Neo-liberalism

Introduction

The essay aims to investigate the comprehensive and significant understanding of Neo-liberalism in the light of famous scholars. The essay includes findings of scholars from various countries and their views. According to Friedrich Hayek in the book of Hamm B., Charles Russell S “Neo-liberalism is lastest political movement that provides different concepts and favor the free trade, economic liberalization, deregulation and optimizaing private sector” (147). The term “Neo-liberalism” refers to a varied set of economic policies that have slowly made their way into modern society, in every corner of the world. The effects of neo liberalism are felt everywhere, even though it is insisted that the concept does not exist in the United States. Economical pressures and political emphasis meant that this concept had to originate during the 60's, in the name of economic growth. Although it attempts to stay liberal while blending political views, it has been criticized for its ability to make the rich richer while the poor are becoming poorer. "Liberalism" relates to political, economic, or even religious concepts. Political liberalism has long been used as a conflict resolution strategy, where it is presented to the poor and working class as being progressive in comparison to conservative or Rightwing strategies. In the U.S. political liberalism has been a strategy to prevent social conflict. Neo literally means “new”, hence this term means a new kind of liberal approach towards national problems. In this paper, I will be analyzing Neoliberalism at its core, and examining its principles, consequences and worldwide implications. According to David Harvey “Neoliberalism has left an ineradicable, flaming mark on our world's economy, industry, and politics for the last thirty years” (1). He believes that Neo liberalism is the economic political practice that gives the chance for the economic freedom and human well being.

Discussion

According to the German economist Wilhelm Röpke, the term neoliberalism was coined in Paris in 1938 at a Colloque Walter Lippmann, a symposium held to discuss Walter Lippmann's recently released book, The Good Society (25). “Neo” means one is speaking of a new kind of liberalism, hence it must be established what the old kind was. In Adam Smith's 1776 book named “the Wealth of Nations”, it was insinuated that the lifting of taxes as well as government intervention of any kind in economic matters was liberalism. Chomsky N. argued that “The very design of neoliberal principles is a direct attack on democracy”. (9).

According to smith as well as others, the best way to encounter economic growth in the public sector was to ensure the government places no restrictions on manufacturing goods. He also believed that barriers must be lifted to commerce, free trade must be allowed in order for the nation's economy to fully develop. This led to the coining of the concept of individualism in trade, and gave rise to free enterprise and competition. This also meant that the capitalists could thrive massively due to the economic growth of the time. This older form of liberalism was found to exist in ...