Neo-Liberalism - Essay Example

Insert How Milton Friedman Supports Neo-Liberal Policy in Regards to Government Regulation of Industry and Free International Trade
Milton Friedman supports neo-liberalism to the effect that there should be little emphasis on the government since the government is usually costly and inefficient. Friedmans kind of neo-liberalism espoused the type of neo-liberalism where the economy and industries regulate themselves and therefore, being able to balance their deficits and gains. In this case, private businesses and industries are deemed as commendable since they are very efficient, and are thus, the best way of solving problems (Steger and Roy, 13).
According to Philoguy, this is because, with private businesses, wealth trickles downwards from the rich capital owners to the middle class and low income earners, since businesses and industries create jobs. These jobs, together with the revenue they churn, help pump money into the economy, and thereby leading to more jobs. Because of the above standpoints, the government should let markets be controlled by market forces, so that there is free international trade (Philoguy, 1).
How the Opponents of Neo-Liberalism Criticize the Unregulated, Free Markets Promoted By Neoliberals
Opponents of neo-liberalism criticize it for its unregulated free markets as is promoted by neoliberals by arguing that free markets deny governments of sources of revenue, since governments are not supposed to exact tariffs on goods and services that are being traded. Again, the same argue that leaving markets and industries in the hands of market forces automatically means, making a dereliction on price controls and consumer protection. This therefore paves way for exploitation of the masses by entrepreneurs and rich capital owners. There are others who see unregulated free markets as unfeasible because it is based on assumptions that markets are equal yet they are not (Luxton and Braedley, 66).
Works Cited
Luxton, Meg & Braedley, Susan. Neo-liberalism. New York: SAGE, 2011. Print
Philoguy. "What is Neo-liberalism?" Daily Kos. Retrieved on June 4, 20113; from: http://www.dailykos.com/story/2011/08/16/1007496/-UPDATED-What-is-Neoliberalism# Electronic
Steger, Manfred & Roy, Ravi. Neo-liberalism: A Short Introduction. Oxford: OUP, 2010. Print Read More