programs eligibility requirements for certain insurances like the employment

Programs eligibility requirements for certain

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programs, eligibility requirements for certain insurances like the employment insurance (EI) became stricter. As a result, economies faced lower market values of goods and services produced within a country. For instance, Gross Domestic Product (GDP) in Canada dropped from 17.5% to 11.3% by 2000 (Robbins 47). In general, neoliberalism worked at eliminating several social programs in order to make citizens less dependent on the government and reduce government deficits. Besides retrenching social programs, neoliberal globalization dismantled the strong union structure in the Keynesian Welfare State. With the Keynesian economy focused on labour rights, neoliberal globalization emphasized paying labour and capital their worth. And so they did not believe in the necessity of social programs and collective bargaining. For them, the market provided fair return on labour and capital meaning that wages and prices were fair and sufficient. The government interference and excess spending of public expenditure produced strict regulations on the economy. In order to deregulate the economy, neoliberal policies ventured for employment insecurity. Two main ways of achieving employment insecurity was to outsource jobs or to reduce the role of unions in the economy significantly. Outsourcing jobs would make workers hesitant to quit jobs and reduced union participation would result in lower demand of higher wages. By outsourcing cheap labour to a developing country, neoliberalism proposed stronger global connections and flourishing economies. In neoliberal globalization, unionization faced strain in maintaining market position. Collective bargaining policies produced negative impacts on the market, frustrating the decentralized economy. Labour market deregulation proposed lowering the minimum wages which in turn undermined unions (Keizer 177). In addition to deregulation, foreign competition
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was vastly increasing which forced economies to show positive economic growth potential. Through deindustrialization, decentralized economies closed older less-productive plants to inhibit foreign competition. Another purpose of deindustrialization was to reduce the role of unions in the neoliberal economy. Indirectly, Neoliberal policies economized the strongest unions by retrenching the oldest production plants (Boltz 184). Besides deindustrialization, institutions began privatizing. In other words, individuals gained control and choice over business ventures. While in Keynesianism, the government was the sole head that ordered money to be spend independent of consumer choice, neoliberalism put the reign back into business owners. Institutions that were most privatized were Crown corporations as they were owned by the government. Privatization formed a decentralized economy, one that functioned on a neoliberal globalization platform
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