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Superiority of the Market

by Tom

Table of Contents

Introduction

Neoliberalism espouses the superiority of a free market over one that is centrally controlled. In a free market, individuals are able to act in their own self interest and while behaving rationally, superior products and services will emerge over lesser versions thus benefiting all in the long run. As explained by Michael Apple, (2001) the markets “are said to be natural and neutral, and governed by effort and merit. And those opposed to them are by definition, hence, also opposed to effort and merit. Markets, as well, are supposedly less subject to political interference and the weight of bureaucratic procedures. Plus, they are grounded in the rational choices of individual actors,” (Apple, 2001, 413). Thus we can see a connection between the principles of competitive individualism explained on the previous page, and the way those individuals are meant to behave in the market. We also observe the beginnings of a value discourse placed on one’s acceptance of neoliberal principles. As Olssen and Peters (2005) explain, “free market economics” dictate that “the best way to allocate resources and opportunities is through the market. The market is both a more efficient mechanism and a morally superior mechanism.” Furthermore, there is a commitment to ideas of “laissez faire” economics “because the free market is a self-regulating order it regulates itself better than the government or any other outside force,” thus central power is limited, further reinforcing individual rights, (Olssen and Peters, 2005, 314-315). Not only is there a discourse of individual freedoms within a free market, but as we see from the neoliberal critic, Henry Giroux, “markets are touted as the driving force of everyday life, big government is disparaged as either incompetent or threatening to individual freedom, suggesting that power should reside in markets and corporations rather than in governments and citizens,” (Giroux, 2005, 2).

Market Influences on Education

With respect to education, beliefs about the superiority of the market are perhaps most evident where solutions to failing schools and waning results are possible with an opening of schools and teachers to the free market. In this system parents can send their children where they deem most appropriate based on test results and other factors. Again, it is thought that people acting rationally will gravitate toward successful schools, and those not making the grade will have to improve or face closure. Doherty (2007) discusses how market principles such as these can be mobilized within a voucher system that is seen in some locations (Doherty, 2007, 276). He also lists other tools that can be used under the neoliberal banner to promote the marketization of schools such as open enrolment, financing schools based on the number of enrolments, a national curriculum, national testing and attainment targets, grant maintained schools, and local management of schools (Doherty, 2007, 276).

This is an interesting video featuring three scholars who discuss features of a free market under our neoliberal paradigm. Chomsky provides a very interesting account of Adam Smith’s famous “invisible hand.”

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The title is a bit of a misnomer; this video clip does not compare neoliberalism to democracy, but does discuss market features of our current system. “Neoliberalism vs Democracy” (9:39)

In this video, noted scholar David Harvey challenges the current state and functions of the market from a Marxist perspective. Especially interesting for our purposes is his critique on neoliberal perspective on foreign investment.

“RSA Animate – Crises of Capitalism” (10:59)

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References

Apple, Michael W. (2001).  Comparing Neo-liberal Projects and Inequality in Education. Comparative Education, 37(4), 409-423.

Doherty, Robert A. (2007).  Education, neoliberalism and the consumer citizen: after the golden age of egalitarian reform. Critical Studies in Education, 48(2), 269-288.

Giroux, Henry A. (2005).  The Terror of Neoliberalism: Rethinking the Significance of Cultural Politics. College Literature, 32(1), 1-19.

Olssen, Mark & Peters, Michael A. (2005).  Neoliberalism, higher education and the knowledge economy: from the free market to knowledge capitalism. Journal of Education Policy, 20(3), 313-345.

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