It’s the Economy, Stupid! Neoliberal Nonsense and the Myths of the Free Market

The foundations of modern economics are shaky, while the crisis-prone system of capitalism is being increasingly organised to serve the interests of the rich. There are six myths of orthodox economic theory—the consumer is a ‘rational’ actor; the market is one of ‘perfect competition’; one’s contribution to society determines income; global free trade is of benefit to all; like a household budget, the nation’s budget should always be balanced; and, economics is a science. Each assumption is roundly criticised. The rise of capitalism from slavery and then feudalism is traced, with worker exploitation featuring throughout history. Neoliberal ideas developed by economists—and rolled out by idealogues such as Ronald Reagan and Margaret Thatcher, and by present-day politicians—are scrutinised. The financialisation of the global economy is detailed, as are the various Hollywood films that have either glorified or condemned the activities of Wall Street traders.