Neoliberalism Analytical Essay

Neoliberalism Analytical Essay - Gordon Eric MAX-132...

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Gordon, Eric MAX-132 Essay #2 Northrup 11:40am class 1,257 words Neoliberalism Analytical Essay Shortly, after World War Two there was a major shift in the methods and atmosphere of global economics. This theory, known as Keynesian Economics, suggested that the government and the state had to take an active role in economic regulation. The creator, John Maynard Keynes, believed that government instituted social programs, and solid infrastructure would help push the economy through slower periods. While this theory was widely accepted and generally successful for about twenty years, by 1980 another major shift had occurred. Spikes in oil prices and widespread stagflation in the 1970’s opened the door for a new theory to set in. This new practice, known as Neoliberalism, originated in Austria and took root in Chicago slowly spreading across the globe. Although there were and still are many critics of Neoliberalism, it continues to exist as the guidelines for our world economy today. Highly different from its predecessor, the Keynesian theory, Neoliberalism advocates free market economics with little state intervention. Government protectionist policies are adamantly discouraged. Upholders of this idea view tariffs, subsidies, and trade barriers as poison to the global market. Their belief is that a completely free market brings about the most widespread economic prosperity by creating jobs and linking global industries. A focus of globalization is the alleviation of poverty. The spread of MNC’s is therefore seen as favorable because it creates jobs in production factories. It is for this reason that major global corporations such as Nike, Walmart, and Nestle have production plants in extremely poor parts of developing countries. This is seen as favorable for a few reasons. First, employing poor citizens to do factory work allows the MNC’s to mass produce their products for little cost while creating jobs in factories.
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Neoliberalism Analytical Essay - Gordon Eric MAX-132...

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