Between Market Freedom and Socio-Economic Risks is Neoliberalism

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Neoliberalism is a school of thought in economics that supports free markets and personal gain. There are a few points to take into account before adopting this viewpoint as the only one, despite the fact that it may seem favourable to some.

Neoliberalism holds that markets shouldn't be subject to onerous regulations or government interference. Neoliberalists think that the greatest approach to guarantee effectiveness and wealth is through free competition. They thought that by getting rid of regulations, the market would find its own equilibrium and deliver the best results for society.

Neoliberalism does, however, have some unfavourable effects that are frequently disregarded. First, unbridled competition frequently results in monopolies and oligopolies, in which a small number of dominant companies dominate the market and stifle competition. As a result, costs can go up and there might be less innovation. Second, because economic advantages frequently go to a small number of the wealthy while the majority of the poor do not, neoliberalism can exacerbate social inequities. Finally, because the economic gain is prioritized over the welfare of people and the environment, neoliberalism is able to ignore social and environmental issues.

Neoliberalism has actually led to significant issues all around the world. As an illustration, consider the 2008 global financial crisis, which was brought on by the financial markets deregulation and their inability to govern themselves. However, neoliberal nations frequently enact austerity measures that increase social inequality, unemployment, and poverty.

Neoliberalism has some benefits, but we also need to take into account its drawbacks. We need to make sure that the market is properly controlled and find a balance between social fairness and efficiency.

References:

Harvey, D. (2005). A brief history of neoliberalism. Oxford University Press.

Stiglitz, J. E. (2013). The price of inequality: How today's divided society endangers our future. WW Norton & Company.

Klein, N. (2007). The shock doctrine: The rise of disaster capitalism. Metropolitan Books.

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