Neo-liberalism, Globalization, and America’s Decline

Introduction

Follow the money if you want to understand the history of the American decline of democracy. In the last 40 years, America has seen the near elimination of manufacturing jobs. Once the backbone of the middle class, these jobs disappeared as politicians pushed for Neo-liberal policies. These policies emphasize free-market globalization, benefiting corporations at the expense of workers. As a result, we’ve seen the rise of billion-

dollar corporations while everyday Americans struggle with stagnant wages.

The Supreme Court’s Citizens United decision in 2010 further empowered these corporations. By declaring that corporations are people and their money equals political speech, the court gave corporations unprecedented influence in politics. This ruling has allowed the wealthiest individuals and companies to buy political power, corrupting our democracy. Now, elected officials focus on their wealthy donors’ needs, not their constituents’.

This shift in power, driven by the money flowing through the political system, has created a system that works for the 1%. Meanwhile, Americans see their standard of living decline as wages fail to keep up with inflation. Despite occasional wage increases, the real purchasing power of middle-class Americans has stagnated. We are left to ask: who benefits from this system? The answer is simple—follow the money.

 Follow the Money: How Corruption Gutted Unions and Workers’ Rights

The 1980s marked a turning point in American politics. President Ronald Reagan’s administration embraced Neo-liberalism and weakened unions. Reagan’s breaking of the air traffic controllers’ strike in 1981 sent a clear message: the federal government would no longer protect organized labor. This attack paved the way for “Right to Work” laws that allowed states to weaken unions. Over time, these laws spread across the country, especially in states with large manufacturing bases like Michigan, Indiana, and Wisconsin.

As unions lost power, wages stagnated, and benefits disappeared. Companies once dependent on American workers now shipped jobs overseas, where they could pay lower wages. NAFTA, passed under President Bill Clinton in 1993, further accelerated this trend. Clinton, a Democrat, adopted many of Reagan’s Neo-liberal policies, making free trade the new norm. While American corporations grew richer, the workers who had once built those companies were left behind. This government of the corporations, by the corporations and for the corporations simply turned the American experiment in democracy on its head and not for the better.

By following the money, we see how both parties turned their backs on the American worker. Corporations thrived by outsourcing jobs to countries with lower labor costs, but the American middle class suffered.

 Globalization and the Illusion of Prosperity

Globalization promised lower prices and a more prosperous world. Nevertheless, it delivered and continues to deliver the precise opposite. What it delivered was a system where corporate profits soared, but American workers lost their jobs. For instance, the automotive industry—a key driver of the U.S. economy—began outsourcing jobs in the 1990s. Major manufacturers like General Motors and Ford moved production to Mexico and China, where labor was cheaper. By 2019, the number of auto

manufacturing jobs in the U.S. had dropped by 27%.

This story repeated across industries. Textile manufacturing moved to Southeast Asia. Technology companies outsourced production to countries like China and India. Each time, companies promised these moves would result in cheaper products for American consumers. But while prices fell slightly, the real cost was felt in lost jobs, broken communities, and a shrinking middle class.

The illusion of prosperity created by globalization distracted from its true cost. Corporations saved billions by paying lower wages overseas, but American workers lost everything. Communities that once thrived on manufacturing fell into economic decline, and the jobs that replaced them often paid much less. Now we call those states where manufacturing was lost the RUST BELT. Politics over people is should not be the law of the land.

By following the money, we see how global corporations thrived by abandoning American workers.

 Follow the Money: Republicans Exploit the Myth of the “Self-Made” American

Republicans have mastered the art of selling the myth of the “self-made” American. They preach individualism and personal responsibility while enacting policies that benefit only the wealthy. Starting with Reagan, Republican leaders framed any government intervention in the economy as a threat to freedom. They argued that lowering taxes on the rich would create jobs for everyone else. But instead, wealth became concentrated at the top, and working-class Americans saw their prospects shrink. Furthermore, the federal government is largely funded by high taxes on the middle class because the ultra rich do not pay their fair share. To the contrary, tax breaks for the wealthy and increases for the working people turns good economic policy upside down.

Republicans also championed “Right to Work” laws that allowed companies to pay lower wages and reduce benefits. These laws, promoted as giving workers “freedom” from unions, effectively destroyed collective bargaining power. As a result, wages stagnated while corporate profits soared. Despite this, many working-class Americans continue to vote for the very politicians who undermined their livelihoods. The most heinous effect, however, is the skilled tradesman no longer is necessary in the workplace. Take home building, for example. Today, building a house is more like putting together a jigsaw puzzle, the frame and all the rest are manufactured. The carpenter need not know how to cut a roof joist or a staircase that curves around without a landing. All they do is fit the pieces together.

Republicans cleverly distract voters by focusing on social issues and stirring up cultural divisions. They frame economic hardships as the result of immigrants, welfare cheats, or overregulation. Meanwhile, they quietly enact policies that benefit their corporate donors. By following the money, we can see how the Republican Party aided and abetted by their Neo-liberal Democratic colleague, serves corporate interests while only pretending to represent the working class.

 Ending the Neo-liberal Experiment

If we want to reverse the damage caused by Neo-liberalism, we must abandon its failed policies. This means rebuilding American manufacturing, investing in infrastructure, and supporting unions. We cannot continue to rely on free trade deals that outsource jobs and weaken labor protections. By bringing jobs back to America, we can rebuild the middle class and create a more equitable economy. In other words, it is time we reversed the notion that self-interest is the driving force of civilization. Turning to an ethic of responsibility to the other relying on our human capacity for empathy, and abandoning the virtue of selfishness is a good start.

It also means reducing the influence of corporate money in politics. The Citizens United ruling must be overturned, and strict limits must be placed on campaign donations. We need elected officials who represent the people, not corporate interests. Additionally, we can, and must I believe, limit the length of political campaigns. Between 2000 and 2024 we face campaigning from all sides of the spectrum. Four year campaigns tend to stagnate government’s ability to legislate or enforce legislation already in place.

Following the money shows us that both parties have been complicit in the rise of Neo-liberalism. But it also points to a path forward—one where the government invests in its people, not just its corporations.

 Conclusion: Follow the Money to Reclaim America’s Future

To understand what’s wrong with America, you only need to follow the money. Neo-liberal policies have eroded American manufacturing, weakened unions, and allowed corporations to dictate politics. Both Republicans and Democrats have embraced this agenda, leaving the rest of us behind. If we want to rebuild a strong middle class and create an economy that works for everyone, we must reject these policies. We need to prioritize people over profits and ensure that the government serves its citizens, not the wealthy elite.

 Suggestions for Further Reading

1. No Is Not Enough by Naomi Klein – Klein critiques the corporate and political power grabs that exploit crises for profit.
2. Globalization and Its Discontents by Joseph Stiglitz – This book explores how globalization has hurt developing countries and the global working class.
3. The Shock Doctrine by Naomi Klein – Klein explains how governments use disasters to push Neo-liberal policies that benefit corporations.
4. The Age of Surveillance Capitalism by Shoshana Zuboff – Zuboff examines how corporations use personal data to manipulate and exploit consumers.
5. Dark Money by Jane Mayer – An exposé on how wealthy individuals have used money to influence American politics.
6. The New Jim Crow by Michelle Alexander – A powerful look at how the criminal justice system and economic policies have perpetuated racial inequality.
7. Winner-Take-All Politics by Jacob Hacker and Paul Pierson – This book analyzes how wealthy elites have rigged the political system in their favor.
8. The Great Transformation by Karl Polanyi – A classic critique of the rise of the free market and its destructive impact on society.

Disclaimer: The images and videos in this post are AI-generated creations, intended purely for illustrative and conceptual purposes. They are not real-life representations and should not be interpreted as such. Their sole purpose is to offer a visual means of exploring the topics discussed in this post.