America´s Neoliberal Capitalism and the Economic Expansion

explanatory Essay
2238 words
2238 words

America's neoliberal capitalism and the economic expansion
After the crisis of government regulation capitalism about six years from 1973 to1979, a new layout liberal capitalism started to appear; firstly it was in Britain and the United States. In America, the new liberal capitalism was of main features in following:
(1) Cancel the regulation of finance and business not only in domestic but also internationally, allowing the "free market" rule, and realizing capital to flow freely.
(2) Privatize government’ services directly provide the government agencies and government workers in the past.
(3) The government is no longer actively control of macro economy, and to a certain extent, reduce the macroscopic intervention with the purpose to ensure low inflation, rather than low unemployment.
(4) Significantly reduce government social spending.
(5) Reduce the tax for businesses and the rich.
(6) Big business and government denounce the unions, which makes capital can completely dominate labor in the labor market.
(7) The labor force employment changes from depending on long-term employee to the use of short-term and workers who work at their part time increasingly.
(8) Untrammeled competition takes place of regulated capitalism “mutual respect" in the postwar era of the big companies.
(9) Market principle is introduced to big enterprise internal. Choosing the CEO from the enterprise’ employees are changed to hire from an external CEO employment market.
Over time, three important changes occur in the above-mentioned system; they together promote many economic expansions of long-term, but at the same time also lay the potential for the final a systemic crisis. The three important changes are: 1) increasing inequality. In the ...

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...gage crisis is the fuse of the global financial crisis while the subprime mortgage crisis is the inevitable result of the financial deregulation in the United States. There are indications that what we see is not merely a crucial economic crisis and a critical decline. We are watching the new liberalism crisis. This form of capitalism to promote the production and the profit seems to reach an end. In the existing neoliberal capitalism mode, the next economic expansion will take an even more massive asset bubble than the real estate bubble, which is hard to imagine. In addition, financial system deregulated in the new free capitalism might play a quite important role in new asset bubbles of any kind, but after the new bubble burst, it can't continue to exist. The majority of the bid American financial institutions require massive government rescue, and the financial

In this essay, the author

  • Explains that neoliberalism was proposed in the late 70s and early 80s of last century under the background of economic globalization.
  • Explains that after the crisis of government regulation capitalism about six years from 1973 to 1979, a new layout liberal capitalism started to appear in britain and the united states.
  • Explains how capitalism promotes economic expansions of long-term, but also lay the potential for the final a systemic crisis.
  • Explains that in the process of the american new liberal capitalism, a series of long-term expansion led to unsustainable trend.
  • Explains that america's economy and the world economy will be reconstructed in the future. the third possibility is to realize socialism.
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