Neoliberalism rose to prominence in the 1980s, during the era of Thatcherism and Reaganomics. This era of economic change shows a significant shift away from the Keynesian economics that had been prominent since the 1944 Bretton Woods Conference and which had established the post-war international economic order. In this essay I will examine the rise of neoliberal economics and the consequences that this shift towards a monetarist economy has had on states in the Global South. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Founded by Friedrich August von Hayek, neoliberalism is an idealistic construct that emerged from neoclassical economics and classical liberal politics. In what was considered the “golden age” of controlled capitalism after World War II, egalitarian liberalism brought high economic growth. However, this period was interrupted by the economic crisis of the 1970s which caused a sharp increase in the price of oil. Neoliberal economics succeeded Keynesian economics in the 1980s with the agenda of solving the global economic crisis. It manifests itself in terms of public policy: market deregulation, liberalization of trade and industry, and privatization of state-owned enterprises. With these policies, the state is no longer seen as a means to social good but rather as an organization run by selfish politics. This economic system protects the rich through “massive tax cuts (especially for businesses and high-income workers); reduction of social services and welfare programs; replace welfare with “workfare”” (Steger, 2010, pp. 14) and other policies that could cause damage to the finances of the lower classes. During the 1970s, the United States went through a period of economic stagnation with inflation, high unemployment, and low economic growth, which allowed Japan and Germany to surpass the United States in productivity and living standards. Under Nixon's presidency, the Bretton Wood system of fixed exchange rates was abandoned, as the dollar devalued relative to gold, allowing for floating exchange rates in the global economy. The consequence of fluctuating exchange rates in the Global South was that it caused a drastic decrease in the price of raw materials such as oil, which in turn led to the OPEC crisis of 1974–1978 in which the Arab Oil Union restricted supplies of oil to the nations in favor of the Arab-Israeli war. In Wall Street banks, petrodollars rose and were then used as loans to countries in the Global South so they could meet foreign exchange demands. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom EssayThe rise of neoliberalism is most associated with the election of Margaret Thatcher and the inauguration of Ronald Reagan. Thatcherism saw a clear link between the growth of government and increased public spending, so much so that it coined the slogan "There is no alternative" to its neoliberal agenda and market solutions. Fervently opposed to Keynesian economics, Thatcher's set of neoliberal reforms aimed to diminish the power of unions, the inefficiency of government spending, and the deficits that she said were the cause of inflation. The solution is the privatization of industries. Once in office, Reagan began his supply-side agenda, proclaiming to fight stagflation and high unemployment. His tax cuts are considered “a full-blown assault on state-led redistribution of private wealth.”..