The paper "The Importance of Neo-Liberalism to Economic Policy-Making " is a great example of a business assignment. It was after the Second World War that the corporate enterprises helped in the creation of a wealthy class in the society of the time where they enjoyed excessive political influence which they had with the governments both in Europe and the U. S. this was what led to the surfacing of neo-liberalism from the reaction by these wealthy elites so as to counteract the policies of post-war that looked to favour the working class as well as strengthening the welfare state.
The policies advocate for commercial activity and market forces as the methods that are most efficient for the production and the supplying of goods and services. It the same instance, they happen to shun the state role thereby discouraging government intervention into economic, social affairs and finance. The importance of neo-liberalism to economic policy-making The neo-liberalism concept has in the past twenty years become widespread in some academic and political debate. Neo-liberalism is suggested to be the dominant ideology that is shaping today’ s world and therefore the claim that we are living in the age of neoliberalism.
According to Thomas Friedman, neo-liberalism is perhaps perceived to be a descendant of liberalism where traditional liberal demands for ‘ equality of liberty’ are bent into a demand for total liberty for those who are most talented and their enterprises too. This means that without laying proper economic policies in today’ s world, it will be very hard to put up with the economic pace (Martinez, 2006). The concept of neoliberalism is one that advocates for a trilogy of policies that are known as, privatisation, liberalization, and also stabilization.
With liberalization referring to the freeing of firms and markets from the state regulation, this comes with the need to make economic policies so as to be able to remove the barriers to the movement of goods as well as capital across the boundaries in an organised way. And to be able to achieve stability, there is a need for economic policies. On the other hand, is privatization, this is the turning of the state corporations/enterprises to privately owned ones.
If there are no clear economic policies while a government does this, it may have all these enterprises fall on the wrong hands. Lastly, we have the stabilization which refers to the shifting o the monetary policies so that they can focus solely on inflation prevention instead of promoting economic growth and lower unemployment. The state fiscal policies are directed to the reduction of taxes on the rich and businesses or even eliminating social programs. Neo-liberalism comes in and makes the governments reinvest in better economic policies (Palley, 2004). Being a set of economic policies, neoliberalism has its effects seen where the rich grow richer while the poor continue to grapple in poverty and this may mean that the poor need to make effective policies that may enable.
That being the argument from the critics, neo-liberalism is in economic terms the desire to expand and intensify the market. This can be done by increasing the frequency, number, repeatability, and the formalisation of transactions. This requires that there be proper economic policies (Palley, 2004). Neo-liberalism’ s goal is there to be a universe where every action of being in a market transaction and the transaction done in competition with every other being while at the same time influencing more.
This requires policymaking. With most of its aspects, such as supplier maximisation, creation of sub-markets, speeding the speed of trading al require there to be efficient economic policies. This means that neo-liberalism is important for it brings in the need for various policies.
Martinez, E. (2006). What is Neoliberalism? Retrieved December 12, 2011, from CorpWatch: http://corpwatch.org/article.php?id=376
Palley, T. I. (2004, April). From Keynesianism to Neoliberalism: Shifting Paradigms in Economics. Journal of , 785 - 804.
Wolf, M. (2004). Why Globalization Works.
World’s Resources. (2006 , November 26). Globalization. Retrieved December 12, 2011, from http://www.stwr.org/globalization/neoliberalism-and-economic-globalization.html