what does a neoliberal policy look like?
Reduction in tax
- Reduction in income tax (Recovery Tax Act of 1981)
- Reduction in capital gains tax (Recovery Tax Act of 1981)
- Reduction of income tax brackets to three (Tax Reform Act of 1986)
Deregulation
- Union busting: Reagan firing 13,000 air traffic controller, thus sending a clear message to all corporations that private companies reign above unions
- Eliminating government control over fares and routes and market entry (Air Deregulation Act)
- Eliminating government regulation over communications (Telecommmunications Act of 1996)
- Repealing parts of Glass-Steagal Act deregulating retail banking investment practices
(Depository Institutions Deregulation and Monetary Control Act) - Encouraging people to borrow more home equity loans
(Tax Reform Act of 1986, The Depository Institutions Deregulation and Monetary Control Act) - Condoning and encouraging private banks to securitize mortgages (Secondary Market Enhancement Act)
- Surface Freight Deregulation Act of 1986
Liberalization of Trade
- Free Trade Agreements
- Lowering tariffs across borders which resulted in production/manufacturing companies leaving as they were able to maximize profit overseas where regulations are lax and labor cheap
Public spending cuts
- Reduction of number of people eligible for social security (Social Security Act Amendment of 1983)
Privatization of state enterprise
- Federal and state facilities such as prisons and juvenile correction centers built and even run by private companies