Monday, September 5, 2011

"The Crisis of Neoliberalism": What they are actually talking about



From the early 1930s to the late 70s, Democratic Socialism pretty much ruled not only America but the rest of the Developed World. With Classical Conservatives like Sen. Barry Goldwater when he ran for President in 1964. Breaking in to a certain extent to offer a new agenda a new politics that was about Individual Freedom. Economic and Social Freedom that was about lowering taxes and regulations and letting people live their own lives. And do for them what government was doing for them up to a point. But of course Sen. Goldwater lost in a landslide to President Johnson in 1964 but did manage to lay down the Building Blocks for the Conservative Movement. That came into power in the late 70s and Ronald Reagan did become Governor of California in 1967 and reelected in 1970. And almost won the Republican Nomination for President in 1976 and I believe would've been elected in 76 against Jimmy Carter. Then you have the Thatcher Revolution in 1979 in Britain, the Reagan Revolution in 1980 in America. The Brian Mulroony Revolution in Canada in the 1980s, you had all of these Conservative Revolutions happening in the West. The Helmut Kohl Revolution in Germany in the 1980s and you saw all of these Conservative Governments come to power in the West. And not exactly because all of these conservatives came to power but also the economy's in the countries took off and became powerful again. After stagnating in the 1970s, people did not vote these conservatives into power because they hated the Welfare State. But they did because their economy's were weaken and felt they were overtaxed and perhaps the government was doing too much. And wanted more freedom to live their own lives and take care of themselves. Democratic Socialism made its mark in America in the 1930s with the New Deal, as a response to the Great Recession. But not to destroy American Capitalism but to be a soft landing when people fell through the cracks and to provide a Basic Standard of Living.

And countries that used to be Communist Republics like in Eastern Europe and some of the Slavic States, saw these countries economy's take off. And decided that they wanted their economy's to look like that as well. Britain and Germany didn't go from being Democratic Socialist to American Capitalist but more Socialist to European Capitalist. They didn't destroy their Welfare States, neither did America but they did provide their people with more Economic Freedom. And then when Bill Clinton became President of the United States in 1993, Democratic Socialists I believed were expecting President Clinton to destroy the Reagan Revolution and bring back the High Tax Rates. And if anything expand the Welfare State, which of course he didn't in eight years. President Clinton I believe didn't create one new Entitlement Program in his eight years, actually there might of been one. With the State Children's Health Care Program but thats run by the States. What President Clinton brought in was a Liberal Economic Policy instead that would be centered around Economic Freedom, Low Taxes, Free Trade, Education and a tight Fiscal Policy. With Deficit Reduction and Balance Budgets and government being there to help the people who fall through the cracks. But help them get up not take care of them with Welfare to Work in 1996.

So when Democratic Socialists talk about "Neoliberalism", they are actually talking about liberalism instead, Classical Liberalism if you prefer. Which is different from Democratic Socialism that had dominated American Politics for about fifty years that we as a country have moved away from. And they are not happy about that, they would like to see us go back to the future.

Click on the link of the blog to see another video about "Neoliberalism"