Essay on Neoliberalism from Neoclassical Economics

Essay on Neoliberalism from Neoclassical Economics

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According to investopedia, Neoliberalism draws from the principles of neoclassical economics and suggests that government should cut deficit spending, reform tax laws so the tax base can be broadened, limit on subsidies, limit protectionism by opening markets, encourage privatization and deregulation in order to allow private property. Neoliberalism is a system in which the economic factors that are controlled by the public sector move to the control of the private sector. To sum it up, neoliberal policies deregulate and expand the market economy.
Proponents of neoliberalism oppose the notion that neoliberalism increases the efficiency in a market based economy. On the contrary, neoliberal policies reduce and eliminate the effects of the government intervention and the public sector over all. This in turn leads to companies and people gaining advantages in the market. These advocates also argue that under neoliberal policies, companies will be able to increase their profits by actively increasing their production of goods and services. This will lead to better interactions between the consumers and the producers. This will also strengthen and increase the size and the efficiency of the market.
The above mentioned process can be considered the development phase of a neoliberal economy. During which the creativity and competitive power of companies will also be developed. One of the best examples of the fruits of neoliberal policies is development of the Free Trade Agreement of FTA. FTA abolished protectionist measures such as tariffs and encourages free and liberal trade amongst counties and companies of different countries. The United States has signed FTAs with over twenty countries.
Besides the F...

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...plemented in order to bring about a more positive change for workers rights and essentially being able to protect those rights indefinitely. Having said that I feel neoliberalism has widely impacted people’s views on how they are treated in the workplace, and its these kinds of downfalls that inevitably allow room for improvement in the future. Without the downfalls, there will never be an issue or concern raised, and therefore room for progression can only be a dream never realized. With sound practices in place, neoliberalism can be globally viewed as a positive contributor towards worker’s rights.

Raworth, K. (2004). Trading Away Our Rights. Oxfam Publishing.
Ismail, F. (2009). Reforming the World Trade Organization. World Economics, 10(4), 124.

McChesney , R. W. (1999). Noam Chomsky and the Struggle Against Neoliberalism.Chomsky Monthly Review.

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