Economic crises, neoliberalism, and the US welfare state: trends, outcomes and political struggle

Abstract

The rise of neoliberalism in the US represents a response to the second economic crisis of the 20th century. Seeking to restore profits and economic growth, neoliberal proponents called for redistributing income upwards and downsizing the state. The resulting tax and budget cuts, privatisation, devolution and weakening of social movements led to greater economic insecurity/poverty, increased social problems, greater privatisation of services and increased regulation of the poor. Neoliberalism created enormous wealth for the top earners but it failed to produce the promised economic growth. Three intertwined political tactics helped to convince the American public to support polices that undermined their well-being and political power: the fabrication of a crisis, the generation of four panics and the exploitation of the resulting fears to impose policies that people would not otherwise stand for. Social workers are encouraged to engage in political struggle to reverse the unjust outcomes of the neoliberal assault on welfare states around the world.