Saturday, July 17, 2021

Why Do People Deny That Tony Blair Was a Neoliberal?

I have previously remarked that, where everyone who denied that Bill Clinton and Hillary Clinton and Barack Obama were neoliberals was a troll clearly acting in bad faith, I have encountered people who denied that Tony Blair was a neoliberal who seemed to only be expressing their honest opinion (even if it was totally contradicted by the facts).

Why was that the case? I think the likeliest answer is that they set the bar for not being a neoliberal so low, seeing any deviation from the austerity-deregulation-privatization-etc. agenda as disqualifying one from inclusion in such company. And as they point out, Blair did indeed increase funding for health and education, for example. Yet he did it within conditions of broader austerity, paid for the NHS with increased payroll taxes and for college by charging tuition (breaking campaign promises on this score, repeatedly), and continued the longtime, piecemeal, "backdoor" privatization of both those services (with his PFIs and his "concordat" with the private health sector and his internal markets and his "school choice" and much else). Blair did make working people some concessions, like a minimum wage and some latitude to unionize, but he drew a hard line beyond the minimums he granted, enough so for this to be a sticking point where Britain's participation in the EU's further integration was concerned (Blair regarding the neoliberal EU's courts as too dangerously leftish to be allowed to decide cases between British labor and British management). Meanwhile, whether the issue was upper-income tax levels or monetary policy or privatization, or stringency in the face of users of the social safety net, or constraints on strike action, or government passivity in the face of deindustrialization and embrace of a free-wheeling financial sector as the driver of the economy instead--or even the rhetoric in which he explained and justified it all, which could easily appear to out-Thatcher the early Thatcher--Blair consistently carried forward the model Thatcher handed down.

The result is that, a couple of tweaks apart, his neoliberal credentials are indisputable and overwhelming. More pertinent to the present, however, is what such confusion means in this moment when we are hearing so much about "the end of neoliberalism." The simple truth is that pundits have been calling neoliberalism finished over and over again for four decades now--in part because they assumed that the intellectual discrediting of the model in so many more eyes must necessarily translate to its end. Alas, things are more complicated than that--while certainly it would take more than a few Blair-like tweaks to really bring about a shift to another economic approach. It would require a whole new way of thinking about how economies achieve growth, and distribute its benefits, the way neoliberalism represented when it became a real political force back in the '70s, and no such change is even suggested by anyone remotely mainstream now.

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