{"id":161889,"date":"2022-01-14T20:04:46","date_gmt":"2022-01-14T14:34:46","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=161889"},"modified":"2022-01-14T20:05:47","modified_gmt":"2022-01-14T14:35:47","slug":"liberal-economics-creates-illiberal-societies","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/liberal-economics-creates-illiberal-societies\/","title":{"rendered":"\u201cLiberal economics creates illiberal societies\u201d"},"content":{"rendered":"\n

News:\u00a0<\/span><\/b>Capitalism and the idea of liberal economics has been proved to be counterproductive for the equality and democratic values.<\/span>\u00a0<\/span><\/p>\n

It has given rise to nationalism and authoritarianism globally.\u00a0<\/span>\u00a0<\/span><\/p>\n

How liberal economics leads to authoritarian regimes?<\/span><\/b>\u00a0<\/span><\/h5>\n

Liberal economists are against \u201cpopulist\u201d policies of governments that\u00a0subsidise\u00a0the poor and adopt industrial strategies for self-reliance and jobs for their citizens.<\/span>\u00a0<\/span><\/p>\n

The liberal policies in the last 30 years\u00a0<\/span>reduced the taxes on incomes and wealth for the people at the top<\/span><\/b>.\u00a0This was justified on the basis of the idea that this will lead to growth and there will be enough to share through the\u00a0trickle down\u00a0effect.<\/span>\u00a0<\/span><\/p>\n

Although the\u00a0<\/span>pie has grown larger but the richest few have been taking the major advantages<\/span><\/b>\u00a0of that as shown by the various reports on inequality in the world.<\/span>\u00a0<\/span><\/p>\n

With every global crisis like the financial crisis of 2007-08 and the ongoing COVID-19 crisis \u2014 the\u00a0<\/span>rich are getting richer while the poor are getting poorer.<\/span><\/b>\u00a0<\/span><\/p>\n

How is the ideology of liberal economics has harmed the world?\u00a0<\/span><\/b>\u00a0<\/span><\/h5>\n

Political Implications-<\/span><\/b>\u00a0This has\u00a0led\u00a0to\u00a0<\/span>weakening of democracy and secularism<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

Rise of\u00a0Authoritarian governments<\/span><\/b>\u00a0–\u00a0History shows that whenever hopelessness spreads in societies, they are fertile grounds for messianic\u00a0saviours\u00a0to form an authoritarian\u00a0government\u00a0<\/span>\u00a0<\/span><\/p>\n

The rise of populist leaders around the world has shown that people still get swayed by the idea of messianic\u00a0saviors.\u00a0Authoritarian governments are now being democratically elected.\u00a0<\/span>\u00a0<\/span><\/p>\n

Economic implications<\/span><\/b>-Capitalism has\u00a0led\u00a0to\u00a0<\/span>Inequities within economies<\/span><\/b>\u00a0and an unsustainability of economic growth.\u00a0Economic despair is feeding the rise of authoritarianism, nationalism, and identity politics.\u00a0 \u00a0<\/span>\u00a0<\/span><\/p>\n

Liberal economics supports\u00a0<\/span>Privatization<\/span><\/b>\u00a0but this makes governments struggle for resources to provide public goods. It gives another opportunity in the hands of top most to buy what they need, while this prevents those at the bottom to even have basic health and education facilities. This\u00a0<\/span>increases the gap between the haves and the have-nots.<\/span><\/b>\u00a0<\/span><\/p>\n

Why neither communism nor capitalism is the solution?<\/span><\/b>\u00a0<\/span><\/h5>\n

Although Communism had lifted living standards, and the health and education of masses of poorer people faster than capitalism could, communism\u2019s idea that there should be no private property was a failure. This deprived people of personal liberties.\u00a0<\/span>\u00a0<\/span><\/p>\n

Capitalism\u2019s idea\u00a0<\/span><\/b>of replacing all publicly owned enterprises with privately owned ones (and reducing taxes on wealth and high incomes<\/span>) has not worked e<\/span><\/b>ither.<\/span>\u00a0<\/span><\/p>\n

It has\u00a0<\/span>denied many of their basic human needs of health, education and social security<\/span><\/b>, and equal opportunities for their children.<\/span>\u00a0The private property solution has also harmed the natural environment as businesses work on the profit motive and not on ecological motive.<\/span>\u00a0<\/span><\/p>\n

Due to this\u00a0<\/span>the ecological commons are harmed, and social equity suffers.<\/span><\/b>\u00a0<\/span><\/p>\n

What is the way forward?<\/span><\/b>\u00a0<\/span><\/p>\n

The extreme application of\u00a0<\/span>both Communism and capitalism<\/span><\/b>\u00a0has created negative consequences.<\/span>\u00a0<\/span><\/p>\n

Climate change and political chaos around the world are both warnings that capitalism needs reform<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

A new form of \u201c<\/span>Gandhian\u201d democratic socialism, powered by cooperative economic enterprises is the way forward.<\/span><\/b>\u00a0<\/span><\/p>\n

It will create wealth at the bottom, not only at the top, and save humanity and the planet.<\/span>\u00a0<\/span><\/p>\n

Source<\/span><\/b>– This post is based on the article \u201c<\/span>Liberal economics creates illiberal societies\u201d\u00a0<\/span><\/b>published in\u00a0<\/span>The Hindu<\/span><\/b>\u00a0on<\/span>\u00a014th\u00a0Jan 2022<\/span><\/b>.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News:\u00a0Capitalism and the idea of liberal economics has been proved to be counterproductive for the equality and democratic values.\u00a0 It has given rise to nationalism and authoritarianism globally.\u00a0\u00a0 How liberal economics leads to authoritarian regimes?\u00a0 Liberal economists are against \u201cpopulist\u201d policies of governments that\u00a0subsidise\u00a0the poor and adopt industrial strategies for self-reliance and jobs for their… Continue reading \u201cLiberal economics creates illiberal societies\u201d<\/span><\/a><\/p>\n","protected":false},"author":10323,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[263,10498],"class_list":["post-161889","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-1","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/161889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10323"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=161889"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/161889\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=161889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=161889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=161889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}