America´s Neoliberal Capitalism and the Economic Expansion...

Americas neoliberal capitalism and the economic expansion After the crisis of government regulation capitalism about six years from 1973 to1979, a new layout liberal capitalism started to appear; firstly it was in Britain and the United States. In America, the new liberal capitalism was of main features in following: (1) Cancel the regulation of finance and business not only in domestic but also internationally, allowing the free market rule, and realizing capital to flow freely. (2) Privatize government’ services directly provide the government agencies and government workers in the past. (3) The government is no longer actively control of macro economy, and to a certain extent, reduce the macroscopic intervention with the purpose†¦show more content†¦Profits rise relative to the wages, as well as the family income goes to households with the highest incomes, produced a large and growing number of money to invest, these funds want to transcend the existing investment opportunities. All of this provides good conditions for emergence of the asset bubbles, because these funds are used to buy assets like real estate and securities. If an asset bubble began to appear, then its growing need a economic system, which can easily encourage the growth of the bubble by borrowing and it was turned out that the financial system deregulated, short-term capital department is preparing to do so in the new era of laissez-faire capitalism. After 2000, deregulated, short-term capital department created a new mortgage business, which occupies a lot in house purchase loans and is still in increasing, making potential for the last asset bubble. The third change in the new era of liberal capitalism is huge asset bubbles. During the long-time economic expansion firstly appeared in the 1980s, the commercial real estate asset bubble in the southwest in the USA caused the collapse of the majority of the savings and obtained rescue in 1990. Huge asset bubbles began to appear from 1994 during the expansion in the 1990s. From 1994-1999, standard poors index rose 23.6% a year, while corporate profits rose 7.6% a year. In the second year, asset bubble burst. During the long-time thirdShow MoreRelatedThe Political Theory Of The Chilean Economy1112 Words   |  5 Pagesforefront of the worldwide neoliberal experiment since the mid-1970s under the civic-military dictatorship that ruled the nation between 1973 and 1990 (Harvey, 2005a; Klein, 2007; McChesney, 1999; Paley, 2001; Stiglitz, 2002). Indeed, the Chilean authoritarian regime not only has radically applied neoclassical theory, but also turns it into â€Å"the founding philosoph y of a new society† (Valdà ©s, 1989: 35). 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