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Neoliberal Model Essay

Decent Essays
In our neoliberal society, publicized areas of life quickly become dominated by the private and the dynamics of the market (Keren, 60.) Privatization in a neoliberal model is defined as the “withdrawal of the state from many areas of life”, ideologically the role of the state in private realm is very minimal and the idea of individual freedom, increased autonomy, and private choice are presented (Keren, 63.) In the nineteenth century, the market emerged as a primary institution ushered in the public/private distinction into the forefront of the legal discussion (Horowitz, 1424.) The market – public law – was elevated, by the political economy, to a prime institution for impartially allocating rewards, while private law came to be known as a…show more content…
“The best candidates for predatory lending have been found in the poorest areas of the country” (Keren, 67.) Individuals in these distressed urban communities, signed predatory housing loan agreements based on various circumstances. Housing loans were sold through market negotiations and were based on securing the consent of the borrower (Keren, 68.) Lenders persuaded borrowers from these neighborhoods that had once been denied mortgage loans, to borrow more than they were ever able to repay. Keren gives an example of an immigrant who was pressured to take a loan that he was unable to repay, he was reassured that he’d be able to pay back the loan through the income from his tenants, which the lenders offered to help him obtain. The borrower was overwhelmed with stressed, suffered from a heart-attack, ultimately, he became unemployed and his property was foreclosed (Keren, 68.) It was common prior to the subprime crisis, for lenders to pressure borrowers into with extremely high interest rates. Often borrowers were charged additional fees for services and products that they had never used and that never existed, lenders imposed expensive penalties on defaults (Keren, 68.) Various tactics and methods were used to strip vulnerable borrowers of their value, leaving them in debt and worse off than they previously were. As stated previously, these victims can find no refuge in the state because the state absolves itself from private
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