Uncle Milton engages in his usual sophistry as he shills for neoliberalism again. He’s been shilling for neoliberalism since almost the very day he showed up on this site, but he always denies it. Whatever.
…It was US government directed policy and willful neglect of fraud which help create the property bubble…As the Soviet Union and Latvia…why did they shift away from command economies in the first place…?
Here you call Ireland a social welfare state:
but now you blame their property bubble and implosion on neoclassical economics…?
Ireland was affected by the global financial crisis set off by neoliberalism in the US. UM continues to deny the obvious fact that neoliberalism caused the financial crisis, when it’s clear that it did.
Anyway, the neglect of “fraud” as you put it is part and parcel of the neoliberal project.
Yet it’s unclear whether the sale of mortgages to unqualified buyers and then repackaging the toxic loans to suckers as mortgage based derivatives was even illegal. Apparently it was completely legal! So there was no fraud at all, though there should have been.
There was fraud in the foreclosing of homes after the crisis hit, but this is not what caused the crisis. It now appears that up to 75% of recent foreclosures were deliberately fraudulent. The logical thing to do would be to wipe out the foreclosures and give these folks back their homes from the banks. However, the neoliberals are screaming that this will “destroy the US housing industry.”
Neoliberals always shill for fraudulent businesses, because businesses love to commit fraud. Fraud is pretty much what business eats for breakfast every day. Did you know the Chamber of Commerce opposes every attempt to write new business fraud laws and go after fraudulent businesses? Clearly the CoC loves fraud. Did you know that District Attorneys who aggressively pursue business fraud are almost always liberals and that rightwing district attorneys typically let businesses get away with murder? Did you know that in the US, rightwing administrations typically have by far the worst instances of fraud and corruption? The Reagan and Bush Administrations set new records for corruption and fraud in the Executive Branch.
Yes, Ireland is a social democracy. However, Ireland instituted neoliberal economics in order to deal with their deficit problems after the crash. Yes, social democracies are practicing neoliberalism. Sad, no?
The problem with Latvia was not merely “shifting away from command economies;” all of the Baltic states went totally overboard and embraced radical neoliberalism, possibly as a reaction to Communism. After the financial crisis hit Europe, many countries reacted with stimulus spending to cushion the blow (Keynesianism). All of these countries did well.
However, the Baltics and Ireland followed neoclassical economics and engaged in massive austerity cuts in the face of a major recession. They were rewarded with recessions and depressions, wage losses of up to 30%, 20% unemployment, capital and worker flight, and other horrors.
It doesn’t work. Neoclassical economics is the philosophy of economic destruction.