Continuous Analytical Reflection

Neoliberalism, politics and society

Neoliberalism: an overview

• Economic philosophy advocating the free-market and removal of restrictions on business and trade (domestic and international), in order to generate maximum profit (hence "liberal"—not necessarily mutually exclusive with social liberalism, but nonetheless these beliefs clash frequently) [Shah, 2010]

• Supports the deregulation of "public services" (eg. healthcare, education)—maintained by private businesses, not government or other non-profit organisations; minimum state interference [Shah, 2010]

• Draws major criticism from social activists due to its perceived negative effects on social welfare and the working class

Cartoon criticising the effects of neoliberalism (1)

Effects of neoliberalism

• The rich and ruling elite of neoliberal countries (eg. the US, Britain under Thatcher) saw consistent major growth in their wealth, to the point where some scholars have argued the philosophy was developed as a means of restoring class power in the wake of the 1960s-7os social movements [Harvey, 2006]

• Such growth came at the expense of those of poorer socio-economic backgrounds, who may not have had the opportunity to work and/or improve their condition

• Entrepreneurial minds may have seen this as "survival of the fittest," but oftentimes the poorest wanted to work but neoliberal policies prevented them from doing so!

• Public utilities (such as social welfare) have suffered from their rapid privatisation, due to the maxim 0f "profit over all else" [Harvey, 2006]

Protestor warning of the consequences of neoliberalism on the poor. Sound gruesome? Then it's working. (2)

Neoliberalism in Australia

Image satirising Australia/US relations (3)

• The rise of prominent neoliberalism in Australia began with the dismissal of Whitlam in 1975, aided by vested foreign interests; scholars have drawn comparisons to this and the usurpation of Aboriginal land by British colonisers [Paul, 2012]

• The growing inequality between working-class Australians and its elite has been accelerated by various free-trade agreements between Australia and the US (that bastion of neoliberals) and lead to an into increase in crime and sickness among the population [Paul, 2012]

• Such is each government's reliance on foreign interests (for the purpose of boosting the economy—such as Rupert Murdoch, who owns ~70% of the Australian media) that they seem willing to compromise with them on anything, even if the consequences impact the public negatively [Paul, 2012]

Neoliberalism in the Howard years (1996-2007)

• Sold many government assets (ie. Telstra—responsible for telecommunications) for the purpose of gaining a "surplus"

• Said surplus was achieved with an unprecedented boom in the mining industry, but Howard's government failed to invest it in the public sector (transportation, healthcare, education and the like), instead spending it on tax cuts for the rich and improving the military [Paul, 2012]

• Again, the influence of foreign companies in Howard's economic policies has been documented by various scholars and writers, and many have claimed that governments have become corrupted by such influence [Paul, 2012]

Howard was heavily influenced by American interests; critics often called him "Bush's lapdog." (4)

Neoliberalism under Abbott (2013-current)

• Tony Abbott was one of Howard's ministers and therefore heavily influenced by his policies and mannerisms

• The Abbott government was elected in by a landslide after an incredibly poisonous campaign (not helped by Labor's infighting)

• Much pre-election criticism and warnings from social media and the government was ignored and stifled by private businesses with a personal stake in Abbott's win (yet again, the influence of Murdoch is self-evident, with headlines such as "Kick this mob out" in reference to Labor)

• The budget of 2014-2015 saw an unprecedented fall in confidence in the Abbott government due to its massive negative effects on the working class and unemployed; critics have attacked it as "neoliberalism taken to the extreme"

Critics have accused Abbott of having "a deficit of social responsibility" (5)

Annotations

1. [Neoliberalism—an overview] Neoliberalism is an economic policy that advocates the deregulation and/or privatisation of trade and businesses, allowing "freer movement of goods, resources and enterprises" in order to "maximize profits and efficiency." It has gained popularity among the wealthier classes and elite in recent years, due to its philosophy of "maximum profit." [Shah, 2010] For related reasons, it has also garnered severe criticism from social activists, as its negative effects on the working class and those of poorer socio-economic backgrounds have been well-documented (eg. denying them free healthcare, education, and other vital necessities, for the purpose of enriching the elite).

2. [Effects of neoliberalism] David Harvey argues that neoliberalism as practiced today has brought down far more destruction than benefit, noting the negative effects on "prior institutional frameworks and powers" and "divisions of labor, social relations, welfare provisions, (…) ways of life, (…) ways of thought, and the like." [Harvey, 2006] With the effects the "Great Recession" has had on the United States (which has championed neoliberalism for many years) and most of the "developed" world (who generally followed suit), it's not difficult to for a decently educated person to see why. The gap between poor and rich has increased dramatically in recent years, due in part to the aggressive push of this philosophy.

3. [Neoliberalism in Australia] Australia was able to escape the worst of the Great Recession primarily due to its unorthodox response to the crisis (in comparison to other neoliberal countries)—namely, by spending public money on vital industries in the hopes of tiding the situation over. True, debt was generated (due to using so much money), but much less than if austerity measures were taken. [Marks, 2013] Australia used to pride itself on being a "welfare state" (and with good reason, as it is such policies that help reduce inequality and promote public well-being), but the increasing influence of neoliberalism has instead turned it into a so-called "stain and shame."

4. [Neoliberalism in the Howard years (1996-2007)] Despite the many flaws in Howard's policies, he managed to stay as Prime Minister for 11 years; this can be explained away by various incidents (such as the Tampa boat incident playing into the public's xenophobia after the September 11 attacks), or Labor simply not being an effective opposition for whatever reason. It was the WorkChoices policy that brought an end to Howard's Prime Ministerial-ship; it was heavily criticised as being unfair towards employees, and played a critical role in Labor's successful 2007 campaign. Perhaps surprisingly, the Murdoch media supported Labor then, although some have suspected it had the ulterior motive of holding the new government in thrall.

5. [Neoliberalism under Abbott (2013-current)] What Abbott and his advisers don't seem to realise is that it is generally better to have a manageable debt while investing in a long-term beneficial project (such as Labor's National Broadband Network) than have a surplus and not spend it on anything worthwhile (like Howard). Whatever the case, long-time critics of Abbott's policies are seeing their opinions vindicated, with a sharp swing in voter preference against him, and protests being organised. Indeed, many believe this budget was motivated by selfish ideals and spite against the previous government, rather than any potential benefits for the country.

Text References• Harvey, David. "Neoliberalism as Creative Destruction." Annals of the

American Academy of Political and Social Science 610 (2006): 22-44.

• Keen, S. "Neoliberalism and economic breakdown." Crikey, February 23, 2009. http://www.crikey.com.au/2009/02/23/keen-neoliberalism-and-economic-breakdown/ (accessed May 22, 2014).

• Marks, R. "Abbott's budget bluster highlights a deficit of social responsibility." The Conversation, 29 April, 2013. http://theconversation.com/abbotts-budget-bluster-highlights-a-deficit-of-social-responsibility-13782 (accessed May 23, 2014).

• Paul, Erik. Neoliberal Australia and US Imperialism in East Asia. Basingstoke, England: Palgrave Macmillan, 2012. Palgrave Connect e-book.

• Shah, Anup. "A Primer on Neoliberalism." Global Issues, August 22, 2010. http://www.globalissues.org/article/39/a-primer-on-neoliberalism (accessed May 22, 2014).

Image References

1. http://www.wsm.ie/c/anarchism-neoliberalism-education Workers' Solidarity Movement (accessed May 22, 2014).

2. http://ariseasia.blogspot.com.au/2011/10/occupy-wall-street-genesis-to.html Perspectives on Pan-Asianism (accessed May 23, 2014).

3. http://www.abovetopsecret.com/forum/thread921389/pg1 Above Top Secret (accessed May 23, 2014).

4. http://www.abc.net.au/news/stories/2007/10/14/2059094.htm?site=elections/federal/2007 Australian Broadcasting Corporation (accessed May 23, 2014).

5. http://theconversation.com/abbotts-budget-bluster-highlights-a-deficit-of-social-responsibility-13782 The Conversation (accessed May 23, 2014).