What is Neoliberalism & how it is ruining Global economy

Freedom is a concept advocated by most of the social movement in modern history. Social issues arise as a result of unchecked freedom enjoyed by social members, finally leading to economic instability, inflation, bad governance, unemployment, and corrupt society at large as well as rising social deviance. These issues are also a result of society’s way of having the governments adapt to social ways. This unregulated way of having freedom goes back to the political theory of ‘neoliberalism’. Interestingly, neoliberalism is not advocated by any of the political theorists.
The term ‘Neoliberalism’ was first coined by a German scholar Alexander Rustow in 1938. It was adopted as a way of governance by most of the countries in twentieth century, which sprouted from a political economic theory. This theory proposes that the government should not hold a role in running a country’s economy. The pioneers of this theory knew that the ideology would influence a society and national policy in a revolutionary way. Privatization, deregulation, free trade, fiscal austerity, and dismantling of union power, are the basic tools and motives of Neoliberalism. Interestingly, in every country, the influence on national policy centres on the growth of the private sector of the economy.

Neoliberalism advocates free economy, which implies that the profit maximization is the ultimate goal of each enterprise. Individuals are used as tools and means in meeting this goal. Policy makers try not to interfere with the functioning of the business organizations. The soft approach used in drawing economic strategies and regulations give corporate sector a free pass to exploit consumers and clients. Eventually, the rich get richer and the poor get poorer. The crime rate and social deviance rise as a result of the vicious class system created by such trade system. It is interesting to observe that neoliberalism and capitalism go hand in hand with each other on philosophical grounds, which explains the reason for the support that policy making bodies extend to the corporate sector. This equates diminished tax collection as well as price hike and unemployment. The recent years of financial crisis around the world are evidence of the adverse impacts of neoliberalism on a state.

Neoliberalism is normally misjudged as neo-conservatism since they share similar standards with respect to nature of the state. In any case, the qualification between the two is identified with the way that neoconservatives are more worried about governmental issues while neoliberals tend to concentrate more on monetary methods of insight. At long last, neoliberalism is particular in its relationship to monarchism, whereby neoliberals emphasize the contention progressed by monarchists that the part of the state is confined to just offering insurance to the subjects and not meddling in financial movement.