Predatory (Neoliberal) Capitalism has led U.S. to Fascist Oligarchy

Will American radical conservatism devour itself? What's next for a decadent society that has replaced empathy, community, and social welfare with the commodification of everyone and everything?

My book: Damaged People: Narcissism and the Foundation of a Dysfunctional American Society is available at Amazon and Barnes & Noble.

Neoliberal economic and political theory has been driving public policy in the U.S. and other capitalist countries for decades. Neoliberalism is commonly referred to as predatory capitalism, because it preys upon the working-class, middle-class, and impoverished majority to the benefit of a small, wealthy ruling-class (oligarchy) whose ultimate goal is to further enrich themselves and exert maximum control over all members of society and levers of authority. Since the 1970’s, neoliberalism has been embraced by both major American political parties but more broadly by the Republican Party. Its stranglehold on American politics, public policy, economics, and the federal judiciary has had disastrous effects on our democratic system of governance. American neoliberalism’s unfettered and predatory nature has driven us to an unprecedented level of economic inequality, which ultimately leads to the democratic erosion, oligarchy, and fascist authoritarianism we are currently experiencing in the Trump/MAGA era.

For approximately three decades after World War II, the U.S. experienced “The Great Prosperity” - a period of significant economic growth, rising living standards, and the strongest middle class in American history. The era was characterized by progressive public policies stemming from FDR’s “New Deal” - a range of economic, social, and political reforms enacted by President Roosevelt from 1933-1938 in response to the “Great Depression”. During the Great Prosperity, we taxed the rich and had the greatest middle class run in American history. In 1944, the top tax rate was 94%, and it never dipped below 70% through the 50s, 60s, and 70s. In the 1980s, Ronald Reagan, the toast of the modern Republican Party, lowered rates to 28%, adding $1.86 trillion to the national debt (increase of 186%). Top tax rates have remained low throughout the last 3+ decades, while income inequality has soared.

The economic slowdown and inflationary issues of the 1970s - the first significant economic slowdown since WWII - opened the door to the neoliberal, anti-government ideology that’s prevailed since. The dominant postwar political and economic model was one of embracing government’s crucial contributions - a necessary component of economic and social wellbeing. Keynesian economics and industrial capitalism - advocating for government intervention to improve the quality of life of the working class - had dominated economic and political theory prior to the neoliberal rise. The economy is the strongest when we have a vibrant middle class who can afford to purchase the goods and services produced in a capitalist economy. Greater middle-class spending stimulates economic growth, because the middle class’s purchasing power is much greater than that of the wealthiest <1%, the group neoliberal policies seek to benefit. The economic growth during the Great Prosperity was the result of a strong middle class, aided by government intervention to ensure a viable level of economic equality. The idea of “trickle-down economics” as applied to Keynesian theory was that the benefits of a nation with a strong middle class and a greater level of social and economic stability would also trickle down to the lowest economic class of the population; the improvement of the standards of living for the working class was essential to the health of the nation and its economy as a whole. The neoliberal version of “trickle-down economics” is a co-opt and inversion of Keynesian economics. Neoliberal “trickle-down economics” - dubbed “voodoo economics” for its distorted notion that significant tax cuts for the wealthy and corporations will somehow “trickle-down” to the masses - is a farcical notion with no empirical merit. While neoliberal policies exacerbate income inequality, studies have found that policies that improve income equality strengthen democratic systems.

The core characteristics of neoliberalism are business and industrial deregulation, privatization, austerity, and reduced taxes on the wealthy and corporate sector. Consequences include concentration of wealth in the hands of a few, undercutting unions and the collective power of labor, erosion of public services, undermining of social safety nets, significant corporate influence, today’s unregulated and all-too-powerful technology sector where misinformation and disinformation thrive, weakened democracy, environmental pillaging, erosion of civil rights, and the rise of populist authoritarianism. Such a version of radical conservatism eventually cannibalizes itself, as we’re seeing in the contemporary era of American politics. As C.J. Polychroniou points out: “Capitalism is antithetical to economic democracy”. While claiming to be anti-government, in actuality neoliberalists are about diminishing the standard of living of the majority by reversing the government subsidies from the working class to the wealthy elites - an upward flow of income, concentrating in the hands of a wealthy few; hence, the predatory nature of neoliberal capitalism. Profits are privatized; losses are socialized, as big business is bailed out while everyone else is left to suffer their own economic losses. Polychroniou states:

“The near collapse of industrial labor and the subsequent weakening of trade unions ensured the success of the transition from managed capitalism to global neoliberalism…At the heart of the neoliberal vision is a societal and world order based on the prioritization of corporate power, laissez-faire markets and the abandonment of public services. The neoliberal claim is that capitalist economies would perform more effectively, producing greater wealth and economic prosperity for all, if markets are allowed to perform their functions without government intervention.”

The neoliberal theory of “greater wealth and economic prosperity for all” if business and industry are allowed to operate unfettered by regulation, has been emphatically disproven as we now - after five decades of neoliberal public policy - have achieved an abominable level of economic and wealth inequality, which has steadily worsened throughout neoliberalism’s tenure as an American political and economic institution. Neoliberal economics (voodoo economics) is nothing more than a ruse to shift more power and wealth to a small group of individuals (oligarchy), which ultimately leads to fascist authoritarianism. When a nation teetering toward oligarchy for decades is given over to a narcissistic psychopath and personalist ruler such as Donald Trump and his MAGA minions, a rapid turn to fascist authoritarianism can ensue. Fascist authoritarians such as Trump rely upon the populist grievance and frustration of a populace overcome with nihilism and apathy from years of social and economic neglect to achieve power and, once in power, they use extreme nationalism and propaganda to gaslight the public into fighting amongst itself culturally, while he begins to erode civil rights, suppress dissent, and use state violence to control and oppress the populace. Once the populace emerges from its daze, it’s too late. The oligarchy and loyal supporters surrounding such a leader benefit tremendously early on but are eventually disposable if their interests begin to diverge from those of the authoritarian leader. This is what Russia experienced when Putin eventually jailed and even killed oligarchs who undermined his interests and authority.

Neoliberalism is one of the major factors that has led us to an unprecedented level of political polarization, which opened the door for Trump’s MAGA movement. A deeply polarized society, under an authoritarian ruler, is more willing to turn a blind eye to authoritarian attacks on the press, the courts, and other societal institutions. Rightwing authoritarians typically stoke racism and xenophobia to scapegoat immigrants and racial/ethnic minorities, demonizing the most marginalized in society, in an attempt to shift and project the authoritarian regime’s failures upon the marginalized groups. Such authoritarian leaders, worldwide, share strategic priorities and influence one another.

Sadly, racism, xenophobia, and ignorance are enduring characteristics in a large swath of white America, particularly in the South and Midwest. A tribal, nationalistic, ignorant populace, fearful of “others” who differ from their homogeneous tribe, is much more susceptible to gaslighting, propaganda, and demagoguery - forces that have kept this demographic voting against its social and economic interests for decades. For decades, the Republican Party, its wealthy donors, and special interests such as the Heritage Foundation and Federalist Society have exploited the worst impulses of working class and poor white Americans to further its neoliberal predatory economic and political agenda and further enrich themselves. One can’t help but wonder when, if ever, these white Americans will awaken from their tribal slumber and finally turn on the true oppressors: the wealthy and corporate aristocracy. When they eventually do, the modern Republican Party will cease to exist in its current form, and the Democratic Party - if it’s fully embraced progressivism by then - will lead the way back for this country. If neither party moves away from the predatory neoliberalism that’s held the day since the 1970s, the country will devolve further into full-fledged fascist dictatorship - which we’re moving ever closer to in the Trump/MAGA era.

Will radical conservatism finally devour itself? As more and more is taken from everyone else and given to a handful of wealthy families, one would assume that the public will finally catch on and demand better. Those who demonize progressives as radical must understand that radical conservatism is destructive “extremism”; whereas radical progressivism is constructive “extremism”. Radical progressivism, while demonized in the American political system, is actually mainstream public policy in most advanced democracies internationally. Radical conservatism robs the poor, middle class, and majority of the population and concentrates more and more wealth in the hands of a small cabal, who gain more and more power and influence as they collect more wealth. Natural resources, public goods and services, and even the lives of animals are commoditized in our predatory capitalist system. The U.S. has the worst-performing healthcare system among high-income countries. Even the best-performing U.S. states lag comparators such as France, Germany, the United Kingdom, and Australia. No ethical, respectable, moral, and informed society tolerates a commoditized, for-profit healthcare system. In this arena, the U.S. is a global pariah, and it’s accepted by the Republican and Democratic political establishment. Radical conservatism, guided by neoliberal predatory capitalist ideology brought us here.

Radical progressivism, on the other hand, is constructive in the sense that it provides healthcare to all, living wages, union jobs and collective bargaining for workers, healthy work-life balance, clean air and water, and a sustainable earth; it roots out corruption in government and demands tax accountability from the wealthiest and corporations to fund social, economic, and environmental public programs that improve the quality of life for all. All of the most popular societal gains in America - Social Security, Medicare, Medicaid, civil and voting rights, etc. - were propagandized as “radical”, “socialist”, or “communist” by the same groups that do so today.

Radically conservative predatory capitalism has driven American public policy for half a century. As our government moves closer to fascist authoritarianism (the end result of predatory neoliberal capitalism) and our elected representatives continue to dismantle the already frail social safety nets and public services in place - while preventing basic social safety nets the rest of the developed world enjoys and demands - the people will continue to become more frustrated and disillusioned with both parties and will demand a dramatic change in the system. We’re seeing that with the significant support of progressive democratic socialist/populist candidates such as Zohran Mamdani, Bernie Sanders, AOC, and others who’ve been banished to the fringe of the Democratic Party by the neoliberal establishment leadership within the party. As the DNC and party establishment further alienate these progressives and, thus, alienate its base of voters further, the country will continue in its current political death spiral toward autocracy. The Democratic Party is protecting the current neoliberal political structure - a system that has enriched many of them, as well as their Republican colleagues - and sacrificing the will of its voters at a time when the Republican/MAGA Party is highly unpopular and vanquishable.

The last stand for the Republican Party is voter suppression - the only means for an unpopular political party with support from only a minority of the population to remain in power. The last stand for the establishment Democratic Party appears to be to double down on neoliberalism and demonization of its popular progressive wing as “socialists”, which will further alienate its already fractured base. If the Democratic Party, collectively, does not begin to fight for the populace and shun its predatory neoliberal corporate messaging, the party will simply be a more moderate extension of its radical conservative Republican rivals. If we, as a society, don’t have any major force in American government fighting for the people, we will certainly reach the end stage of predatory neoliberal capitalism and will have forfeited a thriving democracy to fascist authoritarianism and kleptocratic oligarchy, to which we’re very close already.

Neoliberal capitalists have and will continue to further privatize health care, education, pensions, and every other government program, service, and benefit at their disposal. The predatory neoliberal philosophy is that private sector efficiency will improve service delivery and reduce costs. Nothing could be further from the truth. What privatization will do is further enrich already ultra-wealthy CEOs - whose salaries have risen 1,094% since 1978 and who now earn more than 300 times the average worker - and wealthy stockholders and further exacerbate the abominable income inequality in America. Further deregulation will allow corporations to run roughshod over the American public, exacerbate climate change, and gut any semblance of environmental, consumer, and civil protections necessary for a healthy society. The collective power of workers will be further decimated. Public spending cuts and reductions in social welfare programs will endanger society’s most vulnerable. As the neoliberal push continues, the American public - already deeply divided - will be further divided, and our democratic institutions will not be able to hold. The gap between the haves and have nots - already on a level unseen in other advanced democracies worldwide - will further widen, and trust in government institutions (already at an all-time low) and the democratic process will further wane. The only logical conclusion is that those with the most wealth, greed, and power will further consolidate their power and overtake our system of government. We’re already at the midnight hour.

As Robert Arnold succinctly articulated in his post entitled, What Happens to Modern Conservatism?:

“There was a time when conservatism meant something noble…or at least defensible. It was not the enemy of progress but its counterweight, the cautious reminder that some things are fragile and worth keeping…But whatever that philosophy once was, it’s long gone now. What we are left with is an ideology dressed in its corpse, propped up by slogans, fear, and nostalgia. The Republican Party today is not the heir to Burke or even Eisenhower…It is the hollow echo of a movement that forgot what it was conserving…We are living through the final act of an exhausted ideology. It has no new ideas to offer because it never truly believed in ideas…only in opposition…The future right, if it survives at all, will have to rediscover moral pragmatism…The collapse of modern conservatism might be the best thing that ever happened to it.”

Radical neoliberal conservatism is destructive and predatory by nature. It destroys what others have built; removing the provisions that create a fair, ethical, prosperous, and egalitarian society for all to provide more and more to a very small wealthy ruling class. Freedom for all becomes freedom for a wealthy few. Democratic socialism is sacrificed for inverted socialism - where the only entitlements go to the corporate/wealthy class, in the form of subsidies, tax cuts and loopholes, and regulatory cuts that allow these individuals free reign over the society and consumers they depend upon for their extreme wealth. We, the people, demand better.

For me, it’s quite obvious what we need to do to combat the neoliberal order that’s firmly entrenched in American politics: embrace the progressivism that ushered in The Great Prosperity and greater economic equality. The same progressive policies ushered in monumental civil rights and voting rights legislation and the strongest middle class in American history. Over the last five decades, neoliberal predatory capitalism has rolled back many of the gains achieved during The Great Prosperity. If the Heritage Foundation and those who subscribe to its radically destructive ideology have their way, all social benefits, safety nets, and limits to corporate and wealthy power and authority will be eviscerated. Polychroniou agrees that “progressive forces need to stop being constantly on the defensive and to seek, instead, to sharpen strategic abilities in order to go on the defensive.” Progressive forces within the Democratic Party are taking on the fight, as evidenced by the work of Bernie Sanders, AOC, Elizabeth Warren, Zohran Mamdani, etc.; however, the neoliberal and corporate establishment within the Democratic Party has resisted this populist progressivism that can and will energize Democratic voters and also bring the working class back to the Democratic Party over time. Anyone who doubts the hold these neoliberal forces have upon the Democratic Party can look no further than the House of Representatives 259-98 vote (with significant Democratic support) to condemn “socialism” in all its forms on Friday, 11/21/2025, just hours before NYC Mayor-elect Zohran Mamdani met with Donald Trump in the Oval Office.

As progressives such as Mamdani galvanize massive public support and even enlarge the Democratic Party’s tent - at a time when the party needs all the public support it can possibly muster (favorability under 30%) - the Democratic Party establishment moves to alienate and demonize these popular progressives and their policies that provide hope, empowerment, and will actually improve quality of life for Americans. As the public demands change, the predatory/neoliberal powers double-down, with Democrats and Republicans fighting systemic change with all their might. How long can the current system hold off the inevitable change the people demand? For all our sake, let’s hope the power of the people is stronger than the power of Trump’s authoritarian state and the monied interests that have led American democracy to fascist authoritarianism.

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Thomas Avant is a writer - whose work has appeared in The Progressive Magazine - and self-published author of the 2020 book Damaged People: Narcissism and the Foundation of a Dysfunctional American Society, which is available from Amazon and Barnes & Noble.