SDS131R Lecture Notes - Friedrich Hayek, Negative Liberty, World Trade Organization
1 Feb 2013
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Document Summary
Golden age of capitalism (reformed liberalism policies) started to decline after the 1960s. Middle class was created by the state with the building of infrastructure, schools and welfare systems. Breton woods in 1944 created a more valuable money exchange system. Value of each country"s currency pegged to the u. s. dollar. Gold standard: can"t print more money than gold you have on reserve. After 1970"s we lose faith in keynesian welfare state. U. s. unpegs and abandons the gold-based system. Internationalization of trade and finance: nafta taking down trade barriers. Increasing power of transnational corporations: bigger corporations result in a lack of protectionist policies (not real competition) Increasing role of imf, wb and wto: started with the best of intentions now turned neo-liberal. Limits government intervention in economy (small state with a specific role night watchman state. Free markets, no limitations for business (market will balance itself out) Privatise public enterprises because business is better at business than the government.
