The key feature borrowed from Classical Capitalism is that the risks of enterprise and the investing of capital are (supposedly) transferred from the State to the newly liberalized private sector. But this turns out to be a charade played out for propaganda purposes: when the expansion of credit and financialization ends (as it must) in the tears of asset bubbles deflating and massive losses, then the Central State absorbs all the losses which were supposedly private.
I define Neoliberal Capitalism much differently: markets are opened specifically to benefit the central State and global corporations, and risk is masked by financialization and then ultimately passed onto the taxpayers. The essence of Neoliberal Capitalism is: profits are privatized, losses are socialized, i.e. passed on to the taxpayers via bailouts, sweetheart loans, State guarantees, the monetization of private losses as newly issued public debt, etc.
The Central State benefits from the explosion of tax revenues created by financialization and the expansion of credit, and from the vast swag showered on political parties and apparatchiks by the global corporations.
From a Neoliberal Capitalist perspective, the union consolidated power in a Central State proxy (The E.U.) and provided large State-approved cartels and quasi-monopolies access to new markets.
From the point of view of the citizenry, it offered the benefit of breaking down barriers to employment in other Eurozone nations. On the face of it, it was a “win-win” structure for everyone, with the only downside being a sentimental loss of national currencies.
But there were flaws in the structure that are now painfully apparent…
Read more – excellent stuff.