1. General Background

As a side remark, it can be observed that (economic) neo-liberalism is not much more than the contemporary manifestation of (economic) liberalism itself.

See for instance Krugman (2008) and Akerlof and Shiller (2015).

Fortunately, more and more people are meanwhile becoming aware of this.

A notorious example from the recent past has been Severn Cullis-Suzuki, a Canadian environmentalist who, since her youth, became famous for her commitment to the environment. According to Cullis-Suzuki, as a consequence of globalisation (and the world-wide copying of the Northern American consumer society model), people have started to live extremely artificial lives and are no longer connected to the environment. Cullis-Suzuki for instance gives as examples that people are totally disconnected from the production of their food, as well as from most other objects they use, and that they see unbridled consumption as the highest form of development. This has lead to the fact that people have started to abuse the earth, whereby an individual is barely linked to the consequences of his selfish behavior. Another part of the problem is that politicians act in accordance with an alleged mandate that there should be unlimited economic growth, which has resulted in a set of values that needs to be completely modified again (see Kuin (2014), p. 218).

Galbraith has indicated that (contemporary) adherents of capitalism prefer to avoid this term and rather refer to the “free-market”-system (see Galbraith (2004), p. 3).

Bernstein (2004), p. 19.

For a contemporary analysis of the interest-mechanism as a method through which the rich get richer to the detriment of the poor, see Stiglitz (2003), p. 81.

Vandewalle (1976), p. 7; Ripert (1951), p. 13.

Ripert (1951), p. 14; Fromm (1979), p. 83 a.f.; Byttebier (2015), p. 129.

Stiglitz (2010), p. 201.

As a consequence of this, within liberal and neo-liberal thinking, one has traditionally advocated fiscal policies which serve the interests of the bourgeoisie, such as the idea that the operation of businesses should, as much as possible, be exonerated from substantial taxes; as a result, worldwide, taxes have mainly been impacting income from labour rather than income from capital. This will be discussed further in this book. (See, furthermore, especially under Sect. 4.​6.)

According to Bouquin, the roots of neo-liberalism may already be situated in the period after World War II. (See Bouquin (2015), p. 88 a.f.)

About the state welfare model, see Stiglitz (2010), p. 197.

Compare, as regards the UK especially, Taylor-Gooby (2013), p. 2.

Chomsky (2017), p. 68.

Neo-liberal thinking links closely to political conservatism (mainly defending the interests of the rich and powerful within societies).

Compare Congregation for the Doctrine of the Faith (2018), n° 9.

The quote “greed is good” (purportedly) goes back to tot Gordon Gekko, a character from the movie “Wall Street” (1987) (a role portrayed by Michael Douglas who received an Oscar for it).

The movie character Gordon Gekko is (even so purportedly) slightly based on financial investors Ivan Boesky and Carl Icahn. In the movie Gordon Gekko holds a speech with following quote (see http://​nl.​wikipedia.​org/​wiki/​Gordon_​Gekko; last consulted on June 16, 2018):

The point is, ladies and gentlemen, that ‘greed’ — for lack of a better word — is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms — greed for life, for money, for love, knowledge — has marked the upward surge of mankind. And greed — you mark my words — will not only save Teldar Paper, but that other malfunctioning corporation called the USA.

Since then, the quote has been repeatedly referred to, even in economic literature. (See for instance Tyler (2013), p. 36; Peterson (2011), p. 96; Krugman (2004), p. 110.)

Skidelsky and Skidelsky (2013), pp. 40–41.

Compare to Stiglitz (2002), p. 24.