9/24 Brief (Neoliberalism) – Welcome to The System!

Richard Swedberg explains how markets are at work in majority of contemporary societies. However, he points out that “markets have a ideological charge because capitalism has been surrounded by political struggle since its inception” (Swedberg 64). Thus creating a split in ideologies between those who favor free markets and those who favor government assistance within the market. Neoliberalists, the ones who prefer free markets, put faith in the “invisible hand” as the governing force allowing markets to set their own prices. However, what about those who can’t afford the price set on life necessities? Is it acceptable to put a price on a life?

Neoliberalism is “the assumption that governments cannot create economic growth or provide social welfare” (Bockman 14). In other words, neoliberalism is this ideology that everything in life has a monetary value, emphasizing the importance of markets. Therefore, if you can’t afford it, you are out of luck essentially. It’s important to note that this ideology is typically favored by affluent individuals who believe the government’s role should only be to “protect private property, maintain order, and provide some protection for the poor” (Bockman, 14).

A key idea to note is the fact that neoliberalism only works in favor of those who are eligible to play in the game of free trade. “Those who cannot compete — such as the homeless, the incarcerated, or the formerly incarcerated– are excluded from full citizenship, abandoned” (Bockman 15). The exclusion of such a large group of people shows how the system is really at work. Our society is already hierarchical based on class due to markets. Neoliberalism is just an intensification of the hierarchy that already exists. However, by completely abandoning a large group of people, neoliberalism makes the system less fluid.

What role should governments play in our system? Is having some sort of overseer such as the government more beneficial than we like to think? How else might the system be different if the “invisible hand” was the primary driving force of our economy? If our system did abandon those who couldn’t compete, would those individuals be considered to be operating “outside the system?” If so, how could that be seen as a positive thing?

Suzannah Faulkner says:

September 23, 2018 at 8:27 pm

I agree with your point that neoliberalism only works in favor of those that are eligible. I think it is interesting how it takes a step away from a central power (government) yet puts it into the hands of powerful entities that end up controlling the economy and distribution of resources in the end. Bockman even notes, “Most scholars consider a powerful state necessary to create and sustain a minimal state (Bockman 14). With that being said, do you think there would be a difference between the distribution of resources if the government acted as the invisible hand? Also, would it ever be possible for those without power to create a new minimal state?

Eden Kim says:

September 23, 2018 at 9:04 pm

I agree that neoliberalism excludes a large population of people who cannot afford to be included, thus making The System more rigid. However, to play devil’s advocate, today’s markets do attempt to lower transaction costs and increase efficiency (Swedberg 65). What areas in the market have lower transaction costs and greater efficiency? If these areas were modified, how would that cause a chain reaction throughout the rest of The System?

Mysia Perry says:

September 23, 2018 at 9:45 pm

As Maiana has stated in her brief, Neoliberalism puts faith in the free market to cater to the needs of society. Bockman’s article of Neoliberalism notes that “those who cannot compete [in neoliberal societies]…are excluded from full citizenship, abandoned” (15). Then, is it safe to say that these methods focus on minimizing the number of people in the system? Does this approach to government actively work to challenge those at the bottom of the system’s hierarchy and leave them behind? With that being said and given our discussions in class, is this a method of removing a group from the system?

Sabrina Duarte says:

September 23, 2018 at 9:47 pm

If neoliberalism is in favor of a free market, then how would it lead to “slavery without slave-masters” as the Funky Academic classified it to be? Additionally, Swedberg states that “according to Keyesians, markets will eventually self-destruct if the state does not properly intervene” (Swedberg 64). Would the System as a whole also fall apart if the market crumbled?

Casey Friedman says:

September 24, 2018 at 12:09 am

Can neoliberalism be amended to account for the socially and financially unfortunate? I agree that neoliberalism favors the wealthy, which is bad , but do you believe that the ideology has any merit ?

Phillip Daniel says:

September 24, 2018 at 3:59 am

The concept of neoliberalism reminds me of libertarianism, but in ways they may or may not be exclusive from one another. Do you believe that neoliberalism could potentially benefit people who go from the status of being poor to becoming wealthy? Why or why not?