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Is neoliberalism responsible for global inequality?

In part, yes. As neoliberalism implies minimum or no government regulation of private transactions, it creates situations where one can be chronically underpaid, overcharged and left without much financial security. And it is fair, as one’s salary figure is a result of negotiations between employer and employee, when it’s lack of leverage from employee side responsible for the inequality. On the global scale neoliberalism can take a form of sweatshops or other kinds of under-regulated or abusive labor, as governments avoid intervention in order to attract business. Also there is significant capital outflow from less developed countries towards more developed ones as well as unequal distribution of labor, meaning which country produces what part of value added. For example aluminum and silicon for apple products come from Asia, but most of the value added for final product is created in USA, so after all profits are divided, Apple investors and management get the lion’s share leaving Asian silicon melting plant workers even more poor in comparison to Tim Cook. So, negative side of neoliberalism is that more labor intensive but low-wage labor tends to concentrate in developing countries.

The data, from 1800 until today does NOT support the hypothesis. The most “equal” time has been the so called “neoliberal period”. Notice all of the people that moved to the right of the poverty line from 1975 to 2015. By the way, there is no “neoliberalism” as such, only the same old classical liberalism. The term neoliberalism was coined by leftists to define their “enemy” which of course is to blame for all problems in the world, real or not. And of course, if you do as they say, everyone will be happy.

Content created and supplied by: SeyiXam (via Opera News )

Apple Asia Asian Tim Cook USA

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