Categories: Economy

The Vile Cost Of Neoliberalism

From the Mirrlees Review we get this chart. Showing the true and vile cost of neoliberalism:

As the Senior Lecturer tells us:

[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]If you want an explanation of the consequence of neoliberalism that’s it: over the thirty years when it ran rampant the higher your income was the larger the increase in it was too.[/perfectpullquote]

Quite terrible that inequality increased.

Of course, we can view this another way. Neoliberalism led to the real incomes of 95% of the population rising by more than 50%. Not a bad recommendation for an economic system that.

Elephant curve

We can also, as above, look at neoliberalism on the global level. Sure, the rich do pretty well. As does near everyone else of course. The people who lose out are, roughly, those on about median incomes or below in the already rich countries. That is, the people who by global levels are already significantly rich. And they only lose relatively, not in absolute terms.

We should also note that globalised capitalism, that neoliberalism, was a global phenomenon. Thus to look for the costs or the benefits we should look at the global effects.

Neoliberalism, in Britain the peeps got richer. Globally the poor got rich. Such a strong criticism of a socioeconomic system really.

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Tim Worstall

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thammond says:

August 6, 2019 at 9:30 am

And once again it assumes that the people in each group in 1979 are the same people throughout the period of the study. Which is just stupid.

When I started work i was at the bottom off the income distribution, twenty years later I was at the top. That's how it works.