3. On Certain Less Obvious (Neo-)liberal Principles Shaping Capitalism

This is moreover not different for many other species of animals, with as evident example the dog (Latin name: “Canis lupus familiaris”). However, many variations and breeds of dogs in size, look, type of hair and other defining characteristics, such as character and temperament, exist, there is still only one species “dog”.

See for instance Dawkins (2009), p. 134, where he illustrates the phenomenon of “selection pressure” by explaining the colour differences of guppies.

More in general, Skidelsky and Skidelsky have phrased this as follows (Skidelsky and Skidelsky 2013, p. 44):

Men and women have always dreamt of a world without suffering, injustice and, above all, without work. (…) The prototype is Plato’s Republic, an ideal city ruled over by an enlightened elite of guardians who share everything in common, including women, with whom they breed periodically on the order of the state.

It is therefore very remarkable that, where a philosopher like Aristotle would raise himself as an advocate of more justice in the social order, he only had in mind the relations between the free people, but he never questioned the division of society in a class of free people and a class of slaves.

Das (2012), p. xxxii.

See mainly the books of Meher Baba; see for instance Meher Baba (1955).

Stoddart (2009), p. 47.

Das (2012), p. xxxii.

Stoddart (2009), p. 47.

It is therefore no coincidence that this process has been magnificently expressed, not to say criticised in world literature, so, for instance, by George Orwell in the satire “Animal farm”. In this satire, at the end of a revolution of animals living on a farm, the initial slogan by which the revolution was led, namely: “All animals are equal”, after the caste of pigs had taken a stand as the new elite on the farm, was changed to “All animals are equal, but some animals are more equal than others”.

Although this satire, obviously mainly wanted to criticise the situation in the after the Russian October revolution of 1917, in 1922 established “Union of Socialist Soviet Republics”, it is not less applicable to what had happened in many Western countries after the different “civil” revolutions of the end of the eighteenth century and the beginning of the nineteenth century which, initially aimed at creating a more just societal system, have mainly contributed to the current (post) capitalist world, where the polarisation between the lower classes (= the poor and middle classes) and the rich classes (= the capitalists) has been stronger than ever before in recent history shaping a manifestly unjust society which, also in the West, more and more again resembles the society model of the feudal era.

Compare Vivekananda (1989), p. 113 a.f.

The impact of such different life circumstances on one’s personal development is even explored in literature, for instance in Paul Auster’s recent successful novel “4321”.

On the correlation between “unequality” and “exploitation”, see furthermore Osho (2011), p. 151:

If mankind is one and equal, than the very basis of exploitation will be destroyed, because for exploitation to occur, inequality, sects and caste systems are essential.

(…)

A society without sects and casts is automatically against exploitation. To accept the equality of all people is to discard exploitation.

See also Oxfam (2017), p. 6, referring to the problem as to one of the false assumption’s on which the capitalistic economy is based:

False assumption #3: Extreme individual wealth is benign and a sign of success, and inequality is not relevant. Instead, the emergence of a new gilded age, with vast amounts of wealth concentrated in too few hands – the majority male – is economically inefficient, politically corrosive, and undermines our collective progress. A more equal distribution of wealth is necessary.

Rand (2008), p. 11; Rand (1992), p. 114.

In many ancient societies, the freedom to contract was not as generally available to all layers of society. For instance, in societies based upon slavery, slaves themselves could not enter into agreements, but on the contrary could become the subject of such agreements among members of the higher classes.

A remarkable case that made the news in May 2018 has been the one of “Nicolette”, a spoiled rich girl who appeared on the US TV-show “Dr. Phil” as a class-school example of how rich young people get spoiled without meriting it. (See, for instance, http://​www.​wwlp.​com/​news/​dr-phil-my-daughter-is-a-rich-spoiled-beverly-hills-brat-_​20180501151031/​1153176808; last consulted on June 16, 2018.)

Compare Stiglitz (2010), pp. 253–254, who uses this phenomenon as an illustration of the many types of irrationality determining human economic behaviour.

See, similarly, even Congregation for the Doctrine of the Faith (2018), n° 14:

For this reason, it must be noted that in the economic-financial world there are conditions in which some methods, though not directly unacceptable from an ethical point of view, still constitute instances of proximate immorality, that is, occasions that readily generate the kind of abuse and deception that can damage less advantaged counterparts. For instance, to commercialize certain financial instruments is in itself licit, but in a asymmetrical situation it would be possible to take advantage of a lack of knowledge or of the contractual weakness of either counterpart. In itself this amounts to a violation of due relational propriety, which is already a grave violation from an ethical point of view.

One of the few parts of financial law by means of which one reacts against knowledge gaps are the regulations on the trade of financial instruments (for instance insider trading), albeit these regulations are often very complicated and as uncomprehensible for the common man as the practices they aim at regulating.

Marcuse (1968), p. 105; see also Stiglitz (2006), p. 67.

On the economics of job insecurity, see furthermore Stiglitz et al. (2010), p. 84 a.f.

Fromm (1979), p. 83.

A recent, very worrysome example is the increasing cost students have to pay for accessing higher education. As a result, many students all over the world have to enter into expensive student loans, which has in the recent past even been reported as a high competitive disadvantage which the entire generation of millennials has to face to an ever increasing extent. (See Crédit Suisse Research Institute (2017), p. 39. See also further under Sect. 4.​7.​1.​5.)

See The Bologna Declaration (1999).

For more on the European policy related to this “Bologna declaration” (as regards higher education), see http://​europa.​eu/​legislation_​summaries/​education_​training_​youth/​lifelong_​learning/​c11088_​nl.​htm (last consulted on June 16, 2018).

See also Terry (s.d.), pp. 107–228.

See again Ayn Rand who in her book “The virtue of selfishness” makes a fierce plea against any type of altruism or collectivism as socio-economic (or even general societal) ordering principles. (See Rand (1992).)

See, for instance, the American President Donald Trump’s remark that (some unauthorized) immigrants are animals. (See Davis (2018).) During a round-table discussion with state and local leaders on California’s so-called sanctuary laws that took place in May 2018 and that reporters were allowed to document, President Trump was indeed reported to have stated:

We have people coming into the country, or trying to come in — we’re stopping a lot of them. You wouldn’t believe how bad these people are. These aren’t people, these are animals, and we’re taking them out of the country at a level and at a rate that’s never happened before. (See Davis (2018).)

Within Europe, Luxembourg is a clear example of a state deploying this policy. (See, for instance, Neugarten (2018).)

As Neugarten puts it:

Luxembourg draws the largest corporations from around the world that are seeking asylum from large corporate taxation, specifically in countries such as the United States where the corporate tax rate of 35% was once the third-highest in the world. In comparison, Luxembourg has a corporate tax rate of 21%. Although, as of 2018, that’s now the maximum U.S. corporate tax rate as well, Luxembourg offers other tax advantages.

For example, Luxembourg charges foreign corporations an extremely low tax rate to send money into and out of the country. Corporations that funnel profits through Luxembourg are charged around 1%. This is a huge incentive for large corporations that have the opportunity to save billions in corporate tax bills by moving cash to Luxembourg at such low rates.

(…)

Luxembourg is the most notable tax haven around the world. The country offers secrecy and advantageous tax laws for large corporations. U.S. corporations such as PepsiCo, Inc., American International Group, Inc. and Wal-Mart Stores, Inc. are well-known for creating subsidiaries and branches in offshore tax havens such as Luxembourg to cut taxes. (See Neugarten (2018).)

On the economics of fiscal policy in general, see Galbraith and Salinger (1978), p. 104 a.f.

See Oxfam (2014), p. 16 a.f., referring to “the great tax failure”. See also Sachs (2011), p. 118 a.f.

Needless to say that such an alternative approach would be completely opposed to the present-day prevailing (neo-)liberal competition model.

On the necessity of these due to market imperfections, see Stiglitz (2002), pp. 11–12.

On the policy change that occurred within the IMF, see Stiglitz (2002), p. 22.

In his book “Freefall” Stiglitz mentions the economic success of China in the (relatively) recent past. Stiglitz puts this success down not only to the massive presence of cheap labour forces, but also to the fact that these have a high education degree (higher than in other developing countries), next to the massive investments in infrastructure and a great attention to cost-efficient production of different products responding to the Western taste and needs (see Stiglitz (2010), p. 195).

Building on Ricardo’s classical doctrine of the comparative advantages, Stiglitz makes the still valid remark that the Western countries urgently need to think about and focus on fields of economic production where there own comparative advantages are still present (see Stiglitz (2010), p. 196).

For an interesting illustration, see an opinion piece that appeared in the Belgian newspaper “De Morgen” about the replacement of the “care state” by the so-called “inclusive social model” (see Peeters (2015), pp. 4–5).

Like many of the policy measures propagated by economic neo-liberalism, this idea also stems from the United Kingdom and has from there, through a detour in The Netherlands, also reached Flanders. The idea behind the formula developed in the United Kingdom has in the quoted opinion piece been explained as follows:

Many care responsibilities of central government have been pushed on to the municipality and the civilians. Four years later municipalities are crumbling under the retrenchments and they can no longer fulfill their basic care responsibilities. A similar movement took place in the Netherlands (see Peeters (2015), esp. p. 4).

In the same opinion piece, a renowned sociologist from the University of Leuven, Luc Huyse, was quoted as follows:

This tempting understanding hides what is really happening: the government is rejecting care and passing it on to the civilians. In a coalition agreement of the Flemish and the federal government this is referred to as ‘self-reliance’, but in reality, it implies: do it yourself’ (…) As it is no longer possible to provide the most basic care, the market will need to take over. (…) By definition this means an unequal access to care, while it just seemed that we were trying to create more equality. (see Peeters (2015), pp. 4–5).

Stiglitz (2010), p. 195.

The legal model on which the operation of such a capitalist enterprise is based, is in most capitalist countries the same: the enterprise is mostly set up in the legal format of a so-called “capital company” with as main objective to provide the highest profit possible to a small group of capital providers, the so-called “shareholders”. In many cases, a large part of the shares, or even all of these, remain in the hands of the original founders of the company and/or their heirs, in which case the profits are often mainly used to increase the family fortune of the founding fathers. In other cases, for instance as a result of a stock market listing, the shareholdership has come in the hands of a wider public of investors which also, proportionally, obtains rights to participate in the profits generated.

In this matter, there is however no true dogma, implying that the shareholdership of companies (or corporations) can also have ended up in other hands, such as states or state funds, next to institutional investors, among which pension funds, insurance companies, investment funds…

The fierce competition between such big enterprises in some cases takes results in take-overs or acquisitions, implying that the shareholdership of a given company or corporation, entirely or partially, can end up in the hands of one of its competitors, sometimes even through aggressive methods which characterise the so-called “takeover market” where the capitalist game takes one of his most aggressive shapes. (For further reading, see Byttebier (1994) and Byttebier (1996)).

Present-day production processes are also referred to as being based on the “disposable society” model. (See Tulipano (2013).)

Under this model, it has become almost impossible to have any broken product repaired, as the whole economic system incites people to replace broken products by simply buying new ones. It has even been argued that producers make products deliberately with a shorter life span than technically possible, in order to have bigger sales figures (which is a modern-day appearance of the “production for production’s sake”-economy). This is obviously the case for most household appliances, next to more in general all kinds of electronical devices. For the rich, even cars have become throw-away-articles to be replaced by more fancy models every so many years.

As Tulipano (2013) has argued:

Out with the old, in with the new. This is a classic motto recycled over and over again throughout generations, often used to justify the changes permeating throughout society and our own lives. This motto, though, is recycled far more often than the material items we deem as “garbage” in America. With the amount of goods we claim as broken or useless, America is collectively renowned as a “throw-away society.”

(…)

During the 1920s and 1930s, the manufacturing philosophy of “planned obsolescence” was discovered. As mass production became popular and widespread, this viable business strategy was refined. Manufacturers made it a goal to produce products, or parts of goods, that break, fail, or become less desirable after a certain amount of use or time. This manipulation in the production of goods pressures consumers to replace their broken and/or less-desired products. This trend became profitable for manufacturers and is a process still used today.

Think about how this trend plays out in your life. Cell phones and computer software are updated on an at least annual basis. How many times have you found yourself abandoning your current phone for a newer, more desirable replacement? Similarly, how often do you find yourself updating your computer software? I speak for myself when I say in the four years I have been a loyal customer of Apple products, my MacBook Pro software has been upgraded nearly three times. So far, it’s an annual update because newer is deemed better.

Manufacturers are compelled to build low quality products in hopes of earning higher profit margins. Throw-away materials guarantee customers will repurchase the same items in newer models, which is cost efficient and pure profit for manufacturers. Planned obsolescence may be manipulative against consumers, but is a smart business strategy for capitalists.

Wolffers (2010), 240 a.f.

Put otherwise: as a result of patent protection resulting in extremely high prices, many types of medicines exist which are not accessible to a large part of the world’s population, often poor people who are mostly in need of them.

In the (recent) Belgian context, the so-called “Soliris-dossier” serves as an illustration of this phenomenon.

In 2013, the pharmaceutical enterprise “Alexion” drew press attention when it appeared that its (at the time only commercialised) medicine “Soliris” could save the life of a 7-year-old boy (“Viktor”), but that the treatment with this medicine costed ±18,000 Euro per month and was therefore unaffordable for both the parents of the boy as for his health insurer. This eventually led to difficult negotiations between Alexion and the former minister of health Laurette Onkelinx who ultimately came to an agreement. Only at the end of 2015, the content of this agreement was made public and it turned out that said minister had to agree with a price of one ampule of Soliris amounting to 4278.14 Euro, a price which, according to the agreement, “could never be revised”. An ex- co-worker of the minister later witnessed on how the said agreement was reached: “It was all or nothing”, and another source confirmed: “The practices of Alexion defy all imagination. This was pure blackmail.” (see Vandekerckhove and Van Garderen (2015a), p. 1).

That these practices are highly profitable, can be concluded form the turnover and profit figures of “Alexion”. In the financial year 2013, Alexion was reported to make a net profit of 252 million USD, on a turnover of 1.5 billion USD, a turnover which had doubled over the past 2 years. It is thus the more remarkable that Soliris was at the time the only medicine marketed by Alexion, and that according to Forbes the price of an Alexion share was higher than a share of Apple (see Vandekerckhove and Van Garderen (2015b), pp. 12–13).

See for instance Lepew (2011).

See the discussion earlier in the previous Chap. 2.

On the extent to which a bonus policy influences short term thinking and the taking of extreme risks, see Stiglitz (2003), pp. 142–143.

de Vreede (2014).

See Debackere (2015).

For a formal reaction of the Belgian Order of Physician, see https://​ordomedic.​be/​nl/​adviezen/​advies/​persbericht-weigering-van-enkele-artsen-om-patinten-te-behandelen-die-een-tweepersoonskame​r-kiezen (last consulted on June 16, 2018).

Micklethwait and Woolridge (2014), p. 121.

See furthermore the frame illustration: “the impact of the skimming of government financing on the Flemish academic tissue” in Byttebier (2015), pp. 215–218.

For a recent illustration, see a press release of 2015 on “the culture of fear” prevailing at the University of Ghent (see Soenens (2015)):

At the university of Ghent, there is a true climate of fear where bullying and burn-outs are an important problem, says the student magazine “Schamper” based on different testimonies, and it is confirmed by different testimonies and confidential documents, which were uncovered by “De Morgen” on the bullying behavior by one dean that has been going on for years. “The university is not doing enough at all for the wellbeing of its staff”, is how it the problem was summarised by an important source.

The question is however if the situation is any better at the other Flemish universities…

Verhaeghe (2011).

Next to the practices within certain financial institutions, the practices applied by many (large) consultancy and law firms form but another harrowing illustration of the same phenomenon.

On the economics of privatizing social security, see Stiglitz (2002), p. 15.

See also Stiglitz (2010), p. 257 a.f.

Fromm (1979), p. 85 a.f. See also Stiglitz (2002), p. 10, having pointed out that it has been one of the great “tricks” of neoclassical economics to treat labour like any other factor of production.

Fromm (1979), p. 85 a.f.

Stiglitz (2002), p. 10.

Galbraith (1987), p. 84 a.f.

Implied is the large group of people who depend on personal labour in order to fulfil their daily needs, thus not only employees in the strict sense of the word, but for instance also small business owners.

This is clearly a liberal/neo-liberal way of looking at the role of government, going back to the works of Adam Smith himself. This viewpoint was already in Smith’s time contested by other authors, such as the French social school of rationalism that on the contrary held that it is one of the main tasks of the government to install just mechanisms of redistributing wealth. (See further, in Sect. 5.​9.​4.​2. See also Stiglitz (2002), p. 27.)

Foucault (2013), pp. 192–193.

Fromm (1990), p. 87.

Fromm (1990), p. 87.

Fromm (1990), p. 91.

Marcuse (1968), p. 105.

Marcuse (1968), p. 105.

Krugman (1998), p. 15. On the mechanisms determining wages, hence the price for labour, see furthermore Galbraith (1979), p. 19.

Stiglitz (2002), p. 10

See Fromm (1956), p. 91.

Beaud (1994), p. 131.

See Galbraith (1992), p. 109. See also Sachs (2011), p. 144 a.f., referring to:

the marriage between mass media and hypercommercialism.

According to Erich Fromm, Karl Marx has been one of the first to fight this intrinsic characteristic of capitalism. According to Marx, the aim of society should not be the mere production of things as an aim on itself. What since Marx’ writings has been completely neglected by even left-wing political parties (such as socialist and communist parties), is that for Marx, maximum production and maximum consumption should not be the unquestionable aims of society. Society should be about the conquest of poverty and about putting an end to unjust levels on inequality, not about production and consumption as a supreme end. (See Fromm (2013), p. 31.)

Skidelsky and Skidelsky (2013), p. 41.

On this, see Debusschere (2015), p. 15.

See also Galbraith and Salinger (1978), p. 162.

Not coincidentally one of the largest stock market listings of recent times has been the one of the large Chinese webshop “Alibaba” (see Westcott (2015)).

In a similar sense, recent press mentioned the increase of alcohol consumption among the members of the upcoming Chinese middle class (see Ferdman (2015)).

Compare Skidelsky and Skidelsky (2013), p. 40.

Where the same cycle may be repeated all over again.

In economic literature, this is also referred to as characterizing the “disposable society” (also: the “throw-away society”). (See above, in footnote 35.)

See Reich (2001). See also Bacevich (2008), pointing out how this consumerism was based upon (banking) credit, thus having attributed to the severe financial crisis of 2007–2008.

This is also a consequence of the capitalist mechanisms as discussed in Chap. 2, especially the so-called private money creation based on interest-generating credits provided by banks, and the subordination of labour to capital in enterprises which are legally organised as capital companies.

About the failure of the central banking policy in the years before the financial crisis of 2008, see Stiglitz (2010), p. 261 a.f. It may be as interesting to read Greenspan (2007) in this regard.

See also further under Sect. 3.5.4, where it is described how elderly people under the systems of capitalism often end up in miserable retirement homes.

Countless are the blogs and newspaper articles that sum up the things people regret on their death bed, having to have worked too hard in blind obedience of a boss being one of the five things people regret the most. (See recent https://​elkedagenergie.​be/​sterfbed/​; last consulted on June 16, 2018.)

As did happen to the young prince in the fairy tale “The Young King” by Oscar Wilde (1854–1900), as well as (eventually) to Ebenezer Scooge in the famous Christmas story “A Christmas Carol” of Charles Dickens (1812–1870).

See also Brown (2003).

Stiglitz (2003), p. 143.

The working methods of (neo)liberalisation and deregulation will be furthermore illustrated in the next Sects. 3.6 and 3.7 by means of two striking examples which affect us all on a daily base, namely the financial and the electricity sector.

Armstrong mentions that:

neo-liberal strategies began in Latin America in the late 1970s as a result of the great economic imbalances they had. Other pioneering countries in neoliberalism are the United States, Germany and England. (See Armstrong (2017).)

See for instance Thatcher (1993).

See also Pauli (2014), p. 33; van Oudheusden (2012), p. 132.

See Krugman (1994), p. 157.

A policy also conducted by former president George Bush jr. (see http://​www.​washingtonpost.​com/​wp-dyn/​content/​article/​2008/​10/​03/​AR2008100301977.​html; last consulted on June 16, 2018).

See also under the previous Sect. 3.4.

For further reading, see Steger (2013), p. 40; Steger (2014), p. 53; Lloyd (2012), p. 374; Harari (2014), p. 388; Bruckner (2002), p. 20; Sterdyniak (2011), p. 27; Pesendorfer (2012), pp. 414–434.

Galbraith (1992), p. 122. See already before Galbraith and Salinger (1978), p. 157.

And of its political counterpart: conservatism. (See also http://​lchc.​ucsd.​edu/​cogn_​150/​Readings/​brown.​pdf; last consulted on June 16, 2018).

Galbraith (1992), p. 122. See also van Oudheusden (2012), p. 133.

In a comparable manner, Chomsky also mentions “the grotesquerie of the space race” as a “transfigured, transmuted and theoretical substitute for an infinite strategic arms race”. (See Chomsky (2015), p. 35.)

About the impact of neo-liberalism on agricultural politics especially, see also Foucault 2013, p. 189 a.f.

Ronse (1992), p. 74.

Galbraith (1992), p. 23:

Specifically favored also have been military expenditures, their scale and fiscally oppressive effect notwithstanding.

Sachs (2011), p. 117 a.f. See already before Galbraith (1992), p. 23 a.f.

Galbraith (1992), p. 26.

See, for instance https://​www.​thebalance.​com/​donald-trump-economic-plan-3994106 (last consulted on June 16, 2018), summarizing this classical neo-liberal fiscal policy as follows:

Trump said that cutting [especially corporate] taxes will increase growth enough to offset the loss of revenue.

For a more detailed overview of Trump’s 2017–2018 tax reform plans, see Bird (2017).

Ronse (1992), p. 74.

Sachs (2011), p. 144 a.f. See before also Ruyver (1969).

Ronse (1992), p. 74.

Regretfully, this problem has up to this very date not yet been tackled with in a serious manner, public and private debt since then having reached levels unseen ever before in history.

Ronse (1992), p. 74.

Especially after the application of the techniques of (neo-)liberalisation and deregulation would be adopted by many other countries and regions (such as the member states of the European Union), and finally be applied at the occurrence of the creation of the new architecture of the global free trade and the global free traffic of payments and capital (especially within the context of the WTO).

See already Van der Borght (2014), p. 2. See, furthermore, Carter (2014).

For the first time in more than 140 years, the US has lost the title of the world’s largest economy – it has been stolen by China, according to the IMF. But how reliable are the statistics underpinning this claim? The BBC’s economics editor, Robert Peston, explains lower down why China matters to all of us.

The Chinese economy is now worth $17.6tn, slightly higher than the $17.4tn the International Monetary Fund (IMF) estimates for the US.

So for the first time since 1872, when it overtook the UK, the US has been knocked off the top spot. (See Carter (2014).)

Also in 2016, both the IMF and the World Bank continued to rank the Chinese economy on the first place (before that of the USA). (See Willige (2016).)

Both the IMF and the World Bank now rate China as the world’s largest economy based on Purchasing Power Parity (PPP), a measure that adjusts countries’ GDPs for differences in prices. In simple terms, this means that because your money stretches further in China than it would in the US, China’s GDP is adjusted upwards. (See Willige (2016).)

Galbraith (1992), p. 49; Ronse (1992), p. 154 a.f.

Under president Donald Trump, a very similar neo-liberal policy has been deployed, i.a. also leading to a new deregulation of the financial sector. (See DM/RC (2018).) More precisely, the US House voted on 22 May 2018 legislation aimed at rolling back regulations imposed by the so-called Dodd-Frank Act (= an Act that was voted in 2010, under the presidency of Barack Obama, in response to the financial crisis of 2007–2008). The newly voted law loosens capital requirements for both major and smaller banks and was reported to mark yet another marquee “pro-business” triumph for president Donald Trump. (See DM/RC (2018).)

The new bipartisan legislation will roll back several of the 2010 Dodd-Frank rules that raised capital requirements for banks, including several smaller lenders. The bill also raises the threshold in assets at which banks are considered risky and subject to stricter oversight from $50 billion to $250 billion (€42.5 billion to €212.5 billion). (See DM/RC (2018).)

For the text of this bill, after it having been approved by the American Senate on 14 March 2018, see S. 2155: Economic Growth, Regulatory Relief, and Consumer Protection Act, at: https://​www.​govtrack.​us/​congress/​bills/​115/​s2155/​text/​es. For the text as of 24 May 2018, after having passed Congress, see https://​www.​govtrack.​us/​congress/​bills/​115/​s2155/​text. (last consulted on June 16, 2018).

Krugman (1994), p. 172 a.f.

For some of the consequences thereof, see further, under Sects. 4.​7.​2 and 4.​9.​2.

On the collapse of communism, see for instance Eyskens (s.d.), p. 107; Menasse (2012), p. 78.

See also Stiglitz (2002), p. 26:

The interplay between politics and economics has been most dramatically in Russia, where the privatization process resulted in the devastation of the middle class, and the creation of huge inequalities and an oligarchy which, if it seeks to establish a rule of law, will use its wealth and power to try to ensure that that rule of law favours itself.

See for instance Rand (2008), p. 26.

Pauli (2014), p. 33.

Stiglitz (2006), p. 4.

See http://​europa.​eu/​pol/​pdf/​flipbook/​en/​internal_​market_​en.​pdf (last consulted on June 16, 2018).

Descamps (2015), p. 4.

For instance, in Belgium, the “N-VA” party joined the federal government of Michel I in 2014. This government strongly conducts a neo-liberal course. This has been somewhat surprising to the extent that the N-VA, during the foregoing elections, had announced that it would mainly work on a community agenda, without having made any noteworthy allusion whatsoever of so strongly adhering the doctrines of economic neo-liberalism.

See for instance Desmet (2015), the title of the press article by this reporter in English literally to be translated as “Shameful”.

In the referred case of the 17-year old girl who ended up in prison, caregivers interviewed by a journalist of the newspaper “De morgen” called for a health care policy where the patient would take a central role, instead of financial matters. (See De Cuyper (2015).)

See for instance Calluy and Nasser (2017) and Messiaen (2017).

Which, according to the press reports, were on average between 2000 and 7500 euro per month, additional medical costs not included. (See Calluy and Nasser (2017) and Messiaen (2017).)

Calluy and Nasser (2017) and Messiaen (2017).

See Rogers (2018).

Even a member of parliament of N-VA, albeit a political party fervently adhering the doctrines of economic neo-liberalism, has, in the abovementioned case of the 17-year old girl, reached the conclusion that the health care sector is being confronted with chronical capacity shortages (see Anseeuw (2015), p. 3), however without making the link with the underlying causes of this, being the fact that, for decades already, the application of the doctrines of economic neo-liberalism (to a large extent: by his own political party) has increasingly resulted in a dismantling of Belgian public and social services.

Plato (1987), p. 306.

See also the rebuttal of neo-liberal authors such as Yaron Brook and Don Watkins (see Brook and Watkins (2012), p. 77):

In Plato’s Republic, Socrates declares “the more men value moneymaking, the less they value virtue.” Rand’s view is exactly the opposite. The value of virtues is its role in promoting your own welfare – including your economic welfare. The more men value money making, the more they value virtue.

The purported “rebuttal” by Brook and Watkins is a textbook example of the complete turnaround of values (in comparison to, for instance, the value scale of Classical Antiquity, or the one of Jesus Christ) that characterizes (economic) neo-liberal thinking.

See for instance De Grauwe (2014), p. 183 a.f.; Peersman and Schoors (2012), p. 4.

See Dehousse and Dirick (1992), p. 826.

See Commissie voor het Bank- en Financiewezen, Jaarverslag 1997-’98, p. 42 a.f. See furthermore the several case studies analysed in Byttebier and Verroken (1995).

The wave of mergers and acquisitions in the financial sector of the late 1980s, early 1990s was already initiated by the European preparatory works of creating an internal market for financial services, especially the so-called “White Paper on completing the internal market which was adopted by the Milan European Council of 28^th June 1985” [COM/85/0310], as well as by the several European banking directives of a later date.

Commissie voor het Bank- en Financiewezen, Jaarverslag 1998-’99, p. 183.

For detailed data, see Commissie voor het Bank- en Financiewezen, Jaarverslag 1997-’98, p. 176 a.f. and Commissie voor het Bank- en Financiewezen, Jaarverslag 1998-’99, pp. 183–217.

See also Byttebier and Verroken (1995), p. 215 a.f., as well as Byttebier and Verroken (Deel I) (1997), pp. 243–255, and (Deel II) (1997), pp. 401–413.

Hulpiau et al. (2011), p. 430 a.f.

See for instance the failed acquisition of ABN Amro by Fortis; on this: Smit (2013).

See Hulpiau et al. (2011), p. 430 a.f.

See Michielsen and Sephina (2009).

See Ardaen (2012).

Hulpiau et al. (2011), p. 430 a.f.

Sachs (2011), p. 201.

See in general Deconinck and Gillard (2004–2005); Deridder (2003).

See also https://​eur-lex.​europa.​eu/​legal-content/​EN/​TXT/​?​uri=​CELEX%3A31996L0092, consulted on June 6, 2018.

See Elektriciteitsprijs stijgt: Electrabel en Co toch recht in hun schoenen? (article of 7 June 2014) at: http://​redactie.​radiocentraal.​be/​Home/​?​p=​6390 (last consulted on June 16, 2018); Stroomfactuur op 1 januari tot 35 procent duurder (at: http://​www.​hln.​be/​hln/​nl/​943/​Consument/​article/​detail/​2156121/​2014/​12/​18/​56-plussers-massaal-weg-bij-Belfius.​dhtml; last consulted on June 16, 2018).

See furthermore Adriaen (2014), p. 3. See also OIVO (2011).

Heilbron et al. (2014), p. 30; Adriaen (2014), p. 3.

Heilbron et al. (2014), p. 30.

See Noodplan voor stroomvoorziening deze winter. Knack 18 July 2014 (also at http://​www.​knack.​be/​nieuws/​belgie/​noodplan-voor-stroomvoorzienin​g-deze-winter/​article-normal-265951.​html; last consulted on June 16, 2018).

See Nederland zamelt wokken in voor België (article of 5 November 2014). http://​m.​hln.​be/​hln/​m/​nl/​31822/​Dossier-Stroomtekort/​article/​detail/​2112460/​2014/​11/​05/​Nederland-zamelt-wokken-in-voor-Belgie.​dhtml?​originatingNavig​ationItemId=​1; last consulted on June 16, 2018.

See also Smout (2014), p. 4.

See for instance Delbeke and Eckert (2018), pp. 4–5, reporting on protest actions in Aken (Germany), attended by both German and Holland concerned citizens, that were held on May 10th 2018 against the Belgian nuclear policy. The concern is however not new, but has already been present in Belgium’s neighboring countries for years already.

Heilbron et al. (2014), p. 29.

See Krugman (2004), p. 299; Stiglitz (2003), p. 260. See also Leopold (2002).

Heilbron et al. (2014), p. 37.

Heilbron et al. (2014), p. 37.

See further at https://​en.​wikipedia.​org/​wiki/​Libert%C3%A9,_​%C3%A9galit%C3%A9,_​fraternit%C3%A9 (last consulted on June 16, 2018).

See also above, under Sects. 3.1 and 3.4.

Marcuse (1962), p. 71 a.f. See also Marcuse (1964), p. 300 a.f.

See also Chomsky (2017), p. 65 a.f.

Chomsky (2017), p. 65.

See also the insights of Galbraith, having pointed out that in present-day societies, more than ever in history, the principle remains that any “unpleasant work” (especially so-called “hard” and/or “dirty” labour), is increasingly gravitated to the poorer classes of society. The idea is that the most repulsive possible work should be done by the poor for the lowest possible wages, whereby the workers performing this type of hard and/or degrading work need to be replenished over and over again. (See Galbraith (1992), p. 33. See also Krugman (1998), p. 15.)

As phrased by Galbraith (see Galbraith (1992), pp. 33–34):

From the foregoing comes one of the basic facts of modern economic society: the poor in our countries are needed to do the work that the more fortunate do not do and would find manifestly distasteful, even distressing. And a continuing supply and resupply of such workers is always needed. That is because later generations do not wish to follow their parents into physically demanding, socially unacceptable or otherwise disagreeable occupations; they escape or seek to escape the heavy lifting to a more comfortable and rewarding life. This we fully understand and greatly approve, it is what education is generally meant to accomplish. But from this comes the need for the resupply or, less agreeably, for keeping some part of the underclass in continued and deferential subjection.

See also Chomsky (2017), p. 65 a.f.

One should bear in mind that, most likely dating back to the works of classical liberal authors such as John Stuart Mill (see Byttebier (2017), p. 168, n° 138), neo-liberal authors consider the principles of “individual property” and “individual freedom” almost as sacred, and consistently try and justify all excesses of capitalism by referring to this type of abstract concepts of societal organization; for instance, Ayn Rand herself has vigorously defended the doctrine of the “voluntary association” as being the sole principle that may determine human relations. (See Rand (2008), p. 11; Rand (1992), p. 114.)

Except for, literally, qualifying these higher values as “devious” and “evil”.

For instance, Ayn Rand has argued that (see Rand (1992), p. 38):

altruism holds death as its ultimate goal and standard of value – and it is logical that renunciation, resignation, self-denial, and every other form of suffering, including self-destruction are the virtues it advocates.

According to his author, a so-called “altruistic” person shows the following characteristics: (1) a low self-esteem; (2) a lack of esteem for other human beings; (3) a perception of life as being a nightmare, i.e. a hostile happening where disasters occur all the time, and (4) a complete lack of ethics (see Rand (1992), p. 49).

See also Rand (2008), p. 19; Rand (1982), p. 27.

Compare Szalavitz (2012), who herself has observed that:

to claim, as Rand does, that “altruistic morality” is a “disease” is to misrepresent reality.

In literature, this theme is, for instance, explored in the works of F. Scott Fitzgerald.

See also Skidelsky and Skidelsky (2013), p. 67, mentioning the collapse of the idea of “immanent abundance” for everyone.

See, in recent times, the works of many prominent economists, such as Thomas Piketty, but before him Joseph Stiglitz and Paul Krugman and, going back even further in time, John Kenneth Galbraith, all having questioned this paradigm.

These thoughts literally resonate in the works of Milton Friedman: see especially Friedman (1993).

Chomsky in this regards speaks of “the attack on Social Security”. (See Chomsky (2017), p. 65.)

See, for instance, the opinion of Bill Gates on this matter:

Philanthropy also can be an important part of the solution set. It’s too bad that Piketty devotes so little space to it. A century and a quarter ago, Andrew Carnegie was a lonely voice encouraging his wealthy peers to give back substantial portions of their wealth. Today, a growing number of very wealthy people are pledging to do just that. Philanthropy done well not only produces direct benefits for society, it also reduces dynastic wealth. Melinda and I are strong believers that dynastic wealth is bad for both society and the children involved. We want our children to make their own way in the world. They’ll have all sorts of advantages, but it will be up to them to create their lives and careers. (See Gates (2014).)

Galbraith (1983), p. 111.

One just has to read the four Gospels of respectively Saint Marc, Saint Matthew, Saint Luke and Saint John.

See also Byttebier (2017), p. 94 a.f., with more detailed references to the relevant Gospel verses.

See especially Tawney (1942), p. 71 a.f.

For further reading, see also Byttebier (2017), p. 131 a.f., with further references.

Especially in and since the Papal Encyclical “Rerum Novarum” (“Of/about new things”) of 1891.

See in this regard, for instance, the works of Charles Gore (1853–1932), a renowned Anglican theologian (and bishop) of his time. (See Byttebier (2017), p. 141, with further references.) Gore blamed modern society for not having striven to bring the word of God truly to life, and that it even has accepted a widely spread violation of true justice, for example by having agreed to the exploitation of the poor and by approving “monstrous and unfounded” property rights which allow people to ignore the wellbeing of society and to focus more on personal possessions than on other people. Gore also blamed society for the fact that the systems it created, such as housing and employment and education politics, in a fundamental way ignore Christian ideals. Hence, Gore argued for a fundamental turn-around in society, where both the principles of capitalism, as well as those of socialism, were to be ignored. On the contrary, charity should become the leading principle of societal organization.

See, more recently, some similar viewpoints of the Catholic church expressed in: Congregation for the Doctrine of the Faith (2018).

See also Tolstoj (2012), p. 95.

See for instance Harari (2014), p. 391.

Reference can here be made to the so-called “pension debate”, where the adherents of the doctrines of economic neo-liberalism have started spreading the idea that every one (at least the lower 99% of the human race) should embrace the idea of having to work as long as possible, so that the free market economy can keep on thriving to make the rich of the planet ever more rich. (See also the further topics dealt with under Sect. 5.​15.​2.)

Compare Harari (2014), p. 391, having summarized economic neo-liberalism as follows:

The new ethic promises paradise on condition that the rich remain greedy and spend their time making more money, and that the masses give free rein to their cravings and passions – and buy more and more. This is the first religion in history whose followers actually do what they are asked to do. How though, do we know that we’ll really get paradise in return? We’ve seen it on television.

For further reading, see Arenas (2016).

See Dawkins (2006), pp. 4–5.

These products of the animation industry have not only often a totally different story line than the fairy tales that inspired them, but, even worse, often also an entirely different moral message.

About the fiscal evasive behaviour of, for instance, the Disney Corporation, see for instance Bové (2014), pp. 8–9.

See http://​www.​andersen.​sdu.​dk/​vaerk/​hersholt/​TheLittleMatchGi​rl_​e.​html (last consulted on June 16, 2018).

The principle of “natural selection”, in addition to the idea of “the survival of the fittest”, as derived from the works of Charles Darwin (see especially his book “The Origin of Species” (1859)), and, more recently, the idea of “the selfish genes” taken from Richard Dawkins (see Dawkins (2006)), are concepts that have become extremely popular among (neo-)liberal scholars.

The misuse of the teachings of biology is moreover not a contemporary phenomenon, but is reported to date back to the end of the nineteenth century, when business tycoons, such as John Davison Rockefeller (1839–1937) and James Jerome Hill (1838–1916), already adhered to the idea of the “survival of the fittest”, by expressing their opinions that the strongest and most efficient enterprises would automatically become market leader and, through this, would be best suited to further stimulate economic prosperity. (See Galbraith (1983), p. 117; Browne (2008), p. 101.)

This way of thinking even obtained a validation in pseudo-scientific works by writers such as Herbert Spencer (1820–1903).

See Galbraith (1983), p. 117.

See already Tolstoj (2012), p. 95:

He who has inherited millions, or tens of thousands of hectares of land, thinks, because he has a large house, horses, automobiles and servants, that he is very special. He is surrounded by such luxury that it makes him drunk, causing that he is not able to have empathy for the life of the working man who organises a strike in a factory, or the poor farmer who cuts a tree in his woods. He is that drunk of his wealth that without conscience, he will punish the worker and the farmer as soon as he can lay his hands on them.

Rand (2008), p. 23. See also Rand (1982), p. 79 a.f.

Ayn Rand has expressed this as follows (Rand 2008, p. 23):

altruïsm seeks to rob intelligence of its rewards, by asserting that the moral duty of the competent is to serve the incompetent and sacrifice themselves to anyone’s need.

See furthermore Galbraith (2004), p. 23.

In the context of Flemish politics, these arguments—albeit sometimes phrased differently—are often used by members of the NVA or the OVLD, both political parties that are extreme adherents of the doctrines of economic neo-liberalism.

This policy principle of economic neo-liberalism is (at present) very strongly adhered and implemented by Belgium’s neo-liberal government Michel I.

The only civil servants which neo-liberal thinking seems to accept, are those who yield more money than they cost (in salary). This leads to the observation that the only civil servants with whom neo-liberal thinking truly sympathises are tax officials (on the condition that they leave the rich and very rich unburdened, and only tax the poor and middle classes within society). (See also Wauters (2015), pp. 4–5.)

It goes without much further saying that this is a strange, although typical neo-liberal logic which explains why one needs to continuously cut in expenses for public sectors, such as education and justice, as the people employed in these areas only “cost” to society and, at least in financial terms, “do not yield anything”.

Blomme (2015), p. 3.

See Oxfam (2014).

Galbraith (1990), p. 14.

See also Galbraith (1990), pp. 14–15.

See for instance Sachs (2011).

See http://​www.​weforum.​org/​ (last consulted on June 16, 2018).

See http://​www.​weforum.​org/​world-economic-forum (last consulted on June 16, 2018).

This networking club has annual meetings mainly aiming at examining how the agenda’s of political decision making can be influenced.

See http://​www.​bis.​org/​bcbs/​ (last consulted on June 16, 2018).

As Lipman phrased it:

Neoliberalism reframes all social relations, all forms of knowledge and culture in the terms of the market. All services established for the common good are potential targets of investment and profit-making. In the discourse of neoliberalism, the society becomes synonymous with the market, democracy is equated with consumer choice, and the common good is replaced by individual advantage. (Lipman (2006), p. 51.)

In the writings of Erich Fromm as of the 1940s, it has been analysed to what profound extent labour, but through this man himself, has been subjected to the objectives of capitalism. Over half a century later (especially as a result of the world wide implementation of the doctrines of economic neo-liberalism), this plea may be more convincing than ever. Indeed, more than ever has the average man become enslaved by the goals and objectives of the free markets and the forces of the invisible hand(s) steering them.

See Stiglitz (2002), p. 27, more specifically this author’s call for the promotion of an equitable, sustainable and democratic development that promotes societal well-being and conforms to basic principles of social justice.

In the Western world, the genesis of both public education and hospitals and similar institutions, can be found in early Christianity where, because of motives of Charity (and explicitly not driven by motives of profit pursuit), already in the time of the Roman Empire, initiatives were taken which have been the predecessors of our current schools and hospitals. (See Ortberg (2014), pp. 49–51.)

See Lewak (2015).

See Stiglitz (2002), pp. 22–23, on the original intent of the IMF and how this got distorted by the doctrines of economic neo-liberalism.

See the way how Stiglitz describes the general purpose of economy activity:

The purpose of economic activity is to increase the well-being of individuals, and economic structures that are able to do so are more desirable than those that do not. (Stiglitz (2002), p. 9.)