Globalization Of The Twentieth Century Essay example

1088 Words Sep 10th, 2015 null Page
A Shift to Neoliberalism
In the final four decades of the twentieth century, America underwent a stupendous shift in national politics and economics scales. Politically, government embraced neoliberal policies that favored the economic and social theory of free market to encourage deregulation and privatization to result in economic restoration against inflation. Economically, deregulation favored wealthy corporation to reduce wage on workers and expend their savings to invest which expanded income inequality. In the beginning, state-centric system dominantly supervised the regulation of the U.S. economy, however, the rise of neoliberalism in the seventies and eighties enhanced the role of the private sector that widened the income gap between rich and poor. Neoliberalism negatively impacted on Americans when it contributed to work degradation, unequal distribution of wealth, weak labor unions, and null democracy. Although neoliberalism praised the virtues of free markets, free trade, and private enterprise, it tolerated companies that led to deindustrialization. The deindustrialization reconstructed the American economy when many companies relocated factories aboard causing millions of workers unemployed, so neoliberal state empowered American corporations which served a threat to democracy of ordinary citizens.
Neoliberalism favored free market system which led to reduction of government regulations and top tax rate, yet it encouraged private investments aboard which…

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