DOCSLIB.ORG

Neoliberalism

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Neoliberalism Chapter 10 Neoliberalism Neoliberalism1 (also spelled neo-liberalism) defies simple definition. In the Marxian literature, it has been understood in four closely related ways: as a set of ideas inspired by the Austrian and Chicago schools of economics and German Ordoliberalism and elaborated under the umbrella of the Mont Pèlerin Society; as a set of policies, institutions and practices inspired and/or validated by those ideas; as a class offensive against the workers and the poor, led by the state on behalf of the bourgeoisie in general or finance in particu- lar; and as a material structure of social, economic and political reproduction, in which case neoliberalism is the mode of existence of contemporary capitalism or a system of accumulation. The differences between these understandings of neoliberalism are symp- tomatic of the distinct methodologies and viewpoints within contemporary Marxism, their relationship with influential non-Marxist approaches in the social sciences, and the complexity of neoliberalism itself. From a Marxian perspective, these analytical tensions can be felt at three closely related levels. First, all neoliberal experiences share significant commonalities; some are relatively abstract and universal, for example the growing power of finance and the curtailment of political democracy, while others are relatively con- crete and (country-)specific, such as privatisation and the spread of non- governmental organisations into areas that, previously, were the domain of state institutions. While these commonalities imply that neoliberalism cannot be adequately described in purely contextual terms, they are also insufficiently general or historically distinctive to define a new mode of production. Inevita- bly, then, analyses of neoliberalism straddle across levels of abstraction within capitalism, including (some understanding of) such basic concepts in Marxist theory as the commodity, value and labor power all the way to conjunctural description, by way of specific understandings of exploitation, class, competi- tion, price formation, finance, the state and international trade. Second, Marxist analyses are by definition systemic, and seek to encompass the economic, sociological, institutional, political, legal, cultural, ideological and other aspects of neoliberalism. This necessarily includes how, why and to what extent the neoliberal ‘reforms’ have transformed economic and social 1 Originally published as: ‘Neoliberalism’, in D.M. Brennan, D. Kristjanson-Gural, C. Mulder, E. Olsen (eds.) The Routledge Handbook of Marxian Economics. London: Routledge, 2017. © koninklijke brill nv, leiden, ���9 | doi:�0.��63/9789004393�0�_0�� <UN> 208 Chapter 10 reproduction after the disarticulation of the Keynesian-social democratic compact in the leading capitalist economies, the paralysis of developmental- ism, the implosion of the Soviet bloc, the dramatic transformations in China and the crises in the European periphery. This historically grounded and inter- disciplinary approach is both superior to and incompatible with the narrow focus provided by most traditional disciplines in the social sciences. Among its many advantages, it allows Marxist explanations to offer more comprehensive and logically coherent explanations of the origins of neoliberalism and its re- current crises than rival interpretations can provide. Nevertheless, the contri- butions of those social science disciplines inevitably remain influential in the background. This helps to explain the distinct conceptualisations of the key features of neoliberalism observed in the Marxist literature and the diverse understandings of their articulation and relations of determination. It follows that Marxist analyses can more or less legitimately reach very different conclu- sions about the vitality of contemporary capitalism, its vulnerability to crisis, the scope for electoral politics, the feasibility of radical alternatives, and so on. Third, while the schematic depiction of the key ideas underpinning neo- liberalism can plausibly eschew the domain of the ‘international’ by focusing, instead, on the realm of ideas or the description of stylised institutions, ac- tually existing neoliberal experiences are completely inseparable from high- ly complex global processes, especially imperialism and globalisation. From this angle, too, neoliberalism cannot be encapsulated into a soundbite: it can neither be defined purely conceptually, nor captured inductively through the description of historical experiences. Identification of these analytical difficulties can help to contextualise the Marxist understandings of neoliberalism identified above; it can also support claims for the potential superiority of Marxist views over rival explanations of neoliberalism. For example, while Marxist analyses are necessarily systemic, class-based and nested on a grand theory (in the sense of Mills 1959), compet- ing interpretations tend to be either middle-range or descriptive, unsystematic and (sometimes despite appearances to the contrary, as in many varieties of Keynesianism) methodologically individualist. 1 Neoliberal Ideas As a system of ideas, neoliberalism draws upon the contributions of a wide spectrum of variously talented, frequently inconsistent and sometimes spec- tacularly cantankerous writers, including Friedrich von Hayek, Ludwig von Mises, Wilhelm Röpke, Ludwig Erhard, Milton Friedman, James Buchanan, <UN>.
Load more

Recommended publications
  • The Compatibility of Marxian and Keynesian Economics: a Critical Assessment of Two Interpretations of Marx
    NSER 5(1)—Articles The Compatibility of Marxian and Keynesian Economics: A Critical Assessment of Two Interpretations of Marx By Christian Schoder* This paper contrasts two converse interpretations of Marx which are assessed regarding their compatibility with Keynesian concepts of effective demand, independent investment and endogenous money. On the one hand, the orthodox interpretation abstracts from money and assumes the validity of Say's law. Effective demand does not play a role. It is drawn from Marx's treatment of the general law of capitalist accumulation and the law of the tendency for the rate of profit to fall. On the other hand, the monetary interpretation highly regards of demand, investment and money. Money is the trigger of a general glut as it allows for the separation of purchase and sale as a means of circulation. As a means of payment, money implies its endogenous creation through lending. It is laid out in Marx's treatment of the reproduction and circulation of the aggregate social capital, his analysis of money and credit and his rejection of Say's law. * New School for Social Research. 6 East 16 Street, New York, NY 10003 (e-mail: [email protected]). 17 The Compatibility of Marxian and Keynesian Economics 1. Introduction Various methodological, epistemological and theoretical discrepancies among the variety of schools of thought offer pluralism, but impede the emergence of a common research program (cf. Harvey and Garnett 2008). Hence, there have been several endeavors aimed at integrating Marxian and Keynesian approaches by trying to find shared principles and overcome disparities.i This paper seeks to contribute to this integration process of Marxian and Keynesian ideas.
    [Show full text]
  • China's Idiosyncratic Economics: an Emerging Unknown Monism Driven by Pluralism
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Dai, Shuanping Working Paper China's idiosyncratic economics: An emerging unknown monism driven by pluralism Working Papers on East Asian Studies, No. 111/2017 Provided in Cooperation with: University of Duisburg-Essen, Institute of East Asian Studies IN-EAST Suggested Citation: Dai, Shuanping (2017) : China's idiosyncratic economics: An emerging unknown monism driven by pluralism, Working Papers on East Asian Studies, No. 111/2017, University of Duisburg-Essen, Institute of East Asian Studies (IN-EAST), Duisburg This Version is available at: http://hdl.handle.net/10419/161628 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend
    [Show full text]
  • SOCIOLOGY 9191A Social Science in the Marxian Tradition Fall 2020
    SOCIOLOGY 9191A Social Science in the Marxian Tradition Fall 2020 DRAFT Class times and location Wednesday 10:30am -12:30pm Virtual synchronous Instructor: David Calnitsky Office Hours by appointment Department of Sociology Office: SSC 5402 Email: [email protected] Technical Requirements: Stable internet connection Laptop or computer Working microphone Working webcam “The philosophers have only interpreted the world, in various ways. The point, however, is to change it.” – Karl Marx That is the point, it’s true—but not in this course. This quote, indirectly, hints at a deep tension in Marxism. If we want to change the world we need to understand it. But the desire to change something can infect our understanding of it. This is a pervasive dynamic in the history of Marxism and the first step is to admit there is a problem. This means acknowledging the presence of wishful thinking, without letting it induce paralysis. On the other hand, if there are pitfalls in being upfront in your desire to change the world there are also virtues. The normative 1 goal of social change helps to avoid common trappings of academia, in particular, the laser focus on irrelevant questions. Plus, in having a set of value commitments, stated clearly, you avoid the false pretense that values don’t enter in the backdoor in social science, which they often do if you’re paying attention. With this caveat in place, Marxian social science really does have a lot to offer in understanding the world and that’s what we’ll analyze in this course. The goal is to look at the different hypotheses that broadly emerge out of the Marxian tradition and see the extent to which they can be supported both theoretically and empirically.
    [Show full text]
  • Money, Credit and the Interest Rate in Marx's Economic. on the Similarities
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Research Papers in Economics MPRA Munich Personal RePEc Archive Money, credit and the interest rate in Marx's economic. On the similarities of Marx's monetary analysis to Post-Keynesian economics Hein, Eckhard WSI in der Hans B¨ockler Stiftung, Du¨sseldorf 2004 Online at http://mpra.ub.uni-muenchen.de/18608/ MPRA Paper No. 18608, posted 13. November 2009 / 22:06 MONEY, CREDIT AND THE INTEREST RATE IN MARX’S ECONOMICS ON THE SIMILARITIES OF MARX’S MONETARY ANALYSIS TO POST-KEYNESIAN ECONOMICS ECKHARD HEIN WSI IN DER HANS BOECKLER STIFTUNG INTERNATIONAL PAPERS IN POLITICAL ECONOMY VOLUME 11 NO. 2 2004 1. Introduction* Schumpeter (1954) has made the important distinction between ‘real analysis’ and ‘monetary analysis’. 1 In ‘real analysis’ the equilibrium values of employment, distribution and growth can be determined without any reference to monetary variables: Real Analysis proceeds from the principle that all essential phenomena of economic life are capable of being described in terms of goods and services, of decisions about them, and of relations between them. Money enters the picture only in the modest role of a technical device that has been adopted in order to facilitate transactions. This device can no doubt get out of order, and if it does it will indeed produce phenomena that are specifically attributable to its modus operandi. But so long as it functions normally, it does not affect the economic process, which behaves in the same way as it would in a barter economy: this is essentially what the concept of Neutral Money implies.
    [Show full text]
  • The Rise of Neoliberalism in Advanced Capitalist Economies Also by M.C
    The Rise of Neoliberalism in Advanced Capitalist Economies Also by M.C. Howard and '.E. King THE POLITICAL ECONOMY OF MARX A HISTORY OF MARXIAN ECONOMICS, VOLUMES I AND II THE ECONOMICS OF MARX (eds) Books by M.C. Howard CLASSICAL AND MARXIAN POLITICAL ECONOMY (ed.) MODERN THEORIES OF INCOME DISTRIBUTION PROFITS IN ECONOMIC THEORY Books by J.E. King RELATIVE INCOME SHARES TEN PER CENT AND NO SURRENDER: The Preston Strike 1853--4 ECONOMIC EXILES LABOUR ECONOMICS A HISTORY OF POST KEYNESIAN ECONOMICS SINCE 1936 The Rise of Neoliberalism in Advanced Capitalist Economies A Materialist Analysis M.e. Howard Department ofEconomics, University of Waterloo, Canada J.E. King Department ofEconomics and Finance, La Trobe University, Australia palgrave macmillan © M.e. Howard and J.E. King 2008 Softcover reprint of the hardcover 1st edition 2008 978-0-230-53703-3 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the * Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London wn 4LP. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2008 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y.
    [Show full text]
  • Keynes and Marx by Claudio Sardoni University of Rome “La Sapienza”
    Keynes and Marx by Claudio Sardoni University of Rome “La Sapienza” I. Introduction Soon after the publication of The General Theory, Keynes manifested his dissatisfaction with the ‘final product’ of the intellectual process which had started in 1931-32 and he stated an intention to re-cast his ideas in a clearer and more satisfactory way. Joan Robinson thought that starting from Marx, rather than orthodox economics, would have saved Keynes ‘a lot of trouble’ (1964: 96). The object of this chapter is to inquire into the possibility that Keynes could have re-written The General Theory by giving Marx more attention and more credit than he did in the 1936 edition of the book. The interest in this issue does not derive, however, from any evidence that Keynes changed his opinion of Marx after 1936: it remained highly critical. Such interest rather derives from the fact that, in the quest for a clearer formulation of his fundamental ideas, Keynes, in my opinion, could have chosen to go, at least partly, ‘back’ to the approach that he had followed earlier on in the process which led to the publication of The General Theory. In fact, at a relatively early stage (1933) of this process, Keynes’s analysis of a capitalist economy and his critique of the orthodox view had come close to Marx’s approach. Keynes soon abandoned his 1933 approach and, in The General Theory, he formulated the critique of orthodox economics in a different way from Marx. In the chapter, I argue that the reason for the change may be found in the fact that the economic theory criticised by Keynes was significantly different from the Ricardian theory to which Marx referred.
    [Show full text]
  • Marxian Economics Economics 5080/6080 Fall 2017
    Marxian Economics Economics 5080/6080 Fall 2017 Professor: Mark Glick Contact: [email protected] – cell 801-201-3015 Office Hours: Before class or by appointment Class Time: Monday/Wednesday – 4:10 pm – 5:30 pm Room: William Stewart Building – Room 210 Course Overview: In this course we will cover the basic concepts and some of the debates in philosophy, sociology, political science, and economics pertaining to the writings of Karl Marx. However, most of the course will concern a critical analysis of Marxist and classical economics. Where necessary, we will try to provide the necessary context in historical events and the history of economic thought to make Marx’s works intelligible. We will also try to contrast the difference between Marx’s treatment of certain economic issues and the modern mainstream economic approach. Course Objectives: • A critical understanding of Marx’s writings. • Learn to think deeply about competing analytical traditions in economists. Grading Policy: For both 5080 and 6380 students there will be four take home exams (one after each module) each worth 25% of your grade. There are no make ups but I will drop the lowest grade. The top three exams for all students will then be graded on a curve at the end of the semester. Teaching and Learning Methods: We will follow a traditional lecture and reading format. Required Text: 1. David McLellan, Karl Marx Selected Writings, Oxford (McLellan) 2. Posted Readings on Canvas 4831-4085-6648 v1 COURSE SCHEDULE Because this is the first time I am teaching this class there will have to be some flexibility with the schedule of topics and exam dates.
    [Show full text]
  • Surplus-Value and Aggregate Concentration in the Uk Economy, 1987-2009
    DISCUSSION PAPERS IN ECONOMICS No. 2010/10 ISSN 1478-9396 SURPLUS-VALUE AND AGGREGATE CONCENTRATION IN THE UK ECONOMY, 1987-2009 VITOR LEONE and BRUCE PHILP December 2010 1 DISCUSSION PAPERS IN ECONOMICS The economic research undertaken at Nottingham Trent University covers various fields of economics. But, a large part of it was grouped into two categories, Applied Economics and Policy and Political Economy . This paper is part of the new series, Discussion Papers in Economics . Earlier papers in all series can be found at: http://www.ntu.ac.uk/research/academic_schools/nbs/w orking_papers/index.html Enquiries concerning this or any of our other Discussion Papers should be addressed to the Editorial team: Dr. Simeon Coleman, Email: [email protected] Dr. Marie Stack, Email: [email protected] Dr. Dan Wheatley, Email: [email protected] Division of Economics Nottingham Trent University Burton Street, Nottingham, NG1 4BU UNITED KINGDOM 2 SURPLUS -VALUE AND AGGREGATE CONCENTRATION IN THE UK ECONOMY , 1987-2009 Vitor Leone Bruce Philp 1 Abstract This paper examines the movements in the Marxian surplus-value rate using a Quantitative Marxist methodology. It examines the relationship between surplus-value and the degree of monopoly power in the UK economy using quarterly data and a proxy for aggregate concentration — the ratio of market capitalisation in FTSE100 firms to market capitalisation in FTSE All Share firms. Two other forces are considered: (i) the size of the “reserve army” of the unemployed; (ii) working class militancy. Our results suggest that increases in the “reserve army” influence the surplus-value rate positively, and that working class militancy is negatively related to changes in the surplus-value rate, indicating that strike action in this period is largely a defensive measure by workers.
    [Show full text]
  • Contending Economic Theories: Neoclassical, Keynesian, and Marxian
    Contending Economic Theories Contending Economic Theories: Neoclassical, Keynesian, and Marxian Richard D. Wolff and Stephen A. Resnick The MIT Press Cambridge, Massachusetts London, England © 2012 Massachusetts Institute of Technology All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher. MIT Press books may be purchased at special quantity discounts for business or sales promotional use. For information, please email [email protected] or write to Special Sales Department, The MIT Press, 55 Hayward Street, Cambridge, MA 02142. This book was set in Times Roman by Toppan Best-set Premedia Limited. Printed and bound in the United States of America. Library of Congress Cataloging-in-Publication Data Wolff, Richard D. Contending economic theories : neoclassical, Keynesian, and Marxian / Richard D. Wolff and Stephen A. Resnick. p. cm. Rev. ed. of: Economics : Marxian versus neoclassical. Baltimore : Johns Hopkins University Press, c1987. Includes bibliographical references and index. ISBN 978-0-262-01800-5 (hbk. : alk. paper) – ISBN 978-0-262-51783-6 (pbk. : alk. paper) 1. Comparative economics. 2. Economics. 3. Marxian economics. 4. Neoclassical school of economics. 5. Keynesian economics. 6. Schools of economics. I. Resnick, Stephen A. II. Wolff, Richard D. Economics. III. Title. HB90.W65 2012 330.15–dc23 2012004562 10 9 8 7 6 5 4 3 2 1 Contents Detailed Table of Contents vii To Our Readers xiii Acknowledgments xvi 1 Three Different Theories 1 2 Neoclassical Theory 51 3 Keynesian Theory 105 4 Marxian Theory 133 5 Late Neoclassical Theory 251 with Yahya M.
    [Show full text]
  • Diskussionspapiere Money, Interest, and Capital Accumulation in Karl
    Diskussionspapiere Money, Interest, and Capital Accumulation in Karl Marx’s Economics: A Monetary Interpretation Eckhard Hein WSI Discussion Paper No. 102 June 2002 Dr. Eckhard Hein, WSI in der Hans Boeckler Stiftung, Hans Boeckler Str. 39, 40476 Duesseldorf, Germany e-mail: [email protected] Eckhard Hein Money, Interest and Capital Accumulation in Karl Marx’s Economics: A Monetary Interpretation* Abstract Starting from Schumpeter’s important distinction between „real analysis“ and „monetary analysis“, in this paper it is shown that major elements of Marx’s economic theory fall in the camp of monetary analysis and the implications for Marx’s theory of capital accumulation are derived. First, Marx’s theory of labour value has to be considered a „monetary theory of value“ because „abstract labour“ as the social substance of value cannot be measured without a social standard of value. Money as a social representative of value, therefore, is introduced at the very beginning of Marx’s microeconomics. Marx’s rejection of Ricardo’s interpretation of Say’s Law requires that money as a means of circulation and as a means of payment is non- reproducible and therefore cannot be a commodity. Second, in the schemes of reproduction it becomes clear, that the realisation of profits for the capitalist class as a whole requires money advances, which have to increase by means of rising credit in a growing economy. Third, the rate of interest in Marx’s economics is conceived of as a monetary category determined by relative powers of financial and industrial capitalists. Therefore, similar to post-Keynesian theories of distribution and growth, the rate of capital accumulation is determined by the expected rate of profit and the exogenous rate of interest.
    [Show full text]
  • Neoclassical, Keynesian, and Marxian
    Contending Economic Theories: Neoclassical, Keynesian, and Marxian Richard D. Wolff and Stephen A. Resnick The MIT Press Cambridge, Massachusetts London, England Contents Detailed Table of Contents vii To Our Readers xiii Acknowledgments xvi 1 Three Different Theories 1 2 Neoclassical Theory 51 3 Keynesian Theory 105 4 Marxian Theory 133 5 Late Neoclassical Theory 251 with Yahya M. Madra 6 Oscillations in Capitalism and among Economic Theories 311 7 The Importance of Theoretical Differences 347 Notes 379 References 383 Index 387 Detailed Table of Contents 1 Three Different Theories 1 1.1 This Book and Theories of Economics 1 1.1.1 Theories: Economic and Otherwise 4 1.1.2 Economic Theories in Disagreement 5 1.1.3 Are We All Economic Theorists? 6 1.2 Theories and Society 9 1.2.1 Changes in Europe and the Humanist Tradition 10 1.2.2 The New Economic Theories 12 1.2.3 Classical Political Economy 14 1.2.4 The History of Neoclassical Economics 14 1.2.5 The History of Keynesian Economics 16 1.2.6 Keynesian Theory 18 1.2.7 Return of Neoclassical Theory 21 1.2.8 Neoclassical and Keynesian Economics 23 1.3 The History of Marxian Economics 25 1.4 Comparing Different Economic Theories 33 1.4.1 Comparing Theories in General 33 1.4.2 The Logics of Different Theories 35 1.4.3 How Theoretical Differences Matter 36 1.5 An Introduction to the Three Theories 37 1.5.1 Entry Point, Objects, and Logic of Neoclassical Theory 37 1.5.2 Entry Point, Objects, and Logic of Keynesian Theory 40 1.5.3 Entry Point, Objects, and Logic of Marxian Theory 41 1.5.4 A Digression:
    [Show full text]
  • Basic Principles of Marxian Economics
    Prof. John H. Munro [email protected] Department of Economics [email protected] University of Toronto http://www.economics.utoronto.ca/munro5/ Economics 301Y and 303Y Some Basic Principles of Marxian Economics Updated September 2008 Introductory Note: In the following, I have tried to make the basic principles of Marxian economics as clear and as concise as possible, though I certainly cannot pretend to be any authority on Marxism in general or on Marxian economics in particular. While I shall try to clarify any points related to the following, please do not ask me to defend any of the following principles of Marxian economics, since I do not believe in them all. In particular, I do not accept the fundamental principles underlying the labour theory of value. Since most of my colleagues in Economics also do not accept any of these principles, it is hardly surprising that Marxian economics is not taught as such in any generally available course in this department. That lacuna is perhaps regrettable, given the importance of Marxism in courses in Political Science, Philosophy, and History; and more generally, given the enormous impact that Marxism and Marxist political movements have had upon world history since the 1890s. Marxism and Marxian economics have also had a very significant impact upon the literature of economic history in the 20th and 21st centuries; and, though my personal sympathies in political economy do not generally lie in this direction, I feel that my duty as an educator is to discuss and make available all points of view in the economic history literature, including the Marxist points of view.
    [Show full text]