Neoliberal economic theory Flashcards
1
Q
replaced
A
the modernisation theory
2
Q
what kind of movement was it
A
a new right movement
3
Q
what does it support
A
it supports free market economy
4
Q
it believes development happens when…
A
businesses have complete freedom , all publicly owned infrastructure is sold to private organisations (less tax as no longer paying for public services )
5
Q
employees are driven to….
A
work harder + longer because state support is cut- need to own money for everything - more competition.
6
Q
privatisation =
A
more competition
- however more exploitation
- decreases political engagement e.g if a government owns something then people are more likely to vote as their job depends on it.
7
Q
subsidies-
A
a sum of money granted to a state or public body to help an industry ot business
8
Q
cutting subsidies pros
A
- saves government money
- increases competition
- reduces taxes
9
Q
cutting subsidies cons
A
- loss of peoples jobs
10
Q
strengths of neoliberalism
A
- greater market competition
- privatisation (saves government money)
- reduces taxes
- encourages free trade
- cuts states funding
- promotes individualism
11
Q
weakness of of neoliberalism
A
- encourages more pollution
- exploitation of labour and forces
- smaller government
- decreases political engagement
- increases inequality
