Neoliberalism and Inequality

This paper examines how the effects of the global neoliberal economic model has led to inequality, arguing that global neoliberal policies are a major cause of economic inequality. In order to demonstrate this, the paper measures economic inequality through income inequality demonstrating a positive correlation between income inequality and poverty. However, the paper problematizes the full reliance on income inequality as an indicator since it fails to capture important factors that highlight the full effects of neoliberal policies on inequality such as wealth and debt. Here is where it is important to understand the processes of financialisation that have altered the way individuals and households acquire assets alongside the type of assets that generate more wealth and income. With financialisation, assets, more specifically financial assets have taken a leading role in accelerating inequality. Here rising inequality analysed within the nation state, between states and between individuals across the globe. Moreover, the paper investigates the relationship between neoliberalism and inequality, and gender, race, higher education, security and health.