Neoliberals is described as an economic theory that enhancesfree trade with minimal intervention of the government to private sectors.
Changeis established in order to stabilize global economy with the assumption of fairprices without disturbances. Neoliberalism has greatly involves human activityin the growth of the economy, as result of privatization, it has negatively influencedincrease in insecurity and economicinequality, increase of shareholder value and violation of human rights that does not contribute to the growth of theeconomyThe economic growth that has beenpursued without liberalism limits leads to human greed that result to increasein economic inequality. Selfishness leads to illegal behaviours that endmaximization of individual achievements which does not contribute to theeconomy. The consequence is an indication of economic inequality and lack of securityto the concern.
People who are managing their own business and companies bothin small scale and large scale are working tirelessly to get more profit.Workers work for more hours with less pay, like in small scale sectors becauseof low income the laborers are not guaranteed to any protection and this leadsinsecurity. Due to inequality of wealth andincome that is continuously increasing, it has influenced the increase ofshareholder value with the assumption of creating financial stability in themarket which is ironical instead it leads a to financial crisis. The policy iscreated regardless of the social effect.
The expectation of increasingshareholder value does not give greater value in the market because this doesnot benefit companies with low income meaning that inequality will never enddue to inability to reach the high value standard.In conclusion the economic inequality has greatly affected thefree market due to lack of liberalism limits that finally results to financialcrisis companies that are financial stable are continuasly increasing theshareholder value to get more profit