| dc.description.abstract | Neoliberalism
The neoliberal argument is essentially an economic and political philosophy advocating free markets, deregulation, privatization of public assets, more unencumbered free trade, and less government “interference” in economic (and social welfare issues). Neoliberalism promotes a free market economy approach to social issues, to public provision of services and to public spending generally. It has been referred to as “supply-side economics” and for example rejects the view that governments should try and create more employment directly through industry policy or overall “demand management” in favour of a sole focus on the supply of a flexible skilled yet cheap workforce – hence the importance of “work and learning.”
Neoliberal economics supports greater freedom and recognition of the captains of corporations but has now become unstuck with the argument that some financial institutions are “too big to fail” – which means in effect they are “so big that they can depend on society (that is taxpayers) to prop them up when they topple” (Patel, 2009, p19). This is a clear contradiction of the neoliberal philosophy of no government interventions in the market.
Inequality
We live in societies (some would argue in one global society) in which the gap between the richest and the poorest, between those who live full lives in the economically developed countries and those who live “half lives at best” in the less developed countries, is growing (Honderich, 2002, p6). Many workers in Western countries (or the economic North) have experienced a decline in the value of real wages, and they must struggle to stay abreast of inflation even at low inflation rates, while the incomes of the rich continue to climb. The fallout from the 2008 global financial crisis and the 2010-12 attack on national debt will ensure that the “social wage” (public services, education, health care etc) and public pensions will decline in real terms: but not the corporate and bankers bonuses. The following quote is from Macleans magazine (Canada’s oldest current affairs publication and a long-time proponent of free enterprise) | en |
