Essay on the Flaws with Market Liberalism Approach to Social Policy

Karl Marx and Marxist thinking has traditionally focused on inherent beliefs that capitalism and markets are insufficient means of establishing value. Hence, a monetary value placed on a particular good or service may not necessarily justify the innate value and usage to society. In the area of social policy, it can be argued that services provided are not necessarily measurable in monetary terms. A service offered may be necessary in society (healthcare provision, education etc.), yet not commercially attractive to provide.

Market liberalism, within the last 30 years, has sought to overcome this kind of market failure by developing models of hybrid public and private organisations. Stiglitz (2002) defines liberalisation as being the removal of government interference, and has its routes firmly set within the Milton Friedman free market economic ideology, rather than Marxist (or Keynesian) views on maximising government intervention.

This essay seeks to discuss some of the main areas where liberalisation has undermined effective social policy making. In addition, an observation into the ways which Britain’s New Labour Government has approached social policy has been made to understand modern relationships between such policies and liberalisation attempts seen.

Social Policy and Market Liberalism
The New Labour approach to market liberalism relates to a so-called Third Way; neither a traditional Marxist/socialist style centrally planned economy or a direct return the previous Conservative neo-liberal policy. Instead, the new style seeks to modernise approaches to public sector intervention. Newman (2002), as cited by Baldock et al. (2003), indicated New Labour’s approach to be a new form of governance in the UK. What has been observed is a contract between the Government and the citizens of the UK, based on individualist principles previously seen in many right wing Conservative governments of the past. Examples of this contract, Baldock et al. note, include networks, …

Tags: Karl Marx, Labour Party, liberalisation, market liberalism, Marxis, public sector, Social Policy, UK

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