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okay

socialism round three by cracky this has

been a long time coming okay so we left

it with social democracy and we now pick

up the baton in 1994 perhaps yeah 1994

when we had two things happen first of

all we had Bill Clinton elected in the

United States and we also had Tony Blair

take control of the Labor Party in the

United Kingdom and between the two of

them was defined the third way now in

order to understand the the third way we

need to go back we need to go back we

need to look at social democracy we need

to look at what such did with her

neoliberalism and have that infused the

third way it will help tremendously if

you've looked at my previous videos on

parties in the UK where I go through all

of these and I will link off to that in

the footnotes if I remember shouldn't

forget that okay so social democracy we

start with a fairly simple situation we

have got the rich the well-off and the

poor and obviously that is not a healthy

position for the society so keen says

well in order to make this better what

we need to do we need to sort out well

pretty much everything we've got this

big problem the poor are starving and we

have this huge level of social

inequality that's not good for business

so what we're going to do my business I

mean society and actually the economy so

what Keynes does he says we're going to

take a lot from you and we're going to

take a bit from you and we're going to

give it or at least some of it to you

and at the same time we're not just

going to give you a handout world

to make various social reform we're

gonna make various economic reforms and

that's pretty much it

well okay that's worked until about 1979

when everything changed this has been

neoliberal theory took over and we start

from the same premise we've got the wife

we've got the well-off forgot the poor

but then we change things you look this

is not really a very effective way of

managing societies a lot of work for

government trying to reorganize this

trying to take money from you and give

it to you and how much is the right

amount and what happens when we give it

to you and you know by the time we give

it to you then that changes we've got to

do something else and this is not

working so let's try something else

and the neoliberal theory was very very

simple it's about what we need here is a

growing economy if we've got economic

growth then we're creating a position

whereby of so people can sort themselves

out so if we have growth you can go for

the time being then we take our poor and

the economy's grown so they are no

longer as poor as they were and the

well-off their world their even better

off and the wealthier well they're

wealthier still now within this we have

got rising income inequality but we're

genuinely not worried about that what

we're impressed by is the fact that

these guys have gone from there to there

and these guys have gone from here to

here and these guys have gone from it is

they're sorting themselves out so all is

well

according to neoliberal theory if people

are sorting themselves out then they're

going to be maximizing their utility in

in the economy the economy is going to

be great they're gonna be making

reasonable choices about what they want

to do and if they're all good little

capitalists out there then our society

is gonna be formed of good little

capitalists and it's going to be

homogeneous and they're all going to be

working together we're going to have a

sort of atomistic empathy so everyone's

good little capitalists were all the

same and everything's great except

everything is not great Blair came in in

1994 he ultimately won power in 1997 and

he said look we have gold growth okay we

accept that these guys are doing better

off and these guys are better off and

these guys are fabulously better off but

look at this

these guys are still

below the bread line that means that

they're not really capitalist they

haven't got any capital we need to get

these very very cool people off the

bottom of the well they'll still be on

the bottom of the ladder but we can't

have them below the poverty line because

if they're below the poverty line then

they're really not in a position to

benefit from capitalism new labor

economic theory says look capitalism is

a good thing and we need to get

everybody on board so rather than saying

look everyone's better off of rising

tide lifts all boats we can do better

than that says new labour and what we're

going to do is we're going to take the

port and we're gonna lift them out of

absolute poverty we have to somehow get

these guns across the bread line thus

and that is exactly what Blair did and

that meant that these characters the

poor along with everybody else was now

enjoying a meaningful participation in a

capitalist society capitalism being a

good thing in this doctrine that

everybody is working really really hard

everybody is everybody is now in a

position to make meaningful choices

about what they want to do so at this

point you're probably saying we'll hang

on a second that just sounds like fat

tourism or neoliberalism and to a

certain extent you're right look we're

not concerned about relative income

we're not concerned about reducing the