PDF Summary:Profit Over People, by Noam Chomsky

For decades, neoliberal policies prioritizing privatization, deregulation, and minimizing state roles have come to dominate the global economic and political landscape. In Profit Over People, Noam Chomsky illustrates how these policies shift power towards corporations and concentrate wealth among the elite few, at the expense of labor rights, equality, and environmental protection.

Chomsky examines neoliberalism's tension with democracy, its role in undermining public participation, and provides case studies demonstrating its harmful impacts. He argues that while championed by governments and corporations, these policies often face widespread opposition from citizens—and this resistance holds the power to challenge oppressive practices.

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Chomsky argues that under neoliberalism, corporations' enormous influence increasingly overshadows the interests of ordinary citizens in the policymaking process. Through their control of resources, media influence, and lobbying power, corporations exercise a disproportionate influence on governments, shaping policies that prioritize profit instead of citizens.

He points to the revolving door between government and corporations, where former CEOs and lobbyists secure high-level positions in public office, ensuring that the needs of businesses are prioritized. Moreover, Chomsky argues that neoliberal policies themselves, with their emphasis on deregulation and privatizing industries, empower corporations by limiting government oversight and accountability.

Practical Tips

• Start a local discussion group to raise awareness about media influence and corporate lobbying. By gathering friends, family, or neighbors for regular meetings, you can collectively analyze news stories, advertisements, and political campaigns to identify biases and hidden agendas. This grassroots approach can lead to a more informed community that's better equipped to recognize and resist manipulative messaging.
• You can scrutinize the employment history of political candidates to make informed voting decisions. Before casting your vote, research the professional backgrounds of the candidates to see if they have moved between government positions and corporate roles. This will help you understand their potential biases and the interests they may prioritize while in office.

Rising Economic Disparity and Disillusionment With Democratic Systems

Chomsky identifies the rising inequality produced by neoliberal policies as a significant factor in undermining democracy. As the gap between the wealthy and the poor widens, the affluent gain increasing power and influence, while ordinary citizens are left feeling marginalized and powerless.

This growing disillusionment with democratic systems, Chomsky argues, is evident in declining voter turnout, widespread cynicism towards political institutions, and a sense that the system is rigged to benefit the wealthy and powerful. He argues that this trend is not accidental but a direct consequence of neoliberalism's agenda, which seeks to limit the scope of democratic participation to issues that pose no threat to corporate power.

Practical Tips

• Support local businesses and cooperatives that practice equitable pay and employee ownership by choosing to shop or use services from these establishments. By redirecting your spending to these businesses, you contribute to a more balanced local economy and help demonstrate the viability of fair-wage models.
• Advocate for policies that promote economic equality by contacting your representatives. Even if you're not a policy expert, you can express your concerns about the wealth gap and support legislation that aims to address it. Write emails, make phone calls, or use social media to communicate with local politicians about supporting measures like increased minimum wage, affordable housing initiatives, or tax reforms that benefit lower-income citizens.
• You can start a peer-to-peer lending circle to redistribute wealth within your community. By pooling resources with friends, family, or neighbors, you create a micro-economy that can help lessen the impact of economic inequality. For example, each member contributes a small amount of money monthly, and the collected sum is loaned to one member to address a specific financial need, such as starting a business or paying for education, with the understanding that they will repay it over time without interest.
• Volunteer with a local organization that provides financial education to underprivileged communities. This hands-on approach allows you to directly contribute to reducing the feeling of powerlessness among ordinary citizens by equipping them with the tools to manage their finances better. You might help organize workshops on basic budgeting or provide one-on-one mentoring to individuals seeking to improve their economic situation.
• Create a "Policy Impact Map" for your local community. Use a simple spreadsheet or a piece of paper to list recent local policies, and next to each, note down the intended purpose and the actual outcomes you've observed. This exercise can help you see the gaps between policy intentions and real-world effects, which may contribute to feelings of disillusionment.
• Volunteer with organizations that aim to increase voter education and turnout. By contributing your time to these groups, you can help address the root causes of voter disillusionment. For instance, you could assist in creating easy-to-understand voting guides or help organize workshops that explain the importance of each individual's vote in shaping democratic outcomes.
• Engage in a "reverse cynicism" challenge where for one week, you consciously replace every cynical thought about political institutions with a constructive one. For example, if you catch yourself thinking, "Politicians never tell the truth," immediately counter that with, "Which politicians have been consistent and transparent?" This practice can help rewire your brain to look for positive aspects and reduce overall cynicism.
• Engage in micro-investing to get a personal sense of the financial markets. Apps and platforms now allow you to invest small amounts of money, which can help demystify the investment process and give you a hands-on experience of how the wealthy grow their assets, even if it's on a much smaller scale.
• Engage in shareholder activism if you own stocks, even in small amounts. Attend shareholder meetings or use your voting rights to support resolutions that promote transparency and limit corporate influence in politics. You can collaborate with groups like As You Sow or use platforms like Say to submit questions and vote on shareholder proposals that align with reducing corporate power in democratic processes.

Case Studies of Neoliberalism and Its Impact

Chomsky utilizes specific case studies to show the concrete impacts of neoliberal policies globally. Examining NAFTA and the Zapatistas uprising, he showcases how such policies not only result in economic harm but also erode democratic processes and exacerbate social inequalities.

Nafta Enacts Neoliberal Reforms in Mexico, Harming Workers, Environment, and Democracy

The author extensively analyzes NAFTA as a prime example of an agreement for "free trade" that primarily served to enact neoliberal reforms in Mexico, with harmful consequences for workers, the environment, and democratic processes. By prioritizing investor rights over all other considerations, NAFTA, according to Chomsky, effectively forced Mexico to adopt a development model that favored multinational corporations and wealthy elites, further entrenching social and economic disparity.

NAFTA Was Backed by Elites but Opposed by Citizens in All Three Participating Nations

Despite being celebrated as a win-win for all involved by the business media and government officials, NAFTA faced widespread opposition from the public in all three participating nations—the U.S., Canada, and Mexico. Chomsky reveals how the deal was primarily championed and pushed through by powerful elites, including large corporations, financial institutions, and their political representatives. Meanwhile, organized labor, environmental groups, and ordinary citizens who recognized the potential for harm were mostly left out of the debate.

Practical Tips

• You can scrutinize product labels to support smaller businesses and avoid indirectly endorsing large corporations. By choosing products from smaller, local companies, you're voting with your wallet against the dominance of big corporations. For example, instead of buying a popular brand's soda, opt for a craft beverage from a local producer.
• Educate yourself on current trade agreements by subscribing to a newsletter focused on international trade policies. By staying informed about the latest developments, you can understand the impact of these agreements on different countries and form your own opinions based on up-to-date information.

NAFTA Led to Labor Erosion, Job Losses, Wage Stagnation, and Environmental Harm in Mexican Society

Contrary to rosy predictions of shared prosperity, NAFTA's implementation led to significant negative consequences for workers and Mexico's environment. Chomsky points to the erosion of labor rights, citing examples like the firing of workers for attempts to unionize, the suppression of labor protests, and the replacement of union contracts with lower-paying, non-organized work.

Moreover, the author highlights how NAFTA contributed to massive job losses, wage stagnation, and a rise in poverty in Mexico, as expected by many critics. By "locking in" neoliberal reforms, the agreement facilitated the transfer of production to Mexico, where lower wages and weaker environmental regulations provided attractive incentives for companies seeking to maximize profits.

Practical Tips

• Engage with local policymakers to support labor-friendly trade policies. Write letters, attend town hall meetings, or participate in local advocacy groups that focus on labor rights. Your involvement can help shape policies that protect workers and prevent the erosion of labor standards.
• Consider buying products made locally or in regions you know have been adversely affected by job losses due to trade agreements. By consciously choosing where to spend your money, you're directly supporting jobs in those areas and can encourage others to do the same through word-of-mouth or online reviews highlighting the importance of supporting such communities.
• Consider volunteering with or donating to organizations that work towards poverty alleviation in Mexico. This direct action can help mitigate the effects of economic policies that have disadvantaged certain populations. Research groups that focus on sustainable development, education, or healthcare in Mexico, and contribute either your time or financial resources to support their efforts.
• Start a blog or social media page dedicated to highlighting and reviewing products made in countries with strong labor and environmental regulations. This creates awareness among your peers and encourages manufacturers to adhere to higher standards. Share your findings on the quality, price, and ethical aspects of these products to guide others.
• Opt for eco-friendly travel options when visiting Mexico to minimize your environmental impact. Choose accommodations that have a proven commitment to sustainability, use public transportation or rent bicycles for local travel, and participate in eco-tourism activities that support conservation efforts. This approach helps create economic incentives for preserving the environment rather than exploiting it.

NAFTA Exposed Neoliberalism's Undemocratic, Elite-Driven Nature

The entire NAFTA episode, according to Chomsky, serves as a potent illustration of the inherently undemocratic and elite-driven nature of neoliberal ideologies. Public concerns about job losses, environmental harm, and the decline of worker rights were ignored or dismissed by people in power. The agreement was ultimately forced on the populations of all three countries, despite widespread opposition, reflecting the triumph of corporate interests over democratic processes.

Context

• Despite these concerns, many citizens and advocacy groups in the involved countries expressed opposition to NAFTA, fearing negative impacts on local economies and communities.
• Proponents argued that NAFTA would boost economic growth and create jobs, but critics pointed out that the benefits were unevenly distributed, often favoring large corporations over small businesses and workers.
• Environmental regulations can be weakened under trade agreements that prioritize economic growth, leading to potential ecological harm and reduced protections.

Zapatista Uprising in Chiapas, Mexico Opposed Harms of Neoliberalism and NAFTA Model

The Zapatista uprising in Chiapas, Mexico, erupted on the day NAFTA went into effect, a powerful symbol of the growing social unrest and resistance against neoliberal policies in Mexico and throughout Latin America. The rebellion, led by indigenous communities, served as a direct challenge to the model of trade agreements, highlighting its negative impacts on the most marginalized sectors of society.

Zapatistas: NAFTA a "Death Sentence," Deepening Poverty for Indigenous Mexicans

The Zapatistas declared that NAFTA would doom indigenous Mexicans, arguing that it would exacerbate their already precarious economic and social conditions by further concentrating wealth and power in the hands of the elite. Chomsky emphasizes that the Zapatista rebellion was not simply a protest against NAFTA but against 500 years of oppression and marginalization, culminating in the neoliberal policies that threatened to erase their way of life.

Practical Tips

• Educate yourself on historical oppression by creating a timeline of events that have contributed to the struggles of marginalized communities. Start with the Zapatista rebellion and work backward, noting significant events and policies that have led to systemic inequalities. This will give you a deeper understanding of the context behind modern social movements and the layers of history that inform them.
• Engage in conversations with your peers about the effects of neoliberal policies on indigenous ways of life. By discussing these issues in your social circles, you raise awareness and can collectively brainstorm ways to support these communities, such as organizing fundraising events or creating awareness campaigns that highlight the importance of preserving indigenous cultures and livelihoods.

Zapatista Rebellion Exposed Social Unrest From Neoliberal Policies in Mexico and Other Latin American Regions

The Zapatista uprising, Chomsky argues, resonated deeply with many people in Mexico, exposing the widespread dissatisfaction with neoliberal policies and the growing economic divide. Their rebellion brought to light the "time bomb" of social unrest brewing throughout Latin America as a result of these policies, which had led to declining living standards, more widespread poverty, and a weakening of democratic processes.

Practical Tips

• Start a conversation with peers about a cause you're passionate about to gauge common interests and concerns. This can be as simple as discussing over coffee or starting a group chat. The goal is to identify shared values and concerns that could lead to a collective response or support for a cause, reflecting the collective resonance seen in social movements.
• You can deepen your understanding of social unrest by starting a journal to track news and events related to social movements in Latin America. By doing this, you'll be able to notice patterns and underlying issues that contribute to unrest. For example, if you read about a protest, note the reasons behind it, the government's response, and the outcome. Over time, you'll have a personal record that reflects the complexities of social unrest.
• Write letters to your representatives expressing your concerns about specific policies that you believe are undermining democratic processes. Personalize your message with examples from your community or research, and suggest alternatives that could strengthen democratic participation and accountability.

Zapatistas' Struggle Rejected Neoliberalism, Demanded Social, Economic, Political Justice Alternatives

According to Chomsky, the Zapatistas' struggle went beyond simply opposing neoliberalism. Their rebellion was a call for genuine social, financial, and governmental justice, demanding options that prioritized indigenous rights, reforms of land ownership, local control, and a more equitable distribution of resources. The Zapatistas offered a powerful example of community-based resistance against neoliberalism, inspiring solidarity movements and providing a blueprint for others seeking social change.

Practical Tips

• Educate yourself on the principles of fair trade and ethical consumption, then apply these principles to your shopping habits. This means looking for products that ensure fair wages and conditions for workers, which is a direct way to counteract some of the exploitative tendencies of neoliberalism. When grocery shopping, for instance, opt for fair trade-certified chocolate or coffee.
• Create a personal "justice audit" of your daily life to identify areas where you can make changes. Look at your purchasing habits, the businesses you support, and how your actions might impact social, economic, and political justice. For example, choose to buy from companies that are known for fair labor practices or commit to educating yourself on the political stances of the people you vote for.
• Incorporate indigenous perspectives into your reading habits by choosing books and articles written by indigenous authors. This will help you understand their viewpoints and experiences firsthand. Look for reading lists curated by indigenous educators or librarians to find relevant and impactful literature.
• Educate yourself on current land ownership issues by subscribing to newsletters from organizations that focus on land reform and property rights. By staying informed, you can understand the modern parallels to the Zapatistas' struggles and the ongoing debates around land ownership. For example, you might sign up for updates from the Land Rights Now campaign or the International Land Coalition, which will provide you with regular insights and updates on land ownership issues around the world.
• You can foster local control in your community by starting a neighborhood exchange program. Create a simple online bulletin board or use a community space to post offers and requests for goods and services, encouraging residents to trade skills, tools, or homegrown produce. This not only strengthens local self-sufficiency but also builds relationships among neighbors.
• You can support equitable resource distribution by choosing to buy from cooperatives and community-supported agriculture (CSA). These organizations often operate on principles of fairness and shared ownership, which aligns with the goal of equitable resource distribution. By purchasing from them, you're directly contributing to a system that values each member's contribution and distributes resources more evenly.
• Engage in collective decision-making by organizing regular community meetings to discuss local issues. Use a consensus-based approach where everyone has an equal say, and decisions are made considering the well-being of the entire community. This practice can strengthen community bonds and empower individuals, mirroring the democratic principles of the Zapatistas' governance.
• Engage in a personal project to support local artisans by purchasing their goods and sharing their stories with your network. This can be as simple as buying from local markets and posting about the products and the people who make them on your social media. By doing so, you contribute to a solidarity economy that values people over profit, mirroring the principles of movements like the Zapatistas.

Public Pushback Against Neoliberal Policies

This section focuses on a pivotal victory for popular resistance against neoliberal policies: the defeat of the MAI, the Multilateral Investment Agreement. Chomsky uses this case study to showcase how public awareness, organizing, and action can effectively challenge the objectives of powerful corporate and governmental interests.

Multilateral Investment Agreement Weakened Democracy, Defeated by Public Opposition

The Multilateral Investment Agreement, a secretive treaty negotiated within the OECD, embodied neoliberal principles, seeking to further empower corporations at the expense of national sovereignty and democratic processes. Had it been successfully implemented, Chomsky argues, it would have represented a significant setback for democracy and further shifted power away from the public realm, highlighting the insidious nature of neoliberal policymaking.

Secret Mai Negotiations Highlight Undemocratic Neoliberal Policymaking

The very manner in which the negotiations for the Multilateral Agreement on Investment were conducted exemplifies the undemocratic nature of neoliberal policymaking. Talks were shrouded in secrecy, completely excluding public scrutiny and even Congressional oversight, revealing a blatant disregard for democratic procedures. These negotiations, Chomsky argues, highlight the inherent tension between neoliberalism and democracy, as elites sought to impose rules that would benefit them at the expense of most people.

Other Perspectives

• There may have been confidentiality agreements in place between negotiating parties to protect proprietary or sensitive information that could be economically or strategically important.
• Congressional oversight does not necessarily need to be direct; it can be exercised through subsequent ratification processes or briefings to relevant Congressional committees.
• The benefits of increased investment resulting from these agreements can trickle down to the broader population through job creation and economic growth.
• The tension between neoliberalism and democracy is not inherent but may arise from the way specific policies are pursued or negotiated.

Leak of MAI Details Led To Civil Society Opposition and Treaty Collapse

Fortunately, information about the MAI eventually leaked to civic groups and activists, who then disseminated it through the internet and other channels. This spurred a global movement of opposition, with corporate media condescendingly labeling them "vigilante hordes," mobilizing to challenge the treaty. The widespread public outcry, fueled by a growing understanding of the possible consequences of the MAI, ultimately played a key role in its collapse, preventing the implementation of yet another undemocratic corporate power grab.

Practical Tips

• Engage in micro-volunteering online to support civic groups and activists. Platforms like Zooniverse or Catchafire allow you to contribute to projects that require analyzing data, including potentially leaked information. Your participation could help these groups process and understand information that impacts their causes.
• You can create a digital bulletin board to share information on local issues using a simple website builder. Choose a platform that requires no coding skills, like Wix or Squarespace, and focus on a specific topic that affects your community. Regularly update the site with information, resources, and links to further reading, ensuring that the content is accessible and easy to understand for all visitors.
• Create a social media challenge that encourages people to take small, daily actions against a cause you care about. Use hashtags to track participation and create a sense of community. For instance, if you're concerned about plastic pollution, initiate a #PlasticFreeDay challenge, where participants avoid using single-use plastics for a day and share their experiences online.
• Engage in conversations with peers about media labels without using the labels themselves. Discuss recent news and deliberately avoid using any potentially loaded terms you've encountered. This encourages you to express ideas based on the actions and facts rather than the media's framing, fostering a more nuanced understanding of the issues at hand.
• Engage in role-playing exercises with friends or family to explore different perspectives on the issue. Assign roles such as government officials, business owners, activists, and citizens, and simulate a debate or negotiation over an agreement. This hands-on approach can deepen your understanding of the various interests and concerns involved, and help you articulate your own position more clearly. After the exercise, discuss what insights were gained and how they could be applied to real-world scenarios.
• You can amplify your voice on issues by writing opinion pieces for local newspapers or online platforms. By articulating your concerns and presenting them in a public forum, you contribute to the public discourse, potentially influencing others and sparking a broader conversation. For example, if you're concerned about an environmental issue in your community, submit an article to your local paper or a popular blog to raise awareness and encourage others to take action.
• Use social media to raise awareness about the importance of democratic processes in economic decision-making. Create simple infographics or short posts that highlight key facts or questions about trade agreements and corporate influence, encouraging your network to think critically about these issues. Tools like Canva offer free templates to design engaging visuals, even if you don't have graphic design skills.

The Defeat of the MAI Demonstrated Popular Movements' Power to Resist Neoliberalism Against Corporations and Governments

According to Chomsky, the defeat of the Multilateral Agreement on Investment marked a significant victory for popular movements and demonstrated their collective power to resist the neoliberal agenda, even against powerful corporate and state actors. Despite lacking resources and facing a formidable opposition, activists managed to break through the secrecy, raise public awareness, and ultimately force the OECD to abandon the treaty. This victory serves as a potent reminder, Chomsky argues, that organized citizens can effectively challenge the oppression of the few, even in a world increasingly dominated by corporate power.

Practical Tips

• You can start a blog to share and discuss victories of popular movements, focusing on the impact of collective action. By writing about different movements, their strategies, and their outcomes, you create a resource that can educate and inspire others to participate in or support similar initiatives. For example, you could write a post analyzing the successful tactics of a local campaign that prevented the construction of an environmentally harmful facility.
• Educate yourself on the principles of participatory budgeting and advocate for its implementation in your local government. Participatory budgeting is a democratic process in which community members decide how to allocate part of a public budget. Learn about this process through online resources or workshops, then write to your local representatives or attend town hall meetings to suggest adopting participatory budgeting. This empowers citizens to have a direct say in how public funds are used, potentially steering them away from neoliberal priorities and towards community needs.
• You can enhance transparency in your community by starting a local information-sharing group. Create a social media page or a simple newsletter to share knowledge about local issues, decisions, and agreements that affect your community. For example, if a new development is being planned, gather and disseminate information about it, including who is involved, the potential impacts, and how people can have a say in the process.
• Write a letter to the editor of your local newspaper to highlight an underreported topic. Research the subject thoroughly, present your points clearly, and explain why it matters to the community. If you're addressing the impact of a new policy on small businesses, outline the potential consequences and suggest ways the community can support those affected.
• You can start a neighborhood book club focused on social justice themes to foster community awareness and action. By selecting books that explore the power of collective action and discussing them in a group, you encourage dialogue and may inspire members to take action on local issues. For example, after reading a book about community gardens as a form of activism, your club might start a garden that provides fresh produce to those in need.
• Utilize crowdfunding platforms to raise funds and awareness for your cause. Set up a campaign on sites like GoFundMe or Kickstarter, clearly explaining your mission and what the funds will be used for. Share your campaign on your personal networks and ask friends and family to help spread the word to reach a wider audience.