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Reflection Paper (PRODUCING PEOPLE AND THINGS: ECONOMICS AND SOCIAL LIFE ) - Essay Example

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The term neoliberalism refers to a set of policies that are emphatic on the removal of controls, so that there is free competition and free enterprise and the extension of the chance for capitalists to carry out profit maximization. Essentially, neoliberalism encompasses free…
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Reflection Paper (PRODUCING PEOPLE AND THINGS: ECONOMICS AND SOCIAL LIFE )
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Download file to see previous pages The cardinal points of neoliberalism are the rule of the market, deregulation, the abatement of public expenditure for and social services, privatization and the assigning of less importance to the community and public good. In the rule of the market, the market is liberated from constraints imposed by the government, while deregulation involves the reduction of government regulation for the purpose of heightening profits. While privatization entails the selling of state-owned enterprises, services and goods to private investors, the abatement of public expenditure for social services portends the reduction of safety-net for the society’s underprivileged and the maintenance of the healthcare, infrastructure and education. In reversing the importance of the community and public good, individual responsibility is emphasized, so that individuals can fend healthcare, social security and education for themselves. Those unable to meet these values are labelled lethargic.
Nevertheless, neoliberalism in itself has been extant even in the Cold War era, an era in which the democratic and capitalist America wanted to inhibit the spread of communism which was being propagated by the USSR, under the tutelage of Russia. Although neoliberalism is pointed as readily being concomitant to freedom and liberty, the same has not been consistent with these lofty ideals. The modus operandi that the US used to facilitate the suffusing of neoliberalism into Latin America is replete with contravention of democratic principles. For instance, in 1973, America through the CIA staged a coup d’état against Chilean democracy and the duly elected Salvador Allende Gossens (1908-1973), before murdering the latter, for his leanings towards socialism and nationalisation of state resources. The US would then proceed to install forcefully, Augusto Pinochet as a capitalist puppet (Harvey, 2005: 3).
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