Social and economic policies over the past decades went through numerous changes. These changes were based on the ever increasing role of globalization in the society. The Keynesian welfare state has come to an end and neo-liberal globalization began to emerge. Keynesian welfare state demonstrated a government lead society and economy, the neo-liberal ideology is where the society and the economy are guided by the market where government intervention is limited therefore act like a free market economy. NAFTA secretly let the neo-liberal social policy to exist. The free trade agreement certainly sides with the neo-liberal way to liberalize trade and to stimulate economic activities through the loosening of the markets. Neo-liberal methodology of changing social policies are through the altering of public programs, restricting requirements for certain benefits and adding costs to social programs. The consequences without a good social policy and free markets can cause income inequalities, where the rich gets richer and the poor get poorer. Citizens who are in financial crisis would not receive adequate funding and the rich would continue to prosper from business in the free market. The free market or free trade era emphasizes cutting social spending such as a decrease in transfers and taxes which would eventually cut Canada’s deficits. The government’s goal of lowering deficits began with the formation of CHST (Canada Health and Social Transfer) which combined health care and post secondary education. This decentralized funding method decreased the role of government in social spending. This was a step of the federal government in decreasing the role and control of the provincial government therefore letting the market guide itself. CHST has resulted in funding decreased of 33 percent. Without equal and adequate income distribution can harm Canada’s social standards and wellbeing. This could be the cause of the increased inequality gap. Unemployment insurance is a major aspect of social policy in Canada, new neo-liberal philosophies wa

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