Is Neoliberalism Dead?
¶ 1 Leave a comment on paragraph 1 0 A friend recently blogged about someone who started a row at a party by arguing that neoliberalism is dead. I’m that someone, and since I start this chapter by claiming that open source romanticism has helped unravel neoliberalism, I should admit right up front that there are many smart people who would respond, “who said neoliberalism is unraveled (or dead)? Seems like its going strong to me!”
¶ 2 Leave a comment on paragraph 2 0 I started thinking about the issues that would become The Net Effect in the 1990s, and at the time I thought of the idea as a study of the internal politics of neoliberalism. Back then, cultural studies people did not often use the term; they were more focused on postcolonialism, the subaltern, and other sites of resistence. I learned about neoliberalism from development experts and political economists, who were looking for terms to describe the way the World Bank and governments around the world seemed to be falling all over themselves to ape the free market theories that dominated Reaganite U.S. and Thatcherite Britain in the 1980s. It was kind of astonishing how taken-for-granted the market fundamentalism of the time was, as it spread uncontested into international agreements, intellectual property law, and so forth. It wasn’t that bureaucrats and politicians argued for the market; it was that if you raised any questions at all about the benefits of self-regulating markets, you were treated as if you were talking gibberish. People just walked on by.
¶ 3 Leave a comment on paragraph 3 0 It’s that sense of absolute taken-for-grantedness that’s gone, I think. There are plenty of people in power who still reflexively turn towards market fundamentalism — e.g., the British Tories right now — but unless you use neoliberalism (incorrectly) to mean simply capitalism, there’s no longer a single global hegemonic set of principles about how to best negotiate the relations between markets and democratic institutions. There’s a bunch of different ideas: various flavors of Keynesianism, the “Beijing consensus,” and others. The recent economic collapse clearly finished off that earlier consensus, but I think it was pretty well unraveled after the collapse of the dotcom stock bubble, and I think the open source movement actually opened up an important chink in its armor even before that.
¶ 4 Leave a comment on paragraph 4 0 But I don’t think I persuaded anyone at that party, so I don’t imagine you’ll all agree with me here . . . .
¶ 5 Leave a comment on paragraph 5 0 P.S. Terry Flew has an excellent essay up on the neoliberalism debates, particularly on what Foucault’s place in them is and isn’t.
Tom
Thanks for the nice words at the bottom. In relation to your friend’s incident at a party, is it an either/or issue. is neoliberalism either the dominant ideology of global capitalism or it is dead? Could it be an element, but one of many, in the intellectual statum of a social formation?
Also, it strikes me that in the US, you tend to get an equation of “Everything People Loathe About the Republican Party” = neoliberalism = “Everything People Loathe About the Republican Party”. I’m not saying your wrong about the Republican Party, but a ,ot of it does not make sense to call it neoliberlaism. As an Australian spending a little bit of time in the US at Indiana U. in 2008, one of the things that struck me was the complete disinterest of the Bush Administration in the size of the budget deficit, to a degree that is inconceivable nowadays in Australia.
That is partly to do witht eh relative weighting of each currency, of course, but the US situation would have rankled with the German neoliberals that Foucault discusses, whose point of differentiation from the Keynesian/planners/social democrats ascendant in the rest of europe was precisely their commitment to sound finance. That has remained a constant in Germany since 1945, under both Christian Democrat and Social democrat governments, and has coexisted with a quite interventionist and regulatory state and a strong role for unions in corporate decision-making.
You would perhaps also be aware that The Economist has been repeatedly drawing attention to what it saw as the very un-neoliberal tendency in both the US and Britain to keep expanding the size of government in the economy over the course of the 2000s:
http://www.economist.com/node/15328727
Anyway, let’s talk further.
Thanks Terry. There’s always a question of when and how to totalize. It’s easy to say “it’s all a bunch of different things,” e.g., practices, ideologies, political movements, cultural trends, none of which can be reduced to the other. But part of the usefulness of the idea of neoliberalism — when it was, imho, useful — was that it allowed drawing connections across domains. The flip side of such a move is that it can quickly become reductive, which I fear is happening a little too often these days.
One more thought: maybe it’s a safe generalization to say that neoliberalism has always had a kind of surface-level existence, something that’s seemed more coherent on the level of sweeping political rhetoric, but that has never really accounted for all of political economic action. The fact that Keynesiasm resurfaced as if whole-formed during the banking crisis — there was never any actual debate about it in the US, Bush and then Obama just dove in — suggest that Keynesianism never really disappeared, it just hid out in the bureaucratic corners of economic thinking, not in full view, but still there.