Let's unwind neoliberalism

The Socialist Party's message in the parliamentary elections on September 25, 2021:Eighth offer to voters presented on August 6:LET'S UNWIND NEOLIBERALISM

One of the most important tasks of politics is to defeat so-called neoliberalism. This is a concept that everyone has heard at some point, without necessarily understanding what it means. It's no wonder, as people are more likely than not to hear this term in the discourse of those who want to deny that neoliberalism is a phenomenon that even exists. Those who do so have good reason to claim this. After all, neoliberalism is really nothing more than the name for the prevailing political and economic state of the Western world and the entire globe in recent decades.

The concept of neoliberalism is an extremely important analytical tool, as it describes and explains the economic policy and ideology of Western countries in recent decades as a coherent and holistic phenomenon. It thus makes it easier for people to clearly understand the economic, political, and social changes that have taken place – as well as the current situation. No less important is that by understanding the changes of recent decades as a coherent phenomenon – which has very clear characteristics, doctrines, and ideas – it simultaneously makes it easier for people to resist this development.

That is precisely what the prevailing vested interests in society want least of all – as the neoliberal development of recent decades has been greatly to their advantage, and they have no desire to change course.

Neoliberalism is a very real phenomenon. It has had extremely serious consequences in virtually all areas of society, from large international institutions down to the innermost thoughts of individuals.

But to fully understand it, one really needs to see it from two sides.

Two sides of neoliberalism

Neoliberalism has, on the one hand, a political-economic side. This refers to the theoretical doctrines in economics and political philosophy that are used as a guide in government policy-making and the economic measures taken. Here, the fundamental doctrine is that free markets are phenomena that will always arrive at the best outcome. The state can never know more than a free market, and thus can never make better decisions about how society should be organized and how its material goods should be distributed. The economic policy of neoliberalism thus aims to minimize as much as possible the "interference" of the state and democratically elected representatives in the economy. This is done by various means, most notably by cutting funding to various societal institutions, making it impossible for them to fulfill their role (especially those with some kind of oversight function). This is therefore one of the most obvious characteristics of neoliberalism: an over-reliance on the market and its ability to solve all societal problems.

The other side of neoliberalism, however, is no less important. It is what could be called the ideological side. For neoliberalism does not rule over society solely through economic measures and the decisions of politicians and their economic advisors. The reason why the same measures are endlessly continued, despite their severe harm having long come to light, is that the public is largely uncritical of these measures. Most people view them as a given, even a kind of natural law where nothing else is available.

This is not because the public is particularly foolish. Rather, it is because neoliberalism is the prevailing ideology of society.

This ideological side is primarily based on radical individualism, which dictates that everyone is the architect of their own fortune. Whatever happens to the individual, good or bad, is the individual's own fault. If the individual is wealthy, it is due to their own diligence. If, however, the individual is poor and lives in bad conditions and difficulties, it is likewise due to their own personal failings. In other words, it is the individual's own fault – and responsibility is thus shifted away from those who made the decisions that led to a society where people live in such circumstances.

These two sides of neoliberalism thus hang together and enabled it to achieve truly unprecedented success in recent decades. Since the early 1970s, neoliberalism has managed to insinuate itself into every nook and cranny of human existence. Whether it is in decisions made in International Institutions, or in the behavior of influencers on Instagram. Everywhere, the individual, private enterprise, and the so-called free market are lauded at the expense of communal virtues.

Consequences of neoliberalism

It is no exaggeration to say that the consequences of neoliberalism have been catastrophic by almost all measures. To name just some of the most familiar:

• Inequality at dizzying heights with few precedents in human history
• Stagnant or worsening conditions for working people in the West
• Endless imperialist wars of Western countries in one poor country after another (with the aim of “opening” their markets and economic systems to Western corporations)
• Ever-increasing job and existential insecurity
• An unprecedented mental health crisis now raging like a wildfire in virtually all Western countries and beyond
• Not to mention climate change – which is a direct consequence of large corporations being allowed to make their own decisions in the name of private enterprise and freedom.

To unwind neoliberalism, it is not enough to elect other politicians to power who promise a different economic policy than the free market of neoliberalism. As long as the ideological side has this stranglehold on society, the same politicians, with the same old "solutions," will always inevitably return to power – and continue on the same old path.

Neoliberalism operates in many different areas. To fight and overcome it, the struggle must therefore also take place in different areas. It is not enough merely to criticize neoliberalism. Another ideology, proclaiming different values and priorities, must take its place.

This is exactly what socialism is. Socialism is not only a political ideology, but at the same time an ideology in direct opposition to neoliberalism and its values.

Against the individual, socialism pits societyAgainst individual diligence, socialism pits solidarityAgainst competition, socialism pits cooperation.Against selfishness and self-worship, socialism pits empathy and mutual aid

Socialism fundamentally proclaims what can rightly be called community. The financial crisis of 2008, which led to the Icelandic economic collapse, was the death of neoliberalism. There, it was unmistakably revealed how this ideology, along with its economic policy, had been a highly dangerous fantasy. Yet, neoliberalism has miraculously managed to live on, like a kind of zombie. No one has passion for it or believes in it anymore. Still, neoliberalism continues to dominate society and steer both the decisions of politicians and the self's experience of existence.

The only thing that can finally put neoliberalism in the grave where it belongs is socialism. There is simply no other option.

VIII. Socialist offer: Let's unwind neoliberalism

• Tax cuts for the rich will be stopped, and the tax cuts of recent years will be reversed.
• No sale of state assets. All transfer of public assets into private hands will be stopped, and this trend will be reversed.
• Privatization of resources will be stopped, and efforts will be made to transfer the nation's resources from private hands to the public.
• Privatization and profit-driven operation of basic systems will be stopped. The view of society's basic institutions and services as opportunities for the wealthy to profit will be completely abandoned.
• Outsourcing of public services will be stopped. Contrary to what prevailing vested interests claim, society has more than enough resources to maintain all the services and welfare it desires.
• Charging for basic systems is utterly shameful and will be completely abolished.
• The Socialist Party will always fight against the degradation of the labor movement and support labor struggles by all possible means.
• The starvation policy towards public services will be completely stopped.
• The only thing that will starve under the rule of the Socialist Party are the bank accounts of the wealthy in tax havens.

Approved at a joint meeting of the Executive and Policy Board of the Socialist Party of Iceland on August 5, 2021