4 ms·
There was never a neoliberal era. One example: financial privacy. The AML regime started in the 1970s with the passing of the Bank Secrecy Act, and accelerate
by CryptoPunk 6y ago
There was never a neoliberal era.
One example: financial privacy.
The AML regime started in the 1970s with the passing of the Bank Secrecy Act, and accelerated after the 911 attack.
Many developed countries instituted programs in the 1990s and 2000s to begin overtly mass surveilling all private economic interactions, or deputizing banks to do so. For example, FINTRAC was created in Canada in 2000.
Financial privacy is a cornerstone of financial liberty. Without it, power concentrates in the hands of the state, which is what we see, with Washington D.C. real median household income increasing 66% over the last 20 years, while the rest of the US saw it increase 5.23%.
Another example: healthcare.
Many developed countries created national healthcare programs in the 1960s, like the US with Medicare in 1966.
These programs steadily grew in size in the decades since.
Regulations in the US healthcare system steadily increased since the 1970s as well. This expansion of regulations was so significant that it caused the number of hospital administrators to increase 3,200% between 1975 and 2010, compared to a 150% increase in the number of physicians:
https://www.athenahealth.com/insight/expert-forum-rise-and-rise-healthcare-administrator https://www.athenahealth.com/insight/expert-forum-rise-and-r...
Yet another example: occupational licensing. Only 5% of jobs in the US in 1950 required an occupational license. Today that number is around 29%.
And another example: land-use rights. In major cities, regulations on land-use have accumulated since 1960:
https://eml.berkeley.edu//~moretti/growth.pdf https://eml.berkeley.edu//~moretti/growth.pdf
>>As described by Glaeser (2014), since the 1960s coastal US cit-
ies have gone through a property rights revolution that has significantly reduced the
elasticity of housing supply: “In the 1960s, developers found it easy to do business
in much of the country. In the past 25 years, construction has come to face enormous
challenges from any local opposition. In some areas it feels as if every neighbor has
veto rights over every project.”
No less than the White House's Council of Economic Advisors has blamed this rise in restrictiveness in housing in major coastal metropolises for rising rental rates, and spatial misallocation of labor, leading to lower wage growth and increased income inequality:
https://nlihc.org/resource/obama-administration-releases-housing-development-toolkit https://nlihc.org/resource/obama-administration-releases-hou...
Government spending also massively rose, as a percentage of GDP, since the 1970s.
In the US, social welfare spending increased at an annualized rate of 4.8% between 1972 and 2011:
https://fivethirtyeight.com/features/what-is-driving-growth-in-government-spending/ https://fivethirtyeight.com/features/what-is-driving-growth-...
The end result is a much higher fraction of economic output being redistributed by government, and thus controlled by political forces.
In the US at least, any broad-based measure of how regulated the economy is, or how much of it is constituted by government spending, shows the economy moving away from market-based liberalism and towards centralized government throughout the last 50 years.