Logic of Neoliberalism - Essay Example

Neoliberalism Neoliberalism refers to economic policies, which have become prominent in the last 25 years. One common economic effect of these policies that is evidently seen in our today’s society is the fact that the rich continue being richer as the poor grow poorer. Liberalism is wide term and neoliberalism developed from it. Liberalism is a broad aspect; it touches aspects of politics, economics, as well as religion (Shah, 2010). The US had even embraced political liberalism in its quest to prevent social conflict. Neo refers to a new kind of liberalism. It differs from the traditional liberalism. At some point, economics advocated for the abolition of government intervention in economic matters and there were no restrictions whatsoever on economic matters. This paved way for free trade and competition allowing capitalists to maximize profits, as they desired. In the US, this type of liberalism prevailed through the 1800s and the early 1900s. US experienced a capitalist crisis much later on that was coupled with shrinking profits rates. This motivated the elite economists to revive economic liberalism hence neoliberalism, which has been met with criticism. In the United States, it has been said to destroy welfare programs, cutting back social problems as well as attacking the rights of laborers (Shah, 2010). The supporters and those benefiting from neoliberalism are a minority, compared to the world’s population and for the majority; it has brought suffering and denied protection of children, youth women as well as the globe itself. The minority who are benefiting from this new liberalism fail to realize that they are contributing to the undermining of the rights and privileges of the majority. Logic of Neoliberalism The Rule of the Market Free trade leads to social damages since no restrictions will mean reduced wages following de-unionizing of workers and eliminating their rights. Supporters of this will claim that it will lead to increased growth. They fail to realize that it will not benefit everyone bit will oppress the majority. Cutting Public Expenditure for Social Services Expenses for infrastructure and social amenities such as hospitals and schools as well maintenance costs of infrastructure of road is minimised in the name of reducing government role. This is done but benefits received by the government such as subsidies and taxes are not minimised. Deregulation This involves reducing government directive on any that might hinder with maximizing of profits including environment conservation and safety of the jobs. Privatization Privatization of state owned enterprises and services such as banks, key industries, social amenities and electricity as well as fresh water supply. This will of course lead to concentrating the wealth only for the minority and the major populace will have to stretch harder to attain services from this enterprises. Eliminating the Concept of "The Public Good" This is usually replaced with individual responsibility and the poor or majority of the populace have to find solutions to problems such as health care, education, besides social security. Failure to attain solutions to solve these problems will brand them as lazy. Neoliberalism’s underlying Assumptions The chief players entail the state Neoliberalism fails to recognize the role played by the citizens of the state. The supporters of these policies fail to recognize that the federal government is responsible for its citizens and should only support and prioritize their interests. The international system is characterized by interdependence. There is more to international system than mere interdependence. As much as free trade will aid international systems, though the consequence of this ought to be overlooked. States mainly prioritize economic gain. This assumption is one factor that has led to the negative consequences of neoliberalism. The supporters fail to acknowledge that social advantages are of more importance especially to the majority of the populace. The new liberalisms policies have only frustrated these social advantages. International relations are peacefully driven by selfish economic behavior. Neoliberalism focuses on mean ways of ensuring international relations. It fails to realize that International relations can also be promoted through other means that do not necessarily regard infraction of citizens rights (Mexico Solidarity Network, 2015). Neoliberalism has focused more on creating trust with other nations and building on their relations that it has neglected most of its internal affairs. It has neglected the needs of the poor and weak in the society. Issue Drug trafficking in Mexico has become quite rampant and has frustrated other economic activities on the region. Trafficking of narcotics was a problem even before neoliberalism but the aspects of NAFTA (North America Free Trade Agreement) supplemented the activity with appropriate conditions for the development of more cartels (Morales, & Watt, 2010). Such conditions include free trade and competition as well as the privatization of institutions. The cartels in Mexico also started taking advantage of the poverty in the country and the susceptibility of the society. The policies of neoliberalism weakened the Mexican state. Mexico used to be an importer of maize and beans, which are the most ancient products from the state (Morales, & Watt, 2010). Richer countries are now importing these products since the Mexican farmers cannot give a prize competitively favorable compared to others. By 2007, a kilo of illicit drugs could go at price 300 times higher than a kilo of Maize. This is a consequence of NAFTA and now more hectares in Mexico have been dedicated to growing of poppies than Maize. It is also unfortunate that minimal efforts are done to increase rehabilitation programs for the drug addict in the US. Pros and Cons of Neoliberalism in Mexico Cons Neoliberism has promoted the increase of illegal arms in Mexico.90percentage d the arms in Mexico originated in the US and this is prone to increase the levels of insecurity (Morales, & Watt, 2010). NATFA has affected majority of the farmers of Mexicans who stopped farming because they couldn’t demand a good price for their products (Delong, 2015) Neoliberalism implemented since 1982 has encouraged migration from Mexico to the US. It is currently the largest cross-border movement on the planet. Developers are talking over the land liberated by those who are migrating Drug traffickers are also manipulating these lands to grow more poppies and marijuana The policies of neoliberalism threaten the public health because of its philosophy. The decentralization of health sector has led to delayed response to matters of urgency. This is evident in the case of swine flu strains where there were forced to send samples to the Canadian Health ministry and CDC in Atlanta. It was a costly move because the federal government could ac promptly. Pros Neoliberalims was passed hoping that it will improve internal competition, which is healthy and leads to increased productivity (Einbinder, 2011). This led to passing of internal treaties to guarantee free trade and guarantee the rule of law. Neoliberalism allowed for the reduction of barriers to movement of capital in Mexico (Mexico Solidarity Network, 2015). It also allowed for the opening of markets to global exchange (Einbinder, 2011). Work cited “Neoliberalism”. Mexico Solidarity Network. 2015. Web. 10Th September 2015. Delong, Bradford. Has Neo-Liberalism Failed Mexico? Project Syndicate. 26Th September Web. 10Th May 2015. Einbinder, Mary. A Brief History of Neoliberalism, Atlanta-Community.Org. n.d. Web. 10Th May 2015. Morales, Daniela, & Watt, Peter. Narcotrafficking in Mexico: Neoliberalism and a Militarized State. Covering Activism and Politics in Latin America. 17Th September 2010. Web. 10Th May 2015. Shah, Anup. A Primer on Neoliberalism. Global Issues. 2010. Web. 10Th May 2015. Read More