Neoliberalism rose to prominence in the 1980s, during the era of Thatcherism and Reaganomics. This era of economic change shows a significant move away from the Keynesian economics that had been predominant since the Bretton Woods Conference of 1944 and established the post-war international economic order. In this essay, I will examine the rise of neoliberal economics and the consequences that this move toward a monetarist economy had on the Southern states. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Founded by Friedrich August von Hayek, neoliberalism is an idealistic construct arising from neoclassical economics and classical liberal politics. In what was considered the "golden age" of controlled capitalism after World War II, egalitarian liberalism generated strong economic growth. However, this period ended with the economic crisis of the 1970s, which caused a sharp rise in the price of oil. Neoliberalism took over from Keynesian economics in the 1980s with the aim of resolving the global economic crisis. It manifests itself in terms of public policies: market deregulation, liberalization of trade and industry and privatization of public enterprises. Under these policies, the state is no longer seen as a means to achieve social good but rather as an organization run by self-interested politicians. This economic system protects the wealthy through “massive tax cuts (especially for businesses and high-income earners); reduction of social services and social protection programs; replacing welfare with “workfare” (Steger, 2010, p. 14) and other policies that could harm the finances of the lower classes. During the 1970s, the United States experienced a period of economic stagnation with inflation, high unemployment, and low economic growth, allowing Japan and Germany to surpass the United States in productivity and standard of living. Under Nixon's presidency, the Bretton Wood system of fixed exchange rates was abandoned, with the dollar devalued against gold, allowing floating exchange rates in the global economy. The consequence of floating exchange rates in the Global South was a dramatic decline in the price of commodities such as oil, leading to the OPEC crisis of 1974–1978, during which the Union Arab oil has restricted oil supplies to favorable countries. of the Arab-Israeli war. In Wall Street banks, petrodollars grew and were then used as loans to countries in the Global South so they could meet foreign exchange demands. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay The rise of neoliberalism is primarily associated with the election of Margaret Thatcher and the inauguration of Ronald Reagan. Thatcherism saw a clear link between the growth of government and increased public spending; he notably invented the slogan “There is no alternative” to his neoliberal program and its market solutions. A staunch opponent of Keynesian economics, Thatcher's set of neoliberal reforms aimed to diminish the power of trade unions, inefficient public spending and the deficit she believed caused inflation. The solution being the privatization of industries. Once in office, Reagan launched his supply-side agenda, proclaiming the fight against stagflation and high unemployment. His tax cuts are considered "an attack on..