Neoliberalism’s Role in Global Financial Crises

“Financial crisis as a way of life” – Apiece on how neoliberalism is bad for our economies and our societies. Here is an excerpt:

Neoliberalism’s genius is its ability to blame the victim. Thus the subprime crisis was the result of irresponsible home buyers, and the Greek crisis is the result of greedy Greeks living beyond their means. Once the victim is blamed, it justifies imposing a world of pain on those who are already suffering.

Blaming the victim is bizarre. Financial institutions know what they are doing when they make loans available to subprime borrowers or the Greek government. They chose to make risky bets because they could profit on the upside, and somebody would bail the system out when the party was over.

The Greek financial crisis is just the latest in a series of meltdowns. The pain inflicted on ordinary Greeks to pay for financial shenanigans is heartbreaking. (When the working poor are taxed to bail out the financial sector, you know that the world is upside down.)

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