I think that the Keynesian position is the most "real" for our society right now.
In Omnivore's Dilemma we've read about how the agricultural system has been overtaken by exploitation and greed creating monopolies that aren't good for the consumer, the farmer, or the environment. The neoliberal tactic of "leaving it to the market" I think is unfounded. Ideally, yes, it would be great to let the market equalize and I think eventually that might be the best economic system to use- have the people equalize the market by being educated consumers however that is not our "reality" right now. A monopoly exists in agriculture already that can't be stopped by simply leaving it to the "people" and the "market" to equalize itself- although the equalization might happen eventually it would leave in it's path a ruined environment, hundreds of farmers out of business, and the consumer being exploited.
If we look to history the Keynesian economic tactics are what got us through and out of the Great Depression. The consumer and producers in the U.S. are too oblivious to each other and self-serving (not in a negative way, that's just the way it is I think- the consumer wants what s/he wants and that's it and the producer wants a lot of money) to truly educate themselves on how best to go about buying and selling goods. If we left it strictly up to neoliberalism now everyone would buy the cheapest stuff and, in turn, promote horrible working conditions and the destruction of the environment. Without the government restrictions that we have in the United States we would probably have sweatshops, thousands of mutated bunnies, and miserable depressed laborers, too.
This also plays into the 99% fight going on right now, too. I think if we were to adopt a neoliberalism way of going about things the corporations would only gain more power than they already have- neoliberalism by far favors the upper classes. If the private sector was in control they would only "look out for their own" and we'd have businesses who make more and more money by raising prices and lowering quality (through bad environmental practices and exploitation of farmers in the case of the agriculture scenario) and you'd have middle and lower class consumers who could do absolutely nothing about it. The only real way we have to combat that is to voice our concerns to our government and sure, they screw us a lot because politicians are politicians and the jokes about them are almost always founded on reality, but they do take it to heart when enough of us tell them that we're being treated unfairly. If government were taken out of the business sector we'd have no one to go to to regulate the Fat Cats when they take too much catnip and get greedy.
I completely agree with your post, it is so true that politicians and corporations work together to essentially screw over consumers and innocent civilians and it is so frustrating to have to fight the greed of those in power constantly. Keynesian economics has been the driving factor in our economic recovery from the great depression, but it is also leading to problems today with the economic recession. I agree that neoliberalism would lead to too much power being put in the wrong hands, and that is a really scary thought to have about the potential power our government and the corporate elite can have over us.
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