Neo-Liberalism and the Current Economic Crisis Analytical Essay by Nicky

Neo-Liberalism and the Current Economic Crisis
An analysis of whether the current economic crisis has been a death-knell for neo-liberalism.
# 149643 | 1,935 words | 5 sources | MLA | 2011 | US
Published on Dec 27, 2011 in Political Science (Fiscal Policy (economy)) , Economics (General)


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Description:

The paper discusses how though the global recession has shattered faith in current capitalist norms, unfettered globalization, and deregulation, proclaiming the death of the philosophy known as neo-liberalism seems premature. The paper explains the basics of neo-liberal ideology and discusses how the current government policy has been to improve the financial health of banks and corporations in the interest of the nation, a fundamentally neoliberal idea. The paper highlights how such remedies suggest that radical solutions to the problems that have been building since the real estate bubble burst have not yet been generated; instead, neoliberal solutions have been given an 'old spin' to manage and correct excesses of the business cycle, but not to fundamentally correct capitalist inequities.

From the Paper:

"Criticisms of neo-liberalism are not new. Even during the time neo-liberal policies were most in vogue, neo-liberalism was not without its critics: "the rich grow richer and the poor grow poorer," was a common lament as social theorists proclaimed it merely a reformulation of 'trickle-down' economics or Adam Smith-style capitalism based upon the idea that eventually prosperity at the highest levels would trickle down to the lowest stratum of society (Martinez & Garcia 2000). But now, even the middle-class members of the developing world draw back in horror at the burgeoning bonuses of CEOs and Wall Street managers who have ruined their companies as well as the necessary bailouts of major industries deemed too big to fail. The mass disgust at the excess and consumption that fueled neo-liberal expansion of both the very wealthy and the upper middle-class has grown. The credit crisis and the helplessness of major financial institutions makes the idea of tax cuts for the highest tiers of society, deregulation of the financial risks companies may take, and the belief that the free market will 'sort itself out' seem suspect.
'In contrast, the 1990s was often called a decade-long triumph of neo-liberal dogma. The core principles of neo-liberalism involved liberating "free enterprise or private enterprise from any bonds imposed by the government (the state)" even if this meant economic pain for many workers (Martinez & Garcia 2000). This pain was supposed to be short-term, as in the case of the 'shock therapy' imposed upon the governments of Eastern Europe and the former republics of the Soviet Union."

Sample of Sources Used:

  • Carreon, Juan. "World-economy: Not the end of neo-liberalism yet." Taken from Inter Press Service News Agency. April 3, 2009. May 29, 2009. http://blogs.fruxant.com/index.php/juan.php/2009/03/04/world_economy_not_the_end_of_neoliberali
  • Martinez, Elizabeth Arnoldo Garcia. "What is Neo-Liberalism? A brief definition."Global Exchange. February 26th, 2000. May 29, 2009.http://www.globalexchange.org/campaigns/econ101/neoliberalDefined.html
  • Kampfe, Gruppe Soziale. "The end of Neo-liberalism and the crisis of capitalism."Social Struggles. May 19, 2009. May 29, 2009. Los Angeles Independent Media Center.http://la.indymedia.org/news/2009/05/227187.php
  • Treanor, Paul. Neo-liberalism: origins, theory, definitionMay 29, 2009. http://web.inter.nl.net/users/Paul.Treanor/neoliberalism.html
  • Wolff, Rick. "Neoliberal Globalization is not the problem." Radical Notes.May 29, 2009. http://sanhati.com/articles/652/

Cite this Analytical Essay:

APA Format

Neo-Liberalism and the Current Economic Crisis (2011, December 27) Retrieved December 06, 2021, from https://www.academon.com/analytical-essay/neo-liberalism-and-the-current-economic-crisis-149643/

MLA Format

"Neo-Liberalism and the Current Economic Crisis" 27 December 2011. Web. 06 December. 2021. <https://www.academon.com/analytical-essay/neo-liberalism-and-the-current-economic-crisis-149643/>

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