Responsible for most of the global economic problems Essay Example for Free

Responsible for nextly of the planetary frugal problems EssayNeo-liberalism is a political political theory that suggests that human well-being can be advanced by the maximisation of entrepreneurial freedom, characterised by closed-door property rights, individual liberty, free markets and free trade (Geografiskar, A 2006). In straight offs innovative high society neo-liberalism is widespread around the globe with various stake take controlers offering conflicting views.Some advocates, namely the capitalist portion of society argue that a liberal market is essential for frugal senesceth whilst others hold neo-liberalism responsible for the b every-shaped economic problems we ar experiencing today. It is clear to many that the policies arising from this ideology chip in caused the poor to grow poorer and the rich to grow richer. Accordingly, this essay bequeath argue that Neo-Liberalism greatly contributed greatly to todays global economic problems and will shed l ight on the overriding reasons why a neo-liberalism is non paragon to foster a sustain equal to(p) and healthy economic environment for every last(predicate) as the ideology proposes. genius of the primary economic problems in the world is sub-standard living conditions and the major gap between the wealthinessy and the non-wealthy.The primary argument that encapsulates the problems associated with neo-liberalism is the tendency for the ideology to foster inequality in society. Navarro (1998) agrees and extends to say that neoliberalism has caused change magnitudely declining living conditions for most of the worlds population, whilst the minority overlay to grow wealthier.This is supported by the argument that the inequality arises from policies that subsist in a neo-liberal society such as granting tax-cuts for the wealthy and decreasing minimum wages for the non-wealthy (George, 1999). master neo-liberals would combat these arguments and suggest that a free market will grow the prosperity of a society as a whole besides, it has been argued that although wealth might be increased, it is supressed by the elite andthe non-elite do not share in the economic growth making neoliberal ideologies on positive for wizard train of society (Beder, 2006).A prominent example is in Brazil where in the early 1990s the outlandish liberalised the market considerably, as a result the inflation rate decreased and the saving was stimulated however the living conditions of the general society did not improve and inequality was greater than ever (Amann Baer, 2002). Brazil windlessness continues to grow poorer as neoliberal ideologies now control the vast majority of Latin America change magnitude the inequality amongst majority of society.Therefore it can be concluded that neo-liberalism is a major contributor to global economic problems such as inequality and sub-standard living conditions. When governments implement neoliberal ideologies it causes regulatory a gencies to be taken over by special interests and anti-government groups which reduces the level of protection for the general public. Deregulation is the the reduction or body waste of government big businessman in a particular industry, usually enacted to create more competition within the industry. (investopedia, 2013).From a neoliberal supporters standpoint, deregulation allows corporations to increase their bottom line and lolly margins by reducing regulations that may restrict them from certain income-producing activities. However, by reducing regulation there are large risks involved that can lead to catastrophic events. The enormous ecological and economic damage in the Gulf of Mexico caused by the British Petroleum oil spill is just one of many examples of the segmentation of regulation caused by neoliberalism. It has also come to light around the globe that the reduction of government care of the fiscal sector was a leading cause of the mortgage loan crisis and the severe economic fadeout that it triggered.The most prominent and possibly the most notable market crash is the Global Financial Crisis which was a direct repercussion of the neo-liberal policies which were implemented at the time and for which many of todays global economic problems has stem from. These policies predominately include the replacement of government functions and services with profit-seeking entities, or more commonly known as privatisation and most importantly the deregulation of the economic market (Beder, 2006). Due to the deregulation, financial institutions and other economic players were able to invest in more complex financial markets which were beyond their understanding and a result a market crash occurred and the detrimental effect were widespread.If regulation had been frame in place to monitor enthronization activity then it has been argued that the Global Financial Crisis would not have occurred and the associated global economic problems we are exper iencing today would not have eventuated (Dag Einar Thorsen, 2013). As neoliberal policies where implemented around the world casing the global financial crisis the world disparities in wealth and income increased as well as scantness, contradicting neoliberal theories that by increasing the wealth at the top everyone becomes better off.One of the largest areas of concern around the globe is the poverty levels. oer the last 40 years governments have been influenced by neoliberal ideologies and poverty has increased on a global scale. Neoliberalism has contributed to this increase by boycotting certain government regulations and cutting tax rates, providing insular industries with more power to grow wealthier while the poor suffer the consequences.A representative from the World Bank stated decrease government regulation with tax rates and deregulation across most of the planet has not brought anything close to an end of poverty, (World Bank 2001). Neoliberal advocates believe tha t wealth generated by reducing regulation and allowing private enterprises such as banks and financial institutions to hold more power will be passed down to all levels of society. However, this is not the case, an example is the United states, under Neoliberal governments child poverty rose by a third and in the united kingdom between 1980 and 1990 when the government was run by neoliberal policies poverty rose by half.( Navarro, Vicente. 1998).The high volume of capital movements caused by neoliberalism have led to oftentimes crisis, exposing developing countries to new risks. There are various reasons why neoliberal policies have failed to address the issues of poverty in society. One of these reasons being the stability policies neoliberalism has input into our governments, supported by tight fiscal and monetary controls which have provided neither growth nor stabilization within countries economies. (Geografiskar, A 2006).The liberalisation of foreign trade was put in place to remove the barriers of developing countries but maintenance of these barriers has given birth to an unfair international market. Thoroughly linked with poverty, another major economic human problem that neoliberalism has failed to resolve isemployment. Global markets have not generated anything close to enough waged work for the worlds labour force.Hundreds of millions of people remain slothful or underemployed. Neoliberalism ideologies are set through government to generate wealth in private industries, this wealth aims to grow businesss and by doing this aims to increase employment. However, owing to the neo-liberal economic reforms, the higher costs of utilities the like power and water are caused by the government reducing expenditure, when services become privatized, such as transport, health and education which the leads to businesss enhancing their turnover. As a result of the diminishment government owned industries and the economic agents cut back on output growth rates and downsize the number of employees, inevitably generating unemployment (Daniela Zirra, 2012.).Private industries continue to aim for increasing profits, this is achieved by lowering expenses and when their main expenses are wages the unemployment rate continues to rise.Current debates concerning the effects of neoliberalism ideologies have frequently separated between advocates who see only benefits and opponents who see only problems. In lend oneself the results have been more one sided. Alternatively many people have faith in in the Neoliberalism ideologys and argue towards supporting it as the way of the future. The mixture of positives and negatives has varied between one situation and another the negatives of a neoliberal society are far more detrimental to our economy than what the positives produce.I argue that Neoliberals re responsible for most of the global economic problems we are currently experiencing today. It will be hard to stop governments enforcing Neoliberal p olicies and standards as Neo-liberal theories have been embraced by big businesses because they provide legitimisation for their stake of self-interest and avenues for business expansion (Beder, 2006). However, we can look towards a more positive future for all levels of society, reducing the global economic problems we face today by standing together and fighting against Neo-liberal beliefs.ReferencingAmann, Edmund and Werner Baer. 2002. Neoliberalism and Its Consequences in Brazil. Journal of Latin American Studies 34(4)945-959. http//www.corpwatch.org/ bind.php?id=376 2011Beder, Sharon (2000). Selling the work ethic From puritan pulpit to corporate PR. Australia Daniela Zirra, 2012. legitimate NEOLIBERAL IDEAS ABOUT EMPLOYMENT AND UNEMPLOYMENT . Romanian Economic and Business Review Vol. 4, No. 1. Elizabeth Martinez and Arnoldo Garcia, What is Neo-Liberalism?, National lucre for Immigrant and Refugee Rights, January 1, 1997 George, Susan. 1999. A Short History of Neoliberal ism.Presented at the Conference on Economic Sovereignty in a Globalising World, March 24-26, Bangkok, Thailand. Geografiskar, A. Series B, Human Geography , Vol. 88, No. 2, Geography and Power, the Power of Geography (2006), pp. 145-158 Published by Wiley on behalf of the Swedish Society for Anthropology and Geography . Article Stable URL http//www.jstor.org.libraryproxy.griffith.edu.au/stable/3878384 Profit all over People Neoliberalism and Global Order. Seven Stories Press. November 1998. ISBN 1-888363-82-7 1998(John Williamsons Washington Consensus,1998. Navarro, Vicente. 1998. Neoliberalism, Globalization, Unemployment, Inequalities, and the Welfare State.International Journal of Health Services 28(4)607-682. Neoliberalism, globalization, unemployment, inequalities, and the public assistance state. Navarro V 2012. Department of Health Policy and Management, Johns Hopkins University, School of Hygiene and Public Health, Baltimore, MD 21205-1901, USA. http//www.theguardian.com/c ommentisfree/2013/jan/14/neoliberal-theory-economic-failurehttp//ro.uow.edu.au/cgi/viewcontent.cgi?article=1220context=artspapers http//willyloman.wordpress.com/2013/03/04/as-expected-sequestration-cuts-are-neoliberal-blueprint-not-dumb-mistakes/ Title Guidelines for Public Debt ManagementPublished 20010, World Bank and International Monetary Fund.