Essay On Neoliberalism

891 Words4 Pages
Introduction Neoliberalism is the philosophy behind realization of economic globalization. It is founded on the will to achieve a free market with minimized barrier to transactions involving exchange of capital, services and goods. Its functions are based on four principles that involve significance of economic development that suggests corporations should be subjected to reduced government rules and regulations and free operation of internal and global markets. The second principle includes the beneficial factors of free trade to all nations as they all possess a comparative advantage. Thirdly, the inefficiency and waste associated with government spending specifying that not all expenses are extravagant, but they can be reduced. Finally,…show more content…
Its aim is to facilitate free movement of enterprises and resources leading to high profit realization. To assist in achieving this objective neoliberals remain focused towards elimination of tariffs and all restricting regulations that serve as hindrances to access free trade. The main aim here is to permit the free market to logically stabilize itself through the pressure asserted by market forces of demand and supply leading to a market oriented but successful economy. Neoliberals suggest that the freedom of capital and resources, incorporated by a free market allows an equal distribution of resources across an…show more content…
Neoliberals tirelessly seek to achieve the privatization of the state owned enterprises like large industries, electricity production, schools among other goods and services. This is suggested in order to enhance efficiency and equality of service delivery to the entire society. To many this is a factor that facilitates inequality in resources distribution as there is increased consumers’ exploitation and at the end resources are left in the hands of a few people. This leads to increase in price and market information asymmetry in an

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