Neoliberalism Research Paper

The Faults in Neoliberalism Neoliberalism attempts to convert the control of economic factors from being public, to being completely privatized by reducing government control and excluding its power from the markets completely. Neoliberalism thoughts believe the government is interfering too much in our economy and that we would be better without the government's influence on the markets. Neoliberalism has setbacks, alike any ideology; but these setbacks are very difficult to see with the naked eye. Neoliberalism’s main strategy is to make a free market by introducing large-scale tax cuts and to pump credit into the system. These two strategies are what cause the main faults in neoliberalism and what lead to the crash of an economy. …show more content…
The social safety net is an invisible net in our economy that is paid for by the taxes of all, but mainly being funded by that of the upper class. This “net” is a way of redistributing wealth from the upper class throughout the economy to keep things “equally” balanced. The social safety net is what supports our economy and keeps our social class pyramid stable. This is where we classify the wealth of the economy and who is considered upper-class, middle-class, and lower-class. The social safety net is what pays for social services, used and relied upon by many on the day-to-day basis. This net is what keeps many from being portrayed as lower class and is a key reason to why many are kept out from under the “poverty line”. The significance of including the social safety net with tax cuts is because the net relies tremendously on taxes in to keep afloat. Neoliberalism philosophers thought is “why should rich people be penalized for being rich?”, which implies that the wealthy should not have to pay high taxes for being successful and that they should get a tax break in reward of their hard work. Tax cuts are introduced, leading to lowered taxes for not only the wealthy but for everyone in the economy. This is a misleading concept; instead of benefiting all, due to paying fewer taxes, it only helps the upper class. Due to these tax cuts, the upper class does …show more content…
Tax cuts were designed to feed a money hungry upper class who didn’t need to accumulate more wealth. Once tax cuts backfired and started affecting business and corporations, credit loans were increased as a “cover-up” to their previous mistake. Credit loans were designed to return the market to how it originally functioned before introducing tax cuts. For a while the economy looks to be expanding and improving but, its just postponing an inevitable crash of the market and in result crash of the economy, due to an issue brought upon itself by tax cuts. The government needs to have control over the markets to keep up a stable economy. With the absence of government control, the overcoming greed of people and self-interest gets in the way of running a stable economy. The market needs to be publicly owned and the social safety net must be active to keep a relatively stable social pyramid. The least amount of people in poverty and the most stable and striving middle class is what will contribute immensely to a well-designed economy and a striving

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