What is neoliberalism and how does it work?

A dictionary definition says that it is “a political approach that favours free-market capitalism, deregulation, and reduction in government spending”.

The term and the approach have a long history, but it really started to inflict its damage on us in the UK from 1979 with the election of the Margaret Thatcher government.

Although it has been widely discredited, its central tenets – :

• Privatisation
• Cuts to public services and benefits
• Outsourcing
• Deregulation
• Low tax

– are still pushed by the rich and their political wings (Conservatives, Lib Dems and Labour in the UK) as the way to “grow the economy to help public services and alleviate poverty” (see also “trickle-down economics”).

But the list above is little different from one most capitalists would support. The extra ingredient of neoliberal capitalism is the broader container. Neoliberalism seeks to destroy opposition in all spheres of life. They* maintain the consensus by:

• political funding
• lobbying – overt & covert (“think tanks”)
• sponsoring conferences
• sponsoring academics / their post
• advertising
• flooding of international boards and organisations (e.g. the IMF, the World Bank)
• ownership of the media

… so that any non-neoliberals in any kind of position anywhere are portrayed as cranks; anybody in the public eye who dares to suggest that public ownership or fair taxes on the rich might solve some of our problems will be criticised left, right and centre.

*E.g. posing as independent “The Atlas Network” boasts of creating or connecting over 400 neoliberal think tanks and campaign groups