Broken Promises Pave the Road to Oligarchy

Neo-liberalisms Betrayal: A Brief Introduction

Neo-liberalisms Betrayal of Its Lofty Promises is finally coming to a historical turning point. Either we survive as a Democratic Constitutional Republic or we fall into a semi-permanent Oligarchy. Neo-liberalism, a doctrine promising prosperity through deregulation, privatization, and globalization, has dominated U.S. policy since 1980.

Both Democratic and Republican administrations have embraced its tenets, promising individual freedom and economic growth. Instead, these policies have fostered inequality, corporate monopolies, and financial instability, drawing stark comparisons to the Gilded Age of the late 19th century. This editorial explores Neo-liberalism’s broken promises, examining its real-world impacts and its ideological roots in Ayn Rand’s Objectivism.

1. A Legacy of Deregulation: Financial Crises and Corporate Greed

Neo-liberalisms Betrayal began in 1980 as the new President Ronald Reagan’s successful deregulation of financial institutions during the 1980s epitomized Neo-Liberal governance. By removing restrictions on speculative practices, the administration created conditions that led to the Savings and Loan Crisis.

Taxpayers ultimately covered $124 billion in losses (FDIC, 1997). Decades later, under George W. Bush and Barack Obama, the 2008 financial crisis mirrored this legacy. Policies enabling risky lending and inadequate oversight resulted in a $700 billion bailout for financial giants. Millions of homeowners, like Maria Hernandez in California, faced foreclosure, echoing the economic despair of Gilded Age workers exploited by unregulated markets. The fallout also decimated retirement savings, as individuals relying on 401(k)s saw their plans lose value practically overnight.

2. Objectivism and the Privatization of Public Goods

Ayn Rand’s Objectivism champions self-interest and minimal government intervention. Neo-liberal policies have translated this philosophy into privatization efforts, often with catastrophic outcomes. Michigan’s decision to switch Flint’s water supply in 2014, driven by cost-cutting measures, left families like LeeAnne Walters dealing with lead-contaminated water. Private contractors mismanaged the crisis, prioritizing profits over public health. Similarly, the 2014 Veterans Choice Act privatized parts of veterans’ healthcare, leaving many without adequate care, highlighting Neo-Liberalism’s failure to protect vulnerable populations. Another example lies in public transportation: privatized contracts in cities like Atlanta led to fare hikes and reduced services, disproportionately impacting low-income commuters.

I can’t say with any authority that the concepts of greed and self-interest embedded deeply into Neo-liberal government were considered by Ayn Rand and her theory of Objectivism. What seems to be true however is that American politics changed dramatically along these lines since 1980. What does seem clear however Neo-Liberalism’s Betrayal begins when Ronald Reagan developed economic policies that closely mirror what Rand had in mind.

3. The Telecommunications Act of 1996: Consolidating Power

If we think that Neo-Liberalism’s Betrayal is a Republican problem, think again. President Bill Clinton’s Telecommunications Act, designed to increase competition, had the opposite effect. Media consolidation ensued, with six corporations now controlling 90% of U.S. media. Consumers in rural areas, reliant on limited broadband providers, face higher costs for subpar services.

This concentration of power mirrors the monopolistic practices of Gilded Age industrialists, whose railroads and steel empires stifled competition and exploited consumers. For instance, in Appalachia, the lack of affordable broadband hinders small businesses’ growth and students’ access to online education, exacerbating economic stagnation. This act alone created a consolidation of media outlets and concentrated news, once a fact-based and well-researched information source, turned into ideological outlets for opinion. While dominated by the right-wing, progressives are equally guilty.

4. Trade Agreements and the Erosion of Labor

The passage of NAFTA under Bill Clinton promised job growth but devastated manufacturing towns like Youngstown, Ohio. Factories moved overseas in pursuit of cheap labor, leaving communities economically hollowed out. Workers like John Davis, a former steelworker in Youngstown, faced unemployment and diminished opportunities. This exodus weakened unions and disproportionately affected marginalized communities, echoing the inequities of the Gilded Age when laborers lacked bargaining power against industrial tycoons. Detroit’s auto industry, too, saw its decline exacerbated as companies outsourced jobs, hollowing out once-thriving neighborhoods.

I speak here as a strong supporter of organized labor. While working as a Chicago Public School teacher, I served as a delegate of the Chicago Teachers Union. When I moved to post-secondary education to University teaching, I joined the Illinois University Professors union and participated in a quite successful work stoppage. In other words, Neo-Liberalisms Betrayal of organized labor is something I take quite personally.

5. Education Reform: Punishing the Vulnerable

The 2001 No Child Left Behind Act, implemented under George W. Bush, introduced high-stakes testing that disproportionately harmed low-income neighborhoods. Schools with inadequate resources, such as those in Chicago’s South Side, faced closures due to poor test scores. Displaced students struggled to find stable learning environments, exacerbating educational disparities. Teachers, under pressure to “teach to the test,” reported burnout and disillusionment, leaving students in underserved areas without experienced educators. This mirrors the Gilded Age’s prioritization of efficiency over equity, where public welfare was often neglected.

Earlier I wrote a post focusing on the difficulty with standardized testing. In short, such testing of children is biased toward white, middle-class students. By testing using a template that favors the assimilated notion of culture, immigrant children and people of color, in general, are excluded from the underlying assumptions of the test publishers. Neo-liberalism’s Betrayal is fundamentally embedded in a racist mentality. Another way of thinking about this is that the regional differences in what serves as “American” values and culture present a wide variety of that which passes for culture. Regional dialect alone suggests this multi-cultural nation even without underserved minorities.

6. Tax Cuts for the Wealthy: Trickle-Down’s Empty Promises

Tax cuts under Neo-Liberal governance have consistently favored the wealthy. The 2017 Tax Cuts and Jobs Act, enacted by Donald Trump, promised economic benefits for all but primarily benefited corporations. Companies like Apple used the savings for stock buybacks instead of creating jobs. Meanwhile, the Congressional Budget Office projected $1.9 trillion in added national debt, burdening future generations. These policies recall the Gilded Age, where the rich grew richer while workers struggled to survive. The widening wealth gap is evident in cities like San Francisco, where tech billionaires thrive while homeless encampments multiply.

Neo-liberalisms Betrayal need only be seen from the perspective of those who make the most and pay the very least, often nothing at all in taxes. That places the burden of paying for government falls on the shoulders of the rest of us; the 99% who work for a living and have not seen a difference in buying power since 1980. Wages stagnate in relative terms due to constant inflation, often driven by the greed and self-interest of the 1%.

7. Environmental Deregulation: Profit Over People

Environmental deregulation under Neo-Liberal policies has prioritized corporate profits at the expense of public health. The 2005 Energy Policy Act, signed by George W. Bush, exempted fracking from the Clean Water Act. Communities like Pavillion, Wyoming, experienced severe water contamination, forcing families to rely on bottled water. These environmental injustices mirror the unchecked pollution of the Gilded Age when industrial waste poisoned communities. In Texas, chemical plant explosions due to lax safety regulations have endangered workers and nearby residents alike, exposing the human costs of deregulation.

What is significantly different than the Gilded Age lack of regulations, is the current Neo-Liberalism Betrayal is that deregulation and denial of significant problems are driving climate change which science suggests if left unchecked will mean a mass extinction event that will include humanity. On the part of the United States Neo-Liberalism’s Betrayals are turning into a mass suicide event. With bold action, however, we may be able to curtail the dreaded results.

8. Healthcare Consolidation and Rising Costs

The Affordable Care Act, signed by Barack Obama, expanded insurance access but also spurred hospital mergers. Dominant providers like HCA Healthcare exploited their market power to raise prices, limiting competition. Patients in rural areas, often with only one hospital option, faced exorbitant medical bills. This consolidation recalls the monopolistic tendencies of Gilded Age employers, who controlled workers’ lives with few checks on their power. Families like the Browns in Mississippi report skipping essential treatments due to unaffordable deductibles, highlighting healthcare inequality.

Perhaps the greatest of Neo-Liberalisms Betrayals is the broken state of Healthcare in the United States. The fundamental problem is that among the industrial nations of the world, The United States is the only nation that treats health care as a commodity and not a right. We privatize Healthcare by allowing unregulated insurance companies to make egregious profits, and pay their top executives outrageous salaries and bonus packages while denying coverage for arbitrary reasons that endanger the health of Americans who otherwise might be able to avoid bankruptcy court if healthcare were a right and not a commodity to be bought, sold, and otherwise uncertain. Shame on us for tolerating such treatment.

9. Exploiting the Gig Economy

The rise of the gig economy under both the Obama and Trump administrations exemplifies Neo-Liberal labor policies. Platforms like Uber classified workers as contractors, avoiding traditional labor protections. In California, Proposition 22 codified this model, denying gig workers benefits such as health insurance. These workers, much like 19th-century taxi drivers reliant on exploitative practices, struggle for economic stability while corporations profit. Stories like that of Jason, a full-time Uber driver in Los Angeles, highlight the precarity of this system—long hours with no safety net.

10. Broken Promises of Globalization

Globalization, touted as a path to prosperity, has widened income gaps and outsourced jobs. Workers in towns like Detroit watched manufacturing industries relocate overseas, leaving communities to grapple with economic decline. Overseas, sweatshops employ workers in exploitative conditions, echoing the exploitation of immigrant laborers during the Gilded Age. Bangladeshi garment workers earning pennies per hour highlight the global inequities Neo-Liberalism perpetuates. Meanwhile, American consumers like Sarah in Chicago see stagnant wages and rising costs, further eroding economic security.

Conclusion: A Return to Gilded Inequality

Neo-liberalism has recreated the economic disparities of the Gilded Age, prioritizing corporate profits over public welfare. Its policies have deepened inequality and undermined opportunities for millions. By understanding these patterns, we can challenge the systems perpetuating inequality and advocate for a more equitable future.

Sources Cited

Federal Deposit Insurance Corporation (FDIC). (1997). Crisis and response: An FDIC history, 1980–1994.

Congressional Budget Office. (2017). The Budget and Economic Outlook: 2018 to 2028.

U.S. Environmental Protection Agency. (2011). Investigation of Ground Water Contamination near Pavillion, Wyoming.

Suggestions for Further Reading

Klein, N. (2007). The Shock Doctrine: The Rise of Disaster Capitalism.

Harvey, D. (2005). A Brief History of Neo-Liberalism.

Rand, A. (1957). Atlas Shrugged.

Stiglitz, J. E. (2002). Globalization and Its Discontents.

Piketty, T. (2014). Capital in the Twenty-First Century.

Krugman, P. (2009). The Return of Depression Economics and the Crisis of 2008.

Zinn, H. (1980). A People’s History of the United States.

Wilkerson, I. (2020). Caste: The Origins of Our Discontents.

Reich, R. (2018). The Common Good.

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