The Revival of Labor Liberalism - Essay Example

Economic Liberalism Dominating Business Today Economic liberalism, which is also referred to as classical liberalism is basically a set of ideas that are aimed to support the rights of an individual or an organization as well as the freedom of contract. It advocates for capitalism and the removal of barriers to trade. Furthermore, it champions for cessation of the government with privileges such as subsidy and monopoly (Jason 2005). This policy has been dominating the policymaking in both the US and the UK. In addition to this, it has been slowly been assimilated by other states that have seen the need to adopt to it while others have been dictated to adopt the idea. For instance, the third world countries which depend mostly on financial assistance from the West have been forced to strictly follow this policy through the World Bank or even the IMF. Despite the policy having competition from states that prefer socialism to capitalism, it has continued to dominate the business world especially after the collapse of the socialism era (Barry 1993). How the policies of liberal business have managed to dominate in business up-to-date For many years, the liberal form of economy has been dominating the business world. Furthermore, updating of the classical liberal economy to the now neo liberalism has contributed numerous terms of dominating the business empire. For instance, it has played a vital role in the economic policy making in US and the UK, dominated economic policymaking in the US and the UK. Although the theory has faced numerous oppositions in the business world, it has continued to dominate some parts of the world in its own way. A good example is the third world countries have been forced to adopt the liberal policies through organizations like the IMF and the World Bank (Jason 2005). There was a comeback in the old religion of classical liberalism, through academic economics, and then in the real field of public policy. The neo-liberalism has been clearly viewed as an economic theory, as well as, a platform of policy making. Due to its capitalism nature, the market is free for individual choices that are able to meet the ultimate goals of economic success together with its distributional procedures (Barry 1993). In most cases, the state has very little command in terms of property rights, law enforcement, and limiting the amount of profit an individual or company has made. For this reason, a state cannot act as a mediator because of mistrust amongst the business partners. The policy on liberal economic theory is mainly based on the regulation of welfare state whereby, there is privatization of public assets, tax regulation, and business regulation. Additionally, this it has embraced the investing class too. Internationally, liberalism encourages liberated transit of goods and services across the borders globally (Andrew 2008). The policy has been a success by ensuring that different corporations, individual investors, as well as, the banks are free to transact any form of business without being limited by the boundaries of a state despite such action being not part of the liberalism policy. In 1970s, economist viewed the liberal theory as just a temporal solution towards the economic in stability at that time. This is because the key Asian regulations’ policies never solved their solutions at that particular moment. The only possible solution was to shift their attention to the liberal policies, which was their only way out to counter the obstacles that hindered them from making any substantial profit (Andrew 2008). However, the policy proved to be adoptive on a more permanent basis rather than being a temporal solution. Such policies have made it possible for the likes of politicians such as Margret Thatcher of the UK and her US counterpart Ronald Reagan to be on the map of success under their parties’ administration in 1990s hence solidifying its dominating ground in the economic world (Sawyer and Arestis 2004). The changes of the competitive structure of capitalism have also played part in ensuring that liberalism has maintained its dominance over the decades. Weakening socialism and communism movements in capitalistic states have continually played a role in ensuring the stability of liberal economic policy. Furthermore, the collapse of states such as USSR that was in the forefront in championing for socialism promoted the liberal dominance. In addition, to this it has taken years for the business world to experience a major economic crisis as is witnessed now (Neil and Kevin 2007). It is through the decline of the social movements in industrialized countries that have adopted the capitalistic ideology having declined significantly over the years. Hence, leads to the adoption of the liberal policies which are in sync with the capitalistic ideologies (Neil and Kevin 2007). Seemingly, there was the existence of communists run states that offered alternative to social economic that wanted to push capitalists towards a state regulation policy. This caused fear and panic among those who were involved on the whole process. Incidentally, capitalists had a view that the working class, which was the majority would soon turn against them. They were forced to have mutual understanding among themselves, as well as, developing ties among states that promote capitalism. Consequently, the collapse of the socialism era in1989-1991 ensured that they contributed in the reinforcement of the regulations state. Benefits of the Liberal Economic theory, Policies and Institutions to the Business world The most significant aspects of liberalism are: liberated elections, free deals, free will of religion and political autonomy. It is believed that liberalism will always be a profitable scheme because it has no economic boundaries. Individuals are driven by returns and exercise their own power in ensuring that the economic system is kept and well in order to make more turnovers (David 1998). This is one of the key aspects of liberalism. In a liberal system, citizens have the right to open businesses and put it, both in the open and private system. Liberal economic hypothesis is not simply an ideological foil that entails realistic and thorough theories, nor an eclectic compilation of hypothesis linked only by common rational history and normative obligation (Jason 2005). But it is instead a logical consistent, theoretically dissimilar, empirically generalizable social scientific theory. This is one that mostly follows from explicit assumptions and generates a well-off range of related propositions about global politics that outlines beyond cases of collaboration among minority of noninterventionist states. The free exchange of goods between nations could possibly drive the nations into a peaceful world. This state of free market, have the potential to set nations free from the looming prospects of recurrent warfare. The policies also increase liberty and prosperity. They empower the commercial class politically and abolish royal charters, monopolies in order to promote entrepreneurship and increase productive efficiency (David 1998). Individuals are motivated in the normal order by the longing to improve their material state, and given an appropriate economic surroundings competition among them will normally create beneficial consequences. Such a background requires the liberated movement of labor, capital, and goods; many buyers and sellers; security of person and property; and the abolition of monopolies, tariffs, and regime regulation of production and consumption. Consumers can choose what they regard as good for them. Moreover, persons are free to set up businesses or engage in lawful worldwide trade and companies are liberated to battle in a fair manner (Earl 2003). Times when citizens are without charge and free markets exist, every person is able benefit. It demonstrates a positive association in which nations with greater levels of financially practical liberty, profit from higher employment rates. Economic freedom and market economy profits not only traders and corporations but also consumers (Ellen et al 1998). In a free market environment, producers or suppliers have to compete on value, fee and service to win clientele who have the freedom to choose from a large variety of choice. It also advocates a relaxed constraint on environmental guidelines, which allows for greater production opportunities without the burden of overregulation (Sawyer and Arestis 2004). Certainly liberalism has had countless positive effects on the business world, both in America and around the globe. Because of the conservative stress on the quest of possessions and business success without governmental intrusion, the financial system is allowed to grow as big as practicality will allow (Ellen et al 1998). Entrepreneurs are liberated to work hard, put in their money, and take risks without worrying about the management restricting their activities. In this structure, countless innovations in farming, manufacturing, medicine, and machinery have been allowed to occur. With no excessive taxation, more money is dedicated to the actual research and operations of the trade which gives more opportunity for the business to grow. In a free industry market employers are not obligated to pay certain remuneration to workers. Employees are free to decide whether or not to labor for the company at the given wage, but further than that, the company is not burdened by having to disburse excessive wages because law demands that they do so (Jason 2005). In the long run, the higher returns of the trade will result in more duty being paid, which is also contributing to the expansion of the income tax base. Bibliography: Andrew, B., 2008. The Revival of Labor Liberalism. University of Illinois Press. Barry, F., 1993. Remaking Liberalism: The Intellectual Legacy. McGill-Queens publishers. David, C., 1998. Classical Liberalism: The Unvanquished Ideal. Palgrave Macmillan publishers. Earl, R., 2003. Liberalism: Time-Tested Principles for the Twenty-First Century. Universe publishers. Ellen, M. et al., 1998. Problems of Market Liberalism: Volume 15, Social Philosophy and Policy, Part 2 .Cambridge University Press. Jason, S. 2005.Building New Deal Liberalism: The Political Economy of Public Works, 1933-1956 .Cambridge University Press. Neil, J and Kevin, M., 2007.Liberalism for a New Century. University of California Press. Sawyer, M and Arestis, P., 2004.Neo-liberal economic policy: critical essays. Cheltenham, UK; Northampton, MA, USA: Edward Elgar Publishing. Read More