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Elevation of an Economic Ideology to the Status of Sacred Myth

Austan Dean Goolsbee (born August 18, 1969) is an American economist,  currently serving as the Chairman of the Council of Economic Advisers and the youngest member of the cabinet of President Baracl Obama.   Goolsbee is on leave from the University of Chicago where he is the Robert P. Gwinn Professor of Economics at the Booth School of Business.  Goolsbee, a Yale graduate and member of their famous secret society, the Skull and Cross Bones club, is hailed by Obama as an economist who “does what works.”  To that epitaph, I would add:  “as long as it does not stray too far from the extremely conservative economic ideology of Milton Friedman”—an economic ideology and worldview that promotes the few and excludes the many, an economic ideology that has brought about the current world economic crisis and the extended “jobless recovery” for the rich in the USA.

Goolsbee is a member of the DLC, the Democratic Leadership Council, set up by globalists Bill and Hillary Clinton, to drive the Democratic Party to “the center”[off the cliff in my opinion] –to the right of what the vast majority of what the people in this country, left and right, actually want—to what amounts to a Wall Street Corptocracy.

The problem with the economic ideology promoted by Friedman and others like Goolsbee is that it does work—for the rich, that is, just not for the rest of us.

The University of Chicago, where Goolsbee is an economics professor, was home to economist Milton Friedman, known for his free market, antigovernment message and his influence on conservative leaders.  Friedman established a worldview of economics that is still the foundation that forms the “truth” or rationale for actions in the global economy—often harsh, actions against the majority of the people in a country.  For example we saw such harsh “structural adjustments” take place over the past 30 years in Egypt.  Today, we see its beginning in Greece.—the same story of the economic repression of the majority for the benefit of a few foreign investors.

Its cornerstones (sometimes referred to as the cornerstones of economic neo-liberalism) are upheld by the leadership of BOTH parties.

THE CORNERSTONES OF THE CURRENT ECONOMIC IDEOLOGY GUIDING THE WORLD ARE FALSE. Except for the benefit of the upper 1-5% of the wealthiest people in the world, this ideology is a proven failure.  From time to time members of its long-time advocates such as Alan Greenspan will have a moment of clarity and admit that the system is broken, but then almost just as quickly they go back to embracing the error of their thinking—why?  Because they profit from it, that’s why.

[We got Alan Shrugged’s mea culpa last fall, now we have Mr. Bernanke’s (March 10, 2009)]

The Five Basic Principles of Economic neo-liberalism:

1. THE RULE OF THE MARKET. Liberating “free” enterprise or private enterprise from any bonds imposed by the government (the state) no matter how much social damage this causes. Greater openness to international trade and investment, as in NAFTA. Reduce wages by de-unionizing workers and eliminating workers’ rights that had been won over many years of struggle. No more price controls. All in all, total freedom of movement for capital, goods and services. To convince us this is good for us, they say, “an unregulated market is the best way to increase economic growth, which will ultimately benefit everyone.” It’s like Reagan’s “supply-side” and “trickle-down” economics — but somehow the wealth didn’t trickle down very much. If you want to see a “liberated” market, if you want to see unfettered capitalism, look no further than Putin’s Russia for the perfect example of that endgame.

2. CUTTING PUBLIC EXPENDITURE FOR SOCIAL SERVICES like education and health care. REDUCING THE SAFETY-NET FOR THE POOR, and even maintenance of roads, bridges, water supply — again in the name of reducing government’s role. Of course, they don’t oppose government subsidies and tax benefits for business.

3. DEREGULATION. Reduce government regulation of everything that could diminish profits, including protecting the environment and safety on the job.

4. PRIVATIZATION. Sell state-owned enterprises, goods and services to private investors. This includes banks, key industries, railroads, toll highways, electricity, schools, hospitals and even fresh water. Although usually done in the name of greater efficiency, which is often needed, privatization has mainly had the effect of concentrating wealth even more in a few hands and making the public pay even more for its needs.

5. ELIMINATING THE CONCEPT OF “THE PUBLIC GOOD” or “COMMUNITY” and replacing it with “individual responsibility.” Pressuring the poorest people in a society to find solutions to their lack of health care, education and social security all by themselves — then blaming them, if they fail, as “lazy.”

Around the world, neo-liberalism has been imposed by powerful financial institutions like the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank. It had raged all over Latin America. The first clear example of neo-liberalism at work came in Chile (with thanks to University of Chicago economist Milton Friedman), after the CIA-supported coup against the popularly elected Allende regime in 1973. Other countries followed, with some of the worst effects in Mexico where wages declined 40 to 50% in the first year of NAFTA while the cost of living rose by 80%.


Economic Neo-Liberalism has been elevated to the status of a Sacred Myth and interwoven into the larger mythology of the foundation of our nation.

The ideology and corresponding principles of economic neo-liberalism have been entrenched in the leadership politics of both parties for fifty years or more. Over time, Americans have been subjected to a barrage of half-truths and outright lies concerning our economy and its guiding philosophies — propaganda dished out by corporate-owned mainstream media, members of Congress and Wall Street owners.  The result is that today many Americans mistakenly equate the economic neo-liberal philosophy of Milton Friedman and resulting Wall Street prosperity as part and parcel of the “uniquely American” heritage.  Many Americans even falsely assume that these economic principles were written into, or at least directly extrapolated from, our Constitution written by the Founding Fathers. The truth, however, is that these “founding principles of economic neo-liberalism” are little more than a loosely-hatched scheme that insures the rich will get richer while the poor become poorer –a scheme that was hatched by one economist short in statue and big of mouth from Chicago named Milton Friedman about 50 years ago.

The economic-neoliberal ideology preached and supported by Wall Street and the wealthy leadership of BOTH parties does not work for the majority and it never did.  Yet today it enjoys such an elevated global status that we have members of Congress such as Joe Barton and Rand Paul telling the American people that it is “un-American” to be Anti-Wall Street and criticize corporate CEO’s.

The Starting Points for Talking Real Change

– It’s about the wealthy—party is irrelevant

-Nothing will change with the current leadership of either party in charge

-Economic neo-liberalism is an ideology that only works for the wealthy.  If this were not true.  Our economy would already have recovered for all.  As it is, only the rich are enjoying increased prosperity and have been for the past two and a half years.

-To expect the rich to change a system that benefits them is absurd.

-But the rich are in charge.

-Kick them out of Washington DC and forge real change that will benefit the majority.

Until we change the economic ideology that is guiding our nation, nothing of any significance will improve for the majority of Americans.

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Liz Berry

Liz Berry