THE DEATH OF LIBERALISM

Current Economic Scenario

Abhishek 1511014 | Sagnik 1511049 | Ahmer 1511060 | Jigar 1511175

What is Liberalism?
Classical Liberalism: Classical liberalism is, in general terms, more about a strong belief in
personal liberties, as well as the freedoms to treated equally on the market.
Neo-liberalism: Neoliberalism is a very specific school of economic thought that believes in
deregulation, privatisation and a domination of business in all aspects of life.
Liberal Left: Believe in personal liberties, but also want a welfare state and regulations

Life, liberty and property

Free market capitalism

Freedom of speech

Limited govt. interference

Rule of law

Indifference towards religion

Brexit

UK thumbing their noses at Europe

Economics
No strong economic reasons
Potential trade war with Germany

Sovereignty
Refugee crisis of Europe
Loss of national identity

Age, Income & Education

The hinterland masses
Pensioners & Working class

Modified India

BJPs cruising election victory under Modi in 2014

Example of effective & decisive governance

Promise for future growth & development
Confidence on replicability
Leveraging the Gujarat brand

All forms of media used

Extensive use of digital & social media
Creation of closed opinion loop
Better connect with the masses

Major opponent embroiled in various scams

No appropriate face of party projected
Loss of confidence among the masses
Inability to keep focus on strategy

Economics
Gujarat Model of Growth

Marketing
Holistic use of media

Hate Campaign
Weakened the Opponent

Modified India

On electing Modi, people traded their

personal freedom for economic freedom
Demonetization:
Overnight invalidation of high denomination notes
Setback to confidence in currency
Moral policing on individuals at high level
Hardship faced by all sections of society
Non Secular Measures:
Rising influence of RSS pracharaks
Ban on cow slaughter expanded to
bulls & oxens
Rewriting of school textbooks
sparking saffronization fears
Reservations for Jobs:
Job reservations for Patels, Jats, Marathas, Ahoms
Right to equal opportunity hampered
Reservations as high as >60% in Andhra Pradesh,
Maharashtra, Rajasthan

Personal Freedom

Improvement on Ease of Doing Business:

Insolvency & Bankruptcy code passed
Land Acquisition bill passed
Reduction in time for registering cos
Easier incorporation of cos
Integration of processes through eBiz portal
Improvement in Investment Norms:
Relaxation of FDI regulations in Coal
mining, construction projects, retail &
railways
Transparent auctions of telecom
spectrum & coal
Social Upliftment Measures:
Jan Dhan Accounts + Direct Benefit transfers
Universal housing by 2022 (PM Awas Yojana)
Accident insurance to all at low premiums

Economic Freedom

The Donalds campaign

Trumps views on various issues

Pro-life

Believes abortion is immoral. Plans to defund planned

parenthood.

Anti-Immigration

Opposes immigration reform, The Wall, wants to deport

illegal immigrants, Islamophobia

Personal Freedom

Against govt. funded healthcare

Believes Obamacare has caused debt, has publicly said

that vaccination causes autism

Military policy
Wants to increase military funding, has said that he
wants to destroy terrorists families

Tax laws
Wants to lower taxes, corporate tax to 15%

Economic Freedom

West Coast and East coast are liberal elites

Most of the southern/central states are people
fed-up with the liberal left

The rise of the Right?

High

Personal Freedom

Left/ Liberal

Hypocrisy of liberal elites

Libertarian/
Classical
Liberal

Hillary

Campaign for equality do not resonate, western movements do nothing

to capture their pain

Multiculturalism mismanaged
l
ra
nt
Ce

Integration, like in the US is forced, political correctness for instance

t
is

Modi
Trump

Socialist or
Authoritarian
Low

Right/
Conservative

Economic Freedom

Loss of faith in center-left

After 2008, economic situation has shown little in way of recovery,
income inequalities high

People are FED-UP with liberal democracy

Impossible to empathize with them as liberal elites

High

Why people are FED UP of the Liberals

Maslows Hierarchy of Needs
Morality, Creativity, Lack of Prejudice

Hillary Clinton focused on equal rights for women, LGBT community & migrants.
Masses could not connect to these issues as she was viewed as being a part of the
Establishment and corrupt in-spite of support from Media & key opinion Leaders
Congress position as a secular high ground party lost out to its inability to deliver
results

Achievement, Confidence, Respect for others

US: Pro-life vs Abortion, Xenophobia, Islamophobia, White Supremacy

UK: Islamophobia, Burden of the EU Debt due to unified monetary policy
India: Dalits & low castes vs Brahmin Baniya Supremacy; Hindutva

Friendship, Community, Care

Democrats pride themselves in US being the leader of the Free World and their strong
multilateral relations: NATO, NAFTA. Trump campaign maligned this ideology in favor
of onshore prosperity. Similarly Brexit damaged the EU relations and was strongly
supported by the wave of Scottish separatists.

Safety of Job, Family, Health, Property

Outsourcing & Migration US & UK; Unemployed Youth India
Hillary Clintons email scandal Accusation of leaking national secrets
Trump, Brexit & Modi campaigns were built around the theme of employment
Ultra-nationalist agendas promised safety from Mexican, East European
immigrants and Radical Islamists

Food, Water, Sleep & other essential goods

Under the UPA II, food inflation averaged 13.14% in 2013-14
Add to this the multitude of corruption scandals in the delivery of essential
goods

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Challenging Neo-Liberalism
State intervention to serve the less-privileged

Fidel Castro

J Jayalalitha

Prime Minister, Republic of Cuba

(1976-2008)

Chief Minister, Tamil Nadu

(2011-2014, 2015-2016)

Reformed healthcare and education sectors

Fidel Castro model Free provisioning of
healthcare & education, low cost of
transportation and housing
Healthcare indicators comparable to US, with
spending of only 10% of GDP as opposed to 18%

Market disruption through low-cost products

Innovative social welfare schemes for the poor
Amma model Power subsidies, Canteens,
low-cost products like Amma laptops, mineral
water, mobile phones offered to less-privileged
GDP rank 2 in India

Governance models where state decided which sectors to venture in and let the market rule in others
It shows that government intervention is required every now and then in key sectors to enhance social welfare

However, is this strategy sustainable?

The debt levels of Tamil Nadu have increased by 92% to Rs.2.1 Lakh crores in the past 5 years

Enhancing Societal Welfare: Free Markets

vs Government
Y = C + I + G + NX

38%

47%

EUROPE
NORTH AMERICA
High Government Debt
levels limit the scope of
using fiscal stimulus

19%

High Government Debt

levels limit the scope of
using fiscal stimulus

18%

ASIA
High NX, Low G
Opportunity to use
govt. schemes for
essential goods

25%

LATIN AMERICA

AFRICA

Consumption driving Y
Hybrid model

Low NX, Moderate G

Free Markets provision

36%

AUSTRALIA
Moderate NX, High G
Hybrid Model

Thank you