Mont Pelerin Society

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pages: 273 words: 34,920

Free Market Missionaries: The Corporate Manipulation of Community Values by Sharon Beder


anti-communist, battle of ideas, business climate, corporate governance,, full employment, income inequality, invisible hand, liquidationism / Banker’s doctrine / the Treasury view, minimum wage unemployment, Mont Pelerin Society, new economy, price mechanism, profit motive, Ralph Nader, rent control, risk/return, road to serfdom, Ronald Reagan, school vouchers, shareholder value, structural adjustment programs, The Chicago School, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, Torches of Freedom, trade liberalization, traveling salesman, trickle-down economics, Upton Sinclair, Washington Consensus, young professional

It was a long-term project, and Hayek warned the others that they should expect a long-term, but winnable, struggle: ‘What to the contemporary observer appears as a battle of conflicting interests decided by the votes of the masses,’ he said, ‘has usually been decided long before in a battle of ideas confined to narrow circles.’7 The Mont Pèlerin Society was the seed that started a network of some 78 institutions. The society forged links with like-minded think tanks, corporations, governments and university economics departments, becoming the intellectual and ideological inspiration for economic fundamentalists around the world. Although the society itself has a very low profile it has exercised a strong influence through its more than 500 members – who hold key positions in government, government bureaucracies and in an array of think tanks – as well as its informal networks.8 The efforts of the Mont Pèlerin Society would have come to nothing, however, had business interests not embraced their ideas and poured money into their networks and think tanks from the 1970s.

The first was the Institute of Economic Affairs (IEA) which promoted a laissez-faire libertarian view, keeping the economic fundamentalism ‘alive when academic opinion had pronounced it brain-dead’.10 Lord Anthony Fisher conceived of the idea of the IEA at the prompting of Friedrich von Hayek in the early 1950s, having visited the Foundation for Economic Education (FEE) in the US. According to Ralph Harris, a director of the IEA and member of the Mont Pèlerin Society, ‘The institute started in 1957, you could say the direct result of the Mont Pèlerin Society, of The Road to Serfdom, of Hayek’s ideas of freedom and competitive enterprise.’ It set out to gain wide acceptance for the ‘philosophy of the market economy’ through communications directed at the opinion leaders such as intellectuals, politicians, business people and journalists.

It runs free weekend seminars for students ‘who are committed to learning and exchanging ideas about classical liberalism’.16 Although it claims to be independent, the CIS gets two-thirds of its funding from foundations and businesses17 and its work is shaped by its free market philosophy. Greg Lindsay is, in fact, a vice president of the Mont Pèlerin Society; in the 1980s CIS organized the Pacific Regional Meeting of the Mont Pèlerin Society. CIS is committed to ‘an economy based on free and competitive markets’ and ‘individual liberty and choice’, including ‘the right to property’. It claims government decision-making should be turned over to the market and that the market and its automatic pricing mechanism should be used to allocate resources.


pages: 662 words: 180,546

Never Let a Serious Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown by Philip Mirowski


Andrei Shleifer, asset-backed security, bank run, barriers to entry, Basel III, Berlin Wall, Bernie Madoff, Bernie Sanders, Black Swan, blue-collar work, Bretton Woods, Brownian motion, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, constrained optimization, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, dark matter, David Brooks, David Graeber, debt deflation, deindustrialization, Edward Glaeser, Eugene Fama: efficient market hypothesis, experimental economics, facts on the ground, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, full employment, George Akerlof, Goldman Sachs: Vampire Squid, Hernando de Soto, housing crisis, Hyman Minsky, illegal immigration, income inequality, incomplete markets, invisible hand, Jean Tirole, joint-stock company, Kenneth Rogoff, knowledge economy, l'esprit de l'escalier, labor-force participation, liquidity trap, loose coupling, manufacturing employment, market clearing, market design, market fundamentalism, Martin Wolf, Mont Pelerin Society, moral hazard, mortgage debt, Naomi Klein, Nash equilibrium, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, oil shock, payday loans, Ponzi scheme, precariat, prediction markets, price mechanism, profit motive, quantitative easing, race to the bottom, random walk, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, school choice, sealed-bid auction, Silicon Valley, South Sea Bubble, Steven Levy, technoutopianism, The Chicago School, The Great Moderation, the map is not the territory, The Myth of the Rational Market, the scientific method, The Wisdom of Crowds, theory of mind, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, Tobin tax, too big to fail, transaction costs, War on Poverty, Washington Consensus, We are the 99%, working poor

Jones, Masters of the Universe, p. 7. 27 Nicholls, Freedom with Responsibility, p. 96; Hartwell, A History of the Mont Pèlerin Society, pp. 84, 93; Walpen, Die offenen Feinde und ihre Gesellschaft, pp. 1072, 1074. 28 Thanks to Anette Nyqvist and Jamie Peck for the translation of this document from the Norwegian. 29 See, for instance, Hulsmann, Mises: “We find a clear expression of the neo-liberal world view in a paper Hayek wrote in 1935” (p. 710); “The exchange between Mises and his neo-liberal opponents set the tone in the Mont Pèlerin Society for years to come” (p. 871); “In the 1960s Austro-libertarianism came to be largely supplanted . . . [by] the takeover of the Mont Pèlerin Society by Chicago School neoliberals in the 1960s, and the emergence of an organized Randian or ‘Objectivist’ movement” (p. 989).

Karl Popper papers, Hoover Institute, Stanford California, Box 305, folder 13. 120 See, for instance, his 1954 speech “Towards a Liberal Theory of Public Opinion,” quoted in Burgin, The Return of Laissez Faire, pp. 186-87. 121 Maurice Allais to Friedrich Hayek, May 12, 1947, quoted in Burgin, p. 189. 122 Hartwell, A History of the Mont Pèlerin Society, chapter 5. 123 For the clash of Popper and Hayek, see Vernon, “The Great Society and the Open Society”; Kukathas, Hayek and Modern Liberalism; for the rejection of Popper on science and knowledge, see Lakatos, Criticism and the Growth of Knowledge. This question has some bearing upon the attempt by George Soros to profess Popperian principles in his new organization INET and its response to the crisis. 124 Popper, The Open Society and Its Enemies, p. 265; Popper, After the Open Society, pp. 137, 239. 125 Quoted in Hartwell, A History of the Mont Pèlerin Society, p. xiv. 126 Buchanan, Ideas, Persons and Events, p. 211. 127 See Friedman and Friedman, Free to Choose and Two Lucky People; Friedman, Bright Promises, Dismal Performances.

Market failure Market maker of last resort Marketplace of Ideas Marschak, Jacob Marshall, Alfred Martin, Emily Marx, Karl Marxism Mas-Collel, Andrew, Microeconomic Theory Maskin, Eric Maurice Greenberg Center for Geoeconomic Studies McCain, John Medicare Mehrling, Perry Meltzer, Allan Memento (film) Menelaus Mercatus Center Merrill Lynch Merton, Robert “Methodology of Positive Economics” (Friedman) Microeconomic Theory (Mas-Collel, Whinston and Green) Milgrom, Paul Milgrom-Stokey “No Trade theorem,” Mill, John Stuart Miller, Merton Ministry of Truth Minnesota Federal Reserve Bank Minsky, Hyman Miron, Jeffrey Mises, Ludwig von Mishkin, Frederic MIT Sloan School of Management modafinil Modigliani-Miller theorem Monbiot, George The Monetary History of the United States (Schwartz) Mont Pèlerin, Mont Pèlerin Society (MPS) Moody’s Morgan Guarantee Trust Morgan Stanley Morgenson, Gretchen MPS. See Mont Pèlerin Society (MPS) Mulligan, Casey Mundell, Robert Murdoch, Rupert Murketing MySpace Myth of the Rational Market (Fox) N NAFTA (North American Free Trade Agreement) Nassirian, Barmak National Academy National Bureau of Economic Research (NBER) National Economic Council National Health Service National Income and Product Accounts National Institutes of Health National Public Radio (NPR) National Science Foundation (NSF) National Transportation and Safety Board NBER (National Bureau of Economic Research) Neoclassical econimics as empty Neoclassical economists Neoliberal Ascendancy Neoliberal Follies Neoliberal Thought Collective (NTC) about on agency bolstering of connection between economics profession and “conservatism,” “constructivism” in core insight of on crime current topography of defense mechanisms of doctrines for on economic crisis emergency executive committee meeting on equality exercising hostility toward federal government and Federal Reserve on Fannie Mae and Freddie Mac Foucault on on freedom Friedman on function of geoengineering and “good society,” major ambition of membership of on neuroenhancers normalization of everyday sadism orthodox macroeconomics and parallels between Seekers and persistence of on personhood political mobilizations of Radin on on “risk,” Russian doll structure of sociological structure of success stories think tanks affiliated with Thirteen Commandments writings of members of Neoliberalism Alternatives to Crisis response Defined Distinguished from neoclassical econimics Left epithet Premature obituaries for Netflix New Age New Deal New Disrespect New Economic Thinking New Industrial State (Galbraith) “New Keynesianism,” New Keynesians model New Knowledge Economy New Labour New Orthodox Seer New Right New Statesman New York Federal Reserve Bank New York Review of Books New York Times New York University (NYU) New Yorker Newbery, David on “investments,” News Corporation Newshour Newsnight Newsweek Nietzsche, Friedrich “The Night they Re-read Minsky,” Nik-Khah, Edward Nine Lives of Neoliberalism Nobel Prize Nobelists Nocera, Joe Nolan, Christopher A Non-Random Walk Down Wall Street (Lo and MacKinley) Northern Rock Nostradamus Codex Notre Dame, University of NPR (National Public Radio) NSF (National Science Foundation) NTC.


pages: 298 words: 95,668

Milton Friedman: A Biography by Lanny Ebenstein


affirmative action, banking crisis, Berlin Wall, Bretton Woods, Deng Xiaoping, Fall of the Berlin Wall, fiat currency, floating exchange rates, Francis Fukuyama: the end of history, full employment, Hernando de Soto, hiring and firing, inflation targeting, invisible hand, Joseph Schumpeter, labour market flexibility, Lao Tzu, liquidity trap, means of production, Mont Pelerin Society, Ponzi scheme, price stability, rent control, road to serfdom, Ronald Coase, Ronald Reagan, school choice, school vouchers, secular stagnation, Simon Kuznets, stem cell, The Chicago School, The Wealth of Nations by Adam Smith, Thorstein Veblen

One of its key chapters was at the University of Chicago, and Friedman and Hayek were two of three advisers to the chapter’s publication, the New Individualist Review. Friedman was enthusiastic about the influence of the Mont Pelerin Society, the ISI, and the New Individualist Review. In a 1981 introduction to a republication of the journal, he writes that “two organizations... served to channel and direct”35 the resurgence of classical liberal and libertarian thought stirring in the early 1960s, before the Vietnam War tracked popular discussion, especially among the young, in a leftward direction—the Mont Pelerin Society and ISI. In a January 1964 article, published shortly before the leftward political dam broke around the globe, Friedman said that a classical liberal or libertarian movement might be in the offing: “I’m much more optimistic than I was fifteen years ago....

Similarly, there is apparently no reference to a “Chicago school” in the American Economic Review or Journal of Political Economy before the 1950s. Friedman himself provides evidence that the name “Chicago school of economics” was not used before the postwar era. Writing in his memoirs about the first meeting of the Mont Pelerin Society, a group of libertarian-oriented academics and others, in 1947, he quoted journalist John Davenport as saying that these participants included a “sprinkling of what became known as the Chicago School”13—that is, they were not known as the Chicago school yet. The Chicago school of economics is largely the Friedman school of economics; his positions and views are those associated with the school.

Before he was thirty years old, he testified before the House Ways and Means Committee and worked diligently to implement income tax withholding at the source to help with World War II financing. In 1946 Friedman and Stigler coauthored the anti–rent control polemic, “Roofs or Ceilings?” This pamphlet foreshadowed Friedman’s later career as an economic writer for the general public. Friedman, Stigler, and others attended the first meeting in 1947 of what became the Mont Pelerin Society—an international association of classical liberal and libertarian academics and a few journalists and political figures—in Switzerland. This was Friedman’s first trip outside of the United States. He considers his attendance at this meeting to have been important in his growing interest in public policy from an explicitly libertarian, or classical liberal, point of view.


pages: 494 words: 132,975

Keynes Hayek: The Clash That Defined Modern Economics by Nicholas Wapshott


airport security, banking crisis, Bretton Woods, British Empire, collective bargaining, complexity theory, cuban missile crisis, Francis Fukuyama: the end of history, full employment, Gordon Gekko, greed is good, if you build it, they will come, Isaac Newton, Joseph Schumpeter, liquidationism / Banker’s doctrine / the Treasury view, means of production, Mont Pelerin Society, mortgage debt, New Journalism, Northern Rock, price mechanism, pushing on a string, road to serfdom, Ronald Reagan, Simon Kuznets, The Chicago School, The Great Moderation, The Wealth of Nations by Adam Smith, Thomas Malthus, trickle-down economics, War on Poverty, Yom Kippur War

He became president of the society in 1971. 27 Quoted in Friedman and Friedman, Two Lucky People, p. 159. 28 Ibid. 29 Paul Samuelson, “A Few Remembrances of Friedrich von Hayek (1899–1992).” 30 Interview of Milton Friedman, October 1, 2000, Commanding Heights, PBS, 31 Samuelson, “A Few Remembrances of Friedrich von Hayek (1899–1992).” 32 Robbins’s full Statement of Aims, April 8, 1947, The Mont Pelerin Society, 33 Collected Works, vol. 4: Fortunes of Liberalism, p. 192. 34 Interview of Milton Friedman, October 1, 2000, Commanding Heights, PBS. 35 Quoted by William Buckley in his address to the Mont Pelerin Society, Hillsdale College, Hillsdale, Mich., August 26, 1975, in William F. Buckley Jr., Let Us Talk of Many Things: The Collected Speeches (Basic Books, New York, 2008), p. 224. 36 Stephen Kresge, “Introduction,” in Hayek, Hayek on Hayek, p. 22. 37 UCLA Oral History Program, p. 395. 38 Ibid. 39 Hayek, Hayek on Hayek, p. 127. 40 Jacob Viner (1892–1970), cofounder of the Chicago School of economics who advised FDR’s secretary of the Treasury, Henry Morgenthau, against attempting Keynesian remedies during the Great Depression.

Robbins wrote that he felt Hayek had “behaved in such a way . . . I find impossible to reconcile with the conception of his character and his standards which I have cherished through twenty years of friendship. As far as I am concerned, the man I knew is dead.” In the following ten years, such was Robbins’s disgust that he resigned from the Mont Pelerin Society in protest at Hella’s treatment and made no contact with Hayek. The two men were reconciled only after Hella’s death, when Robbins attended the wedding in 1961 of Hayek’s son, Laurence, his godson. Hayek needed to make himself scarce. In the light of his personal dramas, his move to America can be seen as a financially driven decision rather than an attempt to exploit his newfound fame as a paragon of liberty.

“Hayek is somewhat too apt . . . to assume that deviations from his norm lead cumulatively to disaster. . . . Why should he argue as if these were at all likely to lead us to social disintegration and the concentration camp?” The disappointing reviews, and sales, of The Constitution of Liberty coincided with a crisis in the Mont Pelerin Society, which, after years of dwindling membership and attendance, became riven by factionalism, personal animosity, and infighting whose details were so embarrassingly petty they have not been made public. The internecine troubles of an institution Hayek considered very much his own had proven so troubling to him that at the 1960 meeting he stepped down as president and declined to attend the 1961 gathering.


pages: 357 words: 95,986

Inventing the Future: Postcapitalism and a World Without Work by Nick Srnicek, Alex Williams


3D printing, additive manufacturing, air freight, algorithmic trading, anti-work, back-to-the-land, banking crisis, battle of ideas, blockchain, Bretton Woods, call centre, capital controls, carbon footprint, Cass Sunstein, centre right, collective bargaining, crowdsourcing, cryptocurrency, David Graeber, decarbonisation, deindustrialization, deskilling, Doha Development Round, Elon Musk, Erik Brynjolfsson, Ferguson, Missouri, financial independence, food miles, Francis Fukuyama: the end of history, full employment, future of work, gender pay gap, housing crisis, income inequality, industrial robot, informal economy, intermodal, Internet Archive, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, late capitalism, low skilled workers, manufacturing employment, market design, Martin Wolf, means of production, minimum wage unemployment, Mont Pelerin Society, neoliberal agenda, New Urbanism, Occupy movement, oil shale / tar sands, oil shock, patent troll, pattern recognition, post scarcity, postnationalism / post nation state, precariat, price stability, profit motive, quantitative easing, reshoring, Richard Florida, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, Second Machine Age, secular stagnation, self-driving car, Slavoj Žižek, social web, stakhanovite, Steve Jobs, surplus humans, the built environment, The Chicago School, Tyler Cowen: Great Stagnation, universal basic income, wages for housework, We are the 99%, women in the workforce, working poor, working-age population

It was an idea of Hayek’s that ultimately mobilised this infrastructure into a ‘neoliberal thought collective’ and inaugurated the slow rise of the new hegemony.16 Since the Walter Lippmann Colloquium had been buried in the onslaught of World War II, the transnational infrastructure of an incipient neoliberalism had to be reconstructed. A chance meeting with a Swiss businessman in 1945 gave Hayek the financial means to put his ideas into action.17 Thus was born the Mont Pelerin Society (MPS): a closed intellectual network that provided the basic ideological infrastructure for neoliberalism to ferment.18 It is no exaggeration to say that almost all of the important figures in the postwar creation of neoliberalism were in attendance at its first meeting in 1947, including the Austrian economists, the UK liberals, the Chicago School, the German ordoliberals and a French contingent.19 From its beginnings, the MPS was consciously focused on changing political common sense and sought to develop a liberal utopia.20 It explicitly understood that this intellectual framework would then be actively filtered down through think tanks, universities and policy documents, in order to institutionalise and eventually monopolise the ideological terrain.21 In a letter to those he had invited, Hayek wrote that the purpose of the MPS was to enlist the support of the best minds in formulating a programme which has a chance of gaining general support.

They have struggled to open up the ‘realm of freedom’ from which humanity can continue its project of emancipation.2 While the broad aims of this project have a long series of precedents, recent developments in capitalism give renewed urgency to these issues. Rapid automation, expanding surplus populations and the continued imposition of austerity all heighten the need to rethink work and prepare for the new crises of capitalism. Just as the Mont Pelerin Society foreshadowed the crisis of Keynesianism and prepared a full-spectrum set of responses, so too should the left prepare for the coming crisis of work and surplus populations. While the effects of the 2008 crisis continue to reverberate throughout the world, it is too late to take advantage of that moment; all around us we can see that capital has recovered and consolidated itself in a renewed and sharpened form.

This means an entire battery of actions are needed, such as seeking to spread media influence, attempting to win state power, controlling key sectors of the economy and designing important infrastructures. This project requires empirical and experimental work to identify the parts of these various fields that are operating to reinforce the present general direction of society. The Mont Pelerin Society is a good example of this. Painstakingly aware of the ways in which Keynesianism was the hegemonic common sense of its time, the MPS undertook the long-term task of taking apart the elements that sustained it. This was a project that took decades to come to full fruition, and during that time the MPS had to undertake counter-hegemonic actions in order to install it.


pages: 318 words: 85,824

A Brief History of Neoliberalism by David Harvey


affirmative action, Asian financial crisis, Berlin Wall, Bretton Woods, business climate, capital controls, centre right, collective bargaining, crony capitalism, debt deflation, declining real wages, deglobalization, deindustrialization, Deng Xiaoping, Fall of the Berlin Wall, financial deregulation, financial intermediation, financial repression, full employment, George Gilder, Gini coefficient, global reserve currency, illegal immigration, income inequality, informal economy, labour market flexibility, land tenure, late capitalism, Long Term Capital Management, low-wage service sector, manufacturing employment, market fundamentalism, means of production, Mexican peso crisis / tequila crisis, Mont Pelerin Society, mortgage tax deduction, neoliberal agenda, new economy, phenotype, Ponzi scheme, price mechanism, race to the bottom, rent-seeking, reserve currency, Ronald Reagan, Silicon Valley, special economic zone, structural adjustment programs, the built environment, The Chicago School, transaction costs, union organizing, urban renewal, urban sprawl, Washington Consensus, Winter of Discontent

They exercise immense influence over global affairs and possess a freedom of action that no ordinary citizen possesses. Freedom’s Prospect This history of neoliberalization and class formation, and the proliferating acceptance of the ideas of the Mont Pelerin Society as the ruling ideas of the time, makes for interesting reading when placed against the background of counter-arguments laid out by Karl Polanyi in 1944 (shortly before the Mont Pelerin Society was established). In a complex society, he pointed out, the meaning of freedom becomes as contradictory and as fraught as its incitements to action are compelling. There are, he noted, two kinds of freedom, one good and the other bad.

The Rise of Neoliberal Theory Neoliberalism as a potential antidote to threats to the capitalist social order and as a solution to capitalism’s ills had long been lurking in the wings of public policy. A small and exclusive group of passionate advocates—mainly academic economists, historians, and philosophers—had gathered together around the renowned Austrian political philosopher Friedrich von Hayek to create the Mont Pelerin Society (named after the Swiss spa where they first met) in 1947 (the notables included Ludvig von Mises, the economist Milton Friedman, and even, for a time, the noted philosopher Karl Popper). The founding statement of the society read as follows: The central values of civilization are in danger.

Fearful of how the alliance with the Soviet Union and the command economy constructed within the US during the Second World War might play out politically in a post-war setting, they were ready to embrace anything from McCarthyism to neo-liberal think-tanks to protect and enhance their power. Yet this movement remained on the margins of both policy and academic influence until the troubled years of the 1970s. At that point it began to move centre-stage, particularly in the US and Britain, nurtured in various well-financed think-tanks (offshoots of the Mont Pelerin Society, such as the Institute of Economic Affairs in London and the Heritage Foundation in Washington), as well as through its growing influence within the academy, particularly at the University of Chicago, where Milton Friedman dominated. Neoliberal theory gained in academic respectability by the award of the Nobel Prize in economics to Hayek in 1974 and Friedman in 1976.


pages: 235 words: 62,862

Utopia for Realists: The Case for a Universal Basic Income, Open Borders, and a 15-Hour Workweek by Rutger Bregman


autonomous vehicles, banking crisis, Bartolomé de las Casas, Berlin Wall, Bertrand Russell: In Praise of Idleness, Branko Milanovic, cognitive dissonance, computer age, conceptual framework, credit crunch, David Graeber, Diane Coyle, Erik Brynjolfsson, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Frank Levy and Richard Murnane: The New Division of Labor, full employment, George Gilder, happiness index / gross national happiness, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, income inequality, invention of gunpowder, James Watt: steam engine, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, Kodak vs Instagram, labour market flexibility, labour mobility, low skilled workers, means of production, megacity, meta analysis, meta-analysis, microcredit, minimum wage unemployment, Mont Pelerin Society, Nathan Meyer Rothschild: antibiotics, Occupy movement, offshore financial centre, Peter Thiel, post-industrial society, precariat, RAND corporation, randomized controlled trial, Ray Kurzweil, Ronald Reagan, Second Machine Age, Silicon Valley, Simon Kuznets, Skype, stem cell, Steven Pinker, telemarketer, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, Tyler Cowen: Great Stagnation, universal basic income, wage slave, War on Poverty, We wanted flying cars, instead we got 140 characters, wikimedia commons, women in the workforce, working poor, World Values Survey

“Here I was, a young, naive provincial American,” Friedman later recalled, “meeting people from all over the world, all dedicated to the same liberal principles as we were; all beleaguered in their own countries, yet among them scholars, some already internationally famous, others destined to be.”17 In fact, no fewer than eight members of the Mont Pèlerin Society would go on to win Nobel Prizes. However, in 1947 no one could have predicted such a star-studded future. Large swaths of Europe lay in ruins. Reconstruction efforts were colored by Keynesian ideals: employment for all, curbing the free market, and regulation of banks. The war state became the welfare state. Yet it was during those same years that neoliberal thought began gaining traction thanks to the efforts of the Mont Pèlerin Society, a group that would go on to become one of the leading think tanks of the 20th century.

This particular story begins on April 1, 1947, not quite a year after Keynes’ death, when 40 philosophers, historians, and economists converged in the small village of Mont Pèlerin in Switzerland. Some had traveled for weeks, crossing oceans to get there. In later years, they would be known as the Mont Pèlerin Society. All 40 thinkers who came to this Swiss village were encouraged to speak their minds, and together they formed a corps of capitalist resistance fighters against socialist supremacy. “There are, of course, very few people left today who are not socialists,” Hayek, the event’s initiator, had once lamented.

In an ironic twist of fate, the neoliberalist brainchild of two men who devoutly believed in the power of ideas has now put a lockdown on the development of new ones. It would seem that we have arrived at “the end of history,” with liberal democracy as the last stop and the “free consumer” as the terminus of our species.20 By the time Friedman was named president of the Mont Pèlerin Society in 1970, most of its philosophers and historians had already decamped, the debates having become overly technical and economic.21 In hindsight, Friedman’s arrival marked the dawn of an era in which economists would become the leading thinkers of the Western world. We are still in that era today.22 We inhabit a world of managers and technocrats.


Goddess of the Market: Ayn Rand and the American Right by Jennifer Burns


anti-communist, bank run, barriers to entry, centralized clearinghouse, collective bargaining, desegregation, feminist movement, financial independence, George Gilder, invisible hand, jimmy wales, Joseph Schumpeter, knowledge worker, laissez-faire capitalism, lone genius, Menlo Park, minimum wage unemployment, Mont Pelerin Society, new economy, offshore financial centre, Ponzi scheme, profit motive, RAND corporation, rent control, road to serfdom, rolodex, Ronald Reagan, side project, Stewart Brand, The Chicago School, The Wisdom of Crowds, union organizing, urban renewal, white flight, Whole Earth Catalog

Hayek’s arrival marked a high point in this campaign, even though he was rejected by the Economics Department and instead landed at the Committee for Social Thought, with a salary paid by the Volker Fund. Regardless of how he got there, once at Chicago Hayek quickly expanded on the earlier efforts of Knight and Director and helped transform the university into a powerhouse of market economics.11 His most successful venture was the Mont Pelerin Society, an international society of economists he launched in 1947. Hayek drew on the same pool of conservative businessmen that Read and Mullendore first targeted with Pamphleteers, shaping an organization that bridged the worlds of commerce and academia. Rand cast a gimlet eye on Hayek. In a letter to Rose Wilder Lane, a libertarian book reviewer, she called him “pure poison” and “an example of our most pernicious enemy.”

To her it was proof of why individualism had failed as a political ideology: “It had no real base, no moral base. This is why my book is needed.” Hayek would have been surprised at Rand’s contention that his individualism had no moral base. His work was motivated by a deep sense of spiritual crisis, and for an organization of economists the Mont Pelerin Society was unusually sensitive to questions of morality. Hayek originally wanted to name his group the Acton-Tocqueville Society, in reference to two great Catholic thinkers.15 But Rand and Hayek had very different understandings of what was moral. In The Road to Serfdom Hayek criticized people of goodwill and their cherished ideals, insisting that the West examine the ethical assumptions that underlay its descent into barbarism.

Still, the whole episode was problematic. In addition to incurring Rand’s wrath the pamphlet alienated Friedman and Stigler, who were deeply offended by Read’s unauthorized footnote. For many years they refused any collaboration with FEE or Read, until finally reconciling through their mutual connection to the Mont Pelerin Society. For her part, Rand felt betrayed by Read’s failure to understand the principles at stake in their work and wounded by his disregard for their “ghost” agreement.47 Only weeks later Read added insult to injury when he sent Rand a sheaf of anonymous comments on her short article, “Textbook of Americanism.”


pages: 388 words: 125,472

The Establishment: And How They Get Away With It by Owen Jones


anti-communist, Asian financial crisis, bank run, battle of ideas, Big bang: deregulation of the City of London, bonus culture, Bretton Woods, British Empire, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, centre right, citizen journalism, collapse of Lehman Brothers, collective bargaining, don't be evil, Edward Snowden, Etonian, eurozone crisis, falling living standards, Francis Fukuyama: the end of history, full employment, glass ceiling, hiring and firing, housing crisis, inflation targeting, investor state dispute settlement, James Dyson, laissez-faire capitalism, market fundamentalism, Monroe Doctrine, Mont Pelerin Society, moral hazard, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, open borders, Plutocrats, plutocrats, profit motive, quantitative easing, race to the bottom, rent control, road to serfdom, Ronald Reagan, shareholder value, short selling, sovereign wealth fund, stakhanovite, statistical model, The Wealth of Nations by Adam Smith, transfer pricing, union organizing, unpaid internship, Washington Consensus, Winter of Discontent

‘Over large stretches of the earth’s surface the essential conditions of human dignity and freedom have already disappeared.’ To these thinkers the roots of the crisis were clear; they had ‘been fostered by a decline of belief in private property and the competitive market’. With the stage set for a generational struggle in defence of an increasingly besieged free-market capitalism, the Mont Pèlerin Society was born. The Society was the brainchild of Austrian-born British economist Friedrich Hayek. As the Nazi empire crumbled at the hands of the Red Army and Western forces, Hayek published a deeply pessimistic indictment of the world he believed had been emerging for a generation or more. The abandonment of laissez-faire economics – or the belief that the state withdrawing itself from economic life was a guarantee of prosperity and freedom – had, he claimed, threatened the very foundations of liberty: ‘We have progressively abandoned that freedom in economic affairs without which personal and political freedom has never existed in the past.’1 Published towards the end of World War II, Hayek’s seminal book The Road to Serfdom was a sensational success.

Hayek and his adherents were ‘reactionaries’ in the truest sense of the word. They aimed to turn the clock back to a supposed golden age that had been swept away by the trauma of economic depression in the 1930s and global war in the 1940s. They were unabashed in describing themselves as ‘old-fashioned liberals’. As Hayek put it to the opening session of the Mont Pélérin Society, one of the chief tasks at hand was to purge ‘traditional liberal theory of certain accidental accretions which have become attached to it in the course of time’.3 Buried in this rather dry academese was a revealing statement about how the members of the Society saw themselves – as the ideologically pure on a mission to cleanse their own corrupted belief system.

In his early twenties he typed a two-page summary of everything he believed in, before discovering ‘that John Stuart Mill had done it much better more than a century earlier’. In the early 1970s, Pirie was a postgraduate student of philosophy at the University of St Andrews, a long-established centre of right-wing student politics. He invited Karl Popper, one of the founders of the Mont Pélérin Society, to come and address his fellow students. Pirie would go on to attend meetings of the Society, too, and in doing so came to know Friedrich Hayek and Milton Friedman. ‘Hayek saw socialism triumphing all over the world in the capitalist democracies as well as the Communist countries,’ recalls Pirie.


pages: 193 words: 63,618

The Fair Trade Scandal: Marketing Poverty to Benefit the Rich by Ndongo Sylla


British Empire, carbon footprint, corporate social responsibility, David Ricardo: comparative advantage, deglobalization, Doha Development Round, Food sovereignty, global value chain, illegal immigration, income inequality, income per capita, invisible hand, Joseph Schumpeter, labour mobility, land reform, market fundamentalism, means of production, Mont Pelerin Society, Naomi Klein, non-tariff barriers, offshore financial centre, open economy, Plutocrats, plutocrats, price mechanism, purchasing power parity, Ronald Reagan, Scientific racism, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, transatlantic slave trade, trickle-down economics, Washington Consensus

On the other, the degree of horizontal concentration increased along the agricultural value chains. On a global level, mechanisms regulating North–South trade were 41 Sylla T02779 01 text 41 28/11/2013 13:04 the fair trade scandal Box 2.1 Neoliberalism Neoliberalism is a political and economic doctrine that gained prominence in the wake of the Second World War with the creation of Mont Pelerin Society in 1947. Founded by the Austrian economist Friedrich Hayek, this organisation gathered together eminent personalities such as the economists Milton Friedman, George Stigler and Ludwig Von Mises, as well as the philosopher Karl Popper (Mirowski and Plehwe, 2009). The ‘neoliberal’ label is used to designate people, institutions or approaches that adhere both to the principle of individual liberties – namely entrepreneurial and trade freedom – as promoted by classical economic liberalism (hence the -liberal suffix) and to neoclassical economics – namely its blind faith in the virtues of the market economy (hence the neo- prefix).

., 33, 64, 67; Keynesianism, 42, 74, 141; euthanasia of the rentier, 157(n2) Kiribati, 135 Klein, Naomi, 78 Korea, the Republic of, 155(n1) Kraft Jacobs Suchard, 21 175 Sylla T02779 02 index 175 28/11/2013 13:04 the fair trade scandal Label-Step, 47 Labour, child labour, 51, 69, 79, 80, 113, 158(n7); division of labour, 63, 64, 65, 75; family labour, 51, 91, 94–5; forced labour, 71, 75, 80; hired labour, 43, 48, 49, 50, 51, 52, 94, 95, 112, 123, 129, 137, 160(n4), 161(n5); labour power, 76, 88, 98, 140, 148; labour supply, 9, 94–5; see also wage Lao People’s Democratic Republic, 135 Latin America, 9, 13, 15, 24, 37, 38, 42, 49, 74, 80, 107, 112, 115, 116, 117, 122, 129, 130, 131, 133, 135, 136, 137, 138, 139, 148, 154, 155(n1), 159(n23), 161(n14), 162(n22) Latin American and Caribbean Network of Smallholder Fair Trade Producers, 107 Latouche, Serge, 82–3 Least developed countries, see developing countries Lesotho, 135 Liberalism, 63, 67, 68, 74; neoliberal critique, 1, 59, 68–74, 84, 126, 146, 156(n4); neoliberalism, 3, 4, 6, 7, 41–3, 56, 59, 72, 120, 139–45, 146, 151, 162(n26), 163(n1) Liberia, 135 List, Friedrich, 8, 25; see also Protectionism Logistics Performance Index, 89, 137 Lomé Convention 155(n2) Low Income Food Deficit Countries, 135 Luxembourg, 162(n29) Madagascar, 135 Magnusson, Lars, 63–8, 71 Malawi, 134, 135 Malaysia, 155(n1) Maldives, 135 Mali, 134, 135 Market Access Overall Trade Restrictiveness Index, 30 Mars, 21 Marx, Karl, 60, 62, 75, 87, 157(n3) Marxist (tradition), 75, 76, 82, 157(n11) Mauritania, 135 Max Havelaar (novel), 39 Max Havelaar (label), 6, 39–40, 44–5, 130, 139, 157(n4), see also Fairtrade Max Havelaar (labelling initiatives), France, 46, 127, 156(n9), 158(n10), 159(n23), 160(n25), 161(n6); Switzerland, 127 McDonald’s, 77, 78, 79 Mexico, 3, 38, 79, 98, 114, 118, 131, 132, 133, 134, 136, 137, 139, 155(n1), 157 (n4), 159(n20), 161(n17) Mercantilism, 64–7 Microfinance, 1 Middle East, 15, 49 Mill, John Stuart, 65 Millennium development goal(s), see Development Mises (von), Ludwig, 42 Mohan, Sushil, 101–2 Monde (Le), 159(n19) Mont Pelerin Society, 42 Mozambique, 135 Multatuli, see Max Havelaar (novel) Multinationals, 19, 21, 41, 47, 53, 55, 56, 77–81, 140, 147, 149, 157(n13), 158(n5), 160(n26) Myers, Norman, 23, see also hamburger connection Nadel, Henri, 76 National sovereignty, 33, 64, 152 Neoclassical economics, 4, 11; 42, 65, 66, 72, 74, 82, 94–5, 140; general equilibrium theory, 99; gravity models, 162(n20) Neoliberalism, see liberalism Nepal, 135 Nestlé, 21, 78 Netherlands, 3, 20, 38, 39, 40, 54, 160 (n26), 162(n29); Groningen, 70; Kerkrade, 36 Network of European World Shops (the), 44, 46 New York, 157(n3) New York Times (the) 159 (n15) NGO, 3, 36, 38, 46, 47, 50, 53, 116, 117, 138 Nicaragua, 133, 134 Niche, 38, 70, 77 Niger, 135 Nigeria, 21 Nokia, 85–6, 125 Non-tariff barriers, 26–7, 30, 90 176 Sylla T02779 02 index 176 28/11/2013 13:04 index North America, 24, 35, 40, 44, 53, 136 North American Free Trade Agreement (NAFTA), 136 North-North relations, 31, 54, 80, 108 North-South relations, 1, 16–33, 34, 35, 40, 41, 43–4, 61–2, 73, 80, 87, 90, 97, 105–9, 126, 135, 140–5, 147, 148, 149, 163(n2), see also dependency theory Norway, 28, 162(n29) Oceania, 9, 24, 129, 131, 154 Organic production, 9, 53–5, 79, 92, 96, 112, 115, 160(n1) Organisation for Economic Co-operation and Development (OECD), 28–9; OECD countries, 10, 15, 21, 28, 29, 30, 42, 131, 144 Overall Trade Restrictiveness Index, see Market Access Overall Trade Restrictiveness Index Oxfam, 30, 32, 36, 38, 72, 122 Pakistan, 36 Palestine, 35 Panama, 134 Papua New Guinea, 134 Penson, Jonathan, 138 Peru, 114, 133, 134, 159(n20), 160(n26) Philippines, the, 155(n1) Pitt, William, 8 Polanyi, Karl, 75, 140 Popper, Karl, 42, 58–60 Portugal, 23, 65 Poverty, 2, 7, 10, 11, 33, 35, 36, 40, 58, 62, 68, 79, 84, 85–6, 95, 97–100, 103, 105, 109, 113, 114, 119, 122, 125, 131, 132, 137, 142, 143, 144, 145, 147, 148 Prebisch, Raúl, 17, 38 Price volatility, 17–18, 66, 86, 109 Primary product dependency, 10, 16, 90, 121, 132–8, 140–1, 147 Primary product financialisation, 17–8 Problem of induction, 110 Producer organisations, 3, 80, 98, 118–19, 157(n3), 159 (n16); certification, 45, 48, 49, 51, 91, 109, 111; 159(n20), 160(n4); selection bias, 81, 116–17, 132–9, 159(n23), 160(n26); shortcomings of the Fairtrade model, 97, 107–9, 138, 142–3, 162(n25); statistics, 51–3, 123–4, 130–1, 132–4, 161(n11) Producer support Estimate, 28–9; see also OECD Productive theory, 64–5, 75 Protectionism, 5, 25–33, 63, 67–8, 71–2, 145; infant industries protection, 25, 32, 37, 66, 67; see also free trade Puerto Rico, 35 Purchasing Power Parity, 153 Quinoa, 54, 159(n15) Rainforest Alliance, 53–6 Reagan, Ronald, 42 Ricardo, David, 65–7 Rist, Gilbert, 34 Rodrik, Dani, 73–4 Roozen, Nico, 3, 38–43, 54, 70, 87–8, 98, 139, 158(n4), 163(n1) Rowntree, Joseph, 72, Ruben, Ruerd, 113–17, 160(n27) Rugmark, 47 Rwanda, 134, 135, 138, Sachs, Jeffrey, 162(n23) Sao Tomé and Principe, 134, 135 Saint Lucia, 91, 134 Saint-Vincent and the Grenadines, 91, 134 Sales Exchange for Refugee Rehabilitation and Vocation (SERRV), 35–6 Samoa, 135 Samsung, 85–6, 125 Sara Lee, 70 Schumpeter, Joseph A., 63, 156(n3) Second World War, 35, 42 Selection bias, see producer organisations SELFHELP Crafts (shops), see Ten Thousand Villages Senegal, 134, 135 Sharif, Mohammed, 94–5 Sidwell, Marc, 68–73 Sierra Leone, 135 Singapore, 155(n1) Singer, Hans, 17; see also Structuralist school Slavery, 60–2, 75 177 Sylla T02779 02 index 177 28/11/2013 13:04 the fair trade scandal Slavery footprint, 156(n2) Smith, Adam, 8, 63–8, 75–6, 156(n3) Smith, Alastair M., 132, 156(n4) Smithsonian Migratory Bird Center, Bird-friendly Coffee programme, 54 Social capital, 101, 117, 119 Solidaridad, 3, 38–9, 114; see also Roozen Solomon Islands, 135 Somalia, 135 SOS Wereldhandel; see Fair Trade Organisatie Spaghetti bowl, 27 South Africa, 136, 137, 159(n20), 162(n21) South South relations, 80, 149, 163(n2) Sri Lanka, 134 STABEX, see Export earnings stabilisation system Starbucks, 77, 78, 150; Coffee and farmer equity practices, 55 Stigler, Georges, 42 Stiglitz, Joseph E. and Charlton, Andrew, 31–3, 66 Structural adjustment policies, 17, 18, 42 Structuralist school, 37–8 Sudan, 135 Sugar, 16, 27, 30, 36, 60–2, 80, 85, 90 Sustainable Agriculture Network, 53 Sustainability, 4, 24, 34, 47, 50, 53, 55, 56, 57, 70, 79, 113, 138, 142, 149–50, 158(n5) Sustainable development, 4, 34, 47, 55, 70, 82, 83, 156(n2), 163(n1) Sustainable Fair Trade Management System, 45; see also World Fair Trade Organization Sweden, 63, 162(n29) Switzerland, 53, 127, 128 System for Minerals (Sysmin), 155(n2) Taiwan, 155(n1) Tanzania, United Republic of, 134, 135 Tariff escalation, 26–8, 30 Tariff peaks, 30 Tax havens, 157(n13) Tea, 40, 49, 52, 53, 54, 56, 80, 130, 133, 134, 136 Ten Thousand Villages, 35–6 Thailand, 155(n1) Thatcher, Margaret, 42 Third Worldism, 36–40, 120 Times (the), 160(n2) Timor Leste, 135 Togo, 134, 135, 155(n2) Torrens, Robert, 65 Trade not aid (slogan), 38, 40, 126 Trade structure, 9, 10, 133–8, 141, 154, 163(n2); see also Developing countries Traders, 20, 44, 49, 86, 106, 116–17, 140 Transfair USA, additional income transferred, 125, 128, 130–1, 153; 161(n9), 161(n11); budget and licensee fees, 127–8, 153; exit from Fairtrade, 161(n13); name change, 161(n9); sales, 161(n10) Tribune (La), 159(n18) Truman, Harry, 34, 35 Turkey, 155(n1) Tuvalu, 135 UCIRI (Union de Comunidades Indigenas de la Region del Istmo), 98, 157(n4) Uganda, 134, 135, 138 Un Comtrade, 20, 134 Underdevelopment, see development Unequal exchange, 1–2, 16–22, 25, 37, 62, 76, 120, 132, 133; unequal ecological exchange, 22–4 United Nations, 10, 144, 155(n4) United Nations Conference on Trade and Development (UNCTAD), 9, 10, 13, 14, 16, 20–1, 38, 133, 134, 135, 154, 162(n19), 162(n21), 163(n2) United Kingdom, 8, 25, 31, 32, 36, 46, 53, 56–7, 60–2, 64–9, 71, 127, 128, 132 United States, 16, 20, 22, 23, 25, 27, 29, 31, 32, 35, 36, 42, 46, 53, 54, 61, 63, 67, 71, 79, 90, 125, 127, 128, 130, 131, 132, 136, 156(n2), 158(n8), 158(n9); American System, 26, 67; United States Agency for International Development (USAID), 138; see also Transfair USA UTZ Certified, 54, 55, 56, 70 Van der Hoff, Frans, 3, 38–43, 87–9, 98, 139, 158(n4), 158(n5), 162(n26), 163(n1) 178 Sylla T02779 02 index 178 28/11/2013 13:04 index Vanuatu, 135 Vent for surplus theory, 65 Vertical integration, 19–21, 41 Vietnam, 74 Wage, 79, 80, 158(n7), 160(n26), 160(n27), 161(n5); minimum wage, 51, 95, 98; reservation wage, 94–5; wage employment, 19, 72, 94, 123–4, 128, 131, 133, 137, 142, 162(n22) Wal-Mart, 78, 79 Washington Consensus, 73 Wealth of Nations, see Smith, Adam West Indies, 60–2, Williams, Eric, 60–2 Williamson, Jeffrey G., 162(n27) World Bank, 17, 31, 42; development indicators, 9, 10–12, 15, 30, 89, 131, 137, 153, 161(n7, n14, n17) World Fair Trade Organization, 44–5, 46, 80, 151 World-system theory, 76 World Trade Organization, 26, 28, 29, 31–3, 74, 144, 155(n3) Yemen, 135 Zambia, 135 179 Sylla T02779 02 index 179 28/11/2013 13:04 Sylla T02779 02 index 180 28/11/2013 13:04


pages: 391 words: 22,799

To Serve God and Wal-Mart: The Making of Christian Free Enterprise by Bethany Moreton


affirmative action, anti-communist, Berlin Wall, big-box store, Bretton Woods, Buckminster Fuller, collective bargaining, corporate personhood, deindustrialization, desegregation, Donald Trump, estate planning, Fall of the Berlin Wall, Frederick Winslow Taylor, George Gilder, global village, informal economy, invisible hand, market fundamentalism, Mont Pelerin Society, mortgage tax deduction, Naomi Klein, new economy, New Urbanism, post-industrial society, postindustrial economy, prediction markets, price anchoring, Ralph Nader, RFID, road to serfdom, Ronald Reagan, Silicon Valley, Stewart Brand, strikebreaker, The Wealth of Nations by Adam Smith, union organizing, walkable city, Washington Consensus, white flight, Whole Earth Catalog, Works Progress Administration

The American Studies department and the NEP—technically a separate entity, in the interests of Harding’s accreditation—continued to devote themselves to promoting free-Â�market economics as a sacred political cause. The NEP, for example, helped publicize a Young Americas Foundation study blaming the Reagan recession on pervasive Keynesianism in college economics textbooks.100 American Studies regularly hosted supporters of the Austrian school of hard-Â�right economics from the Mont Pelerin Society and its American offshoot, the Foundation for Economic Education. The college celebrated the nation’s bicentennial with a program honoring the concurrent two hundredth anniversary of the publication of The Wealth of Nations.101 In 1979, Harding’s business department took the additional step of establishing the Belden Center for Private Enterprise Education, named in honor of an inÂ�deÂ�penÂ�dent Arkansas manufacturer.

One of the very first of the conservative think-Â�tanks that were to remake public policy, the Foundation for Economic Education focused on popularizing strict free-Â�market theories—“neoliberal” economics, in the terminology that confounds Americans’ political binary—by organizing potential opinion-Â�makers. Led by Read from its 1946 founding until his death in 1983, the Foundation for Economic Education drew its initial intellectual resources from economists like Ludwig von Mises, Fred Fairchild, and Leo Wolman.5 In 1947, Read was present at the creation of Frederick Hayek’s Mont Pelerin Society, the international gathering in Switzerland that launched the hard-Â�right Austrian school of economics as a force in the United States and Britain.6 Over the next deÂ�cades, the staff of the Foundation for Economic Education spread their alternative economic vision around North America.

See also Immigrants Mises, Ludwig von, 195 Military, 4, 10, 26, 37–40, 55, 60, 88, 108, 117, 137, 165–166, 203, 211, 223-225, 227, 249, 280n12, 330n42 Miller-Tydings Act, 19 Missionaries, 161, 164–165, 167, 187, 210, 220, 228, 236–240, 250–251, 262, 270, 340n69 Missouri, 11, 20, 45, 58, 187, 191, 201, 206; race in, 10; Populism in, 14, 16; colleges/universities in, 26, 186, 208; nearness to Wal-Mart’s base, 27; Wal-Mart stores in, 28, 61, 76, 80, 93; businesses in, 150, 217. See also speÂ�cific towns and institutions Modernity/modernism, 7, 9, 20, 23, 86, 117 Mom-and-pop stores, 52–54 Monopolies/trusts, 14–22, 24, 26, 30, 52 Monopsony, 211 Mont Pelerin Society, 167, 195, 241 Moral Majority, 3–4, 8, 119, 131, 215 Moravians, 229, 235, 337n23 Mormons, 3, 9, 115, 119 Motherhood, 120 Multinational corporations, 29, 172, 229, 243, 246, 250, 268 365 INDEX Nader, Ralph, 152, 201; Taming the Giant Corporation, 182 Nation, The, 18–20 National Anti–Chain Store League, 20 National Association of Evangelicals, 87, 224 National Association of Manufacturers, 184, 213, 327n61, 344n27 National Bipartisan Commission on Central America, 224–227 National Education Program, 166–168 National Federation of IndeÂ�penÂ�dent Businesses, 212, 327n61 Nationalism, 248–249 Nationalization, 152, 344n23 National Labor Relations Board, 178, 184 National Retail Federation, 259 National Review Institute, 215 Native Americans, 29–30, 44, 90, 164 Navigators, 97, 117 Neoconservatism, 148, 214, 224 Neoliberalism, 126, 195, 268, 312n2 New Christian Right, 3–4, 87–88, 111, 131, 193, 196, 215, 238, 250 New Deal, 2, 10, 30, 32, 34, 40, 44, 53, 55, 57, 88, 126, 165, 264, 269, 287n25 New Orleans, LA, 163, 190, 264–271 Nicaragua, 222–224, 229, 233, 235, 249, 336n11, 337n23 Nixon, Richard M., 2–3, 41, 145, 149, 162, 169, 182, 186, 203, 286n19 Noriega, Manuel, 227, 236 Norris, J.


pages: 482 words: 122,497

The Wrecking Crew: How Conservatives Rule by Thomas Frank


affirmative action, anti-communist, barriers to entry, Berlin Wall, Bernie Madoff, British Empire, collective bargaining, corporate governance, Credit Default Swap, David Brooks, edge city, financial deregulation, full employment, George Gilder, guest worker program, income inequality, invisible hand, job satisfaction, Mikhail Gorbachev, Mont Pelerin Society, mortgage debt, Naomi Klein, new economy, P = NP, Plutocrats, plutocrats, Ponzi scheme, Ralph Nader, rent control, Richard Florida, road to serfdom, rolodex, Ronald Reagan, school vouchers, shareholder value, Silicon Valley, stem cell, Telecommunications Act of 1996, the scientific method, too big to fail, union organizing, War on Poverty

In 1991 the IFF’s American magazine was renamed terra nova: A Quarterly Journal of Free-Market Economic and Political Thought. Its European journal became laissez-faire, a showplace for “radical free market articles.” The foundation dumped its old advisory board of cold-war hawks in favor of a more Information Age set, including both the chairman of the libertarian Cato Institute and the president of the Mont Pelerin Society, the free-market club founded by the economist Friedrich Hayek. As communism receded, Hayek’s sacred name came to loom ever larger in conservative circles, and the IFF deftly made itself the leader of the cult: A 1992 issue of terra nova was dedicated to Hayek’s memory, and on one of his many trips to South Africa, the IFF’s chairman presented a lucky politician with an autographed copy of a Hayek book.

The description of laissez-faire can be found in the IFF’s newsletter, Freedom Bulletin 5, no. 4 (April 1991), p. 2. The issue of terra nova dedicated to Hayek was vol. 1, no. 3 (Spring 1992). See especially the Hayek memorial (p. 3) written by John Blundell, then president of the Charles G. Koch Foundation and today the vice president of the Mont Pelerin Society. The lucky South African politician who got the autographed copy of The Road to Serfdom was Mangosuthu Buthelezi, a perennial IFF favorite. The presentation is depicted in Freedom Bulletin 5, no. 5 (May 1991), p. 5. The presentation of the “Freedom Award” to Vaclav Klaus is described in Freedom Bulletin 5, no. 1 (January 1991), p. 1. 25.

See also specific individuals and firms advocacy bipartisan CNMI and contractors and Council on Competitiveness and DeLay and FEMA and future of government spending and Iraq and K Street Project and legislation written by return-on-investment and revolving door and price of Los Angeles Times Loudoun County Louw, Leon low-tax zones Lukens, Donald “Buz” “Made in U.S.A.” label mafian Making Democracy Work (Putnam) Malaysia Malkin, Michelle Mandela, Nelson Marianas Variety “market-based” government marketing marketization of politics market populism McCain, John McCarron, Douglas McCarthy, Joe McChesney, Fred McConnell, Mitch McCurdy, Dave McDonald, Larry McGovern, George McIntosh, David McKinley, William McTigue, Maurice media medical industry Medicare “Memogate” scandal of 2004 Mercatus Regulatory Studies Program Messing, F. Andy Mexico middle class migrant farmworkers union Milken, Michael Miner, David Mine Safety and Health Administration “Mine the Vote” effort minimum wage mining industry moderate Republicans Mondale, Walter “Fritz” money-in-politics issue Mont Pelerin Society Moon, Sun Myung Moore, Royn Moral Majority Moritz, Amy Mott, Elwood Mozambique Mulhall, Martin Multinational Business Services Muslims Nader, Ralph Nadler, Jerrold NASA NASDAQ National Association of Manufacturers (NAM) National Center for Public Policy Research National Conservative Political Action Committee (NCPAC, “nick-pack”) National Education Association National Endowment for the Arts National Ground Intelligence Center FIRES program National Institutes of Health nationalization National Labor Relations Act National Mining Association (NMA) national parks National Review National Rifle Association National Security Agency National Security Council National Student Association Nation’s Business Nazi regime New Deal New Democrats New Economy New Industrial State, The (Galbraith) New Left New Orleans New Republic New Right New Right, The (Viguerie) New York State legislature New York Times Ney, Bob Nicaragua Contrasn Sandinistas.


pages: 223 words: 10,010

The Cost of Inequality: Why Economic Equality Is Essential for Recovery by Stewart Lansley


banking crisis, Basel III, Big bang: deregulation of the City of London, Bonfire of the Vanities, borderless world, Branko Milanovic, Bretton Woods, British Empire, business process, call centre, capital controls, collective bargaining, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, deindustrialization, Edward Glaeser, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, Goldman Sachs: Vampire Squid, high net worth, hiring and firing, Hyman Minsky, income inequality, James Dyson, Jeff Bezos, job automation, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, laissez-faire capitalism, Long Term Capital Management, low skilled workers, manufacturing employment, market bubble, Martin Wolf, mittelstand, mobile money, Mont Pelerin Society, new economy, Nick Leeson, North Sea oil, Northern Rock, offshore financial centre, oil shock, Plutocrats, plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, shareholder value, The Great Moderation, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, Tyler Cowen: Great Stagnation, Washington Consensus, Winter of Discontent, working-age population

‘This is what we believe’ she announced excitedly, waving a well-worn copy of his major work, The Constitution of Liberty, during one of her speeches after becoming leader of the Conservative Party. Born in Austria, Hayek moved to teach at the London School of Economics in 1931. In 1947 the political philosopher helped establish the Mont Pelerin Society—an international network of ideologues committed to unregulated markets—and named after the Swiss spa near Geneva where the group of founders first met. The Society had one central aim: to build opposition to the post-war economic and welfare reforms. In the United States, the case for free markets was promoted by organisations like the Foundation for Economic Education and the American Enterprise Association and in the UK by a small Westminster-based think thank called the Institute for Economic Affairs (IEA).

For British advocates, improved rewards at the top, it was claimed, would correct for the failings of post-war welfare capitalism, lift Britain out of its tepid entrepreneurial culture and bring renewed economic dynamism. For the new right thinkers, egalitarianism had gone too far, while allowing inequality to rise was a necessary condition for economic success. As Ludwig von Mises, based in New York, one of the leading post-war pro-market theorists and a founding member of the Mont Pelerin Society, had written in 1955: ‘Inequality of wealth and incomes is the cause of the masses’ well being, not the cause of anybody’s distress…. Where there is a lower degree of inequality, there is necessarily a lower standard of living of the masses.’50 Although greater reliance on markets would mean the wealth gap might grow, all citizens would still be better off through an expanded economic cake.


pages: 780 words: 168,782

Strange Rebels: 1979 and the Birth of the 21st Century by Christian Caryl


anti-communist, Ayatollah Khomeini, Berlin Wall, Bretton Woods, British Empire, colonial rule, Deng Xiaoping, financial deregulation, financial independence, friendly fire, full employment, income inequality, industrial robot, Internet Archive, land reform, land tenure, Mahatma Gandhi, means of production, Mikhail Gorbachev, Mohammed Bouazizi, Mont Pelerin Society, new economy, New Urbanism, oil shock, open borders, open economy, Plutocrats, plutocrats, price stability, rent control, road to serfdom, Ronald Reagan, single-payer health, special economic zone, The Chicago School, union organizing, upwardly mobile, Winter of Discontent, Xiaogang Anhui farmers, Yom Kippur War

A few years earlier he had published a book called The Road to Serfdom, an articulate polemic about the perils of liberty in a world where planners increasingly reigned. Most of those in the British establishment dismissed the book’s ideas. (That did not stop it from becoming a surprise best-seller in the United States.) Most of the men—and they were, in fact, all men—who came together to form the Mont Pèlerin Society (named after the resort where they met) drew their intellectual sustenance from three particular universities: the London School of Economics, the University of Chicago, and the University of Vienna. It was these three universities that would deliver many of the crucial theoretical and academic underpinnings for the liberal counterrevolution the new society hoped to unleash.

The main intellectual alternative to the reigning consensus in global economics emerged from the so-called Chicago School, a term that was first applied in the 1950s to a group of free-market economists who came together at the University of Chicago. Their most famous theoretician was Milton Friedman, a founding member of the Mont Pèlerin society and a gifted polemicist for the cause of economic liberalism. The Chicago School did not content itself with merely generating ideas. It also turned out an enormously influential crop of international economists who later played direct roles in the process of economic reform in their home countries.23 Friedman and his colleagues did much to prepare the way for Thatcher’s economic counterrevolution by promoting the new thinking during the 1970s.

See also under Poland Martyrs, 197, 216, 223, 292, 298 Marxism, 9, 11, 12, 13, 14, 16, 25, 29, 38–39, 60, 72, 100, 102, 105, 111, 121–122, 202, 206, 342, 355 Islamic Marxism, 114 See also Communism; Socialism Massoud, Ahmed Shah, 103–105, 228, 272, 310, 311, 359 Mawdudi, Abul Ala, 112, 219–220, 221, 227, 306, 344 Mecca/Medina, 223, 224, 234, 296, 300 Media, 42, 90, 108, 121, 144, 172, 175, 198, 239, 241, 242, 245, 246, 283, 298, 311, 334, 336 in Poland, 199, 205, 207, 208, 280 See also Press; Television Meisner, Maurice, 179 Merino, Gustavo Gutiérrez, 78 Methodism, 58–59, 342 Mexico, 3, 78–79, 354 Michnik, Adam, 199, 206, 282, 285 Middle class, 43, 45, 47, 58, 109, 138, 140, 149, 157, 158 Mileposts (Qutb), 220–221 Militaries, 7, 11, 15, 19, 24, 27, 28, 29, 30, 39, 40, 42, 90, 97, 98–99, 119, 134, 171, 188, 270, 292 Iranian military, 148–149, 152 mutiny/defections in Afghan army, 214, 262 special forces, 266, 272, 274 See also People’s Republic of China: People’s Liberation Army Militias, 119, 149, 150, 152, 154, 206, 211, 216, 217, 238, 242, 297, 298 Millar, Ronnie, 183, 314 Missiles, 13, 268, 269, 273 Modarres, Seyyed Hassan, 87, 88 Modernization, 7, 8, 11, 12, 34, 35, 38, 42, 43, 44, 45, 48, 75, 92, 100, 110, 112, 126, 131, 132, 134, 166, 173, 174, 218, 294, 324, 340, 352, 355, 357–358 socialist modernization, 135 See also People’s Republic of China: and Four Modernizations Mohammad (Prophet), 219, 222, 223 Money supply/monetarism, 6, 53, 61, 62, 159, 166, 167, 185, 186, 187, 188, 190, 193–194, 313, 315, 317 Montazeri (Ayatollah), 296 Mont Pèlerin Society, 161–162, 324 Moral Majority, 360 Mosher, Steven, 249, 253 Mossadeq, Mohammed, 7, 42, 46, 88, 109, 230 Motahhari, Morteza (Ayatollah), 113, 142, 152 Mountbatten (Lord), 188 Mousavi, Mir-Hossein, 348 Mujahideen, 215, 267, 270, 304, 305, 307, 356, 357 feuding among, 271, 310 Mujahideen-e Khalq (MEK), 149, 151, 212, 241–242, 298 Mullahs, 12, 37, 39, 40, 226, 227, 294, 301, 349 Murdoch, Rupert, 181, 194 Muslim Brotherhood, 91, 104, 112, 219, 220, 223, 226, 346 Muslims, 40, 47, 96, 102, 105, 110.


pages: 545 words: 137,789

How Markets Fail: The Logic of Economic Calamities by John Cassidy


Albert Einstein, Andrei Shleifer, anti-communist, asset allocation, asset-backed security, availability heuristic, bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Black-Scholes formula, Bretton Woods, British Empire, capital asset pricing model, centralized clearinghouse, collateralized debt obligation, Columbine, conceptual framework, Corn Laws, correlation coefficient, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Daniel Kahneman / Amos Tversky, debt deflation, diversification, Elliott wave, Eugene Fama: efficient market hypothesis, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, full employment, George Akerlof, global supply chain, Haight Ashbury, hiring and firing, Hyman Minsky, income per capita, incomplete markets, index fund, invisible hand, John Nash: game theory, John von Neumann, Joseph Schumpeter, laissez-faire capitalism, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, margin call, market bubble, market clearing, mental accounting, Mikhail Gorbachev, Mont Pelerin Society, moral hazard, mortgage debt, Naomi Klein, Network effects, Nick Leeson, Northern Rock, paradox of thrift, Ponzi scheme, price discrimination, price stability, principal–agent problem, profit maximization, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, RAND corporation, random walk, Renaissance Technologies, rent control, Richard Thaler, risk tolerance, risk-adjusted returns, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, South Sea Bubble, sovereign wealth fund, statistical model, technology bubble, The Chicago School, The Great Moderation, The Market for Lemons, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, unorthodox policies, value at risk, Vanguard fund

It took a simple economic concept—the law of supply and demand—and applied it to a practical problem; and it proved popular with business interests. The National Association of Real Estate Boards circulated half a million copies. In 1947, Friedman and Stigler went to Switzerland for the first meeting of what became the Mont Pelerin Society, an international association of conservative and libertarian academics. (Hayek attended the meeting, too.) During the 1950s, Friedman took part in a series of conferences organized by the right-leaning William Volker Fund, at which he lectured groups of impressionable young scholars. These talks formed the basis for Capitalism and Freedom, which inspired an entire generation of conservatives.

“Ministry of Production in the Collectivist State, The” (Barone) Minnesota, University of Minsky, Hyman (Mis)Behavior of Markets, The (Mandelbrot and Hudson) Mises, Ludwig von Missal, Michael J. Mobil Oil Modigliani, Franco monetarism Monetary History of the United States, A (Friedman and Schwartz) Money Store, The Monnett, Charles Monopoly (game) monopoly power Montaigne, Michel de Monte Carlo simulation Monthly Review, The Mont Pelerin Society Moody’s Investor Services moral philosophy Morgan, J. P. Morgan Stanley Chinese equity in compensation of CEO of Economics Department of Federal Reserve and reduction in assets of repayment of government loans by subprime mortgage securities issued by Morgenstern, Oskar Morris, Ian Mortgage Asset Research Institute mortgage-backed securities (MBSs) Mortgage Brokers Association for Responsible Lending Mozilo, Angelo Munger, Charles Muolo, Paul Murphy, Kevin Muth, John Myrdal, Gunnar Nagel, Stefan NASDAQ Nash, John National Academy of Sciences National Aeronautics and Space Administration (NASA) National Association for Business Economics National Association of Real Estate Boards National Bureau for Economic Research National Homeownership Strategy National Resources Committee National Socialism, see Nazis Navy, U.S., Pacific Fleet Nazis Netherlands Netscape Communications neuroeconomics New Century Financial Corporation New Deal New Industrial State, The (Galbraith) New Republic, The New School Newsweek Newton, Huey P.


pages: 590 words: 153,208

Wealth and Poverty: A New Edition for the Twenty-First Century by George Gilder


affirmative action, Albert Einstein, Bernie Madoff, British Empire, capital controls, cleantech, cloud computing, collateralized debt obligation, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, deindustrialization, diversified portfolio, Donald Trump, equal pay for equal work, floating exchange rates, full employment, George Gilder, Home mortgage interest deduction, Howard Zinn, income inequality, invisible hand, Jane Jacobs, Jeff Bezos, job automation, job-hopping, Joseph Schumpeter, knowledge economy, labor-force participation, margin call, Mark Zuckerberg, means of production, medical malpractice, minimum wage unemployment, money: store of value / unit of account / medium of exchange, Mont Pelerin Society, moral hazard, mortgage debt, non-fiction novel, North Sea oil, paradox of thrift, Plutocrats, plutocrats, Ponzi scheme, post-industrial society, price stability, Ralph Nader, rent control, Robert Gordon, Ronald Reagan, Silicon Valley, Simon Kuznets, skunkworks, Steve Jobs, The Wealth of Nations by Adam Smith, Thomas L Friedman, upwardly mobile, urban renewal, volatility arbitrage, War on Poverty, women in the workforce, working poor, working-age population, yield curve

., p. 20 and passim. 8 “Studies Indicate New York Welfare Far Exceeds Federal Poverty Line,” New York Times, January 25, 1979, p. B6. These analyses, however, exclude many available means-tested benefits. See also Hobbs, The Welfare Industry, pp. 83 and 84. 9 Gary Becker, “The Effect of the State on the Family,” monograph prepared for the Mont Pelerin Society meetings, September, 1978. 10 For a lucid exposition of the Feldstein position, plus critiques and comments from James M. Buchanan, Nancy Teeters, Arthur M. Okun, and others, see Martin S. Feldstein, “Social Insurance,” in Colin D. Campbell, ed., Income Distribution (Washington, DC: American Enterprise Institute for Public Policy Research, 1977), pp. 71–124.

San Francisco: Institute for Contemporary Studies, 1978. ———. “U.S. Inflation and the Choice of Monetary Standard.” Speech at University of Rochester, April 9, 1980. Bartlett, Bruce. A Walk on the Supply Side. New Rochelle, NY: Arlington House, Inc., 1981. Becker, Gary. “The Effect of the State on the Family.” Monograph prepared for the Mont Pelerin Society Meetings, September 1978. Bell, Daniel. The Coming of Post-Industrial Society. New York: Basic Books, Inc., 1973. ———. The Cultural Contradictions of Capitalism. New York: Basic Books, Inc., 1975. ———. “The New Class: A Muddled Concept.” Transaction/Society 16 (2) Januray–February 1979.


pages: 741 words: 179,454

Extreme Money: Masters of the Universe and the Cult of Risk by Satyajit Das


affirmative action, Albert Einstein, algorithmic trading, Andy Kessler, Asian financial crisis, asset allocation, asset-backed security, bank run, banking crisis, banks create money, Basel III, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Bonfire of the Vanities, bonus culture, Bretton Woods, BRICs, British Empire, capital asset pricing model, Carmen Reinhart, carried interest, Celtic Tiger, clean water, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, debt deflation, Deng Xiaoping, deskilling, discrete time, diversification, diversified portfolio, Doomsday Clock, Emanuel Derman,, Eugene Fama: efficient market hypothesis, eurozone crisis, Fall of the Berlin Wall, financial independence, financial innovation, fixed income, full employment, global reserve currency, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, happiness index / gross national happiness, haute cuisine, high net worth, Hyman Minsky, index fund, interest rate swap, invention of the wheel, invisible hand, Isaac Newton, job automation, Johann Wolfgang von Goethe, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, Kevin Kelly, labour market flexibility, laissez-faire capitalism, load shedding, locking in a profit, Long Term Capital Management, Louis Bachelier, margin call, market bubble, market fundamentalism, Marshall McLuhan, Martin Wolf, merger arbitrage, Mikhail Gorbachev, Milgram experiment, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Naomi Klein, Network effects, new economy, Nick Leeson, Nixon shock, Northern Rock, nuclear winter, oil shock, Own Your Own Home,, Plutocrats, plutocrats, Ponzi scheme, price anchoring, price stability, profit maximization, quantitative easing, quantitative trading / quantitative finance, Ralph Nader, RAND corporation, random walk, Ray Kurzweil, regulatory arbitrage, rent control, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, Richard Thaler, risk-adjusted returns, risk/return, road to serfdom, Robert Shiller, Robert Shiller, Rod Stewart played at Stephen Schwarzman birthday party, rolodex, Ronald Reagan, Ronald Reagan: Tear down this wall, savings glut, shareholder value, Sharpe ratio, short selling, Silicon Valley, six sigma, Slavoj Žižek, South Sea Bubble, special economic zone, statistical model, Stephen Hawking, Steve Jobs, The Chicago School, The Great Moderation, the market place, the medium is the message, The Myth of the Rational Market, The Nature of the Firm, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, trickle-down economics, Turing test, Upton Sinclair, value at risk, Yogi Berra, zero-coupon bond

His Road to Serfdom attacked government intervention in the economy. His 1960 book The Constitution of Liberty argued that the power and role of government should be limited to maintaining individual liberty. Hayek criticized the welfare state and the role of unions. His influence on Chicago was strengthened through the Mont Pelerin Society, a collaboration of 36 like-minded scholars seeking to revive the liberal tradition. Friedman’s 1963 book The Monetary History of the United States, 1867–1960, written with Anna Schwartz, provided the basis for unseating Keynesian orthodoxy. According to Pierre Bayard,14 there are four types of books: UB (books unknown to the reader); SB (books skimmed); HB (books heard about); and FB (books read but forgotten).

Yet all the fate of the Kingdom depends on it.”36 Prime Minister David Oddsson, a key architect of Iceland’s transformation, was heavily influenced by Friedman, Hayek, Thatcher and Reagan. He lowered taxes, privatized government-owned assets, reduced trade restrictions and deregulated the banking system. In 2005, Iceland even hosted a meeting of the Mont Pelerin Society, the free-market think tank associated with Hayek and Friedman. Iceland was quintessentially American in its “can do attitude.” Anticipating Barrack Obama’s “Yes, we can!” call to arms, Sigurdur Einarsson, the CEO of Kaupthing, told employees of his then small brokerage firm: “If you think you can, you can.”37 Tony Shearer, CEO of Singer & Friedlander, an English bank, acquired by Kaupthing, observed: “They were very different.


pages: 370 words: 102,823

Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth by Michael Jacobs, Mariana Mazzucato


3D printing, balance sheet recession, banking crisis, Bernie Sanders, Bretton Woods, business climate, Carmen Reinhart, central bank independence, collaborative economy, complexity theory, conceptual framework, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, decarbonisation, deindustrialization, dematerialisation, Detroit bankruptcy, double entry bookkeeping, Elon Musk, energy security, eurozone crisis, factory automation, facts on the ground, fiat currency, Financial Instability Hypothesis, financial intermediation, forward guidance, full employment, Gini coefficient, Growth in a Time of Debt, Hyman Minsky, income inequality, Internet of things, investor state dispute settlement, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labour market flexibility, low skilled workers, Martin Wolf, Mont Pelerin Society, neoliberal agenda, Network effects, new economy, non-tariff barriers, paradox of thrift, price stability, private sector deleveraging, quantitative easing, QWERTY keyboard, railway mania, rent-seeking, road to serfdom, savings glut, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Steve Jobs, the built environment, The Great Moderation, The Spirit Level, Thorstein Veblen, too big to fail, total factor productivity, transaction costs, trickle-down economics, universal basic income, very high income

Notes 1 The leading neoliberal theorists dominate the economics departments of the world’s universities, particularly in the US and especially the University of Chicago. They have been particularly prominent among winners of the Swedish National Bank’s economics prize, generally known as the economics Nobel Prize. To some extent neoliberal thinkers are organised within the Mont Pèlerin Society founded by Friedrich von Hayek and his colleagues. A highly critical but thorough guide to the leading members of the school and the range of their contributions will be found in P. Mirowski, Never Let a Good Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown, London, Verso, 2013. 2 C.


pages: 840 words: 202,245

Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present by Jeff Madrick


accounting loophole / creative accounting, Asian financial crisis, bank run, Bretton Woods, capital controls, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, desegregation, disintermediation, diversified portfolio, Donald Trump, financial deregulation, fixed income, floating exchange rates, Frederick Winslow Taylor, full employment, George Akerlof, Hyman Minsky, income inequality, index fund, inflation targeting, inventory management, invisible hand, laissez-faire capitalism, locking in a profit, Long Term Capital Management, market bubble, minimum wage unemployment, Mont Pelerin Society, moral hazard, mortgage debt, new economy, North Sea oil, Northern Rock, oil shock, price stability, quantitative easing, Ralph Nader, rent control, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, Ronald Reagan: Tear down this wall, shareholder value, short selling, Silicon Valley, Simon Kuznets, technology bubble, Telecommunications Act of 1996, The Chicago School, The Great Moderation, too big to fail, union organizing, V2 rocket, value at risk, Vanguard fund, War on Poverty, Washington Consensus, Y2K, Yom Kippur War

He succeeded in finding the financing and attracted a formidable group of thinkers, including the Chicago economists Knight, Simons, Director, and the Friedmans, as well as the philosopher Karl Popper and the chemist and philosopher Michael Polanyi. They named the group after the small Swiss town in which they convened, Mont Pelerin, near Vevey, Switzerland. The formation of the Mont Pelerin Society was financed by Europeans and a highly conservative tax-exempt American foundation, the William Volker Charitable Fund of Kansas City, founded by prosperous right-wing local businessmen. The fund also helped finance the Foundation for Economic Education, which published the Friedman-Sigler paper on rent control.


pages: 756 words: 228,797

Ayn Rand and the World She Made by Anne C. Heller


affirmative action, Albert Einstein, anti-communist, Bolshevik threat, conceptual framework, greed is good, laissez-faire capitalism, Milgram experiment, Mont Pelerin Society, New Journalism, open borders, price stability, profit motive, rent control, rolodex, Ronald Reagan, Silicon Valley, the scientific method, theory of mind, Thorstein Veblen, transcontinental railway, upwardly mobile, wage slave, War on Poverty, Works Progress Administration, young professional

Ashby, having returned to California with a degree from Harvard, was editing a quasi-religious libertarian magazine called Faith and Freedom; no doubt that sealed his fate with Rand. Yet he continued to think of her as the twentieth century’s most important philosopher. “Whenever I wrote anything” in the following decades, he said in his eighties, “I tried to slip in her name.” She never joined the influential Mont Pelerin Society, an annual free-market think tank, and she shunned the old J. B. Matthews crowd, many of whom now wrote for National Review. Even as old bonds loosened, however, professional good tidings continued to arrive. In the spring of 1958, Atlas Shrugged was nominated for a National Book Award, along with a dozen other distinguished novels of 1957, including James Agee’s A Death in the Family, John Cheever’s The Wapshot Chronicle, and Nabokov’s second novel in English, Pnin, about an awkward but endearing Russian émigré professor teaching in an American college.


pages: 636 words: 202,284

Piracy : The Intellectual Property Wars from Gutenberg to Gates by Adrian Johns


banking crisis, Berlin Wall, British Empire, Buckminster Fuller, business intelligence, Corn Laws, demand response, distributed generation, Douglas Engelbart, Edmond Halley, Ernest Rutherford, Fellow of the Royal Society, full employment, Hacker Ethic, Howard Rheingold, informal economy, invention of the printing press, Isaac Newton, James Watt: steam engine, John Harrison: Longitude, Marshall McLuhan, Mont Pelerin Society, new economy, New Journalism, Norbert Wiener, pirate software, Republic of Letters, Richard Stallman, road to serfdom, Ronald Coase, software patent, South Sea Bubble, Steven Levy, Stewart Brand, Ted Nelson, the scientific method, traveling salesman, Whole Earth Catalog

Friedrich Hayek’s Road to Serfdom and Karl Popper’s Open Society and Its Enemies became the two bestknown statements of the position against such policies, Hayek in particular warning of a slippery slope from state planning to totalitarianism. The Road to Serfdom backfired at the time, being widely read as hyperbolic. When Labour did take power, Hayek and his allies retreated and formed themselves into the Mont Pèlerin Society, a group dedicated to economic liberalism in what they perceived to be a hostile world. Polanyi was a foundermember. His view of science was an integral part of this commitment, and his transitory Society for Freedom in Science had had parallel aims. He conceived of the scientist as the exemplary practitioner of what he called “public liberty.”


pages: 558 words: 168,179

Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right by Jane Mayer


affirmative action, Affordable Care Act / Obamacare, anti-communist, Bakken shale, bank run, battle of ideas, Berlin Wall, Capital in the Twenty-First Century by Thomas Piketty, carried interest, centre right, clean water, Climategate, Climatic Research Unit, collective bargaining, crony capitalism, David Brooks, desegregation, diversified portfolio, Donald Trump, energy security, estate planning, Fall of the Berlin Wall, George Gilder, housing crisis, hydraulic fracturing, income inequality, invisible hand, job automation, low skilled workers, market fundamentalism, Mont Pelerin Society, More Guns, Less Crime, Nate Silver, New Journalism, obamacare, Occupy movement, offshore financial centre, oil shale / tar sands, oil shock, Plutocrats, plutocrats, Ralph Nader, Renaissance Technologies, road to serfdom, Ronald Reagan, school choice, school vouchers, The Bell Curve by Richard Herrnstein and Charles Murray, The Chicago School, the scientific method, University of East Anglia, Unsafe at Any Speed, War on Poverty, working poor

“tax-exempt refuge”: For more on Buchanan’s memo, see Jason Stahl, The Right Moves: The Conservative Think Tank in American Political Culture Since 1945 (University of North Carolina Press, forthcoming), 93. “the artillery”: James Piereson comments at Open Society Institute’s Forum, Sept. 21, 2006. One of them: Feulner was a member of the Mont Pelerin Society, an Austrian economics club that Hayek co-founded and attended and that was almost entirely underwritten by American businessmen. described himself openly as a “radical”: David Brock, Blinded by the Right: The Conscience of an Ex-conservative (Crown, 2002), 54. After reading Powell’s memo: Lee Edwards, The Power of Ideas: The Heritage Foundation at 25 Years (Jameson Books, 1997).