![]() ![]() This change, while masked as a rejection of government intervention, is an attempt to restructure the economy and arguably society to fit a pre-designed model.Īrguments in favor of a neoliberalist appproach argue that this approach reduces transaction costs by changing the principal-agent relationship by enabling vertical integration and a more centralized production process. It is essential to understand that, despite neoliberalism being considered a narrow subdivision of economics aligned with monetarist and supply-side economics, it is itself a broader political ideology.įor example, neoliberalism has come to embody a cultural model favoring limited government via the admonishment of the central governing body, decision-making by markets, and a general rejection of a collective mentality in favor of an emphasis on the importance of self-responsibility. The ultimate objective of this restructuring is to achieve maximum (economic) efficiency enabled via the free flow of capital. In turn, the influence of market conditions becomes pervasive not only in communities but also in individual lives by ingraining the importance of individualism, efficiency, and self-help (as opposed to systems, efficacy, and community). Instead, it as an all-encompassing political and economic philosophy that embraces the market, rather than the government, as the mechanism to satisfy all human needs. However, neoliberalism is more than just an approach to politics. It was believed that this new flavor of liberalism would prevent the problems supposedly caused by the first wave of trade liberalization.Īchieving such results required rejecting socially-liberal policies and embracing political and economic restructuring via privatization, deregulation, and support for globalization. neoliberalism, was promoted and ultimately adopted. To counteract slow economic growth, a new brand of liberal trade policies, i.e. Stagflation, characterized by a stagnant economy and high inflation, ensued and was highlighted by the recession lasting from 1973 to 1975. This period is often referred to as the “Long Boom” or the ‘Golden Age’ of capitalist expansion.įor a time, America’s economy flourished but by the the early 1970s was once again sluggish as economic growth slowed. ![]() A freer exchange of goods ushered in a new era of economic prosperity, particularly following the Second World War. In response to the economic fallout of the Great Depression, the federal government opted to embrace a liberalized approach to trade, meaning that trade restrictions were removed. It began with the second half of the Second Industrial Revolution, which led to the economic boom of the 1920s and the subsequent bust that caused the Great Depression that persisted through the 1930s. The twentieth century was a complicated time period in the United States. It could refer to intensified resource extraction, financialization, austerity, or something more ephemeral – a way of life – in which collective ideals of citizenship give way to marketized individualism and consumerism.” Greg Grandin ![]()
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