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MIDTERM STUDY GUIDE - INTS 210 Midterm Study Guide Golden...

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INTS 210 Midterm Study Guide Golden Straitjacket (Friedman, p 86-90) Term given to the defining ‘political-economic garment’ of this globalization era which is characterized by the rules of the free market in today’s global economy First popularized by Margaret Thatcher (England) in 1979, reinforced by Reagan in the states in the 1980s Thatcherite-Reaganite revolutions o Popular majorities concluded that the old government-directed economic approaches were not providing sufficient levels of growth they combined to strip huge chunks of economic decisionmaking from the state and handed them to the free market Golden Rules key rules of neo-liberalism o Primary reliance on private sector for economic growth o Maintain low inflation (macro-economic stability) and price stability o Shrinking the size of state bureaucracy o Maintaining a balanced budget o Lowering tariffs on imported goods (and promoting free trade) o Privatizing state-owned industries o De-regulating capital markets o Convertible currency (facilitates global economic integration) o Opening up to foreign investments Two things tend to happen: your economy grows and politics shrinks o Economically fosters more growth and higher average incomes (through more trade, foreign investment, privatizations, more efficient use of resources under the pressure of global competition) o Politically narrows the political and economic policy choices of those in power to relatively tight parameters Significance (?) o Over time, this Golden Straitjacket is becoming harder for countries to avoid o It has fundamentally reshaped how we communicate, how we invest, and how we see the world. If you resist these changes, you will pay an increasingly steep price. This is because in addition to blowing away the walls protecting alternative systems, the democratizations of finance, technology, and information created a new power source in the world the “Electronic Herd” Class Consciousness According to Marx’s Manifesto, the new ideology under capitalism is classical liberalism, the idea that individuals make their own destiny Marx would argue however that the such liberal ideology is the ideology of the bourgeoisie because they would see success as a product of their own initiative
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However when individuals occupy similar positions and become involved in common struggles (the proletariat) they then will become conscious of their common fate It is then that individuals become part of a cohesive class that consciously articulates its common interests Capitalism was its own gravedigger, as it created conditions, accumulating mass groups that ultimately challenge the system Significance ? o “countermovements” (class consciousness) will lead to the over throw of capitalism Neo-Liberalism Golden straitjacket is the underlying foundation for neo-liberalism Only through unfettered markets an the economy work
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MIDTERM STUDY GUIDE - INTS 210 Midterm Study Guide Golden...

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