The paper will examine neo-liberal economics and their ideological beliefs towards welfare. Following the end of the Second World War, the government took on a role which was to form a collaborative state, helping each other by providing a welfare provision to enable equality.
The Welfare state would be paramount in providing well-being, and prosperity within the British population. This sought to encourage economical and personal happiness (Taylor, 2007).
Neo-liberalism is often referred to as the ‘new right’ and is seen as a mixture of both libertarian and conservative thinking; a movement which does not corner itself in either the left or right categories. Neo Liberalism was a new way of thinking which was a response to socialism and its nanny state (Ashford and Davies, 1991).
This way of thinking argues that the government should not be providers of a system which encourages a dependency culture, in which the socialist movement facilitates. They believe that the current welfare system is at odds with the free market and economic growth (Alcock, 2008). A principle in which the suggestion is that the market should be proficient in providing society with all the goods and services that is needed. This should be done efficiently and through the markets relationship with the individual.
Neo Liberalists believe that state interference could cause economic problems for its government as it offers a financial incentive without working, thus, delivering a pessimistic moral and social outcome (Powell and Hewitt, 2002).
Additionally, there should be an emphasis on individual choice with a free market. With the choice of competition that the global market creates, there would be fewer restrictions on businesses to operate by the government. This, in turn would enable free trade which would benefit the world’s economy (Giddens, 2009).
The current coalition government would argue that a free and open market would provide the public with a more diverse range of services...