Neoliberalism is dying. What comes next?

Summary

The video critiques neoliberalism, an economic philosophy that has dominated since the late 20th century, arguing it has failed to deliver on its promises of prosperity. Instead, it has led to austerity, inequality, and environmental crises. The speaker calls for a new economic model centered on people, care, and sustainability, emphasizing the need for wealth redistribution, more equitable job opportunities, and lifelong learning. They advocate for public investment, democratic power, and policies that prioritize well-being over profit, calling this the 'courageous state' that can rebuild society post-neoliberalism.

Takeaways

• 😀 Neoliberalism has dominated global economic policy since the 1980s, with Margaret Thatcher and Ronald Reagan being key figures in its adoption.
• 😀 The core belief of neoliberalism is that markets know best, and governments should minimize interference in the economy.
• 😀 Neoliberal policies have resulted in austerity, weakened public services, and increased inequality, with wealth accumulating at the top.
• 😀 Despite its promises of prosperity, neoliberalism has failed to deliver, leading to stagnating wages, financial crises, and worsening global issues like climate change.
• 😀 Central bankers continue to defend neoliberalism, perpetuating myths about fiscal responsibility, even though the system is clearly failing.
• 😀 Neoliberalism has led to a drift in politics, where innovation and entrepreneurship have been replaced by managerialism and despair.
• 😀 The future requires a new economic system that prioritizes people over markets and focuses on meeting needs rather than chasing profits.
• 😀 Money should be viewed as a public tool to serve society, not as a private constraint driven by neoliberal ideology.
• 😀 A new economic system must focus on redistributing wealth and power, embracing diversity, and measuring success based on well-being and sustainability, not GDP.
• 😀 Policies must prioritize job growth, wage increases, lifelong learning, and support for people who don’t fit societal norms, such as those with disabilities or differing gender/sexual identities.
• 😀 The new economy must center on care, public investment, moral purpose in economic management, and sustainability, recognizing that real resources are scarce, but money is not.

Q & A

What is neoliberalism, and when did it begin to dominate Western thinking?

Neoliberalism is an economic philosophy that advocates for free markets, minimal government intervention, and policies like tax cuts for the rich and deregulation. It began dominating Western thought after Margaret Thatcher introduced it in the UK in 1979 and Ronald Reagan in the USA in 1980.

What are some key dogmas associated with neoliberalism?

The key dogmas of neoliberalism include the belief that markets are always right, governments should get out of the way, tax cuts for the wealthy stimulate growth, public spending is wasteful, and public debt is immoral.

How has neoliberalism affected society, according to the script?

Neoliberalism has resulted in austerity, financial crises, worsening climate change, stagnating wages, and increasing wealth inequality. Public services have been hollowed out, and many people, particularly in the UK, have become poorer.

Why does the script claim that neoliberalism is collapsing?

Neoliberalism is collapsing because it has failed to deliver on its promises of prosperity, innovation, and growth. The markets have failed, and there is no real innovation left to address the world's issues. Neoliberalism no longer works and has led to societal exhaustion.

What does the script suggest is needed for the future economy?

The future economy needs to prioritize people over markets, focus on investing to meet societal needs rather than chasing profits, control speculation, and redistribute wealth and power through democracy. Sustainability and well-being should be central to economic measures instead of GDP.

How does the script propose to redefine success in a new economy?

Success in a new economy should be measured by well-being, sustainability, and survivability, rather than by GDP or economic growth alone. This shift emphasizes human flourishing and environmental health over material wealth.

What is the role of tax and fiscal policies in the new economic model?

In the new economic model, tax should be used for its social purpose, including controlling inflation, reducing inequality, strengthening democracy, and correcting market failures. Fiscal policies should serve society, not markets.

What does the script say about lifelong learning and its importance in the new economy?

The script argues that lifelong learning should be prioritized, as current systems often define a person's worth by early failures, such as not passing certain exams. Everyone should have the opportunity to learn and improve throughout their lives, especially those who may have non-traditional backgrounds or learning differences.

Why is support for people with different abilities or identities important in the new economy?

Supporting people with diverse abilities, identities, or conditions (such as autism, ADHD, or dyslexia) is crucial for creating a thriving society. Diversity, not uniformity, is the foundation of innovation and progress. A new economy should embrace all people, regardless of differences.

What is meant by 'The courageous state' in the script?

The 'courageous state' refers to a new vision of governance that prioritizes care, community, and courage in its policies. It stands in contrast to the neoliberal focus on markets and austerity and emphasizes moral purpose in economic management, with a focus on future generations and sustainability.