Neoliberalism

The growth of the Reagan organization in the United States and the appointment of Thatcher in the United Kingdom saw the end of the “Golden Age” and the presentation of a new market led economic theory known today as neoliberalism (Crotty, 2000). Neoliberalism is an economic and political perspective that calls for minimal state involvement and economic effectiveness is best protected through free markets (Heery and Noon, 2008). Milton Friedman and Friedrich Hayek, prominent neoliberals, contend that deregulation and greater labor market flexibility will lead to economic success. Neoliberal approaches have changed how we work, where we work, and how long we work. This paper will look at how neoliberal policy has impacted uneven growth and economic

Deteriorating wages, declining employment levels and reduced access to healthcare and education services have been constant features of neoliberalism, which leaves the majority of the population at a disadvantage. During the 1980’s and 1990’s millions of factory jobs were removed and entire industries that were once unionized moved to the employment of a low-wage labor force, as one of the underlying assumptions of neoliberalism is the need for greater labor market flexibility and deregulation (Block, 2007). With this, unions have taken a hard hit. For example, Pinochet’s undoing of Chilean unions after 1973, Reagan’s defeat of American air traffic controllers union in 1981 and Thatcher’s defeat of British miners’ union in 1984 (Connell,

The attention on deregulation and flexibility in the labor market creates growing precarious and unstable work (Kallenberg, 2008). The change towards the neoliberal model has damaged employment standards by encouraging a privatized model of workplace regulation, thereby increasing workers’ contact to market forces thus, expanding economic insecurity for workers (Thomas, 2010). The neoliberal employment reforms promoted the standardization of non-standard employment relationships, helping employers uphold leaner staffing levels and flexible work schedules outlined by unstable hours (Thomas, 2010). According to Braedley and Luxton, ‘current accumulations of wealth are based on the exploitation of workers’ (2010: 18). The power exercised by those who control resources provides them with the influence to exercise control in their own interests and to protect their interests from public accountability while the workers who are exploited, are compelled to take whatever jobs are available and are compensated for less than the worth of what their labor produces (Braedley and Luxton, 2010). This premise identifies how the value of labor could stay low. This circumstance has occurred in many nations, where earnings have weakened, while capital accumulation has continued to increase unparalleled wealth (Braedley and Luxton,