The free market fundamentalists are the purveyors of our poverty

I like to describe neoliberals as 'free market' fanatics or 'free market' fundamentalists. I always put the 'free market' bit in italics because there really is no such thing as a free market, and never has been. The 'free market' concept is a crucial part of the flawed ideology of neoliberalism, which is an extreme right-wing ideology that favours the rich - the capitalist class, over the rest of us. An important part of the reason why neoliberalism has been so successful is that it has successfully disguised itself as 'economics', an economics which pretends to be a mechanism for prosperity and has been sold to us as good for everyone.

We have been told by economists and politicians that the tenets of neoliberalism i.e. - globalisation; 'free' trade; privatisation; low taxes; downsizing; outsourcing; and deregulation are essential economically and that without them, we cannot have a prosperous and successful society. But prosperous and successful for who? All the aforementioned things benefit the capitalist class, at the expense of the rest of society. That is how they have gone from being the rich to the super-rich over the past 35 years or so, and these are the mechanisms by which the 1% have left the 99% way, way behind.

The simple fact is that the outcome of this neoliberal ideology, driven by the capitalist class, with the support of Western politicians, is a direct transfer of wealth from the 99% to the 1%. As wages have fallen as a percentage of GDP, profits and income for the rich have risen - see here for the recent US figures. The super rich don't need social security, they don't need healthcare, they don't need state education like the rest of us, so their view is - 'why should I pay for any of that through my taxes'? In fact, 'why should I pay taxes at all'? Furthermore, thanks to globalisation, if they can pay someone in the Third World $1 an hour to make widgets, why should they pay you, as a worker, in Europe or the USA, $10 an hour to do the same job?

But we still live in a consumer-capitalist economy, so as wages have fallen as a percentage of GDP, the 99% have accumulated more and more debt, with the help and encouragement of capitalist lenders, in order to try and maintain their lifestyles, and this is part of the debt crisis, and the economic crisis we are now in. Because if people in 'wealthier' Western countries can't afford to buy the products of capitalism, and are saddled with debt, the consumer-driven economy is bound to be depressed, which is exactly what is happening now. The 'free market' fanatics through the mechanisms of privatisation etc. are therefore purveyors of poverty, through lower wages, unemployment and austerity for us, the 99%.

In addition to the problems of the current banking debt crisis, which was caused by deregulation of the banks and financial capitalism, there is the longer-term problem for capitalism of the falling rate of profit. It has been noted by many observers that capitalism is uniquely versatile and able to re-invent itself when faced, as it always is, by periodic crises. If capitalism reaches a barrier it will find a way round it. So, the big driver for privatisation is the need for capitalist corporations to maintain their profitability, because having exhausted much of the possibilities of the private sector, through globalisation, they are now intent on devouring the public sector in the search for new profitability and never ending growth.

For the 99%, healthcare, education, pensions, housing and social security are essential. Healthcare and education are public goods - not commodities to be bought and traded like widgets. We need social security as a right, paid for through national insurance - not welfare as some kind of handout. We need social housing and pensions so that we can retire with some dignity in our old age. All these public services are best paid for through taxes, collectively, and delivered without the profit motive, for the benefit of all. If we want public services and pensions we need to pay taxes. Low taxes are only good for the 1%, and are bad for the rest of us. In addition to paying more taxes ourselves, we need to make the rich pay much more in taxes, as a prelude to permanent economic change.

Until very recently, we had all of these essential public services mentioned above here in the UK. Now the capitalist class are trying to take them away from us, they are trying to to roll back all the democratic gains our grandparents, and parents made in the 20th century. The banking crisis is being used as an excuse to pay for the failures of neoliberalism through austerity. It is essential that we resist privatisation and cuts in public services by supporting each other, and supporting the occupations, local anti-cuts organisations, student protests, and all the diverse community groups in their ongoing struggle against austerity, and the trade unions in their planned strike action on November 30th.

Last weekend, on 15 October, global demonstrations were held to show the growing discontent of the 99%, and as a result a video was produced - see below, and a manifesto, which is worth reading, and may be the start of global demand for change.



The many thousands of people involved in the occupation movements and protests which are now happening in 900 cities across the world are rightly suspicious of politicians, political parties, and ideologies. They must be able to determine their wants and their own destiny. But ultimately what they need are the things we all need, the public services which I have outlined above, plus work, and freedom of expression, and freedom from fear. What is clear is that they can only achieve their aims by breaking the stranglehold that 'free market' neoliberalism has on our economy and democracies, and to regain control over their lives they must seize control of the economy and make the global economy their economy.

Only when we control our economy will we have the freedom and dignity we all desire and need.

There is a solution for the 99%

Growing economic inequality in the USA, and throughout the West, is something that I have commented on before in this blog, and it is well documented. The incomes of middle class Americans have been stagnant or falling since the 1970's whilst those of the capitalist class have been growing. According to Rupert Cornwell in today's Independent:

"Income disparities are wider than at any time since the Wall Street crash of 1929, and almost 50 per cent of financial wealth in the US is now in the hands of 1 per cent of the population."

The American middle classes are really suffering the impact of 30 years of neoliberalism, and the effects of the financial crash, which began with the sub-prime mortgage scandal. Its important to make a distinction because 'middle class' means something different in the USA and the UK. In the UK, the middle classes are well-off professionals such as doctors and lawyers, whereas in the USA the term 'middle class' includes working families that would be described as 'working class' in the UK. Middle class Americans are crucial to the USA because they are at the heart of America.

Because the USA has always had privatised healthcare and higher education and a weak welfare system, the American middle classes have always lead a potentially precarious existence. If you get ill, you get large health bills, if you can't work because of your illness you can lose your job and your house. In a short space of time you could go from a fairly comfortable lifestyle to being out on the street. In the past the US economy has been strong enough to ensure that this didn't happen to most Americans. That is no longer the case. Millions of Americans are now finding themselves in a situation where they are living hand to mouth, knowing that if they lose their job they will lose everything they had. They are living in fear of joining the millions of families who have already suffered this fate.

We are the 99% is a website which documents the fears and suffering of middle class Americans. Many of these people are hanging on just one paycheck away from disaster and shouldering thousands of dollars of debt.

This photo is typical of the plight of people on We are the 99%

We are the 99%, like occupywallst, which I have been following from its start in mid September, is a reaction against the bailout of Wall Street, and growing poverty, unemployment and economic inequality. The Tea Party was also a reaction to the bailout which came largely from the middle class right and which was rapidly absorbed, manipulated and funded by the capitalist class as I reported here:

"That is what the Tea Party is all about. Millions of Americans are angry, bewildered and frustrated at the recent crash and the fact they aren't getting richer anymore. But there is a huge problem here - they are directing their anger against the wrong enemy. The people who caused the crash - the financial capitalists and corporations of Wall Street aren't being blamed. Instead, the anger is being directed at the government." 

Unlike the Tea Party, the occupywallst movement is really about social justice. It is a recognition that the growing inequality has to be reversed, and that the neoliberalist policies pursued by successive governments have failed the American people. As yet the movement appears to be leaderless and doesn't have a coherent programme and specific demands for change. But it is growing and spreading to other cities in the USA. It is beginning to cause concern to politicians like Obama, who have begun to take notice.

What should the demands of the occupywallst movement be? Well, it's not for me to say, but if you read about the problems of the 99% the solutions are fairly obvious. What Americans need is freedom from fear through access to jobs and public provision - in health, education and social security. These are things that we have in the UK, but we are in the process of losing, due to the Coalitions government's austerity programme, if we don't fight for them. Like us, Americans need a Green New Deal to provide jobs and tackle climate change, they need a properly funded system of public healthcare and higher education. What they need is social security as a right, not welfare as a handout.

One of the greatest of Americans tried to ensure that Americans had all these things but was unable to complete his project before he died. His name was Franklin D. Roosevelt and he enshrined the freedom from fear in his economic second Bill of Rights. His bill of rights is what the American middle classes need. The occupywallst movement don't need to invent a programme because they already have a ready made one, now they have re-discover it and fight for it.