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Social policy - Essay Example

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Neo on the other hand means a new kind of concept/ liberalization. On this note, neo-liberalism is a new concept and has gained prominence from the last 25 years. The main aim of neo-liberalism is to create a laissez faire economy, free of governmental regulations (Sawyer and Arestis, 2004). Social democracy on the other hand refers to a political ideology whose main intention is to create a democratic socialism by using gradual and reformist methods. This is a policy that involves creating a welfare state, and initiating schemes that will encourage collective bargaining. It aims to achieve this objective through an evolutionary and peaceful transition of the country’s economy to socialism. This is by reforming capitalism, to ensure that the rich are not always the dominant players in an economy. Advocates of social democracy believe that the best system of governance is representative democracy. This type of democracy must occur under the rule of law (Eichengreen, 2012). It advocates for decision making processes to include aspects of economic democracy. On this basis, it guarantees all stakeholders of an economy equal rights and benefits, and this includes employees and employers. This type of democracy advocates for a mixed economy, and is against some aspects of capitalism, such as poverty, oppression and inequality. On this basis, social democracy rejects a laissez faire economy, as well as an economy that is totally controlled by the government (Sawyer and Arestis, 2004). Social democratic

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policies include universal access to health care, education and employees compensation. Social democracy advocates for the formation of trade unions, and collective bargaining rights. Social democracy and neo-liberalism takes different approaches in explaining poverty. For example, Neo-Liberalism denotes that the causes of poverty emanates from a tighter control of the economy by the government. According to this theory, people are unable to get opportunities of making wealth, because the market is structured in a way that it is only the government that can acquire resources from it. Neo-Liberalists argue that some of the government services are not of high quality, as a result, the needs of people are not satisfied. On this basis, poverty will grow. To find poverty therefore, there is a need of de-regulating the economy, and providing equal chances of individuals to accumulate wealth. Through the deregulation of the economy, the government initiates measures that will help in increasing the profits of business men within an economy. This includes reducing of taxes, and removing trade barriers such as issuance of license fees, or payment of some minimum amount of money, for an individual to conduct trade. Neo-liberalists believe that this will help in creating job opportunities, hence reducing poverty. Neo-liberalism also eliminates the concept of the community, or the public good. According to neo-liberalism, it is important for the poor to find ways of eliminating their problems of housing, education and social security. Social democracy on the other hand denotes that poverty is cause by excessive deregulation of the economy by the government. According to social democrats, liberalism of the economy makes the rich to continue growing richer and the poor to continue growi
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Summary

Neo Liberalism refers to an economics and social approach whereby the control of the factors of economics, is removed from the public sector, and taken to the private sector. According to neo-liberalism, the government ought to remove barriers of trade, reduce the spending deficits, remove exchange rates which are fixed, open up the markets, and institute privatize business organizations that are run by the government…
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