The Economics of Neo-Liberalism

If we hope to get any sense of why things are the way they are in this country we need to take a look at how it is we have organised our economy. Everybody it seems is aware that we in Ireland live in a capitalist economy, the Celtic tiger it seems has lead to a level of awareness about economics that did not previously exist. Capitalism however takes a variety of forms and the particular type of capitalism that we have pinned our flag to is perhaps one of the most interesting aspects of Irish society in recent years.


For example if you where to bring up Margret Thatcher in polite conversation the reaction of your average Irish person is predictable, there is no love lost for her regime and yet very quietly successive Irish governments have practiced the same type of Neo-liberal economics that Thatcher boldly proclaimed "there is no alternative" to. I however believe there is an alternative, in fact if you have an ounce of social conscience then we must find an alternative, Neo-liberalism is not the only way, if the recent economic melt down has proved anything it is in fact that Neo-liberalism is not even a successful way to organize an economy. 


Again I have posted some interesting articles and links that really breakdown what this type of economics is all about, it is far right economics, that believes the market will take care of everything and that Governments should intervene in a minimal way. Compare this with another type of capitalism such as social democracy, which calls for high levels of state intervention in the provision of welfare, then take a look at levels of equality in the two different types of systems. Social democracy wins out on all counts, so you see Neo-liberalism is not the only way, it is just the way that you have been sold and had imposed on you by your Government. That may have seemed fine in boom times but those times are gone and yet the policies persist. 


One of the main producers of In-equality in our society is the type of Macro-Economic policy to which we have prescribed in recent years. It is impossible to separate this from civil society as this type of economic activity directly affects how our government organizes activity within the community sector. Thatcher in her defense (if that is possible) at least did not try to disguise what she was doing, she was up front in her attack on the poor and the working class. She openly broke the back of the unions and implemented welfare policy that was Neo-liberal in ethos. 


The Irish Government though it gals me to admit it may have been more subtle and in many ways more clever in how they sold us and subsequently imposed this type of organization upon us. Social partnership is a classic example of how our government got us to buy into the type of structures that have ultimately lead to the situation in which we find ourselves today. A situation where we see the decimation of the community sector, a drying up of funds available to a range of community groups and services, cut backs in health, education and welfare. The Neo-liberalists and doing what they always do, taxing the poor for their mistakes. Be under no illusions if like me you work, study or are involved in the community sector then neo-liberalism is a part of your everyday life, it is the system to which we answer. It is a corrosive thread that has wound its way into every aspect of Irish life and not just some fancy theoretical concept that exists only in the lofty halls of academia.