Neoliberalism Light

The inaugural speech of Barack Obama- completely remarkable in several regards, and evidently in terms of history- has a particular interest: a new economic vocabulary. Obama has, rather deliberately, employed a new tone. He borrowed a new register, a new voice that I would call “Neoliberal light.” And I insist on this point; that was deliberate. It was not an accident. It was not simply from political rhetoric. It was not the simple product of his speechwriter charged with writing his speech. No. Obama came back to this subject deliberately. He seems to have nearly added the paragraph in question- it was an anaphor, a calculated repetition, in which he directly addresses himself to the neoliberals. And what did he say?

At the very beginning, do you recall the manner in which he spoke of the free market in August 2008- more than a month before the Lehman Brothers debacle and the nationalization of Fannie Mae, Freddie Mac, etc…At this time, Obama said- first, I will deliver his words in English, then I will translate them [into French]- “The market is the best mechanism ever invented for efficiently allocating resources to maximize production…I also think that there is a connection between the freedom of the marketplace and freedom more generally…[But] there are certain things the market doesn’t automatically do.” In other words:

« Le marché est le meilleur mécanisme qui ait jamais été invente pour distribuer les ressources de la manière la plus efficace afin de maximiser la production…Je crois aussi qu’il y a un lien entre la liberté du marche et la liberté de façon plus générale… [Mais] il y a certaines choses que le marché ne peut faire automatiquement. »

But that was well before the crisis. And that has nothing to do with the inaugural speech- the difference is subtle, of course. However, a completely different grammar is used. The first phrase of the introduction was rather classic: a little bipartisan, transcending even the usual politics. Obama declares-

“What the cynics fail to understand is that the ground has shifted beneath them- that the stale political arguments that have consumed us for so long no longer apply.”

« Ce que les cyniques ne peuvent pas comprendre, c’est que le sol s’est dérobé sous leurs pieds et que les arguments politiques rancis auxquels nous avons eu droit depuis si longtemps, ne valent plus rien. »

Up till here, there’s nothing new: he only reacts to old debates.

Then, from the moment of the following phrase, Obama more clearly engages in the neoliberal debate- that is to say, the traditional conflict between the New Deal vision (“big government”) and that of Ronald Reagan (“no government”). Once again, he announces that these debates are outdated:

“The question we ask today is not whether our government is too big or small, but whether it works- whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end.”

« La question aujourd’hui, n’est pas de savoir si notre gouvernement est trop important ou trop petit, mais s’il fonctionne- s’il aide les familles à trouver des emplois avec un salaire décent, à accéder à des soins abordables et à une retraite digne. Si la réponse a cette question est oui, nous continuerons. Si la réponse est non, nous mettrons un terme à ces programmes. »

Up until there, his speech still reflects his past ideas. But then, he returns more clearly on this theme. Designating the sacred monster, he addresses the Chicago school:

“Nor is the question before us whether the market is a force of good or ill. Its power to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control- and that a nation cannot prosper long when it favors only the prosperous.”

« La question n’est pas non plus de savoir si le marché est une force du bien ou du mal. Sa capacité à générer de la richesse et à étendre la liberté est sans égale. Mais cette crise nous a rappelé que, sans surveillance, le marché peut devenir incontrôlable, et qu’une nation ne peut prospérer longtemps si elle ne favorise que les nantis. »

“The free market”: here he is directly addressing the ghost of Milton Friedman. (Besides, that certainly did not get to my colleagues. We were all- professors and students- in the grand room watching this remarkable speech on television, and we all turned our heads toward Richard Epstein- the most passionate of the incumbents of the University of Chicago- even at the instant Obama pronounced this phrase).

New vocabulary; something I believe to be very precious and chosen. Barack Obama presented himself, at his inauguration, skeptical about the market, disinclined to conform to the line of Chicago school. It will be necessary to closely follow his concrete actions on the economy. But this speech properly reflects a change, subtle, but a definite change of register. It’s rather remarkable for a speech that addressed itself to History and to the entire World.

Finally, remember that while we all participate in this historic, symbolic and extraordinary spectacle today, Rahm Emanuel, the chief of the president’s cabinet, quickly went to work and signed a memorandum sent to all the secretaries and agencies to immediately suspend all regulation that would still not be entered into force- “all pending regulations.” According to the spokesperson of the new administration, Emanuel signed “a memorandum addressed to all the agencies and departments (of the administration) to stop all regulations in abeyance until the Obama administration is able to re-examine the political and juridical aspects. On his part, the new president found some necessary time to sign documents, officially naming the members of his cabinet- which allowed the Senate, after lunch, to give his consent to the nomination of seven secretaries, among them Janet Napolitano of Homeland Security, Arne Duncan of Education and Steven Chu of Energy.