Assessing Neoliberalism’s threat to Crowdfunding

By Zachary Alexander on

A number of very serious people were aghast at the suggestion that neoliberalism posed a threat to crowdfunding. In fact, one of these people responded by saying that Congress had already assigned the Securities and Exchange Commission (SEC) to manage it so everything is okay. For those tasked with supporting sustainability, you must always consider whether all parties understand the impact of neoliberalism on economic development.

Stronger integration within local clusters [i.e. crowdfunding platforms] creates new profitable paths for the investment of global money capital… while formally opposed to neoliberalism, socialisation [i.e. crowdfunding] can complement and reinforce it. [1]

This means that the act of ensuring that crowdfunding is safe for investors above all else is an example of neoliberalism at work. You and your peers must assume post-Globalization that there is no simple answers to economic development. Furthermore, you would be well advised to be on guard for the possibility that the people who you talk with don’t understand the contradictory nature of neoliberalism.

The threat posed by policy makers who tacitly accept the principles of neoliberalism is that they may short circuit the crowdfunding process. Each entrepreneurial company has its own rationale for crowdfunding. Some simply want enough cash to expand. Others will use crowdfunding as a means of customer development. Since every reason for participation can’t be enumerated a priori, it would prudent to write rules that leave well enough alone.

Zachary Alexander

[1] Brenner N (2011) Spaces of Neoliberalism.