NeoLiberalism 101

media economics, political-economy of media, critical theories

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Neoliberalism and the Myths About Market

March 9th, 2008 · 1 Comment

resize-01.jpgMarket fundamentalists believe that “the market” is the best guiding instrument by which society should allocate its scarce economic resources and organize their economic lives to achieve a state of never-ending economic growth. “Market is God and economic growth is gospel . . . therefore leave things to the market”
Those fundamentalists always argue that “the market” is simply out there — outside society, outside history, neutral in front of any power interests`. It’s a natural and inevitable social fact which can be called as objective mechanism to allocate society’s economic resources.
The question is: Where did “the market” come from?
Market fundamentalists simply ignore the fact that “market” is socially constructed. Yes, “market” is always a social construction, in the sense that its construction involves interactions and interplay among various social groupings which is characterized by assymmetric power relations and uneven resources distribution. As long as they do not have equal power or economic footings, their interaction and interplay will take place in an “unlevel playing field”, and the socially constructed market will represent the interest of the dominant group.

Tags: political economy