Neo-Liberalism: The Undying Monster

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Neo-Liberalism came to Canada long before Stephen Harper came to Ottawa. It was ushered into public policy by Brian Mulroney, who privatised crown corporations like Air Canada and Petro Canada. Jean Chretien and Paul Martin contributed to its juggernaut by signing NAFTA and by introducing fiscal restraint.

But Donald Gurstin argues in his book, Harperism: How Stephen Harper And His Think Tank Colleagues Have Transformed Canada, that neo-liberalism's entrenchment in this country is the result of the long hard work of organizations like the Fraser Institute, the Frontier Centre and the Macdoanld-Laurier Institute:

As of this writing in mid-2014, a tightly knit, smoothly operating neo-liberal propaganda system has been installed in Canada. The foundations of wealthy businessmen, corporations, and individuals are investing more than $26 million a year in neo-liberal think-tanks and single-issue advocacy organizations. (This figure doesn’t include Calgary’s School of Public Policy, whose financial statements are buried within the university’s accounts.) The long-term goal is to discredit government as a vital institution and to champion market alternatives.

As a result of the massing on the right, the political space is crowded with a seemingly endless flow of studies, reports and commentaries supporting neoliberal perspectives. Of course, people are not automatons who blindly internalize these messages. But gradually, and especially as a result of constant repetition, some ideas rise to prominence, while others fade away. People are presented with a changing set of ideas from which they must make selections to make sense of their world: economic freedom and school choice are unqualified good things; the tax burden is burdensome and requires relief; government is inefficient because it harbours bloated bureaucracies and overpaid public employees; the private sector is hobbled by red tape; and so on.

As a result of the constant drumbeat from the Right, neo-liberal ideas have assumed the status of axioms; and they made Stephen Harper's success appear inevitable. The damage has been catastrophic:

He’s hobbled government’s long-standing social-democratic obligations by slashing revenues to their lowest levels — in relation to the size of the economy — they’ve been at in fifty years, when the state first implemented its major social programs. One estimate pegs Harper’s tax cuts at $45 billion a year in foregone revenues. With total revenues at about $250 billion, that’s nearly a 20 per cent cut. Call it privatization by default. If there’s not enough money in the public coffers to finance health care, post-secondary education and rising old age security needs, they will have to be provided by the private or voluntary sectors or by individuals.

But Mr. Harper's success was never inevitable. It has only been possible because the Right has understood what Goebbels meant by the Big Lie. If you repeat a lie often enough, people will assume that it is true.

The Great Recession should have proven that neo-liberalism was a Big Lie. But, thanks to the think tanks, it keeps re-appearing -- like Frankenstein's monster in those old Universal sequels.