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Ecuador's Correa: It's Neoliberalism, Not Socialism That Has Failed


Ecuador's Correa: It's Neoliberalism, Not Socialism That Has Failed

Andrea Germanos, staff writer

Ecuadoran president Rafael Correa on Sunday denounced "fantasies of trickle-down theories" and said that it's neoliberalism, not socialism that has failed his region.


Just because Neoliberalism has won converts among the elites/wealthy of many countries DOES NOT mean that it has benefited the common people. In that respect, Neoliberalism HAS failed.


What Rafael Correa stated is CORRECT. NeoLiberalism has been a FAILURE in creating a sustainable economy wherever it has been imposed by the oligarchy.
Western Europe is almost in self-destruction as a result of what NeoLiberalism is doing to the economies there.
The EUROZONE has been a FAILED EXPERIMENT with all the weaker economies having deficits in the same quantity as the surpluses held by the strongest economies.


So how many days now before Equador experiences a US-backed coup?


I believe the real driver of Neoliberalism is a strong and complacent upper middle class. They refuse to recognise the velvet covered chains that guide them toward their own destruction. They have been perfectly happy to have installed one of their own in the White House twice and have selected a third to follow them but the rub is that these people have not been theirs to carry but creatures of the corporate sector. The people in the trenches of the lower middle class have been feeling the pinch of austerity since the reign of Nixon and comprise the dissatisfied of the Democratic party so much so that they went outside their party to draft a man who could speak to their sensibilities. The movement this started will endure and is going forward to find and support persons interested in the responsibility of public service which a life in the legislature is actually supposed to be.


Neoliberalism sells here very well. It's all in how it's marketed. What would never sell to today's generation: "Leftist leader says growth 'that favors the poor, growth with social justice, growth with equity,' worthy of pursuit."

Let's be honest. Today's Americans so strongly believe in our deregulated capitalism that they think everyone is able to work, there are jobs for all, therefore no need for poverty relief. Who would want to change that? Even liberals are fine with our standard trickle-down economics (at least, when it comes to addressing US poverty). Our middle class want a measure of socialism, as long as nothing trickle down.


By today, virtually all of the middle class -- at least, until they are personally knocked out of the job market. Not everyone can work (health, etc.), and the US began shutting down and shipping out a huge number of jobs back in the 1980s. We know we don't have jobs for all -- something like 7 jobs for every 10 jobless people who still have the means to pursue one (home address, phone, etc.) -- and we have nothing but contempt for those who are left out.


I think that if you ask American Democrats and liberals to describe who they mean by "regular people," they are likely to say "middle class workers" (under 50% of the population), or just working class people, disappearing those who are far worse off. It has amazed me for decades that we could watch as so many jobs were shipped then, and actual welfare was ended, and yet not figure out the obvious consequences.


Hopefully the US learned by now that socialist economies collapse under their own mismanagement and not due to foreign sponsored coups. The Soviet Union took along time due to it's strong industrial base and the fact that it raped and plunders the economies of all other Eastern European countries.

The latest contestant, Venezuela, isn't doing too good. They managed to screw it up even tho they have the largest oil reserves in the western hemisphere. Took them like, 14 years to run out of cash.

I'm hoping the US will just wait them out and let them collapse on on their own. Save some taxpayer cash.


A statement of the bleedin' obvious self-evident in around 1790 after 50 years of Britain's industrial revolution that began with the use of coking coal and proved repeatedly ever since.

As for raping and plundering other economies; USA! USA! USA! as the mindless hysterics scream at USAian political conventions.


It's an ongoing effort. The wealthy ruling class in Ecuador is itching to get back in power. They constantly accuse Correa of being a dictator and suppressing free speech. They do this in newspapers they control.


I believe Tom1's point is that neoliberalism was never intended to help the common people.


Correa is a politician and like all politicians you have to look at what they do and not listen to what they say. I moved to Ecuador from the US 2 years ago. Before I came I researched all the financial publications I could think of and there was very little concerning Correa or Ecuador. I thought it peculiar that he was not attacked viciously like Chavez, Morales, Lula, Kirchener et al. When I mentioned this to people in Ecuador, their response was that Ecuador is too small to attract that kind of attention. My answer to that is that nothing is too small for the parasites on Wall Street.

I recently learned that one of Correa's first acts was to make it illegal for the Central Bank to print money. All most everybody including the authors of this article believe that money is created by printing. In reality 97-98% of the money created is in the form of digits on a screen. The hard cash that is used in Ecuador is US printel bills and minted dollars and a few other coins. Sacajewea dollars are in full circulation here. But Ecuador mints 50, 25, 10, 5 and 1 centavo coins that are the equivalent here. I can take 10 50 centavo pieces and exchange them for a $5 bill but only here in Ecuador. So even if Ecuador can not print US dollars it can mint coins of any denomination up to and including $20 dollar coins but they would have to be named Ecuadorian dollars and could be traded within Ecuador as equivalent.
When Ecuador was building and financing a "socialist" state, it was creating most of the money digitally to pay workers. That money flowed into the real economy and fueled growth and the distribution of wealth.

This year Correa has fired many government workers and reduced expenditures on infrastructure so the economy has crashed. Car sales are down 40%. It has been blamed on low oil prices, but that is bogus. Taxes have been raised to "fund" the government further shrinking the economy.

The annual IMF report on Ecuador recommended that government funding by the publicly owned Central Bank be discontinued, that the government work force be reduced and other neoliberal austerity programs be carried out. Correa has followed that program to the letter. The only sensible conclusion I can make is that Correa has been a mercenary for Wall Street all along that was signaled to Wall Street when the Central Bank was forbidden to "print" money. Most people don't realize that most money is created on computer screens by the stroke of a key and is not printed and that there is nothing real except the tax payers', mortgagees' or credit card holders promise to pay backing it up.

The "socialist" policies that Correa has instituted have increased the assets of Ecuador immensely in a short period of time. Now that the economy has contracted, the story is to either and/or increase taxes or borrow from international sources to fund the government. The people will acquiesce to loans instead of taxes. Then Ecuador will not be able to pay the loans. The next neoliberal step is to increase taxes or to sell national assets. The people will acquiesce to sell assets because they don't realize that Ecuador could have created the money to run the government and increase the economy without incurring debt and without selling oil regardless of the price. This is the basic magic formula used for centuries to steal the wealth of the 99% and give it to the 1%. Once again Correa is a neoliberal mascara ding as a socials who by the way has enriched himself to the tune of 100s of millions of dollars.


You may want to consider the actions of the NED, and especially the IRI, in Venezuela before drawing a conclusion.


Mr. Correa has a progressive agenda that benefited the majority of Ecuadorians, is the opposite of the Neoliberalism and right wing policies, Mr. Correa administration invested on Education, Roads, Universities, Hydroelectric plants, Hospitals etc, like it or not he is one of the best Presidents Ecuador had, is not only my opinion, his work and project that benefited the majority of Ecuadorians are fact, the rest is only a old political propaganda.


You can write anything, just reading the economic information released from the government. It's different when you live and survive in the country, Ecuador is one of the expensives Lands in south América, the government can't devaluate the money, because we use the dólar here since 1999.
We live here in a "state of propaganda", where only the things sad by government are truth, and are followed by "borregos -sheeps-" that generaly are part of the heavily increased public employes.
One of the big problems we have here are the corruption developed after years of high oil prices and big air castles developed.
People is tires, and the only thing people want a change in the next elections. Not neccesary a come back of neoliberalism.