Many argue that welfare is a social right because it not only aids the needy, but the government can also use it to create a loyal community. Expansive welfare states administered rights in return for the loyalty of welfare recipients. By the early 1970s, the expansion of the welfare state had weakened Americans’ work ethic and self-sufficiency. People believed that the welfare state could not maintain economic stability, thus prompting Reagan and his administration to pursue an alternate route regarding economic and political policies. In the 1970s, there was a backlash against government intervention in the economy. This began the shift toward neoliberalism, which is “an outgrowth of the U.S. liberal movement, beginning in the late 1960s, that modified somewhat its traditional endorsement of all trade unions and opposition to big business and military buildup” (Dictionary.com). Neoliberals believed social programs did more harm than good and that welfare increased single motherhood and the lack of work ethic. The neoliberal movement involved privatization, less regulation, and cuts in marginal tax rates. Neoliberalism was inspired by the…show more content… As the government relied on states to provide social services that aided the poor, social inequalities widened. Unemployment spread across the country and the rich kept getting richer and the poor got poorer. Even though taxes were cut, the cuts only benefited the top five percent of taxpayers. Neoliberals believed that “cutting taxes would inspire Americans at all income levels to work harder, because they would keep more of the money they earned” (GML 831). Trickle-down economics was supposed to keep the market running smoothly, but the wealth never seemed to trickle down, despite tax-cutting programs. However, neoliberal policies have been shown to be overall effective and stable over time when looking at countries such as