More Neoliberal Insanity

Another rightwing Libertarian who also happens to be part of the race realist and PUA/men’s rights communities (Who would have guessed?) has ventured into our comments section pushing insane neoliberal snake oil:

By the way, I’m in agreement with your argument as posed to Robert Lindsay. There is no concept of “evil capitalist” because if they were evil they would become uncompetitive as less evil capitalists took their productive workers from them. In short, the free market would beat the evil right out of these employers.Eventually, as economist Gary Becker has pointed out, these inefficient employers will shoot themselves in the foot.
Tangentially, that’s the reason this legislation for the Paycheck Fairness Act – which hopes to eradicate discrimination against women by closing the mythical 23 cent pay gap between men and women – is illogical. Businesses and ultimately consumers don’t care who has jobs and makes goods and adds value. If a woman of equal education and equal ability made 77 cents to a man’s $1, a smart firm would come along and pay that woman 78 cents. This would continue until that gap was effectively closed.

More neoclassical insanity. This stuff works in theory, but not in the real world. In fact, I am amazed that you guys act like you actually believe this nonsense. You’re lying, right? You know this is all crap, right, and you’re saying it to sell the proles a good line that works great for the rich and screws everyone else? Because if you actually believe this nonsense, you are deluded.
The real world simply does not work this way. With mass unemployment, firms do not compete for workers by offering higher wages. They don’t do this in the 3rd World either. They hardly do this anywhere. The general trend is for capitalists to pay less for labor. The capitalist always try to pay the least for his labor as he can possibly get away with.
Let’s look at the construction industry. This used to be a high-paying industry with good jobs paying what would now be $33-40/hour. The work was all unionized. The capitalists, in order to pay less, broke all the unions, at least here in California. They went through the sectors breaking the unions one by one. Then the capitalists flooded the US with illegal alien labor. The capitalists started using the illegal alien labor to outcompete each other. This is still going on in California as I speak. Eventually, most of the unions were broken, the wages had fallen from $37 to ~$10/hour, and the field was flooded with cheap labor, legal and illegal.
There are still some places around that pay good wages. There are painters paying $25/hour, but they are always in danger of being taken out by the illegals making $10/hour. My friends work for local White construction companies who treat their workers like shit and are always threatening to replace them with “Mexicans” = illegal aliens. I believe that construction workers are generally treated much more poorly here in California now than they were in the era of unionized construction work.
There are zero, I mean zero, construction firms here in California in the past 20 years who are competing with other firms to pay workers more or treat them better in order to drive all the others out of business. It doesn’t happen.
Let’s look at the meatpacking industry. These used to be high-paying jobs that paid around $17-25/hour. It was mostly working class Whites working at them. The unions were all broken and the jobs were filled with illegal aliens working minimum wage. Working conditions crashed and workers are seriously treated like shit.
Not one meatpacking firm has opened up to pay workers and treat them better to outcompete the other firms.
Let us look at the IT industry. This used to be a place where you could make a good wage. However, the industry was mad about workers being paid so well, so they started importing Hindu 1-B guest workers from overseas to drive down wages in order to maximize their profits. This crashed wages in the field to the point where no sane White American would go into this field. I’m not sure about working conditions, but I am told that many workers now work in Hindu IT “sweatshops,” for their Hindu scum bosses who treat them abysmally in the time-honored Indian way that the working man has always been treated in that blighted land. So apparently working conditions have taken a dive too.
One would think that some enterprising firms would have sprung up to pay workers well and hire all the workers away from the firms hiring the Hindu 1-B invader-thieves, but this has not occurred. Why not?
Taxi driver used to be a good job. For some reason, it’s not anymore. The field has been taken over by fly by night firms, mostly run by shady immigrants, who hire downtrodden immigrants to work very long hours for terrible pay, sometimes possibly below the minimum wage. The field has been nuked, worker-wise.
Not one taxi company has sprung up to pay workers better and drive all the other firms out of business. Not one.
Short-haul truck driver (not big rigs) used to be a great job. My working class White friends used to work in these jobs. The field is gone. It’s all Mexicans, mostly illegals. The firms are all run by criminals. The workers lease out the trucks, but they make so little (really below minimum wage) that they can’t keep the trucks up, so the trucks are always falling apart. This damages our roads and is a safety problem. The workers are overworked, downtrodden and poorly paid.
Not one trucking firm has stepped in to drive the others out of business by offering the workers better wages or working conditions. Not one.
All over the US, firms head to US South, where wages are lower and unions are scarce. Many states have anti-union right to work laws. Suppose I am in Ohio. I wish to compete with firms who moved to the South in search of non-union cheap labor. I open up my firm and say everyone come work for me as I will pay you and treat you better. How many workers are going to leave South Carolina to come up to Georgia and work for me? None.
So this doesn’t happen. Firms don’t compete with firms who moved to the South by offering better wages.
If companies competed on wages to hire workers, they would be happier with unions. Unions only want the best for their workers in terms of wages and working conditions. Most reasonable unions are not trying to drive the firm out of business in a suicidal gesture. Yet firms hate unions and do anything to keep them out because the union will try to force the firm to raise wages and improve working conditions.
In the 3rd World, unionists are regularly murdered, to the cheers of the capitalist world, its media and its militaries. In fact, one of the main strategies of US imperialism in the 3rd World has been to encourage a “kill the unionists” campaign. US imperialism teaches this philosophy via its imperialist military, CIA and their institutions such as police and military training programs and the School of the Americas in Georgia. If firms were happy to compete on wages, they would embrace unions rather than kill their members.
Most of the 3rd World is characterized by crap wages far below what the capitalists could easily afford to pay and abysmal working conditions.
One would think that firms in the 3rd World would be competing by raising wages and bettering working conditions to drive each other out of business. Yet it simply does not occur. Why not?
Nowadays, things have moved away from the field of the nation to the supranational playing field. So firms in the US compete by closing US plants and moving them overseas where labor is cheaper. Now suppose I have a firm in the US. I want to compete with these firms moving jobs overseas in search of cheap labor. I set up a plant here in the US to be the good guy and tell all the workers to come work for me because I have the best wages and whatnot. I will still be driven out of business because the worker pool I am competing with is physically overseas! The workers can’t exactly leave China to come work in my New York firm, now can they?
In Europe, in the US, in the Developed World in general, what we see is firms competing by trying to drive wages and working conditions down as low as they can get them. In the US, unions and strikes are broken, illegals and Hindu 1-B and other guest worker job thieves are imported from overseas and hired, jobs are moved overseas and workers are always told to take pay and benefit cuts.
One would think that some firms could open up to hire only American workers and refuse to hire illegals, and to pay workers and treat them better to outcompete the other firms. Yet this is not occurring. Why not?
I am thinking of my town here. I can’t think of any firms in this town who are competing for workers with other firms by trying to pay them better or treat them better to drive the competition out of business. If anyone knows of any, could you please let me know?
It’s really amazing how this nonsense has taken over the world of Economics. The truth is that if you want a job in Economics nowadays, all jobs (or 90%+ of them) are for neoclassical (neoliberal) Economists. There are no jobs for Economists from any other schools. It’s interesting to theorize why this is. Most economists nowadays work for capitalist firms. Capitalist firms only want to hire neoclassical economists, because neoclassical is what the capitalists want to hear – it’s the economic school (religion) most acceptable to them. All or most of the economic textbooks, journals, and schools are neoclassical.
As you can see from the nonsense and insanity that the resident Libertarians in our comments section regularly, spout, neoclassical, Austrian or Libertarian economics is mostly a bunch of nonsense. It’s  more of a religion than anything else. Unfortunately, most economic schools are religions, because in general, economics only works on a small scale (microeconomics) and tends to fall apart when it moves towards a larger view (macroeconomics). Most of them just publish a bunch of crap that their audience or school wants to hear, and this is how the school builds itself on and on. Based on the blatherings of our neoclassical friends in the comments, we can see there’s little empirical basis for most of it.
Adam Smith wrote some fine texts, but most of it seems to be nonsense. He was correct in one way in that he was writing against the Mercantile School of Economics.
Most nations ran Mercantile economics, where most of the trade was run by the state – sort of a state capitalism. It doesn’t work very well, but it worked well enough for a long time. Mercantilism is monopoly economics. The state runs everything. It regulates the prices of the capitalists, etc., because the state is competing against other nations. When England is competing with France, it needs its capitalists to be in line with its competitive strategy vis a vis the French, not secretly working with the French against England. You can’t allow French firms to come in to England and set up shop and run all of the British producers of some industry out of business.
However, Smith was writing in opposition to Mercantilism in favor of a free market. So Smith was anti-monopoly. Now all neoclassical economists are in favor of monopolies, although they usually don’t come right out and say so. This is because monopoly is the natural end result of capitalism.
David Ricardo is the king of the neoclassical scholars. He was some Jew who didn’t even have much of an education. He went into the family business and got stinking rich, and then wrote up a great economic theory that told the rich everything they wanted to hear. It’s mostly a bunch of nonsense and crap, but it’s still taking the world by storm, because it’s what the elites want to hear, and in capitalist society, as Gramsci notes, elites make culture – the dominant culture or bourgeois culture is that of the rich. In other words, under capitalism, everyone, the rich and the upper middle class (who need no schooling), the middle class, the working class and the poor all adopt the ways of thinking of the rich. The rich replicate their culture across all of society.
There used to be how many Mom and Pop stores in the US? Now there’s Walmart.
There’s how many OS and major software makers? One, Microsoft. There used to be countless firms.
There used to be countless media firms across the US. Now there are only a few. Less than 10 media firms, all rightwing, control almost all US newspaper, newsmagazine and TV news.
There are how many firms making microprocessors? Intel and who else?
There are how many car firms in the US? And how many in the world?
As you can see, capitalism tends more and more towards monopoly. It’s a natural tendency in a free market, and it’s only arrested via government intervention. In a monopoloy market, most of the silly economic notions of the neoclassicals go out the window. There’s no competition, so firms charge the highest price they can, abuse their workers the most and make the crappiest products that they can possibly get away with. Sure, there’s no law forcing them to do so, the neoclassicals would say, I suppose. Sure you could have a monopolist that charged low prices, made great products, and treated their workers great. But it never works that way, and anyway, nowadays, any monopolist who tried to do that would be fired by his stockholders.
Over the past 100 years, we have built up a huge amount of evidence that shows that monopolies are bad for consumers, workers and the industry itself. They treat workers poorly, abuse consumers, charge high prices, and make crappy products. They harm the industry by retarding its development. This scholarship is excellent and is beyond challenge.
In the 1970’s, the late Jewish economist Milton Friedman developed his theory of neoliberal economics around an eager group of acolytes at the University of Chicago. He has since become a demigod in the field (most economists now are Friedmanites) and the mass media adores him. His school spent many years writing a cavalcade of books, journal articles, etc. overturning 100 years of scholarship on monopolies that proved all of what we discussed in the last paragraph.
The Friedmanites “proved” via long tomes, complex mathematical models and a sea of “evidence” that monopolies to do not raise prices, abuse consumers and workers or produce crap products. In fact, they don’t even hinder competition. All laws against monopolies must therefore be overthrown. Exactly what the capitalists wanted to hear.
It’s all crazy, and it’s a pack of lies as high as the day is long; there’s no truth in any of it. But his theories (LOL) about monopolies have since gained huge currency not only in the Republican Party (Oh really?) but in large sectors of the Democratic Party, including liberals (huh?). It’s very popular with journalists, including many liberal journalists. And it’s about as reasonable as believing in a flat Earth.
Gary Becker is quoted by the Libertarian commenter above saying some nonsense about firms that try to lower wage costs as being “inefficient” (LOL). Gary Becker is an idiot who has somehow been awarded the Nobel Prize for Economics (LOL) for his stupid crap. He’s a Friedmanite, and much of what he writes is nonsense and crap, like all of them. But this guy won the Nobel Prize in Economics and is considered to be one of the world’s top economics scholars (LOL). That shows you what a joke this field is.
Yet most economists nowadays are Beckerians. So are most capitalists (duh). More frightening, most journalists all over the world are Beckerians, as are the politicians running most of the countries on Earth.
The world has gone insane.

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0 thoughts on “More Neoliberal Insanity”

  1. John Stossel amd other libertarians would argue that if a minimum wage is good for workers, why not raise it even more? why not 20, 50, or $100 per hour?

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