The Concept of Neoliberalism

Neo-liberalism is associated with economic liberalism whose campaign support provides economic liberations, free trade and open markets, privatization, deregulation and promoting the role of private institutions present in new society. Classic liberalism criticizes the neo-liberalism objective of introducing liberalization to bring about gradual increase of wealth and freedom among nations, however, classic liberalism explains that instead of realization of wealth and freedom, liberalization resulted to constant fight proposals that threatened the progress of achieving wealth and freedom among nations. Neo-liberalism aimed to prevent and control monopoly situations such that if there are no bodies

Economics is based on several theories, whether it is neoliberalism or the welfare state. Neoliberalism and the welfare state are opposite beliefs that have been introduced to help the United States economy. Neoliberalism has a key goal of improving the well-being of society while encouraging a ‘free market’ economy. Similar to neoliberalism, the welfare state is a concept in which the state is supposed to protect and promote the well-being of society, socially and economically. A welfare state can occur in a neoliberal state. When the welfare state is used, then neoliberals believe an abuse of power is occurring. While the welfare state can occur in a neoliberal state, the role of the government should be limited to allow for a free market.

Neoliberalism refers to a political movement that espouses economic liberalism as a means of promoting economic development and securing political liberty.

In almost any known economic system, there are going to be imbalances of power. Someone, or a group of people, is eventually going to be more well off than another. An early attempt to fix these imbalances was to implement a laissez faire type system, a hands-off approach with very little regulation on the market. This eventually backfired as the imbalances between the rich and the poor only became even more extreme since, with little regulation, the rich companies were able to take advantage of the poor by providing them low working wages and kept most of the profits to themselves. Not too long afterwards, antitrust laws and commission regulation was implemented in some systems in order to provide equal, yet aggressive, competition. However, even though it succeeds in its goal to provide equal, yet aggressive, competition, it does not necessarily protect the better

Neoliberalism is a direct descendent of 19th century liberalism and was explicitly intended to re-create ‘laissez-faire’ conditions for markets in the 20th century (Hayter and Barnes 200). In

The world gradually entered its modern state after the English Revolution and largely abandoned the old political systems of monarchy. Economic achievement made due to the Industrial Revolution strengthened the connection between the economy and politics, and thus the emergence of classical liberalism and its future derivatives are inseparably tied to both economic and political components. Classical liberalism, New deal liberalism and neoliberalism are similar in that they all put much emphasis on the economy. They derived from the same basic ideology that individuals should be free and have their own properties protected. However, under the so-called freedom and democracy is the fact that they do not apply to every member of the society.

For generations, activists and legislators have strived and struggled to approach the subject of the unequal resource distribution across the nation. Typical discourses have concentrated on the dilemma between espousals of feigned concerns for insecure and impoverished people, while simultaneously projecting particular anxieties with supporting their dependency on the state. For the past three decades, US policy has positioned itself in conjunction with neoliberal philosophy, composed with the intention to discourage political aid. Not necessarily to foster an environment of starvation, but rather to encourage private individual living without state intervention. However, the consequence of neoliberal policy often results in marginalized identities,

Neo-liberalism is the economic belief that free market forces achieved by minimising government limitations on business provide the lone route towards economic growth shifting control from the public sector into the

Classical liberalism is an ideology that is usually unfavorable to using authority of the state other than ensuring rights and liberties. Government and individuals agree to protect people’s rights and allow for maximum freedom. Laissez-faire focuses on the liberty of an individual and the lack of social equality. Laissez-faire capitalism is where people are unrestricted to invest in what the prices of services will be, what the produce will sell at. In a modern welfare-state capitalism has influenced our understanding of the terms of the social contract because they practice a system of mixed capitalist that have rules by the government for businesses and marketing.

Neo-liberalism is a political ideology that suggests that ‘human well-being can be advanced by the maximisation of entrepreneurial freedom, characterised by private property rights, individual liberty, free markets and free trade’ (Geografiskar, A 2006). In today’s modern society neo-liberalism is widespread around the globe with various stakeholders offering conflicting views. Some advocates, namely the capitalistic portion of society argue that a liberal market is

This concept criticizes the market fundamentalism. Markets will always be controlled by norms, society, culture and morality. Polanyi means the idea of a self-regulating economy is a myth and the free market is a political creation. The state plays a huge role in managing markets such as money, land and labor. John M. Keynes agreed with Polanyi, it doesn’t exist some “invisible hand”. He argued for governmental regulation and that the state should be in the economy with the companies. The state should boost and help the economy when it’s bad and help the struggling

promoted a half way approach to liberal ideas while they incorporated parts of a social

Another concept which is introduced is economic liberalism. It is defined as that the states do not intervene in the matters related to economy rather on the individuals. Economic liberalism and neoliberalism are separate entities from liberalism. In oxford English dictionary describes economic liberalism as,

In economics, some classical liberals believe that ‘’an unfettered market’’ is the most efficient mechanism to satisfy human needs and channel resources to their most productive uses. The minimal government advocacy of an ‘’unregulated free market’’ is founded on an ‘’assumption about individuals being rational, self-interested and methodical in the pursuit of their goals. Adam Smith was not an advocate of pure capitalism. Adam Smith allowed for many exceptions to a strictly free-market economy. The classical liberals advocated policies to increase liberty and prosperity. They sought to empower the commercial class politically. They abolish royal charters, monopolies and the protectionist policies of mercantilism to encourage

(B. Kamiński 225). However, the package was met with a flurry of criticism from prominent economists and journalists. Echoing the key principles of neoliberalism, the economist Tomasz Jeziorański argued that the principal weakness of the package consisted in granting the full responsibility for economic performance to the central administration. The free enterprise characterized by responsibility and autonomy, he insisted, was incompatible with economic coercion by the state (B. Kamiński 226). As a consequence of protests of similar nature, the government eventually withdrew the package in question from further consideration.