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The Public Is Being Looted By Privatization And Deregulation

The Public Is Being Looted By Privatization And Deregulation

The privatization movement and the deregulation movement have turned out to be failures.

Privatization in Britain under the Thatcher government had its origin in the belief that the absence of incentivized managers and shareholders with a stake in the bottom line resulted in nationalized companies operating inefficiently, with their losses covered by government like the big private banks’ losses today. Thatcher’s government believed that privatizing socialized firms would reduce the UK budget deficit and take pressure off the British pound.

Today privatization is a way that governments can reward cronies by giving them valuable public resources for a low price. When the UK government privatized the postal system, there were news reports that one postal property in London alone was worth the purchase price of the entire postal service.

Privatization is also a way that conservatives, who object to social pensions and national health, can stop “taxpayer support of welfare.” In the US conservatives want to privatize Social Security and Medicare. In the UK conservatives want to privatize the National Health System.

It looks like the UK Conservative government is taking a step in the direction of privatizing the national health system, one of the great social reforms in British history. https://www.rt.com/uk/333270-nhs-professionals-privatized-deloitte/ 

In the US there are advocates of privatizing the national forests. In some ways the forests are already privatized as private timber companies are allowed to “harvest” the trees at favorable prices, and often the government even builds the roads for them.

In the US deregulation has resulted in high prices and poor service. When airlines were regulated, they competed on service. They had spare equipment so that mechanical problems did not mean cancelled flights. Stopovers did not involve additional costs.

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Ex-World Bank chief economist exposes “failure” of austerity, deregulation

Ex-World Bank chief economist exposes “failure” of austerity, deregulation

Joseph Stiglitz, a senior OECD expert, slams OECD’s own policies to prevent global slowdown


In a little-known speech at the United Nations University, renowned Nobel Prize-winning economist Joseph Stiglitz criticised Western approaches to addressing the global economic crisis for being obsessed with market solutions that cannot work.

His remarks were made just two months before the Organisation for Economic Cooperation and Development (OECD) issued its latest forecast of a “deeply concerning” slowdown in global trade, which the group says has dropped perilously close to levels “associated with global recession.”

The OECD’s chief economist, Catherine Mann, said that: “Policy actions are already being implemented that will help to address the weak underlying trends.”

Professor Stiglitz of Columbia University, who chairs the High-Level Expert Group on the Measurement of Economic Performance and Social Progress (HLEG) at the OECD, contradicted this reassuring promise in his UN University address in September.

Describing standard neoclassical and behavioural models of economics as “wrong” on the basis of new advances in economic research, Stiglitz blamed ongoing economic stagnation on the so-called “Washington Consensus” — a set of neoliberal policies advocated most strongly by the US and Britain.

The Washington Consensus (WC) consists of a string of interlinked policies requiring reductions in public spending; rampant deregulation to reduce restrictions on banks, corporations and other financial actors; extensive privatisation of social and public services; and liberalisation based on reducing taxes, tariffs and non-tarrif barriers to trade.

All this is believed to drive growth and enhance the distribution of wealth.

In reality, as Stiglitz told an audience at the UN University’s World Institute for Development Economics Research, it has done the opposite.

Thirty years ago, he said, “the focus was on limiting the role of the government — getting it out of the way…

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The Pope’s Letter: Neoliberalism and Fukushima

The Pope’s Letter: Neoliberalism and Fukushima

Japanese sociologist and Tokyo Metropolitan University professor, Shinji Miyadai argues that European nations progressed from the communal self-governance of food to the communal self-governance of energy after World War II. Miyadai compares Europe’s post-war developments with those of post-war Japan in his article entitled ‘Pitfalls of the Nuclear Power Reduction Movement’. His contention is simple: As opposed to Europe, Japan had actually “accelerated its dependence on the market through trade liberalization and deregulation…”

Post-war economic indenture was exactly what the United States wanted from Japan. Moreover, the US was able to procure Japanese market dependence through discussions on the trade liberalization of agricultural goods (and later, the US-Japan Structural Impediments Initiative talks). Miyadai claims that the hollowing effects of these US-sponsored neoliberal adjustments would exact their toll on Japanese communities in the 1980s and 1990s.

Neoliberalism’s averse effects climaxed when the 1997 recession – induced by the Asian currency crisis – washed over Japan. Miyadai recalls the serious outcomes of a barely functioning Japanese economy, which then finally ceased to function. Among the consequences were: Japan’s heightened rate of suicide (four times that of the UK and twice that of the US); the scandal of the missing or long-dead elderly; ubiquitous infant and child abuse or neglect; and a third of Japan’s dead, cremated without funeral.

Indeed, as Miyadai laments, “Well before the Great East Japan Earthquake, Japanese society had already begun to disintegrate.”

Distorting Japan’s Foreign Policy

After WWII, the US meddled in Japan’s foreign policy. Miyadai offers the Kuril Islands dispute as evidence of this. The dispute actually begins with something Miyadai labels as Japan’s “castration experience.” This “castration” entails America’s dropping of atomic bombs, Japan’s US-written post-war constitution, and the US-Japan Security Treaty signed under Washington’s persistence.

 

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War Threat Rises As Economy Declines

War Threat Rises As Economy Declines

Paul Craig Roberts, Keynote Address to the Annual Conference of the Financial West Group, New Orleans, May 7, 2015

The defining events of our time are the collapse of the Soviet Union, 9/11, jobs offshoring, and financial deregulation. In these events we find the basis of our foreign policy problems and our economic problems.

The United States has always had a good opinion of itself, but with the Soviet collapse self-satisfaction reached new heights. We became the exceptional people, the indispensable people, the country chosen by history to exercise hegemony over the world. This neoconservative doctrine releases the US government from constraints of international law and allows Washington to use coercion against sovereign states in order to remake the world in its own image.

To protect Washington’s unique Uni-power status that resulted from the Soviet collapse, Paul Wolfowitz in 1992 penned what is known as the Wolfowitz Doctrine. This doctrine is the basis for Washington’s foreign policy. The doctrine states:

“Our first objective is to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on the order of that posed formerly by the Soviet Union. This is a dominant consideration underlying the new regional defense strategy and requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power.”

 

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