A Modern Economic policy: Neoliberalism

Neoliberalism policy

What is Neo-liberalism?

The term Liberalism is often referred to political, economic, and even religious ideas. In the U.S. Political liberalism is an often used strategy that is dedicated in preventing social conflict. Neo means new, therefore in the sense, Neo-liberalism means that it is a new kind of liberalism

Neo-liberalism, in the United States, have become a prevalent in the last 25 years, although the term is rarely used, there is a clear indication that Neo-liberalism does exist and the effects of it is noticeable as the rich grow richer and the poor grow poorer.

The Concept of the Policy

Neo-liberalism is an economic policy model of social studies and economics that obtains control from the public sectors and hands it over to private sectors in an economy. This economic policy follows the basic principles of neoclassical economics, where it suggests that the government must limit subsidies, make reforms to tax laws which will expand the tax base. The policy will also reduce deficit spending and open new market up for trade.

The Main Points of Neo-Liberalism

  1. The Rule of the Market – this would free private enterprises from any bonds that are imposed by the government. With no regard if the action would cause social damage. This would also reduce wages by de-unionizing workers and eliminating worker’s rights that been established many years ago.
  2. Cutting Public Expenditure for social services – this would focus on various departments like educations and health care, maintenance of roads.
  3. Deregulation – Reducing the government’s control of everything that would diminish profits, which would include the protection of the environment and safety on the Job.
  4. Privatization – selling state-owned enterprises like goods and services to private investors. But this would mean there would be a higher concentration of wealth to even fewer hands which would make the public pay even more for its needs.

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