Neoliberalism as a Tool of Market Capitalism Free Essay Example, 5500 words

Globalization is a post-war (1945 -) phenomenon. It describes the process whereby trade , economies and communication become more integrated on a world scale. Largely speaking, it has been facilitated by a marked increase in a variety of technologies, such as progress in the areas of transportation and telecommunications, and it has been also facilitated by relative political stability and a consensus of market capitalism. As a term, it was coined in the early 1950s but did not come into prominence in political literature until the late 1960s. One of the defining features of this process is that it is largely market-driven, and as Moody [1998] argues, legitimated by the rise of neo-liberalism coinciding with the decline of Keynesian economic models [Moody, 1998: 119]. That is, and in brief, Keynesian economic theory, posited that the means of creating economic growth was to centrally control an economy to some extent, and this entailed establishing a social infrastructure which placed money directly into the hands of individuals within a society. The theory suggested that by increasing the amount a government spent in areas such as social programs, the greater the prospects that the benefactors would generate revenue for the economy in general or a believe that money earned by the richest would trickle down to the poorest [Boyle and Sims, 2009: 27]. By contrast, neo-liberalism maintained that by cutting social programs, and in turn, reducing government spending and therefore taxes, more wealth would be generated through the reinvestment of income which would have been paid in taxes: this new policy approach was neoliberalism: a mixture of neoclassical economic fundamentalism, market regulation in place of state guidance, economic redistribution in favor of capital (known as supply-side economics). In his sense, it is both inseparable forces of supply and demand, but it is also largely indifferent to national interests, and even less so with regard t o the interests of labour organized or not. We will write a custom essay sample on Neoliberalism as a Tool of Market Capitalism or any topic specifically for you Only $17.96 $11.86/pageorder now