Thursday, January 2, 2020

Neo liberalism and Populism Free Essay Example, 2750 words

Neo liberalism theory aims to transfer the control of resources within the economy from the private sector to the public sector. This will increase the efficient utilization of resources, decrease costs and increase profits, as a result, the economy will become prosperous and the growth rate will increase. According to Williamson, governments fiscal policies usually result in large budget deficits that have to be paid back by future generations. The deficits result in a short term spike in employment but the long term effect is the debt burden. As the deficits continue to grow, there will be higher inflation and a decrease in productivity. The purpose of fiscal budgets should be to stabilize economic situations not to create them. Increase in public spending is a detriment to the long term growth of the country and services such as primary education, health, and infrastructure are more efficiently provided by the private sector. Williamson put forth a list of ten points that discuss ed these policies advocated by neo liberalists. Neo liberalists also advocate tax reforms in the economy. They believe that the tax base should be broadened and marginal tax should be adopted to increase innovation and efficiency. We will write a custom essay sample on Neo liberalism and Populism or any topic specifically for you Only $17.96 $11.86/page Lowering of trade restrictions should enable economies to export goods that they have a comparative advantage in and devote more resources to them.

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