The case for Neo-Keynesianism: in defence of the welfare state

Abstract

Neoliberalism is the dominant economic paradigm in the globe today. It has led to stagnant wages, high unemployment, increased income inequality and a decline in quality of life for the average citizen in the industrialised world over the past 30 years. It has also fomented a dramatic increase in economic instability, culminating in the 2007 financial crisis. In this article, I argue for Neo-Keynesian economic policy, including reregulation of the financial sector, a more progressive tax system and strategic government investment in the economy. Looking at education, I conclude that economic reform is a necessary corollary to educational reform if we are to improve the prospects of the next generation.

Keywords:

• neoliberalism
• Neo-Keynesianism
• unemployment
• inflation
• new deal
• welfare state
• income inequality