Class Notes (837,435)
Canada (510,273)
Lecture 3

Week 3 - January 20, 21 & 23 -- Rise of Neoliberalism

5 Pages
63 Views
Unlock Document

Department
Labour Studies
Course
LABRST 2G03
Professor
John Barkans
Semester
Winter

Description
LABR ST 2G03 – LECTURE – January 20, 21, 23, 2014 LECTURE – JAN 20 – S.K. sent REJECTION OF THE NEW MODEL OF CAPITALISM AND THE RISE OF NEOLIBERALISM - 3 major agreements that get achieved 1. A set of rules regarding international trade to loosen restrictions on trade to make trade more free  Lower tariffs and restrictions placed on imports to make it easier to trade coming out of the ww2 2. A new monetary regime, attempt to build a more stable monetary system Agreements on currencies are needed   US dollar was fixed at a set rate with the value of gold, it could be exchanged for gold  Other countries’ currencies were pegged to the fixed gold value of the dollar  Creates fixed exchange rates  International Monetary Fund - if you wanted to get away from the fixed values you had to go through IMF • IMF would only do so if there was a fundamental problem System of capital controls, financial oppression   The nation states were given a lot of control over the movement of funds 3. Creation of institutions to enforce or regulate the new international and financial regime  The "Bretton Woods Trio" • Creation of institutions to overlook trade and the new monetary regime • Trio consisted of: o IMF Worlds banker in emergencies   Lender of last resort to help global demand o The International Bank of Reconstruction and Development (now known as world bank)  Prevent recessions by lending money for reconstruction and infrastructure projects for countries that are experiencing difficulties o The General Agreement of Tariffs and Trade (G.A.T.T) (now known as the World Trade Organization W.T.O)  Created to try to promote international trade by liberalizing trade through lowering tariffs  To prevent the previous policies that lead them to depression  Try to resolve any disputes over trade that arise between countries Helps create a new international division of labor   Impacts on global labor - new international division of labor • Colonial division of labor o Core: production of manufactured goods o Periphery : raw materials, agricultural goods o 2 distinct phases in development of the N.I.D.L  Import substitution industrialization (I.S.I) • Major expansion in 1950s, governments begin setting up state manufacturing facilities  Export led industrialization • Associated with newly industrialized countries • Develop industries in order to export • Labor intensive industries (small electronics) • Comparative advantage (lot of available cheap labour) LECTURE – JAN 21 NEOLIBERALISM… continued - Crash o Why? Unregulated markets  Financial markets  Euro currencies  Accumulation of mass sums of private capital o Profitability crisis  Tensions between businesses and workers increased over control or the share  Therefore efforts to curtail the power of labour and redirect the money flowing to labour back to capital o Real shift in dominant ideology  Neoliberalism arises  Neoliberalism: a “new” kind of liberalism o Rejection of the New model Capitalism  Friedrich von Hayek, Milton Friedman vs. Karl Polanyi, John M. Keynes  Classic economic liberalism from Adam Smith, David Ricardo • Adam Smith: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest” o Free market and competition and acting in our interests is the ticket for everyone to improve their living standards, etc. o Free market is the best way to develop societies • Neoliberalism became the dominant philosophy  Endangered by 1929 market crash  Economic crisis of 1970’s revived the theory - Milton Friedman o Economic freedom is just as important as o Most efficient system is one that allows markets to be unregulated, free, and open to run business; alternative being state centralized, controlled o Arguments to support this:  1. Most efficient way to organize the economies of societies
More Less

Related notes for LABRST 2G03

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit