Culture : Neoliberalism
Government has few controls over on economic factors.
Adam Smith – 1776 book – An inquiry into the nature and causes of the wealth of nations.
Neoliberalism advocates propose:
1.) The reduction or elimination of most business regulation
2.) The government should be required to balance its budget
3.) Taxes should be low and simple to calculate over a very broad base of taxpayers.
& Government should divest itself of any service that can be provided by the private sector.
& Trade among nations should be open with few if any protectionist constraints.
Proponents of neoliberalism believe it provides the greatest possibility for economic growth, and the most equitable distribution of wealth among the population.
Critics think it creates too many financial hardships for citizens, especially the poor. They argue the government should control the economy, to mitigate the effects of economic ups and downs. They believe that this type of control is what leads to a more equitable distribution of wealth.
An approach to economics and social studies in which control of economic factors is shifted from the public sector to the private sector. Drawing upon principles of neoclassical economics, neoliberalism suggests that governments reduce deficit spending, limit subsidies, reform tax law to broaden the tax base, remove fixed exchange rates, open up markets to trade by limiting protectionism, privatize state-run businesses, allow private property and back deregulation.