maximally wealthy society for all. By using laws to force people to behave in ways that they would not
freely choose to behave, governments prevented the maximal production of wealth.

By the early nineteen sixties, economists who favored unrestricted capitalism had come up with a “recipe” of economic policies that, if fully implemented, would supposedly create a capitalist utopia.

This recipe was nicknamed “Neo-Liberalism”. (This nickname is highly controversial among economists and political scientists, because they claim that it is not appropriate, however, popular opinion does not always follow the opinion of “experts”.)

The following are the main points of Neo-Liberalism.
1.

Taxes should be minimized or eliminated.
2.

Regulation of business should be minimized or eliminated.
3.

Government spending on social welfare should be minimized or eliminated.
4.

Government’s only justified functions are to protect the country’s borders, and to provide law and
order within the borders.
5. Governments should follow policies that make international trade easier, such as
reducing tariffs, and stabilizing the currency.

In 1973, Chile was the first nation to adopt this plan. Due to various local conditions, it was impossible to implement Neo-Liberalism in a complete, pure way, but significant changes were made to the Chilean system.

In the late 1970s, Margaret Thatcher spear-headed a project to implement the Neo-Liberal plan in Great Britain.

In 1980, Ronald Reagan was elected to the presidency of the United States, and with the help of strong public opinion, he was able to move the U.S.A. in a Neo-Liberal direction. In the 1980s and 1990s, many countries in different parts of the world adopted parts of the Neo-Liberal agenda as public policy.

More than fifty years have passed since Neo-Liberalism became the orthodox economic ideology in capitalist countries. It’s time to ask — what happened? Were Neo-Liberalism’s promises kept?

Chile’s economic progress underwent a deep examination and analysis in the late 1980s, about fifteen
years after the push to deregulate began. Analysts found that
the reductions in regulations and taxes had significantly helped
trade and investments, so in general, the rich became richer.
The effects on the middle class were less beneficial. Some members
of the middle class gained wealth, but others stagnated, and others
lost wealth. During the time period under consideration, more than sixty percent of Chile’s population were classified as workers or as impoverished. The increases in wealth that accrued to the majority were statistically insignificant. Essentially, the poor stayed poor.

I cannot claim to have studied the world’s economies in depth. From what I have read and investigated, the effects of Neo-Liberalism seem to be similar everywhere.
The rich get richer and the poor stay poor. Why do you think this is? The theory seems so plausible.
—Sir Donald the Elusive
• I can suggest a
better “recipe” for so-called Neo-Liberalism: make everything
voluntary.
•
Political science is a contradiction
in terms.
•
When I was young, my father told me that never in my entire life had I ever experienced a peacetime economy. The United States, he said, had been continuously in a
state of emergency, one emergency or another, for my entire lifetime.
•
Every so-called deregulation scheme that I’ve ever seen was actually a reregulation scheme. Nothing was ever actually deregulated. Things were only regulated differently. •
When I was young, my father told me that if you took all of the money in the world and divided it equally among all of the people in the world then, in ten years, all
of the people who have it now would have it again. True?
False? It suggests to me that the style of the economy is irrelevant.
The distribution of wealth and poverty is determined not by the style
of the economy but by human greed and human cunning, which can ruin any
economy. Furthermore, all presently existing economic systems, of
whatever style, are currently being overwhelmed by overpopulation and
overproduction. The debate about economic systems appears to
have become irrelevant. Survival is now the issue. —editor
References and Additional Reading •
Identity documents in the United States, from Wikipedia.
https://en.wikipedia.org/wiki/Identity_documents_in_the_United_States
•
CRS Report for
Congress: National Emergency Powers, available in The
Sovereign’s Library.
http://sovereign-library.org.uk/Main_Directory.html#CRS_Report_for_Congress •
Essays About Money, Taxes, and Corporations, available in Pharos.
http://pharos.org.uk/Money_Taxes_Corporations/Money_Taxes_Corps.html