Post-Neoliberal: Harris

Author: Jennifer M. Harris
Position: Co-Chair of BuildUS
Previous Roles: 2021-2023, Special Assistant to the President & Senior Director for International Economics on the National Security Council and National Economic Council.

Transition from Neoliberalism:
- Approximately forty years of free-market ideology, termed neoliberalism, dominated U.S. economic policy and culture, rooted in the beliefs propagated by President Ronald Reagan.
- A bipartisan consensus emerged that portrayed markets as efficient, wise, and fair, resisting governmental interference.
Economic Metrics:
- Between 1982 and 2015, market capitalization of publicly traded companies surged from around 35% of GDP to about 95%.
- Neoliberalism facilitated substantial growth in the private sector.

Rejecting Globalization:
- Globalization began to be viewed negatively, associated with various social and economic issues like inequality, loss of manufacturing jobs, financial sector risks, and geopolitical tensions.
Political Responses:
- Donald Trump's Presidency:
- Initiated anti-neoliberal actions, imposing tariffs, and showing support for organized labor.
- Ignored traditional neoliberal tenets, notably social spending cuts.
- Joe Biden's Administration:
- Departed from free-market principles, maintaining tariffs and promoting a new industrial policy favoring state intervention.
- Restored pre-Reagan antitrust protections and celebrated union support, even participating in a strike with workers.

Definition and Properties:
- Post-neoliberalism, a term used to identify a new economic script that addresses the imbalances inherent in current market structures.
- Advocates for correction of wealth concentration and power asymmetries with increased government role in shaping markets.
- Key beliefs include:
- Markets concentrating wealth create systemic economic issues.
- Government’s role is to ensure proper market functioning and social welfare.
Historical Comparison:
- Unlike past economic shifts (Keynesianism and neoliberalism), which were often led by one political party, post-neoliberalism spans the political spectrum; support can be found from both Democrats and Republicans.

Ideals:
- Post-neoliberal proponents argue for a tangible balance within the economy.
- Legislation focuses on addressing market inequalities and bolstering labor conditions, antitrust measures, and consumer protections.
Political Representation:
- Figures from both political aisles express a need for shifts away from established neoliberal doctrines, viewing the economic status quo as a choice that can be altered.

Critiquing Neoliberalism:
- Neoliberalism promoted market efficiencies but created issues including:
- Rising inequality and concentrated wealth where the top 0.1% doubled their wealth share to approximately 14%.
- Manufacturing employment shrank from 22% to 9% of nonfarm jobs.
- Increased U.S. dependency on China and global issues like climate change and economic vulnerabilities.

Balance and Build: What They Entail:
- Balancing: Addressing power imbalances in economics, supporting antitrust regulations, and protecting labor rights.
- Building: Encouraging productive investment in areas crucial for economic resilience (e.g., housing, clean energy).
- Emphasizes the role of government in investing in public infrastructure instead of expecting markets to provide for these essential areas.
Policy Directions:
- Shift toward more aggressive public investments in essentials, reclaiming governmental roles that have been minimized in recent decades.

Changing Consensus in Trade:
- Bipartisan acknowledgement that unfettered free trade is problematic, especially concerning U.S. dependence on China.
- Strategies formed to enhance U.S. technological competitiveness through diverse initiatives including tariffs, export controls, and international trade agreements.
New Washington Consensus:
- Emphasis on not just U.S. self-interest but fostering partnerships where other nations can align with U.S. economic and ethical objectives on technology and environmental policy.

Addressing Economic and Civic Needs:
- Government must encourage economic structures that uphold and enhance democracy rather than leave it to market-driven logic, presenting a more holistic view of economic arrangements.
- Initiatives to empower communities and encourage participatory governance are crucial for balancing individual freedom with collective self-determination.
Necessity of Civic Engagement:
- Political leaders are urged to rethink governmental roles in enabling opportunities for purpose, happiness, and meaningful lives through shared governance.

Sensible formulation of post-neoliberal policies is critical to prevent a regression into more authoritarian or extreme political structures.
- Focus should remain on not only managing economic transitions but also instilling democratic processes through these changes.

The post-neoliberal era is not marked by an inevitable triumph but requires careful navigation, innovation, and a willingness to challenge existing economic narratives, ensuring a society that promotes democratic values and equitable growth.