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Neo-Liberalism and the Third Way

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Essay Topic One: Explain some of the criticisms of neo liberalism and economic rationalism. How is the third way seen as an advance on neo liberalism and what do critics make of the third way?
Neo liberalism and the Third Way
Neo liberalism and economic rationalism, synonymous with globalisation, gained prominence during the 1990s as a political ideology that espoused free markets as a method of not only handling affairs of nations, but also as political ideology that can be applied with all sorts of governance issues (Hartman 2005, pp.57-59). The idea was that “market forces would motivate workers and produce a vibrant economy” and that “government interference” through “high taxation and investment in the public sector services, lessened individual freedom and hindered a nations economic progress” (Rees 1994, p.172). Emphasis was placed on costs to the government being shifted back to private individuals and markets (Hartman 2005, p. 59). This would create a situation where markets would flourish with increased competition and reducing the tax burden (Hartman 2005, p.59). This came at the cost of the social state (Rees 1994, pg.171) as countries sought to create “market friendly, liberalized, lean, decentralised, customer orientated, managerial and democratic state[s],” (Bangura 2000, p.17). In Australia the conversion of public services into market commodities and increased privatisation of public provisions (Jimrozik 2005, p.42) found a scapegoat in the welfare state (Rees 1994, p.173). Welfare in Australia was equated with high taxation linked with huge public expenditure and a culture of dependency where those on welfare were stigmatised (Rees1994, p.173).Welfare was deemed unnecessary expenditure (Rees 1994, p.174). The best possible way to ensure citizens reap the benefits of freedom was to deregulate the economy, shrink public services, remove most if not

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