Neoliberalism is rooted in the belief that the marketplace will produce the greatest societal good, whether through free trade, lower taxes (and less social services), and less regulation (including environmental). The problem with this approach is that the marketplace is not perfect. As shown in the United States the U.S. financial industry is unsustainable and harmful to the overall public good without significant regulation. In addition, profit generated in the marketplace does not necessarily mean overall gain in public good: take an industrial development which through lax environmental regulation makes high profits, but also contaminates nearby bodies of water and pollutes the air, thereby decreasing citizens' quality of life. Further, a strict market approach may favor individuals and corporations already established in the marketplace, and thereby create social inequity and possibly corporatocracy, whereby corporations dominate society's wealth and decisions for their own gain. The marketplace is unable, for example, to value the intrinsic worth of clean water and air.
In the case of Parks Canada's hot springs at Banff National Park, Jasper National Park and Kootenay National Park, their privatization may lead to monopolies (due to the hot springs' isolated markets), and thereby higher prices, and poor service and upkeep due to a desire to lower costs and increase revenue.
The point being that not all things can have a market value put on them. To think otherwise is to ignore limitations of the marketplace and likely erode the overall public good.
Protests Against Hot Springs Privatization
Opposition to the Selling Parks Canada's Hot Springs
Mr. Stephen Garvey, Foundation for Democratic Advancement, Executive Director
Privatization of Parks Canada hot springs criticized
Selling three iconic National Park hot springs to private developers will cost parks staff jobs, raise prices and jeopardize the integrity of the pools, say critics.
Parks Canada plans to privatize the Miette Hot Springs in Jasper National Park, Banff Upper Hot Springs in Banff National Park, and Radium Hot Springs in Kootenay National Park.
Parks is bringing in private developers to help boost declining tourism at the parks and cover costs from recent deep budget cuts; the Harper government cut $29-million from Park’s budget and 600 jobs.
The union representing the current employees says the move will cut jobs, bring higher admission rates and threaten the ecological integrity of the pools.
What is Neoliberalism?
A Brief Definition for Activists
by Elizabeth Martinez and Arnoldo Garcia
"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 Rightwing. Economic liberalism is different. Conservative politicians who say they hate "liberals" -- meaning the political type -- have no real problem with economic liberalism, including neoliberalism.
"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, an 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:
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.
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.
DEREGULATION. Reduce government regulation of
everything that could diminsh profits, including protecting the
environment and safety on the job.
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.
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."
In the United States neo-liberalism is destroying welfare programs; attacking the rights of labor (including all immigrant workers); and cutbacking 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.
Elizabeth Martinez is a longtime civil rights activist and author of several books, including "500 Years of Chicano History in Photographs."
13101310Arnoldo Garcia is a member of the Oakland-based Comite Emiliano Zapata, affiliated to the National Commission for Democracy in Mexico.
13101310Both writers attended the Intercontinental Encounter for Humanity and against Neoliberalism, held July 27 - August 3,1996, in La Realidad, Chiapas.