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The Neo-Conservative Reaction to Modern Liberalism
Top ten things you need to know
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1 Like modern liberals, there are many ways to define a neo-con.
Most common characteristic: Reaction to liberal principles that had “gone too far” Civil rights movement leads to affirmative action Weakness of using diplomacy in dealing with enemies (détente efforts in Cold War) Increasing debts and abuse of tax dollars by liberal programs like health care Failure of public education Lack of morality in society by focusing on individual rights, or allowing faith based tribunals like Sharia law
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Reactions to the negative aspects of other systems
2 Reactions to the negative aspects of other systems reaction to modern liberalism and the push to go back to classical liberalism – also known as neo-conservatism or neo-liberalism.
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Mercantilism Classical Liberalism Socialism Modern Liberalism Neo-Conservativism
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3 best way the government can support the economy is to let capitalist entrepreneurs get to work without all of the government controls like minimum wage, environmental regulations or corporate taxation. Deficit financing has led to unsustainable debts
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One million pennies
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One billion pennies
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One trillion pennies
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4 Fredrich Von Hayek neo-conservative economist
argued that whenever we allow the government to provide services, = becoming dictatorship. role of government should only be to protect private property and encourage a healthy economy through competition
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5 Milton Friedman Monetarist - don’t want demand to be increase through government spending, but through monetary policy Instead of focusing on increasing demand by giving people jobs, supply-side economics wants to focus on the producers of goods – the suppliers. The idea is that the money will “Trickle down” from the business owners to the workers.
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USA in the 1970s - stagflation
6 USA in the 1970s - stagflation Growing government debt High levels of taxation Increased costs to business due to higher wages, benefits and working conditions (unions), and government regulations (like minimum wage and environmental laws) Increased cost of living (especially after 1973 OPEC embargo) = inflation (due to government spending and high cost of managing debt) and unemployment (due to economy that provided few incentives for investment)
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7 During a Recession Demand-side Supply-side Taxes Interest Rates
Fiscal Monetary 7 Taxes Spending Interest Rates Money Supply Supply-side Helping consumers to have disposal income Taxes Spending Interest Rates Money Supply Make it easier for entrepreneurs to start and expand a business
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Reduce spending on social programs
8 Cut taxes Deregulate Reduce spending on social programs REAGANOMICS
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Unintended consequences – increased disparity and crime
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10 Privatization 5% Ralph Klein did similar actions in Alberta
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