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Neoliberalism In The United States

Decent Essays

What Is Neoliberalism?
Neoliberalism has been described by many authors as “the dominant ideology shaping our world today” (Saad-Filho and Johnston, 2005). Neoliberalism is an ideology for economic policy that many economies actively employ worldwide. The idea that neoliberalism is a reincarnation of liberalism suggests that they possess a number of similar core values as the development and demise of liberalism paved the way for neoliberalism to grow to what it has become today (Dag Einar Thorsen and Amund Lie, 2006). However, many people hold the belief that neoliberalism may have descended from liberalism, but should be clearly distinguishable from it’s predecessor. Neoliberalism holds similar values to that of economic liberalism, which is the idea of refraining from any state intervention in the economy, and should be left to individual participants in self regulated markets, which Thorsen and Lie (2006) believe should be seen separately to liberalism. The idea that state intervention should refrain from involvement in the economy touches off Neoliberalism’s …show more content…

A closed economy was once favored as the idea of import substitution industrialization was believed to be beneficial for the growth of Brazil’s state influenced economy. These methods were discarded in support for an open economy and the involvement of the state was diminished through dominating market forces and large scale privatization. The use of neoliberal thinking grew after many people began to realize that import substitution industrialization was not as efficient as once believed. Due to the debt crisis in the 1980’s in Latin America, economies such as Brazil’ struggled to keep a positive capital account so the introduction of multilateral international financial institutions was necessary to deal with the inordinate amounts of pressure Amann and Baer,

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