Question

Contrast the current SSA (neoliberalism) with the post-war SSA (capital labor accord, or ‘golden age of capitalism’) through two (very short) family or friends’ stories. How have family members or friends faced down economic challenges since 1980, and before 1980. Do these stories reveal some of the structural differences from different periods of capitalism?

Answer 1

1. Neo-liberalism is a model or a policy which links various factors of politics, social studies and economics which concludes the transferring control of economics factors from public sector to the private sector.

2. This is also called Third-way politics now-a-days, which wants a middle ground between the policies or ideologies of left and the right.

3. Neo-liberalism is a revolutionary approach to Capitalism which assists global market for goods, services, labor which are basically unregulated.

4. Basically both doctrines of Neo-liberalism and Capitalism are associated. In capitalism there should be no intervention of the government and the economy is to be free in order to gain some profits.

5. Before 1980's and the early 1980's, the US faced an inclined unemployment by 10% where the economy had become weak.

6. The formation of easy money policies of the American central bank made the economy far more weak which caused heavy inflation where their basic motto is to increase full employment.

7. Raising heavy interests or say borrowing rates for housing, cars for sensitive industries caused a disaster.

8. But later on after 1980's, controlling the wage rate and price rate lowered the inflation.

9. Not only that, controlling the supply of money in the economy also controlled inflation.

10. But this also a aspects of waking up recession by complete pressurized inflation measures which is to be avoided.