The primary victim of the political and economic crisis of the 70s was the traditional Keynesian policy, which was viewed as the model for progression of states’ economies (Pilling 2014). The decade’s trouble was typified by unprecedented, concurrent high inflation and unemployment rates, which the dominant economic premise of the time, Keynesian theory – was unable to resolve. High inflation and unemployment and the accompanying recession it generated led to the term stagflation. Furthermore, stagflation created a crisis for the corporate world’s capacity to make economic projections with a degree of certainty. In early 70s, governments of developed world including the media and scholars understood the association between the state and the
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Hence, the state lost its power in this sense during neo-liberalism period. Targ persuasively argues that both the right-wing and left-wing accounts are inaccurate. He suggests that neo-liberalism emergence was not because of the decline of welfare state or the strategy set up by capitalists, but because of a continuation of impromptu moves from the politicians, media, economists, scholars, activists in reaction to a string of political and economic scare that began in the 70s (Targ …show more content…
Although this is happening at a national level, the effect of globalisation is making the effect be felt at the regional and global level. This even began post Wold War II when the world was experiencing the gold age of capitalism and later plunged into economic and political turmoil in the 70s, something that was blamed on state interference. This led towards neo-liberalism in the 80s where privatisation, deregulation and non-involvement by the state marked paved the way for liberal markets to thrive. It is argued that neo-liberalism paved the way for globalisation witnessed presently. In the face of globalisation, territorial boundaries are becoming irrelevant and political nationalism has been surpassed by progressing global interaction, commerce and cultural exchange. All these factors collude to make the state
Hence, the state lost its power in this sense during neo-liberalism period. Targ persuasively argues that both the right-wing and left-wing accounts are inaccurate. He suggests that neo-liberalism emergence was not because of the decline of welfare state or the strategy set up by capitalists, but because of a continuation of impromptu moves from the politicians, media, economists, scholars, activists in reaction to a string of political and economic scare that began in the 70s (Targ …show more content…
Although this is happening at a national level, the effect of globalisation is making the effect be felt at the regional and global level. This even began post Wold War II when the world was experiencing the gold age of capitalism and later plunged into economic and political turmoil in the 70s, something that was blamed on state interference. This led towards neo-liberalism in the 80s where privatisation, deregulation and non-involvement by the state marked paved the way for liberal markets to thrive. It is argued that neo-liberalism paved the way for globalisation witnessed presently. In the face of globalisation, territorial boundaries are becoming irrelevant and political nationalism has been surpassed by progressing global interaction, commerce and cultural exchange. All these factors collude to make the state