What is Neo-liberalism? A brief definition for U.S. activists.

Haga clic aqui para leer este ensayo sobre el neoliberalismo en español

EDITOR'S NOTE: In the U.S. neo-liberalism was more commonly known as "Reaganomics," after the policies and measures that were inaugurated under the Republican Administration of President Ronald Reagan in the 1980s. We are offering this early work produced in 1996 by Elizabeth "Betita" Martinez and Arnoldo Garcia as background information to help develop and engage discussions to build-up and promote the U.S. Social Forum. The U.S. Social Forum will be starting when thousands of activists, organizers and community leaders and members of U.S.-based social justice movements converge in Detroit the week of June 21, 2010.

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What is “Neo-Liberalism”?

A Brief Definition

By Elizabeth Martinez and Arnoldo García

“Neo-liberalism” is a set of economic policies that have become widespread during the last 25 years or so. Although the word is rarely heard in the United States, you can clearly see the effects of neo-liberalism here as the rich grow richer and the poor grow poorer.

“Liberalism” can refer to political, economic, or even religious ideas. In the U.S. political liberalism has been a strategy to prevent social conflict. It is presented to poor and working people as progressive compared to conservative or Right-wing. Economic liberalism is different. Conservative politicians who say they hate “liberals” -- meaning the political type -- have no real problem with economic liberalism, including neo-liberalism.

“Neo” means we are talking about a new kind of liberalism. So what was the old kind? The liberal school of economics became famous in Europe when Adam Smith, a Scottish economist, published a book in 1776 called The Wealth of Nations. He and others advocated the abolition of government intervention in economic matters. No restrictions on manufacturing, no barriers to commerce, no tariffs, he said; free trade was the best way for a nation’s economy to develop. Such ideas were “liberal” in the sense of no controls. This application of individualism encouraged “free” enterprise,” “free” competition -- which came to mean, free for the capitalists to make huge profits as they wished.

Economic liberalism prevailed in the United States through the 1800s and early 1900s. Then the Great Depression of the 1930s led an economist named John Maynard Keynes to a theory that challenged liberalism as the best policy for capitalists. He said, in essence, that full employment is necessary for capitalism to grow and it can be achieved only if governments and central banks intervene to increase employment. These ideas had much influence on President Roosevelt’s New Deal -- which did improve life for many people. The belief that government should advance the common good became widely accepted.

But the capitalist crisis over the last 25 years, with its shrinking profit rates, inspired the corporate elite to revive economic liberalism. That’s what makes it “neo” or new. Now, with the rapid globalization of the capitalist economy, we are seeing neo-liberalism on a global scale.

A memorable definition of this process came from Subcomandante Marcos at the Zapatista-sponsored Encuentro Intercontinental por la Humanidad y contra el Neo-liberalismo (Inter-continental Encounter for Humanity and Against Neo-liberalism) of August 1996 in Chiapas when he said: “what the Right offers is to turn the world into one big mall where they can buy Indians here, women there ...” and he might have added, children, immigrants, workers or even a whole country like Mexico.

The main points of neo-liberalism include:

1. THE RULE OF THE MARKET. Liberating “free” enterprise or private enterprise from any bonds imposed by the government (the state) no matter how much social damage this causes. Greater openness to international trade and investment, as in NAFTA. Reduce wages by de-unionizing workers and eliminating workers’ rights that had been won over many years of struggle. No more price controls. All in all, total freedom of movement for capital, goods and services. To convince us this is good for us, they say “an unregulated market is the best way to increase economic growth, which will ultimately benefit everyone.” It’s like Reagan’s “supply-side” and “trickle-down” economics -- but somehow the wealth didn’t trickle down very much.
2. CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES like education and health care. REDUCING THE SAFETY-NET FOR THE POOR, and even maintenance of roads, bridges, water supply -- again in the name of reducing government’s role. Of course, they don’t oppose government subsidies and tax benefits for business.
3. DEREGULATION. Reduce government regulation of everything that could diminish profits, including protecting the environment and safety on the job.
4. PRIVATIZATION. Sell state-owned enterprises, goods and services to private investors. This includes banks, key industries, railroads, toll highways, electricity, schools, hospitals and even fresh water. Although usually done in the name of greater efficiency, which is often needed, privatization has mainly had the effect of concentrating wealth even more in a few hands and making the public pay even more for its needs.
5. ELIMINATING THE CONCEPT OF “THE PUBLIC GOOD” or “COMMUNITY” and replacing it with “individual responsibility.” Pressuring the poorest people in a society to find solutions to their lack of health care, education and social security all by themselves -- then blaming them, if they fail, as “lazy.”

Around the world, neo-liberalism has been imposed by powerful financial institutions like the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank. It is raging all over Latin America. The first clear example of neo-liberalism at work came in Chile (with thanks to University of Chicago after the CIA-supported coup against the popularly elected Allende regime in 1973. Other countries followed, with some of the worst effects in Mexico where wages declined 40 to 50% in the first year of NAFTA while the cost of living rose by 80%. Over 20,000 small and medium businesses have failed and more than 1,000 state-owned enterprises have been privatized in Mexico. As one scholar said, "Neo-liberalism means the neo-colonization of Latin America.

In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutting back social programs. The Republican “Contract” on America is pure neo-liberalism. Its supporters are working hard to deny protection to children, youth, women, the planet itself -- and trying to trick us into acceptance by saying this will “get government off my back.” The beneficiaries of neo-liberalism are a minority of the world’s people. For the vast majority it brings even more suffering than before: suffering without the small, hard-won gains of the last 60 years, suffering without end.

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Elizabeth Martinez is a longtime civil rights activist and author of several books, including “500 Years of Chicano History in Photographs.” Arnoldo García is a member of the Oakland-based Comite Emiliano Zapata, affiliated to the National Commission for Democracy in Mexico. Both writers attended the Intercontinental Encounter for Humanity and against Neo-liberalism, held July 27 -August 3,1996, in La Realidad, Chiapas.

At the US Social Forum, Immigrant Rights Groups Press Congress to Stop Repressive Senate Bill

MEDIA ADVISORY At the US Social Forum, Immigrant Rights Groups Press Congress to Stop Repressive Senate Bill Immigrant and Refugee Communities Advocate a New Start, Based on Human Rights, Dignity and Justice for All People and Communities

MEDIA ADVISORY -- PRESS CONFERENCE For Immediate Release: Thursday, June 28, 2007 Immigrant Rights Groups Press Congress to Stop Repressive Senate Bill and to Restore Rights as Part of Deliberations at the U.S. Social Forum Contact: Arnoldo García, (510) 928-0685, agarcia@nnirr.org (English / Spanish) Colin Rajah, (415) 203-8763, crajah@nnirr.org (English / Bahasa Melayu-Indonesia) Catherine Tactaquin, (510) 459-4457, ctactaquin@nnirr.org (English) Diana Pei Wu, (510) 847-9339, diana@nnirr.org (English / Spanish / Mandarin) WHAT: A media conference to address the hotly debated immigration reform bill before the Senate and other concerns being expressed by immigrant and refugee communities during the U.S. Social Forum. WHEN: 9:30-10:00 a.m. Eastern Standard Time, Thursday, June 28, 2007 WHERE: At the Immigrant Rights Tent at the Atlanta Civic Center (in back corner, in front of the registration site entrance), site of the U.S. Social Forum proceedings. WHO: Members and allies of the National Network for Immigrant and Refugee Rights with participants of the "Immigrant Rights Caucus" at the U.S. Social Forum. (See caucus list and national immigrant and refugee rights contact list for media below), representing African, African American, Latino, Asian & Asian American, Pacific Islander, South Asian and other communities. WHY: Ignoring broad immigrant community opposition, the U.S. Senate continues pushing forward an immigration reform bill (S.1639) that offers little relief for immigrant communities seeking legalization and family reunification. S.1639 would continue criminalizing immigrants, eroding the civil rights and liberties of the foreign-born. Based on a new guest worker program, S.1639 would dismantle the family unity basis of current immigration policies and impose a "merit" point system that favors skilled, educated, and English speaking workers considered more beneficial to the U.S. economy. The bill will deepen the militarization of the U.S.-Mexico border, expanding immigrant prison construction, interior immigration policing, detention and deportations. * * * * * MEDIA CONTACTS Immigrant Rights Caucus at the U.S. Social Forum (partial list) June 26-July 1, 2007 - Atlanta, GA Carol Barton United Methodist Women's Division, New York, NY Cell/Telephone numbers: (917) 584-9726 (cell); Atlanta Marriott Email: cbarton@gbgm-umc.org URL http://www.umwmission.org http://gbgm-umc.org/umw Language(s) spoken: English (Spanish) Gabriel Camacho American Friends Service Committee, Project Voice, Boston, MA Cell (617) 947-7019 Email gcamacho@afsc.org Languages Spoken English, Spanish Viola Cásares and Alejandra Bergemann Fuerza Unida, San Antonio, Texas Cell (210) 273-5510 Email: insolita98@hotmail.com and admin@lafuerzaunida.org URL: www.lafuerzaunida.org Language(s) spoken: Español/Spanish, English Trishala Deb Audre Lorde Project, New York, NY Cell (917) 488-6701 Email tdeb@alp.org Languages Spoken: Hindi, Urdu, English Lillian Galedo Filipinos for Affirmative Action, Oakland, CA Cell & Telephone numbers (510) 409-1679 cell; (510) 465-9876 (w) Email: lgaledo@filipinos4action.org URL www.filipinos4action.org Language spoken: English National Network for Immigrant and Refugee Rights Arnoldo García, cell (510) 928-0685, agarcia@nnirr.org (English, Spanish) Colin Rajah, cell (415) 203-8763, crajah@nnirr.org (English, Bahasa Melayu / Bahasa Indonesia) Catherine Tactaquin, cell (510) 459-4457 (English) Diana Pei Wu, cell (510) 847-9339, Diana@nnirr.org (English, Spanish, Mandarin) www.nnirr.org www.migrantdiaries.blogspot.com www.nnirr.blogspot.com www.myspace.com/nnirr migrantsrights.wiki.zoho.com Isabel Garcia and Alexis Mazón Coalición de Derechos Humanos, Tucson, AZ Cell/Telephone (520) 891-6169 and (520) 390-1604) Email: chita.garcia@yahoo.com and alexismazon@yahoo.com) URL www.derechoshumanosaz.net Language(s) spoken: English, Spanish Adriana Jasso American Friends Service Committee, San Diego, CA Cell (619) 808-7277 Email ajasso@afsc.org Languages Spoken: English, Spanish Hamid Khan South Asian Network, Los Angeles, CA Cell Voice 562-403-0488 x 105 Email hamid@southasiannetwork.org URL www.southasiannetwork.org Languages Spoken English; Urdu; Punjabi Gerald Lenoir Black Alliance for Just Immigration, Berkeley, California Cell: (510) 435-0382 (510) 849-9940 (voice) Email: bajimail@yahoo.com URL www.blackalliance.org Languages spoken: English B. Lowe and Francisco Pacheco Latino Union of Chicago, Chicago, IL Cell (773) 791-4668 (Loewe) and (240) 463-6410 Email ludevelopment@sbcglobal.net Languages Soke Spanish/English Monami Maulik DRUM: Desis Rising Up & Moving and the Immigrant Community Action coalition, Queens, NY Cell: (347) 385 9113 Email: monami@drumnation.org URL: www.drumnation.org Languages spoken: Bengali, Hindi, Urdu, English María Poblet St. Peter's Housing Committee, San Francisco, CA Cell (510) 725-9646 Email maria@comitedevivienda.org Languages Spoke: Spanish/English Janis Rosheuvel and Prince Brown Families for Freedom, Brooklyn, NY Cell (917) 526-1136 Email janis@familiesforfreedom.org, princeofbrooklyn@gmail.com URL www.familiesforfreedom.org Languages Spoken English (both); French (Ms. Rosheuvel) Pedro Rios American Friends Service Committee; US/Mexico Border Program, San Diego, CA Cell 619/370-5908 Email PRios@afsc.org Languages Spoke: Spanish/English Rafael Samanez (VAMOS) Vendedores Ambulantes Mobilizando y Organizando en Solidaridad; New York, NY Cell: (646) 330-1951 Email: vamosunidos@gmail.com Languages Spoken: English and Spanish Lily Xiong Hmong American Women Association, Tel (414) 342-0858. Email lily@hawa-inc.org URL www.hawa-inc.org Languages Spoken: Hmong, English * For more information, the full schedule of events and links to the latest news & analysis: NNIRR Network News & Analysis: http://nnirr.blogspot.com Immigrants Rights Caucus: http://migrantsrights.wiki.zoho.com NNIRR Dispatches on the Road: http://migrantdiaries.blogspot.com U.S. Social Forum homepage: http://www.ussf2007.org NNIRR Homepage: http://www.nnirr.org * About The Immigrants Rights Caucus at the US Social Forum (partial list) The Immigrant Rights Caucus is convened by the National Network for Immigrant and Refugee Rights (www.nnirr.org). The Caucus includes members and advocates from over 25 organizations, including the following groups and partner organizations: · AFL-CIO · American Friends Service Committee (AFSC) · Audre Lorde Project (ALP) · Bay Area Immigrant Rights Coalition (BAIRC) · Black Alliance for Just Immigration (BAJI) · CAAAV: Organizing Asian Communities · Center for Parrticipatory Change (CPC-NC) · Chinese Progressive Association (CPA) · Coalicion de Derechos Humanos · Coalicion de Organizaciones Latino Americanas (COLA) · Colectivo Flatlander · Colonias Development Council · Desis Rising Up and Moving (DRUM) · Esperanza del Barrio · Families for Freedom · Farmworker Association of Florida, Inc. · Fuerza Unida · Grassroots Global Justice · Highlander Research and Education Center · Mississippi Immigrants Rights Alliance (MIRA) · Movement for Justice in el Barrio · Mujeres Unidas y Activas (MUA) · Multiethnic Immigrant Workers Organizing Network (MIWON) · National Immigration Project (NLG) · National Network for Immigrant and Refugee Rights · Priority African Network (PAN) · Progressive Communicators Network (PCN) · Queers for Economic Justice (Q4EJ) · South Asian Network (SAN) · Southeast Regional Economic Justice Network (REJN) · Southwest Workers Union (SWU) · St. Peter's Housing Committee · Transnational Institute for Grassroots Research & Action (TIGRA) · United Methodist Church - Women's Division · Vendedores Ambulantes Mobilizando y Organizando en Solidaridad (VAMOS)