist system cannot always guarantee that its interests can be defended through parliamentary means. History is full of examples where the bourgeoisie has preferred to do away with the niceties of "democracy"... Hitler, Mussolini, Franco, Suharto... the list is endless.
Neoliberalism: Definitional Problems (tags)
"Neoliberalism starts from a negative.. assumption that every person prefers him- or herself or circle. Therefore corruption is inevi-table. This development can only be prevented by reduction of the public sector and the absolute self-control of the market."
Robert Fisk: Iraq's occupiers suspected of losing touch with reality (tags)
Robert Fisk: Iraq's occupiers suspected of losing touch with reality