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Archive for November, 2016

Posted by cegan on November 9, 2016

Trump’s rise threatens neo-liberalism

America has changed overnight, one that is big spending, low taxing and protectionist. Obama started this trend with his election in 2008, Sanders increased the momentum during the Democrat Primary and Trump sealed the deal. The party of Reagan is dead.

It is a monumental global event which will shake politics globally, its impact will be hard to assess for a few years, but what is certain neo-liberal attitudes of markets have been shaken up. Trump’s rise is the defeat of the view of limited government and allowing the economy to run freely . What it is to be a Republican now has completely changed, maybe forever.

A party under Bush which had as its mantra liberty globally, is now about winning domestically. The fear in the media has become insane in the post-election coverage in Australia. It’s not Armageddon for the world, nor is it a great event for global prosperity, but the world will move on.

America may choose a protectionist president but it won’t stifle innovation because local regions will choose to disrupt regardless of national politics. Cities will gain greater power under new economic model and those who wish to live in progressive, leftist cities will be able to flock to these places with limited restrictions.
National governance in America is less relevant for folk who live in New York and San Francisco as they become more independent in outlook and policy making. Cities that seek to adapt to change will still survive under this model, just government will hold a helping hand for those forgotten in this change.

The mantra that government shouldn’t subsidise industries that are not economically viable has been defeated for the time being, whether it is longer lasting, time will tell. What is the future of Cost Benefit Analysis in Public Policy making?

For the old guard of the Republican Party, Margaret Thatcher and even John Howard they will see a monumental shift on the view that markets and business should be allowed to run free. This may be the destruction of current neo-liberal policy which started with the bombing of Allende in Chile in the 1970’s to today.

While the left is in shock, there has been little critical examination on areas where there has been a deep challenge for centre-right parties globally – their political philosophy may just have been defeated.

By Chris Egan

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