Tag: Milton Friedman

Noted with comment

I’ve been rereading Dave Van Ronk’s memoir The Mayor of MacDougal Street (2006). Van Ronk was a musician best remembered for his fingerstyle guitar and his interpretations of blues music, although he thought of himself as more of as a jazz musician manque. He was one of the core musicians of the 1960s Folk Revival, though he never hit it big like his friend Bobby Dylan. Van Ronk was also a serious leftist. He started out as an anarchist, joined the IWW, and wound up as a Troskyite. In his memoir, he reflected on the politics of the 1960s:

“I was encouraged by a lot of the changes that were happening in the 1960s, but as an orthodox leftist I was also a very strong critic of the student movement and the New Left. Of course, I agreed with a lot of their stances — I was strongly pro-civil rights and strongly antiwar — but most of those people were not really radicals, just a bunch of very pissed-off liberals. They had no grounding, and indeed no interest, in theory, and their disdain for studying history and learning economics infuriated me. The core problem with the New Left was that it wasn’t an ideology, it was a mood — and if you are susceptible to one mood, you are susceptible to another. They wanted the world to change, but essentially it was a petty bourgeois movement that had no connection with what was really going on. The working class at least has some power — if the working class folds it arms, the machinery stops — and as for the ruling class, its power is obvious. But what power does the middle class have? They have the power to talk: yak, yak, yak. To interpret, reinterpret, and re-re-reinterpret. And that is the history of the New Left in a nutshell.”

Interestingly, I feel the current Republican party actually does have a serious theoretical grounding. I disagree violently with the Republican party’s economic policies, but you have to admit that they are firmly grounded in Milton Friedman’s economic theories. Even if today’s Republicans have drifted away from Friedman in some respects, still a great deal of their agenda — doing away with Social Security, privatizing the National Park System, getting rid of the Post Office, etc. — comes straight out of his work.

Who on the American left offers any theoretical grounding to compete with Friedmanism? If Dave Van Ronk were still alive he’d no doubt advocate for Troskyism, although to my mind that’s a non-starter in 2025 America. Personally, I’d vote for William J. Barber’s Poor People’s Campaign. However, I suspect Barber’s Christian affiliation is a dealbreaker for many of today’s pissed-off liberals; plus it has proved difficult to get pissed-off liberals to focus on poverty as a central issue.

Two definitions of neoliberalism

As I look into the economic and political forces driving global environmental collapse, I’ve been researching neoliberalism, an economic doctrine that was first tried on a practical basis under Pinochet in Chile. Neoliberalism now has come to dominate much of the world, including the United States, where neoliberalism is now so entrenched that it represents an unquestioned economic consensus of both major political parties.

Here are two definitions of neoliberalism. The first comes from journalist George Monbiot, author of How Did We Get into This Mess?:

“Neoliberalism claims that we are best served by maximum market freedom and minimum intervention by the state. The role of government should be confined to creating and defending markets, protecting private property and defending the realm. All other functions are better discharged by private enterprise, which will be prompted by the profit motive to supply essential services. By this means, enterprise is liberated, rational decisions are made and citizens are freed from the dehumanising hand of the state….

“[T]he most powerful promoter of this programme was the media. Most of it is owned by multi-millionaires who use it to project the ideas that support their interests. Those which threaten their plans are either ignored or ridiculed. It is through the newspapers and television channels that the socially destructive ideas of a small group of extremists have come to look like common sense. The corporations’ tame thinkers sell the project by reframing our political language…. Nowadays I hear even my progressive friends using terms like wealth creators, tax relief, big government, consumer democracy, red tape, compensation culture, job seekers, and benefit cheats. These terms, all deliberately invented or promoted by neoliberals, have become so commonplace that they now seem almost neutral.

“Neoliberalism, if unchecked, will catalyse crisis after crisis, all of which can be solved only by the means it forbids: greater intervention on the part of the state.”

George Monbiot, from his 2008 article “How Did We Get into This Mess?” (written, you will notice, before the 2008 Depression hit).

 

The second definition of neoliberalism comes from leftist geographer David Harvey, quthor of A Brief History of Neoliberalism:

“There are two things to be said [about defining ‘neoliberalism’]. One is … the theory of neoliberalism and the other is its practice. And they are rather different from each other. But the theory takes the view that individual liberty and freedom are the high point of civilization and then goes on to argue that individual liberty and freedom can best be protected and achieved by an institutional structure, made up of strong private property rights, free markets, and free trade: a world in which individual initiative can flourish. The implication of that is that the state should not be involved in the economy too much, but it should use its power to preserve private property rights and the institutions of the market and promote those on the global stage if necessary….

“Liberal theory goes back a very long way … to the 18th century: John Locke, Adam Smith, and writers of that sort. Then economics changed quite a bit towards the end of the 19th century and neoliberalism is a really revival of the 18th century liberal doctrine about freedoms and individual liberties connected to a very specific view of the market. And the leading figures in that are Milton Friedman in this country and Friedrich Hayek in Austria. In 1947 they formed a society to promote neoliberal values called the Mont Pelerin Society. It was a minor society but it got a lot of support from wealthy contributors and corporations to polemicize on the ideas it held.”

From an interview with David Harvey, On Neoliberalism: An Interview with David Harvey, in MRonline.