Neoliberalism is define as the society should be shaped by the free market, there should be private property rights, individual liberty and economy should be private, and state has to be concern about quality of trade, security and safeguard of its citizens and their property. The main idea behind neoliberalism is, “Liberty and equality through the free market.” This very word liberal is a fancy term and neoliberalism is a beautiful and attractive language which talks about freedom and openness for all. But ironically this so called free market is not really free for everyone. Free market makes market free for upper class and for capitalists and less free or even makes it difficult to move for lower class. Due to which turn in neoliberalism comes in play. When capital accumulates in few hands it affects everyone. In society number of unemployment increases which leads to inflation and affects overall economy of the country. Then socialists and other schools of thought get together and stand against this new system which creates threat for capitalists.
I think creative destruction also benefits capitalists. Creative destruction comes with new markets and novel innovations. For example, before invention of printers book publishers use typing machines. For that they have to have many people to type the books. Back then books were comparatively costly and were not assessable for everyone. Only elites of the society can afford to have books. Now after invention of printers everyone and anyone can print anything just sitting in their home. The quality of printing is much better and prices are also reasonable then before. But now almost more than 50% people have lost their jobs in this new market therefore such inventions are called creative destruction. This type of inventions limits economic growth and channel wealth from subordinate class to the wealthy one.
Here is a problem about which I have being thinking. Suppose there is a new invention which is very effective, consumes less time, money, energy and its production quality is very high than ever before, but using this new innovation causes unemployment of more than half of the country. What should be done? Should government allow this new technology which causes considerable rising in unemployment? Why or why not?