VIDEO
HIGHLIGHT
Log InSign up
Gary Gerstle: Where Did Neoliberalism Come From and How Did It Become So Influential?(Bristol Ideas)
SummaryTranscriptChat

Gary Gerstle: Where Did Neoliberalism Come From and How Did It Become So Influential?(Bristol Ideas)

Introduction to the Discussion on Neoliberalism

Overview of the Event

  • Andrew Kelly introduces the event and guest, Gary Gerstle, a prominent historian and author.
  • Gerstle's credentials are highlighted, including his latest book titled "The Rise and Fall of the Neoliberal Order."

Defining Political Order

  • Gerstle emphasizes that political history often focuses on short election cycles but argues for understanding longer political developments.
  • He defines "political order" as a sustained set of politics that shapes American governance over extended periods.

The New Deal vs. Neoliberal Order

Historical Context

  • Gerstle discusses two significant political orders: the New Deal order (1930s-60s) and the neoliberal order (1970s-present).
  • He explains how a successful political order can compel opposition parties to adhere to its principles even when out of power.

Key Examples

  • The triumph of the New Deal is illustrated by Eisenhower's acceptance of its core principles in 1952.
  • Similarly, Bill Clinton's presidency is described as one where he acquiesced to neoliberal policies initiated by Reagan.

Comparisons with British Politics

Political Parallels

  • Gerstle draws parallels between U.S. and British politics regarding party acquiescence to established orders.
  • He compares post-WWII welfare state developments in Britain with America's New Deal.

The Treaty of Detroit and Labor Relations

Labor Compromises

  • The New Deal facilitated a grand compromise between capital and labor, leading to industrial peace.
  • This compromise elevated many workers into middle-class status during the 1950s through 70s.

Economic Conditions Leading to Change

Factors Influencing Capital-Labor Relations

  • The severity of the Great Depression led capitalists to make concessions they previously resisted due to fears of communism.

Emergence of Neoliberalism

Ideological Shifts

  • A decade-long battle against Keynesianism laid groundwork for neoliberal ideas promoted by figures like Hayek and Friedman.

Institutional Development

  • Despite initial irrelevance in American politics during the 50’s and 60’s, neoliberals began forming networks at Mount Pèlerin Society.

Economic Changes in the 1970’s

Global Economic Shifts

The global economic landscape shifted dramatically in the late 60’s and early 70’s, undermining existing political orders.

Key Changes:

  1. Rise of Competitors: Post-war rivals like Germany and Japan regained economic strength against U.S. dominance.
  1. Oil Crisis: OPEC nations began controlling oil prices, disrupting cheap energy economies in America.

Ronald Reagan's Role

Transitioning Power Dynamics

  • Reagan is portrayed as an astute politician who embraced neoliberal ideas while dismantling regulatory frameworks established during previous administrations.

Neoliberalism: The Political Order and Its Implications

The Rise of Neoliberalism Under Reagan

  • Gary discusses how Reagan transitioned neoliberalism from a political movement to a near political order, with its full realization occurring under Clinton.
  • Reagan aimed to implant his ideology of neoliberalism into American life, supported by a network of organizations and intellectuals who had long awaited this opportunity.
  • Influenced by Hayek, various thinkers emerged from political obscurity during Reagan's presidency, seizing the chance to build a lasting political infrastructure beyond just winning elections.
  • Reagan recognized the need for an extensive political machine that could win multiple elections and translate complex economic theories into practical policies for America’s diverse polity.
  • He understood the importance of reshaping the judiciary to ensure that neoliberal legislation would withstand constitutional scrutiny.

Media Deregulation and Public Good

  • Reagan's plans included deregulating media, which had been heavily regulated since the New Deal era due to its perceived role as a public utility responsible for fostering public debate in democracy.
  • Gary emphasizes that anyone interested in building a political order should study what the Reagan administration achieved in terms of ambition and sophistication during the 1980s.

Racial Divisions and Political Strategy

  • The period saw significant racial divisions; hope from civil rights movements faded as cities became unsafe due to racial tensions exacerbated by Reagan's politics.
  • Reagan strategically appealed to white voters feeling threatened by African Americans gaining advantages, playing on racial fears ruthlessly.
  • His rhetoric suggested that he would help white Americans maintain their status while limiting opportunities for Black Americans, marking an ugly undertone in his politics.

Mass Incarceration as Policy

  • By the 1990s, America would have the largest incarcerated population globally, disproportionately affecting minorities—an issue rooted in policies initiated during Reagan's presidency.
  • Gary explores how mass incarceration contradictorily coexists with free-market principles; it serves as a means to exclude those deemed unfit for market participation from society.

Consequences of Incarceration

  • Incarceration limits individuals' ability to engage in market activities post-release; many lose voting rights permanently based on felony convictions—a state-by-state issue impacting reintegration into society.
  • The stigma attached to having served time complicates job prospects significantly, hindering rehabilitation efforts and societal contributions after incarceration.

Clinton: America's Neoliberal President

Financial Deregulation and Media Fairness Doctrine

  • Clinton is described as America's quintessential neoliberal president. His administration repealed parts of Glass-Steagall Act leading up to financial crises later on.
  • The Fairness Doctrine was established in the 1940s requiring broadcasters like Rush Limbaugh to provide equal airtime for opposing views; its removal allowed conservative voices dominance without balance.

Techno-Utopianism Influence

  • Clinton did not reverse media deregulations partly due to techno-utopian beliefs prevalent during the internet boom of the '90s—believing technology would democratize information access naturally.
  • This era marked significant technological advancements likened historically only once before—the invention of books—leading politicians to believe markets could self-regulate effectively without intervention.

The End of Neoliberal Order?

Emergence of Opposition Movements

  • Following Bush’s Iraq fiasco and Obama’s financial crisis response, opposition movements like Occupy Wall Street began questioning capitalism's efficacy amid rising discontent among citizens left behind by neoliberal policies.

Trump vs. Sanders: A Shift in Politics

  • Gary argues Trump signifies not an end but rather a shift away from traditional neoliberal order; both he and Bernie Sanders represent divergent paths away from free-market ideologies previously dominant.

Political Volatility

  • Current U.S. politics reflect volatility indicative of collapsing orders where neither party can assert control or direction over national discourse effectively amidst rising populist sentiments on both sides.

Future Directions: Authoritarian vs Progressive Orders

Potential Outcomes

  • Two emerging orders are identified: one authoritarian led by figures like Trump promoting ethnonationalism versus another progressive order seeking revitalization through leaders like Bernie Sanders aiming at inclusive policy discussions within Democratic Party frameworks.
  • Biden’s early administration showed promise integrating leftist ambitions but faced challenges maintaining momentum amid narrow congressional majorities complicating transformative efforts moving forward.

Understanding Political Coalitions and Historical Context

The Challenge of Building Support

  • The importance of not only presenting arguments but also forming coalitions for support is emphasized, particularly in the context of elections in the UK and US.
  • Mentioned figures like Stephanie Kelton, Heather Boushey, and Lina Khan are noted for their contributions to economic thought and antitrust discussions, highlighting a shift towards leftist ideas gaining traction.

Lessons from Historical Defeats

  • Acknowledgment of frustrations faced by the left in Congress; however, there is a positive signal that they are unified behind current legislative packages.
  • Emphasis on resilience: political actors must prepare for long-term struggles and learn to overcome repeated defeats.

Historical Precedents: New Deal Insights

  • Roosevelt's New Deal serves as a historical example where intellectual groundwork laid over decades led to significant political change during crises.
  • Despite limited political access prior to the Great Depression, persistent networking among thinkers eventually led to opportunities for influence.

The Neoliberal Experience

  • Similarities drawn between past neoliberal movements and current progressive efforts; both spent years in relative obscurity before achieving political power.
  • The book discusses how sustained commitment over time can lead to eventual success despite numerous setbacks.

Current Implications for Progressives

  • Today's progressives are encouraged to understand the lengthy process required to build effective political orders within diverse American society.
  • A comprehensive strategy involving local politics and community engagement is essential for sustaining momentum amidst challenges.

Patience in Political Endeavors

  • Recognizing that building political influence requires patience and perseverance even when facing defeats is crucial for today's policymakers.
  • The need for "Herculean patience" reflects the understanding that enduring belief in one's ideas will ultimately lead to success over time.
Video description

Political historian Gary Gerstle looks at the rise and fall of neoliberalism and the lessons for political movements today. Political historian Gary Gerstle looks at the rise and fall of neoliberalism and the lessons for political movements today. The epochal shift toward neoliberalism that began in the United States and Great Britain in the late 1970s fundamentally changed the world. Today, the word ‘neoliberal’ is often used to condemn a broad swath of policies, from prizing free market principles over people to advancing privatisation programs in developing nations around the world. In The Rise and Fall of the Neoliberal Order, Gary Gerstle engages with the full contours of neoliberalism: the fusing of ideas of deregulation with personal freedoms, open borders with cosmopolitanism, and globalisation with the promise of increased prosperity for all. In this discussion with Andrew Kelly, Gerstle looks at how this worldview emerged in America and grew to dominate the world; how it was facilitated by the collapse of the Soviet Union and its communist allies; the nature of political order – how it is established and becomes embedded; and why and how President Clinton followed Ronald Reagan to create the full triumph of neoliberalism. They also discuss the neoliberal order’s fall, originating in the failed reconstruction of Iraq and Great Recession of the Bush years and culminating in the rise of Trump and a reinvigorated Bernie Sanders-led American left in the 2010s. Finally, they look at what the rise and fall of neoliberalism means for political movements today. The Rise and Fall of the Neoliberal Order: America and the World in the Free Market Era by Gary Gerstle: https://uk.bookshop.org/a/11279/9780197519646 Presented by Bristol Ideas: https://www.bristolideas.co.uk/