Deconstructing the Myth of Liberal Markets
Or, why the Supremacy of the Markets may NOT be the answer
The backbone of a liberal market is the belief that the market is the most efficient means of providing welfare, and that government should not interfere with the market. This ideology has been dominant since the 1980s and has led to a wide range of policies that have changed society.
Liberal welfare policy emphasises the welfare market, arguing that, when welfare is based on demand and competition, providers are forced to innovate to remain competitive in the economy, thereby improving quality of life. However, Saad-Filho and Johnston show that this is not always the case: “where neoliberal policies were introduced most emphatically, as, in the United Kingdom, key indicators show an increase in relative poverty and inequality. For example, in 1979, in the United Kingdom, 5 million people lived in households whose income was less than half the average. In 1991–92, 13.9 million people were living in such households — a rise from 9 to 25 percent of the population” (Saad-Filho and Johnston, 2005, 144–145). As such, the implementation of neoliberal welfare policies is correlated to the rise in relative poverty.
