This paper aims to provide a contrast among theories in economics, which include Neoliberalism, Centrist strategy, and Marxist theory. It also explores the impact of these theories into the relationship between business and employees.
Neoliberalism considers individuals as autonomous actors whose interest and welfare are best served when they become free from government intervention. Passas defined Neoliberalism as a political and economic school of thought in the relationship between the state and the citizens, commerce, and world trade (16). Free market serves as a platform to foster individual autonomy and facilitate favorable economic outcomes (Marginson, as qtd. in Western et al. 401). Neoliberalism revolves around the logic that there is a need for an unrestrained, unregulated, and free market. Market should be created in instances when it doesn’t exist to facilitate interaction among individuals. The state mainly functions to maintain the money system or the institutional framework. Neoliberalism supports the premise that the market is capable of taking care of itself and intervention of the state is unnecessary (Erickson et al. 264).
Advocates of Neoliberalism believe that it reduces public expenditures, improves economic outcomes, diminishes dependence on state, and enhances individual choice. However, critics argued that Neoliberalism corrodes the quality of life, increases inequality, and engenders an atomised society wherein individuals become culturally disconnected with one another (qtd. in Western et al. 401). It manifests strong coordination in different aspects of locality.
Quiggin reiterated that neoliberal reform plays a role in the growth of inequality worldwide. Increase in competition for imported services and goods is accompanied by policies that increase competition faced by many employees (241). The increase in competitive tendering and outsourcing has