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Neoliberalism, or neo-liberalism, is a term used to describe the 20th-century resurgence of 19th-century ideas associated with
free-market In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goo ...
capitalism Capitalism is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), distribution of goods and services within ...

capitalism
. A significant factor in the rise of
conservative Conservatism is an aesthetic Aesthetics, or esthetics (), is a branch of philosophy that deals with the nature of beauty and taste (sociology), taste, as well as the philosophy of art (its own area of philosophy that comes out of aest ...
and
libertarian Libertarianism (from french: libertaire, "libertarian"; from la, libertas, "freedom") is a political philosophy that upholds liberty as a core principle. Libertarians seek to maximize autonomy and political freedom, emphasizing Freedom of assoc ...
organizations,
political parties A political party is an organization that coordinates candidates to compete in a particular country's elections. It is common for the members of a party to hold similar ideas about politics, and parties may promote specific political ideology ...
, and
think tanks A think tank, or policy institute, is a research institute that performs research and advocacy concerning topics such as social policy, political strategy, economics, military, technology, and culture. Most think tanks are non-governmental organiz ...
, and predominately advocated by them, it is generally associated with policies of
economic liberalization Economic liberalization (or economic liberalisation) is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities. In politics, the doctrine is associated with classical libe ...
, including
privatization Privatization (or privatisation in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, ea ...
,
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a r ...
,
globalization Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relations ...

globalization
,
free trade Free trade is a trade policy A commercial policy (also referred to as a trade policy or international trade policy) is a government's policy governing international trade International trade is the exchange of capital, goods, and service ...
,
austerity Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: higher taxes to fund spending, ...

austerity
and reductions in
government spending Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting A variety of measures of national income and output are used in economics to estimate total economic activity ...
in order to increase the role of the
private sector The private sector is the part of the economy An economy (; ) is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods an ...
in the
economy An economy (; ) is an area of the production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products ( ...

economy
and
society A society is a group A group is a number A number is a mathematical object used to counting, count, measurement, measure, and nominal number, label. The original examples are the natural numbers 1, 2, 3, 4, and so forth. Numbers can be ...

society
; however, the defining features of neoliberalism in both thought and practice have been the subject of substantial scholarly debate. As an
economic philosophy An economic ideology distinguishes itself from economic theory Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, ...
, neoliberalism emerged among European
liberal Liberal or liberalism may refer to: Politics *a supporter of liberalism, a political and moral philosophy **Liberalism by country *an adherent of a Liberal Party Arts, entertainment and media *''El Liberal'', a Spanish newspaper published betw ...

liberal
scholars in the 1930s as they attempted to revive and renew central ideas from
classical liberalism Classical liberalism is a political ideology An ideology () is a set of belief A belief is an Attitude (psychology), attitude that something is the case, or that some proposition about the world is truth, true. In epistemology, philosopher ...
as they saw these ideas diminish in popularity, overtaken by a desire to control markets, following the
Great Depression The Great Depression was a severe worldwide that took place mostly during the 1930s, beginning . The timing of the Great Depression varied around the world; in most countries, it started in 1929 and lasted until the late 1930s. It was the l ...
and manifested in policies designed to counter the volatility of free markets, and mitigate their negative social consequences.
Philip Mirowski Philip Mirowski (born 21 August 1951 in Jackson, Michigan) is a history of economic thought, historian and philosopher of economic thought at the University of Notre Dame. He received a PhD in Economics from the University of Michigan in 1979. Car ...
, Dieter Plehwe, ''The road from Mont Pèlerin: the making of the neoliberal thought collective'', Harvard University Press, 2009,
One impetus for the formulation of policies to mitigate free-market volatility was a desire to avoid repeating the economic failures of the early 1930s, failures sometimes attributed principally to the
economic policy The economic policy of government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly ...
of classical liberalism. In policymaking, neoliberalism often refers to what was part of a
paradigm shift A paradigm shift, a concept identified by the American physicist and philosopher Thomas Kuhn Thomas Samuel Kuhn (; July 18, 1922 – June 17, 1996) was an American philosopher of science whose 1962 book '' The Structure of Scientific Revo ...
that followed the alleged failure of the Keynesian consensus in economics to address the
stagflation In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
of the 1970s. The term has multiple, competing definitions, and a pejorative valence. English speakers have used the term since the start of the 20th century with different meanings, but it became more prevalent in its current meaning in the 1960s, 1970s and 1980s, used by scholars in a wide variety of
social sciences Social science is the Branches of science, branch of science devoted to the study of society, societies and the Social relation, relationships among individuals within those societies. The term was formerly used to refer to the field of socio ...

social sciences
as well as by critics. The term is rarely used by proponents of free-market policies. Some scholars have described the term as meaning different things to different people as neoliberalism has "mutated" into geopolitically distinct hybrids as it travelled around the world. Neoliberalism shares many attributes with other concepts that have contested meanings, including
representative democracy Representative democracy, also known as indirect democracy, is a type of democracy where elected persons represent Represent may refer to: * Represent (Compton's Most Wanted album), ''Represent'' (Compton's Most Wanted album) or the title song, ...
. When the term entered into common use in the 1980s in connection with
Augusto Pinochet Augusto José Ramón Pinochet Ugarte (, also , , ; 25 November 1915 – 10 December 2006) was a Chilean Army Captain general#Chile, General, politician and military dictatorship, military dictator who ruled Chile from 1973 to 1990, first as the ...

Augusto Pinochet
's economic reforms in
Chile Chile, officially the Republic of Chile, is a country in the western part of South America South America is a continent A continent is one of several large landmasses. Generally identified by convention (norm), convention ra ...
, it quickly took on negative connotations and was employed principally by critics of market reform and
laissez-faire capitalism ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free or almost free from any form of economic interventionism such as regulation and Subsidy, subsidies. As a ...
. Scholars tended to associate it with the theories of
Mont Pelerin Society Mont may refer to: Places * Mont., an abbreviation for Montana Montana () is a U.S. state, state in the Mountain states, Mountain West region of the United States. It is bordered by Idaho to the west; North Dakota and South Dakota to the e ...
economists
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
,
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
and James M. Buchanan, along with politicians and policy-makers such as
Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013), was Prime Minister of the United Kingdom The prime minister of the United Kingdom is the head of government The head of government is either ...

Margaret Thatcher
,
Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician who served as the 40th president of the United States The president of the United States (POTUS) is the head of state and head of government of the Un ...

Ronald Reagan
and
Alan Greenspan Alan Greenspan (; born March 6, 1926) is an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economi ...

Alan Greenspan
. Once the new meaning of neoliberalism became established as a common usage among Spanish-speaking scholars, it diffused into the English-language study of
political economy Political economy is the study of production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products (g ...
. By 1994, with the passage of
NAFTA The North American Free Trade Agreement (NAFTA; es, Tratado de Libre Comercio de América del Norte, TLCAN; french: Accord de libre-échange nord-américain, ALÉNA) was an agreement signed by Canada, Mexico, and the United States that create ...

NAFTA
and with the Zapatistas' reaction to this development in
Chiapas Chiapas (), officially the Free and Sovereign State of Chiapas ( es, Estado Libre y Soberano de Chiapas), is one of the states that make up the 32 federal entities of Mexico Mexico ( es, México ; Nahuan languages: ), officially the Unite ...

Chiapas
, the term entered global circulation.Scholarship on the phenomenon of neoliberalism has grown over the last few decades.


Terminology


Origins

An early use of the term in English was in 1898 by the French economist
Charles Gide Charles Gide (; 1847–1932) was a French economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write ...
to describe the economic beliefs of the Italian economist
Maffeo Pantaleoni Maffeo Pantaleoni (; Frascati, 2 July 1857Milan Milan (, , Milanese: ; it, Milano ) is a city in northern Italy, capital of Lombardy, and the second-most populous city in Italy after Rome. Milan served as the capital of the Western Roman ...

Maffeo Pantaleoni
, with the term ''néo-libéralisme'' previously existing in French, and the term was later used by others including the classical liberal economist
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
in his 1951 essay "Neo-Liberalism and its Prospects". In 1938 at the
Colloque Walter LippmannThe Colloque Walter Lippmann (English: ''Walter Lippmann Colloquium''), was a conference of intellectuals organized in Paris Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, most populous city ...
, the term ''neoliberalism'' was proposed, among other terms, and ultimately chosen to be used to describe a certain set of economic beliefs.
Philip Mirowski Philip Mirowski (born 21 August 1951 in Jackson, Michigan) is a history of economic thought, historian and philosopher of economic thought at the University of Notre Dame. He received a PhD in Economics from the University of Michigan in 1979. Car ...
, Dieter Plehwe, ''The road from Mont Pèlerin: the making of the neoliberal thought collective'', Harvard University Press, 2009,
The colloquium defined the concept of neoliberalism as involving "the priority of the price mechanism, free enterprise, the system of competition, and a strong and impartial state". According to attendees
Louis Rougier Louis Auguste Paul Rougier (; 10 April 1889 – 14 October 1982) was a French philosopher A philosopher is someone who practices philosophy. The term ''philosopher'' comes from the grc, φιλόσοφος, , translit=philosophos, meaning 'love ...
and
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
, the competition of neoliberalism would establish an elite structure of successful individuals that would assume power in society, with these elites replacing the existing
representative democracy Representative democracy, also known as indirect democracy, is a type of democracy where elected persons represent Represent may refer to: * Represent (Compton's Most Wanted album), ''Represent'' (Compton's Most Wanted album) or the title song, ...
acting on the behalf of the majority. To be ''neoliberal'' meant advocating a modern economic policy with
state intervention Economic interventionism, sometimes also called state interventionism, is an economic policy position favouring government intervention in the market process to correct market failure In neoclassical economics, market failure is a situation ...
. Neoliberal state interventionism brought a clash with the opposing ''laissez-faire'' camp of classical liberals, like
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a heterodox In religion, heterodoxy (from Ancient Greek Ancient Greek includes the forms of the Greek languag ...

Ludwig von Mises
. Most scholars in the 1950s and 1960s understood neoliberalism as referring to the social market economy and its principal economic theorists such as
Walter Eucken Walter Eucken (; 17 January 1891 – 20 March 1950) was a German German(s) may refer to: Common uses * of or related to Germany * Germans, Germanic ethnic group, citizens of Germany or people of German ancestry * For citizens of Germany, see al ...
, , and . Although Hayek had intellectual ties to the German neoliberals, his name was only occasionally mentioned in conjunction with neoliberalism during this period due to his more pro-free market stance. During the military rule under Augusto Pinochet (1973–1990) in Chile, opposition scholars took up the expression to describe the economic reforms implemented there and its proponents (the
Chicago Boys The Chicago Boys were a group of Chilean economists prominent around the 1970s and 1980s, the majority of whom were educated at the Department of Economics of the University of Chicago The University of Chicago (UChicago, U of C, or Chicago) ...
). Once this new meaning was established among Spanish-speaking scholars, it diffused into the English-language study of political economy. According to one study of 148 scholarly articles, neoliberalism is almost never defined but used in several senses to describe ideology, economic theory, development theory, or economic reform policy. It has become used largely as a
term of abuse A pejorative or slur is a word or Grammar, grammatical form expressing a negative or a disrespectful connotation, a low opinion, or a lack of respect toward someone or something. It is also used to express criticism, hostility, or disregard. Some ...
and/or to imply a ''laissez-faire''
market fundamentalism Market fundamentalism, also known as free-market fundamentalism, is a term applied to a strong belief in the ability of unregulated ''laissez-faire'' or free-market capitalist policies to solve most economic and social problems. It is often used ...
virtually identical to that of classical liberalism – rather than the ideas of those who attended the 1938 colloquium. As a result there is controversy as to the precise meaning of the term and its usefulness as a descriptor in the
social science Social science is the branch The branches and leaves of a tree. A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of plant life and a branch of biol ...

social science
s, especially as the number of different kinds of market economies have proliferated in recent years. Unrelated to the economic philosophy describe in this article, the term "neoliberalism" is also used to describe a center-left political movement from modern American liberalism in the 1970s. According to political commentator David Brooks, prominent neoliberal politicians included
Al Gore Albert Arnold Gore Jr. (born March 31, 1948) is an American politician and who served as the 45th from 1993 to 2001. Gore was 's running mate in their and the pair were re-elected in 1996. Near the end of Clinton's second term, Gore was s ...

Al Gore
and
Bill Clinton William Jefferson Clinton (; born August 19, 1946) is an American politician and attorney who served as the 42nd president of the United States The president of the United States (POTUS) is the head of state and head of government of ...

Bill Clinton
of the Democratic Party of the United States. The neoliberals coalesced around two magazines, ''
The New Republic ''The New Republic'' is an American magazine of commentary on politics, contemporary culture, and the arts. Founded in 1914 by several leaders of the progressive movement, it attempted to find a balance between a humanitarian progressivism and ...
'' and the ''
Washington Monthly The ''Washington Monthly'' is a bimonthly nonprofit A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public ...
'', and often supported
Third Way The Third Way is a political position akin to centrism that attempts to reconcile right-wing Right-wing politics embraces the view that certain social orders and Social stratification, hierarchies are inevitable, natural, normal, or ...

Third Way
policies. The "godfather" of this version of neoliberalism was the journalist Charles Peters, who in 1983 published "A Neoliberal's Manifesto".


Current usage

Elizabeth Shermer argued that the term gained popularity largely among left-leaning academics in the 1970s to "describe and decry a late twentieth-century effort by policy makers, think-tank experts, and industrialists to condemn social-democratic reforms and unapologetically implement free-market policies;" economic historian Phillip W. Magness notes its reemergence in academic literature in the mid-1980s, after French philosopher
Michel Foucault Paul-Michel Foucault (, ; ; 15 October 192625 June 1984) was a French philosopher, historian of ideas Intellectual history (also the history of ideas) is the study of the history of human thought and of intellectual An intellectual is a ...

Michel Foucault
brought attention to it. ''Neoliberalism'' is contemporarily used to refer to market-oriented reform policies such as "eliminating
price control Price controls are restrictions set in place and enforced by governments, on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of goods ...
s, deregulating
capital markets 200px, The trading floor of the New York Stock Exchange, one of the largest secondary capital markets in the world. Most of the trades on the New York Stock Exchange are executed electronically, but its hybrid structure allows some trading to be ...
, lowering
trade barriers Trade barriers are government-induced restrictions on international trade International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services ...
" and reducing, especially through
privatization Privatization (or privatisation in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, ea ...
and
austerity Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: higher taxes to fund spending, ...

austerity
, state influence in the economy. It is also commonly associated with the economic policies introduced by
Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013), was Prime Minister of the United Kingdom The prime minister of the United Kingdom is the head of government The head of government is either ...

Margaret Thatcher
in the United Kingdom and
Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician who served as the 40th president of the United States The president of the United States (POTUS) is the head of state and head of government of the Un ...

Ronald Reagan
in the United States. Some scholars note it has a number of distinct usages in different spheres: * As a development model, it refers to the rejection of
structuralist economicsStructuralist economics is an approach to economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumpti ...
in favor of the Washington Consensus. * As an
ideology An ideology () is a set of belief A belief is an Attitude (psychology), attitude that something is the case, or that some proposition about the world is truth, true. In epistemology, philosophers use the term "belief" to refer to attitudes abo ...
, it denotes a conception of freedom as an overarching social value associated with reducing state functions to those of a
minimal state A night-watchman state or minarchy is a model of a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (n ...
. * As a
public policy Public policy is an institutionalized proposal to solve relevant and real-world problems, guided by a conception and implemented by programs as a course of action created and/or enacted, typically by a government A government is th ...
, it involves the privatization of public economic sectors or services, the deregulation of private corporations, sharp decrease of
government debt In public finance, government debt, also known as public interest, public debt, national debt and sovereign debt, is the total amount of debt owed at a point in time by a government or sovereign state to lenders. Government debt can be owed to ...
and reduction of spending on
public works Public works are a broad category of projects, financed and constructed by the , for recreational, employment, and health and safety uses in the greater . They include public buildings (, s, s), (s, s, s, , s, s, s), (s, s, es), public servi ...

public works
. There is, however, debate over the meaning of the term. Sociologists Fred L. Block and
Margaret Somers Margaret R. Somers is an American sociologist and Professor of Sociology and History at the University of Michigan She is the recipient of the inaugural Lewis A. Coser Award for Innovation and Theoretical Agenda-Setting in Sociology, Somers's work ...
claim there is a dispute over what to call the influence of free-market ideas which have been used to justify the retrenchment of
New Deal The New Deal was a series of programs, public work projects, financial reforms, and regulations Regulation is the management of complex systems according to a set of rules and trends. In systems theory Systems theory is the interdisciplinar ...
programs and policies since the 1980s: neoliberalism, ''
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), d ...
'' or "free market ideology". Other academics such as Susan Braedley and Med Luxton assert that neoliberalism is a political philosophy which seeks to "liberate" the processes of
capital accumulation Capital accumulation (also termed the accumulation of capital) is the dynamic that motivates the , involving the of money or any with the of increasing the initial monetary of said asset as a whether in the form of , , , or . The aim of cap ...
.Susan Braedley and Meg Luxton,
Neoliberalism and Everyday Life
'' ( McGill-Queen's University Press, 2010),
p. 3
/ref> In contrast,
Frances Fox Piven Frances Fox Piven (born October 10, 1932) is an American professor of political science Political science is the scientific study of politics. It is a social science dealing with systems of governance and power, and the analysis of politics, ...
sees neoliberalism as essentially hyper-capitalism. However,
Robert W. McChesney Robert Waterman McChesney (born December 22, 1952) is an American professor notable in the history and political economy of communications, and the role media play in democratic and capitalist societies. He is the Gutgsell Endowed Professor in t ...
, while defining neoliberalism similarly as "capitalism with the gloves off", goes on to assert that the term is largely unknown by the general public, particularly in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

United States
. and McChesney, Robert W. (Introduction). '' Profit over People: Neoliberalism and Global Order.''
Seven Stories Press Seven Stories Press is an independent American publishing company. Based in New York City, the company was founded by Dan Simon in 1995, after establishing Four Walls Eight Windows in 1984 as an imprint at Writers and Readers, and then incorporat ...
, 2011.

/ref> Lester Spence uses the term to critique trends in Black politics, defining neoliberalism as "the general idea that society works best when the people and the institutions within it work or are shaped to work according to market principles". According to
Philip Mirowski Philip Mirowski (born 21 August 1951 in Jackson, Michigan) is a history of economic thought, historian and philosopher of economic thought at the University of Notre Dame. He received a PhD in Economics from the University of Michigan in 1979. Car ...
, neoliberalism views the market as the greatest information processor superior to any human being. It is hence considered as the arbiter of truth.
Adam Kotsko Adam Kotsko (born 1980) is an American theologian, religious scholar, culture critic, and translator, working in the field of political theologyPolitical theology is a term which has been used in discussion of the ways in which theological concept ...
describes neoliberalism as
political theologyPolitical theology is a term which has been used in discussion of the ways in which theological concepts or ways of thinking relate to politics Politics (from , ) is the set of activities that are associated with making decisions in groups, ...
, as it goes beyond simply being a formula for economic policy agenda and instead infuses it with a moral ethos that "aspires to be a complete way of life and a holistic worldview, in a way that previous models of capitalism did not." Neoliberalism is distinct from liberalism insofar as it does not advocate ''laissez-faire'' economic policy but instead is highly constructivist and advocates a strong state to bring about market-like reforms in every aspect of society. Anthropologist Jason Hickel also rejects the notion that neoliberalism necessitates the retreat of the state in favor of totally free markets, arguing that the spread of neoliberalism required substantial state intervention to establish a global 'free market'.
Naomi Klein Naomi A. Klein (born May 8, 1970) is a Canadian author, social activist, and filmmaker known for her political analyses, support of ecofeminism Ecofeminist thinkers draw on the concept of gender Gender is the range of characteristics pertai ...

Naomi Klein
states that the three policy pillars of neoliberalism are "
privatization Privatization (or privatisation in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, ea ...
of the public sphere,
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a r ...
of the corporate sector, and the lowering of
income In microeconomics Microeconomics is a branch of mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a bas ...
and
corporate taxes A corporate tax, also called corporation tax or company tax, is a direct tax Though the actual definitions vary between jurisdictions, in general, a direct tax is a tax imposed upon a person or property as distinct from a tax imposed upon a tran ...
, paid for with cuts to
public spending Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual or ...
". Neoliberalism is also, according to some scholars, commonly used as a
pejorative A pejorative or slur is a word In linguistics, a word of a spoken language can be defined as the smallest sequence of phonemes that can be uttered in isolation with semantic, objective or pragmatics, practical meaning (linguistics), meaning ...
by critics, outpacing similar terms such as
monetarism Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply In macroeconomics, the money ...
,
neoconservatism Neoconservatism is a political movement A political movement is a collective attempt by a group of people to change government policy Public policy is a course of action created and/or enacted, typically by a government A gover ...
, the Washington Consensus and "market reform" in much scholarly writing. ''The Handbook of Neoliberalism'', for instance, posits that the term has "become a means of identifying a seemingly ubiquitous set of market-oriented policies as being largely responsible for a wide range of social, political, ecological and economic problems". Its use in this manner has been criticized by those who advocate for policies characterized as neoliberal. The ''Handbook'', for example, further argues that "such lack of specificity or the termreduces its capacity as an analytic frame. If neoliberalism is to serve as a way of understanding the transformation of society over the last few decades then the concept is in need of unpacking". Historian Daniel Stedman Jones has similarly said that the term "is too often used as a catch-all shorthand for the horrors associated with globalization and recurring financial crises". On the other hand, many scholars believe it retains a meaningful definition. Writing in ''
The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer ''The Observer'' is a British newspaper published on Sun ...

The Guardian
'', Stephen Metcalf posits that the publication of the 2016
IMF The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monu ...
paper "Neoliberalism: Oversold?" helps "put to rest the idea that the word is nothing more than a political slur, or a term without any analytic power".


Early history


Walter Lippmann Colloquium

The
Great Depression The Great Depression was a severe worldwide that took place mostly during the 1930s, beginning . The timing of the Great Depression varied around the world; in most countries, it started in 1929 and lasted until the late 1930s. It was the l ...
in the 1930s, which severely decreased
economic output Output in economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of g ...
throughout the world and produced high
unemployment Unemployment, according to the OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de Coopération et de Développement Économiques, OCDE) is an intergovernmental economic organisation with 38&nbs ...
and widespread
poverty Poverty is the state of having little material possessions or income In microeconomics, income is the Consumption (economics), consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expresse ...

poverty
, was widely regarded as a failure of
economic liberalism Economic liberalism (also known as fiscal conservatism in United States politics) is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decisions in Social group, groups, or other form ...
. To renew the damaged ideology, a group of 25 liberal intellectuals, including a number of prominent academics and journalists like
Walter Lippmann Walter Lippmann (September 23, 1889 – December 14, 1974) was an American writer, reporter and political commentator. With a career spanning 60 years he is famous for being among the first to introduce the concept of Cold War, coining the ter ...
,
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
,
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a heterodox In religion, heterodoxy (from Ancient Greek Ancient Greek includes the forms of the Greek languag ...

Ludwig von Mises
, , , and
Louis Rougier Louis Auguste Paul Rougier (; 10 April 1889 – 14 October 1982) was a French philosopher A philosopher is someone who practices philosophy. The term ''philosopher'' comes from the grc, φιλόσοφος, , translit=philosophos, meaning 'love ...
, organized the Walter Lippmann Colloquium, named in honor of Lippman to celebrate the publication of the French translation of Lippmann's pro-
market Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland and Sweden Art, entertainment, and media Films *Market (1965 film), ''Market'' (1965 ...
book ''An Inquiry into the Principles of the Good Society''. Meeting in Paris in August 1938, they called for a new liberal project, with "neoliberalism" one name floated for the fledgling movement.
Oliver Marc Hartwich Oliver Marc Hartwich (born 8 July 1975 in Gelsenkirchen) is a German economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and con ...

Neoliberalism: The Genesis of a Political Swearword
Centre for Independent Studies, 2009,
They further agreed to develop the Colloquium into a permanent think tank based in Paris called the Centre International d'Études pour la Rénovation du Libéralisme. While most agreed that the ''
status quo is a Latin phrase meaning the existing state of affairs (sociology), state of affairs, particularly with regard to social, political, religious or military issues. In the Sociology, sociological sense, the ''status quo'' refers to the current st ...
'' liberalism promoting ''
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), d ...
'' economics had failed, deep disagreements arose around the proper role of the
state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, Un ...

state
. A group of "true (third way) neoliberals" centered around Rüstow and Lippmann advocated for strong state supervision of the economy while a group of old school liberals centered around Mises and Hayek continued to insist that the only legitimate role for the state was to abolish barriers to market entry. Rüstow wrote that Hayek and Mises were relics of the liberalism that caused the Great Depression while Mises denounced the other faction, complaining that the
ordoliberalism Ordoliberalism is the German variant of economic liberalism that emphasizes the need for the state to ensure that the free market produces results close to its theoretical potential. Ordoliberal ideals became the foundation of the creation of ...

ordoliberalism
they advocated really meant "ordo-interventionism". Divided in opinion and short on funding, the Colloquium was mostly ineffectual; related attempts to further neoliberal ideas, such as the effort by Colloque-attendee to establish a journal of neoliberal ideas, mostly floundered. Fatefully, the efforts of the Colloquium would be overwhelmed by the outbreak of
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a global war A world war is "a war War is an intense armed conflict between states State may refer to: Arts, entertainment, and media Literatur ...
and were largely forgotten. However, the Colloquium did serve as the first meeting of the nascent "neoliberal" movement and would serve as the precursor to the
Mont Pelerin Society Mont may refer to: Places * Mont., an abbreviation for Montana Montana () is a U.S. state, state in the Mountain states, Mountain West region of the United States. It is bordered by Idaho to the west; North Dakota and South Dakota to the e ...
, a far more successful effort created after the war by many of those who had been present at the Colloquium.


Mont Pelerin Society

Neoliberalism began accelerating in importance with the establishment of the
Mont Pelerin Society Mont may refer to: Places * Mont., an abbreviation for Montana Montana () is a U.S. state, state in the Mountain states, Mountain West region of the United States. It is bordered by Idaho to the west; North Dakota and South Dakota to the e ...
in 1947, whose founding members included
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
,
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
,
Karl Popper Sir Karl Raimund Popper (28 July 1902 – 17 September 1994) was an Austrian-British philosopher A philosopher is someone who practices philosophy Philosophy (from , ) is the study of general and fundamental questions, such as tho ...

Karl Popper
,
George Stigler George Joseph Stigler (; January 17, 1911 – December 1, 1991) was an American economist An economist is a professional and practitioner in the social science Social science is the branch The branches and leaves of a tree. A br ...
and
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a heterodox In religion, heterodoxy (from Ancient Greek Ancient Greek includes the forms of the Greek languag ...

Ludwig von Mises
. Meeting annually, it would become a "kind of international 'who's who' of the classical liberal and neo-liberal intellectuals." While the first conference in 1947 was almost half American, the Europeans dominated by 1951. Europe would remain the epicenter of the community as Europeans dominated the leadership roles.
Philip Mirowski Philip Mirowski (born 21 August 1951 in Jackson, Michigan) is a history of economic thought, historian and philosopher of economic thought at the University of Notre Dame. He received a PhD in Economics from the University of Michigan in 1979. Car ...
, Dieter Plehwe, ''The road from Mont Pèlerin: the making of the neoliberal thought collective'', Harvard University Press, 2009,
Established during a time when
central planning A planned economy is a type of economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. T ...
was in the ascendancy worldwide and there were few avenues for neoliberals to influence policymakers, the society became a "rallying point" for neoliberals, as Milton Friedman phrased it, bringing together isolated advocates of liberalism and
capitalism Capitalism is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), distribution of goods and services within ...

capitalism
. They were united in their belief that individual freedom in the developed world was under threat from collectivist trends, which they outlined in their statement of aims:
The central values of civilization are in danger. Over large stretches of the Earth's surface the essential conditions of human dignity and freedom have already disappeared. In others, they are under constant menace from the development of current tendencies of policy. The position of the individual and the voluntary group are progressively undermined by extensions of arbitrary power. Even that most precious possession of Western Man, freedom of thought and expression, is threatened by the spread of creeds which, claiming the privilege of tolerance when in the position of a minority, seek only to establish a position of power in which they can suppress and obliterate all views but their own...The group holds that these developments have been fostered by the growth of a view of history which denies all absolute moral standards and by the growth of theories which question the desirability of the rule of law. It holds further that they have been fostered by a decline of belief in private property and the competitive market... his group'sobject is solely, by facilitating the exchange of views among minds inspired by certain ideals and broad conceptions held in common, to contribute to the preservation and improvement of the free society.
The society set out to develop a neoliberal alternative to, on the one hand, the
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), d ...
economic consensus that had collapsed with the
Great Depression The Great Depression was a severe worldwide that took place mostly during the 1930s, beginning . The timing of the Great Depression varied around the world; in most countries, it started in 1929 and lasted until the late 1930s. It was the l ...
and, on the other,
New Deal The New Deal was a series of programs, public work projects, financial reforms, and regulations Regulation is the management of complex systems according to a set of rules and trends. In systems theory Systems theory is the interdisciplinar ...
liberalism and British
social democracy Social democracy is a political Politics (from , ) is the set of activities that are associated with making decisions In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognit ...
, collectivist trends which they believed posed a threat to individual freedom. They believed that classical liberalism had failed because of crippling conceptual flaws which could only be diagnosed and rectified by withdrawing into an intensive discussion group of similarly minded intellectuals; however, they were determined that the liberal focus on
individualism Individualism is the Ethics, moral stance, political philosophy, ideology and social outlook that emphasizes the intrinsic worth of the individual. Individualists promote the exercise of one's goals and desires and to value independence and self ...
and
economic freedom Economic freedom, or economic liberty, is the ability of people of a society to take economic actions. This is a term used in economic and policy debate Policy debate is a form of debate competition in which teams of two advocate for and against ...
must not be abandoned to collectivism.


Post–World War II neoliberal currents

For decades after the formation of the
Mont Pelerin Society Mont may refer to: Places * Mont., an abbreviation for Montana Montana () is a U.S. state, state in the Mountain states, Mountain West region of the United States. It is bordered by Idaho to the west; North Dakota and South Dakota to the e ...
, the ideas of the society would remain largely on the fringes of political policy, confined to a number of think-tanks and universities and achieving only measured success with the ordoliberals in
Germany ) , image_map = , map_caption = , map_width = 250px , capital = Berlin Berlin (; ) is the Capital city, capital and List of cities in Germany by population, largest city of Germany by both area and population. Its 3,769,495 inh ...

Germany
, who maintained the need for strong state influence in the economy. It would not be until a succession of economic downturns and crises in the 1970s that neoliberal policy proposals would be widely implemented. By this time, neoliberal thought had evolved. The early neoliberal ideas of the
Mont Pelerin Society Mont may refer to: Places * Mont., an abbreviation for Montana Montana () is a U.S. state, state in the Mountain states, Mountain West region of the United States. It is bordered by Idaho to the west; North Dakota and South Dakota to the e ...
had sought to chart a middle way between the trend of increasing government intervention implemented after the
Great Depression The Great Depression was a severe worldwide that took place mostly during the 1930s, beginning . The timing of the Great Depression varied around the world; in most countries, it started in 1929 and lasted until the late 1930s. It was the l ...
and the
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), d ...
economics many in the society believed had produced the Great Depression.
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
, one of the most influential neoliberal figures, wrote in his early essay "Neo-liberalism and Its Prospects" that "Neo-liberalism would accept the nineteenth-century liberal emphasis on the fundamental importance of the individual, but it would substitute for the nineteenth century goal of ''
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), d ...
'' as a means to this end, the goal of the competitive order", which requires limited state intervention to "police the system, establish conditions favorable to competition and prevent monopoly, provide a stable , and relieve acute misery and distress". By the 1970s, neoliberal thought, including Friedman's, focused almost exclusively on market liberalization and was adamant in its opposition to nearly all forms of state interference in the economy. One of the earliest and most influential turns to neoliberal reform occurred in
Chile Chile, officially the Republic of Chile, is a country in the western part of South America South America is a entirely in the and mostly in the , with a relatively small portion in the . It can also be described as the southern ...

Chile
after an economic crisis in the early 1970s. After less than three years of
socialist Socialism is a political Politics (from , ) is the set of activities that are associated with making decisions In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognitive pr ...

socialist
economic policies under president
Salvador Allende Salvador Guillermo Allende Gossens (, , ; 26 June 1908 – 11 September 1973) was a Chilean physician and socialist Socialism is a Political philosophy, political, Social philosophy, social, and economic philosophy encompassing a range ...

Salvador Allende
, a 1973 ''coup d'état'' that established a
military junta A military junta () is a government A government is the system or group of people governing an organized community, generally a State (polity), state. In the case of its broad associative definition, government normally consists of ...
under dictator
Augusto Pinochet Augusto José Ramón Pinochet Ugarte (, also , , ; 25 November 1915 – 10 December 2006) was a Chilean Army Captain general#Chile, General, politician and military dictatorship, military dictator who ruled Chile from 1973 to 1990, first as the ...

Augusto Pinochet
led to the implementation of a number of sweeping neoliberal economic reforms that had been proposed by the
Chicago Boys The Chicago Boys were a group of Chilean economists prominent around the 1970s and 1980s, the majority of whom were educated at the Department of Economics of the University of Chicago The University of Chicago (UChicago, U of C, or Chicago) ...
, a group of Chilean economists educated under
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
. This "neoliberal project" served as "the first experiment with neoliberal state formation" and provided an example for neoliberal reforms elsewhere. Beginning in the early 1980s, the
Reagan administration The presidency of Ronald Reagan began at noon EST (17:00 UTC) on January 20, 1981, when Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician who served as the 40th president of the United S ...
and implemented a series of neoliberal economic reforms to counter the chronic
stagflation In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

United States
and
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain,Usage is mixed. The Guardian' and Telegraph' use Britain as a synonym for the United Kingdom. Some prefer to use Britain as shorth ...

United Kingdom
had each experienced throughout the 1970s. Neoliberal policies continued to dominate American and British politics until the
Great Recession The Great Recession was a period of marked general decline (recession In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution ( ...
. Following British and American reform, neoliberal policies were exported abroad, with countries in
Latin America * ht, Amerik Latin, link=no * pt, América Latina, link=no , image = Latin America (orthographic projection).svg , area = , population = ( est.) , density = , ethnic_groups = , ethnic_groups_year = 2018 , ethnic ...

Latin America
, the
Asia-Pacific The Asia-Pacific is the part of the world In its most general sense, the term "world" refers to the totality of entities, to the whole of reality or to everything that is. The nature of the world has been conceptualized differently in dif ...

Asia-Pacific
, the
Middle East The Middle East ( ar, الشرق الأوسط, ISO 233 The international standard An international standard is a technical standard A technical standard is an established norm (social), norm or requirement for a repeatable technical task whi ...

Middle East
, and even
communist Communism (from Latin Latin (, or , ) is a classical language belonging to the Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, known as Latium. Through the power of the Roman Repu ...

communist
China China (), officially the People's Republic of China (PRC; ), is a country in East Asia East Asia is the eastern region of Asia Asia () is Earth's largest and most populous continent, located primarily in the Eastern Hemisphere ...

China
implementing significant neoliberal reform. Additionally, the
International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The ...

International Monetary Fund
and
World Bank The World Bank is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its o ...
encouraged neoliberal reforms in many
developing countries A developing country is a sovereign state with a less developed Industrial sector, industrial base and a low Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no ...

developing countries
by placing reform requirements on loans, in a process known as
structural adjustment Structural adjustment programs (SAPs) consist of loans (structural adjustment loans; SALs) provided by the International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washing ...
.


Germany

Neoliberal ideas were first implemented in
West Germany West Germany is the common English name for the Federal Republic of Germany (FRG; german: Bundesrepublik Deutschland , BRD) between its formation on 23 May 1949 and the German reunification German reunification (german: Deutsche Wieder ...
. The economists around
Ludwig Erhard Ludwig Wilhelm Erhard (; 4 February 1897 – 5 May 1977) was a German politician affiliated with the Christian Democratic Union (CDU), and Chancellor of Germany (1949–), chancellor of West Germany from 1963 until 1966. He is known for leadin ...

Ludwig Erhard
drew on the theories they had developed in the 1930s and 1940s and contributed to West Germany's reconstruction after the Second World War. Erhard was a member of the Mont Pelerin Society and in constant contact with other neoliberals. He pointed out that he is commonly classified as neoliberal and that he accepted this classification. The
Freiburg School__notoc__ The Freiburg School (german: Freiburger Schule) is a school of economic thought founded in the 1930s at the University of Freiburg The University of Freiburg (colloquially german: Uni Freiburg), officially the Albert Ludwig University ...
was more pragmatic. The German neoliberals accepted the classical liberal notion that competition drives economic prosperity, but they argued that a laissez-faire state policy stifles competition, as the strong devour the weak since monopolies and cartels could pose a threat to freedom of competition. They supported the creation of a well-developed legal system and capable regulatory apparatus. While still opposed to full-scale Keynesian employment policies or an extensive
welfare state The welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity Equal o ...
, German neoliberal theory was marked by the willingness to place
humanistic Humanism is a philosophical Philosophy (from , ) is the study of general and fundamental questions, such as those about existence Existence is the ability of an entity to interact with physical or mental reality Reality is the ...
and social values on par with economic efficiency. coined the phrase "social market economy" to emphasize the Egalitarianism, egalitarian and humanistic bent of the idea. According to Boas and Gans-Morse,
Walter Eucken Walter Eucken (; 17 January 1891 – 20 March 1950) was a German German(s) may refer to: Common uses * of or related to Germany * Germans, Germanic ethnic group, citizens of Germany or people of German ancestry * For citizens of Germany, see al ...
stated that "social security and social justice are the greatest concerns of our time". Erhard emphasized that the market was inherently social and did not need to be made so. He hoped that growing prosperity would enable the population to manage much of their social security by self-reliance and end the necessity for a widespread welfare state. By the name of ''Volkskapitalismus'', there were some efforts to foster private savings. However, although average contributions to the public old age insurance were quite small, it remained by far the most important old age income source for a majority of the German population, therefore despite liberal rhetoric the 1950s witnessed what has been called a "reluctant expansion of the welfare state". To end widespread poverty among the elderly the pension reform of 1957 brought a significant extension of the German welfare state which already had been established under Otto von Bismarck. Rüstow, who had coined the label "neoliberalism", criticized that development tendency and pressed for a more limited welfare program. Hayek did not like the expression "social market economy", but stated in 1976 that some of his friends in Germany had succeeded in implementing the sort of social order for which he was pleading while using that phrase. However, in Hayek's view the social market economy's aiming for both a market economy and social justice was a muddle of inconsistent aims. Despite his controversies with the German neoliberals at the Mont Pelerin Society,
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a heterodox In religion, heterodoxy (from Ancient Greek Ancient Greek includes the forms of the Greek languag ...

Ludwig von Mises
stated that Erhard and Müller-Armack accomplished a great act of liberalism to restore the German economy and called this "a lesson for the US". However, according to different research Mises believed that the ordoliberals were hardly better than socialists. As an answer to Hans Hellwig's complaints about the interventionist excesses of the Erhard ministry and the ordoliberals, Mises wrote: "I have no illusions about the true character of the politics and politicians of the social market economy". According to Mises, Erhard's teacher Franz Oppenheimer "taught more or less the New Frontier line of" John F Kennedy, President Kennedy's "Harvard consultants (Arthur M. Schlesinger, Schlesinger, John Kenneth Galbraith, Galbraith, etc.)". In Germany, neoliberalism at first was synonymous with both ordoliberalism and social market economy. But over time the original term neoliberalism gradually disappeared since social market economy was a much more positive term and fit better into the ''Wirtschaftswunder'' (economic miracle) mentality of the 1950s and 1960s.


Latin America

In the 1980s, numerous governments in Latin America adopted neoliberal policies.


Chile

Chile was among the earliest nations to implement neoliberal reform. Marxism, Marxist economic geographer David Harvey has described the substantial neoliberal reforms in Chile beginning in the 1970s as "the first experiment with neoliberal state formation", which would provide "helpful evidence to support the subsequent turn to neoliberalism in both Britain... and the United States." Similarly, Vincent Bevins says that Chile under
Augusto Pinochet Augusto José Ramón Pinochet Ugarte (, also , , ; 25 November 1915 – 10 December 2006) was a Chilean Army Captain general#Chile, General, politician and military dictatorship, military dictator who ruled Chile from 1973 to 1990, first as the ...

Augusto Pinochet
"became the world's first test case for 'neoliberal' economics." The turn to neoliberal policies in Chile originated with the
Chicago Boys The Chicago Boys were a group of Chilean economists prominent around the 1970s and 1980s, the majority of whom were educated at the Department of Economics of the University of Chicago The University of Chicago (UChicago, U of C, or Chicago) ...
, a select group of Chilean students who, beginning in 1955, were invited to the University of Chicago to pursue postgraduate studies in economics. They studied directly under
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
and his disciple, Arnold Harberger, and were exposed to
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
. Upon their return to Chile, their neoliberal policy proposals—which centered on widespread
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a r ...
,
privatization Privatization (or privatisation in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, ea ...
, reductions to government spending to counter high inflation, and other free-market policies—would remain largely on the fringes of Chilean economic and political thought for a number of years, as the presidency of Salvador Allende (1970–1973) brought about a
socialist Socialism is a political Politics (from , ) is the set of activities that are associated with making decisions In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognitive pr ...

socialist
reorientation of the economy. During the Allende presidency, Chile experienced a severe economic crisis, in which inflation peaked near 150%. Following an extended period of social unrest and political tension, as well as diplomatic, economic, and covert pressure from the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

United States
, the Chilean armed forces and national police overthrew the Allende government in a 1973 Chilean coup d'état, coup d'état. They established a repressive military junta, military ''junta'', known for its Indictment and arrest of Augusto Pinochet, suppression of opposition, and appointed army chief Augusto Pinochet Supreme Head of the nation. His rule was later given legal legitimacy through a controversial 1980 Chilean constitutional referendum, 1980 plebiscite, which approved a new Constitution of Chile, constitution drafted by a government-appointed commission that ensured Pinochet would remain as President for a further eight years—with increased powers—after which he would face a re-election referendum. The Chicago Boys were given significant political influence within the Military government of Chile (1973–1990), military dictatorship, and they implemented Economic history of Chile (1973-1990)#"Neoliberal" reforms (1973-1990), sweeping economic reform. In contrast to the extensive nationalization and centrally planned economic programs supported by Allende, the Chicago Boys implemented rapid and extensive privatization of state enterprises, deregulation, and significant reductions in trade barriers during the latter half of the 1970s. In 1978, policies that would further reduce the role of the state and infuse competition and individualism into areas such as labor relations, pensions, health and education were introduced. Additionally, the central bank raised interest rates from 49.9% to 178% to counter high inflation. These policies amounted to a Shock therapy (economics), shock therapy, which rapidly transformed Chile from an economy with a protected market and strong government intervention into a liberalized, world-integrated economy, where market forces were left free to guide most of the economy's decisions. Inflation was tempered, falling from over 600% in 1974, to below 50% by 1979, to below 10% right before the Crisis of 1982, economic crisis of 1982. GDP growth spiked (see chart) to 10%. However, inequality widened as wages and benefits to the working class were reduced.Peter Winn (ed),
Victims of the Chilean Miracle: Workers and Neoliberalism in the Pinochet Era, 1973–2002
', (Duke University Press, 2004),
In 1982, Chile again experienced a Crisis of 1982, severe economic recession. The cause of this is contested, however most scholars believe the Latin American debt crisis—which swept nearly all of Latin America into financial crisis—was a primary cause.''Historia contemporánea de Chile III. La economía: mercados empresarios y trabajadores''. 2002. Gabriel Salazar and Julio Pinto. pp. 49–-62. Some scholars argue the neoliberal policies of the Chicago boys heightened the crisis (for instance, percent GDP decrease was higher than in any other Latin American country) or even caused it; for instance, some scholars criticize the high interest rates of the period which—while stabilizing inflation—hampered investment and contributed to widespread bankruptcy in the banking industry. Other scholars fault governmental departures from the neoliberal Political agenda, agenda; for instance, the government pegged the Chilean peso to the US dollar, against the wishes of the Chicago Boys, which economists believe led to an overvalued peso. After the recession, Chilean economic growth rose quickly, eventually hovering between 5% and 10% and significantly outpacing the Latin American average (see chart). Additionally, unemployment decreased and the percent of the population below the poverty line declined from 50% in 1984 to 34% by 1989. This led
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
to call the period the "Miracle of Chile", and he attributed the successes to the neoliberal policies of the Chicago boys. Some scholars, however, attribute the successes to the re-regulation of the banking industry and a number of targeted social programs designed to alleviate poverty. Others note that while the economy had stabilized and was growing by the late 1980s, inequality widened: nearly 45% of the population had fallen into poverty while the wealthiest 10% had seen their incomes rise by 83%. According to Chilean economist Alejandro Foxley, by 1990 around 44% of Chilean families were living below the poverty line. Despite years of suppression by the Pinochet junta, in 1988 a presidential election was held, as dictated by the 1980 constitution (though not without Pinochet first holding another plebiscite referendum in an attempt to amend the constitution). In 1990, Patricio Aylwin was democratically elected, bringing an end to the military dictatorship. The reasons cited for Pinochet's acceptance of democratic transition are numerous. Hayek, echoing arguments he had made years earlier in ''The Road to Serfdom,''
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
, ''The Road to Serfdom'', University of Chicago Press; 50th Anniversary edition (1944), p. 95
argued that the increased economic freedom he believed the neoliberal reforms had brought had put pressure on the dictatorship over time, resulting in a gradual increase in political freedom and, ultimately, the restoration of democracy. The Chilean scholars Javier Martínez and Alvaro Díaz, however, reject this argument, pointing to the long tradition of democracy in Chile. They assert that the defeat of the Pinochet regime and the return of democracy came primarily from large-scale mass rebellion that eventually forced party elites to use existing institutional mechanisms to restore democracy. In the 1990s, neoliberal economic policies broadened and deepened, including unilateral tariff reductions and the adoption of free trade agreements with a number of Latin American countries and Canada. However, the decade also brought increases in government expenditure on social programs to tackle poverty and poor quality housing. Throughout the 1990s, Chile maintained high growth, averaging 7.3% from 1990 to 1998. Eduardo Aninat, writing for the IMF journal ''Finance & Development'', called the period from 1986 to 2000 "the longest, strongest, and most stable period of growth in [Chile's] history." In 1999 there was a brief recession brought about by the Asian financial crisis, with growth resuming in 2000 and remaining near 5% until the
Great Recession The Great Recession was a period of marked general decline (recession In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution ( ...
. In sum, the neoliberal policies of the 1980s and 1990s—initiated by a repressive authoritarianism, authoritarian government—transformed the Chilean economy from a protectionism, protected market with high barriers to trade and hefty government intervention into one of the world's most open economy, open
free-market In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goo ...
economies. Chile experienced the worst economic bust of any Latin American country during the Latin American debt crisis (several years into neoliberal reform), but also had one of the most robust recoveries, rising from the poorest Latin American country in terms of GDP per capita in 1980 (along with Peru) to the richest in 2019. Average annual economic growth from the mid-1980s to the Asian crisis in 1997 was 7.2%, 3.5% between 1998 and 2005, and growth in per capita real income from 1985 to 1996 averaged 5%—all outpacing Latin American averages. Inflation was brought under control. Between 1970 and 1985 the infant mortality rate in Chile fell from 76.1 per 1000 to 22.6 per 1000,World Bank. (April 2010). Washington, DC: World Bank. Statistics retrieved 1 October 2010 fro
World Development Indicators database
the lowest in Latin America. Unemployment from 1980 to 1990 decreased, but remained higher than the South American average (which was stagnant). And despite public perception among Chileans that economic inequality has increased, Chile's Gini coefficient has in fact dropped from 56.2 in 1987 to 46.6 in 2017. However, while this is near the Latin American average, Chile still has one of the highest Gini coefficients in the OECD, an organization of mostly developed countries that includes Chile but not most other Latin American countries. Furthermore, the Gini coefficient measures only income inequality; Chile has more mixed inequality ratings in the OECD's OECD Better Life Index, Better Life Index, which includes indexes for more factors than only income, like housing and education. Additionally, the percentage of the Chilean population living in poverty rose from 17% in 1969 to 45% in 1985 at the same time government budgets for education, health and housing dropped by over 20% on average. The era was also marked by economic instability. Overall, scholars have mixed opinions on the effects of the neoliberal reforms. The CIA World Factbook states that Chile's "sound economic policies", maintained consistently since the 1980s, "have contributed to steady economic growth in Chile and have more than halved poverty rates,"Chile
''The World Factbook''. Central Intelligence Agency.
and some scholars have even called the period the "Miracle of Chile". Other scholars, however, have called it a failure that led to extreme inequalities in the distribution of income and resulted in severe socioeconomic damage. It is also contested how much these changes were the result of neoliberal economic policies and how much they were the result of other factors; in particular, some scholars argue that after the Crisis of 1982 the "pure" neoliberalism of the late 1970s was replaced by a focus on fostering a social market economy that mixed neoliberal and social welfare policies. As a response to the 2019–20 Chilean protests, a 2020 Chilean national plebiscite, national plebiscite was held on 25 October 2020 to decide whether the Chilean constitution would be rewritten. The "approve" option for a new constitution to replace the Pinochet-era constitution, which entrenched certain neoliberal principles into the country's basic law, won with 78% of the vote. On 11 April 2021 another referendum will be held to decide the makeup of the convention that will rewrite the constitution. The new constitution is expected to shift away from the neoliberal economic structure laid out in the current constitution and to address the country's economic inequality.


Peru

Peruvian economist Hernando de Soto (economist), Hernando de Soto, the founder of one of the first neoliberal organizations in Latin America, Institute for Liberty and Democracy (ILD), began to receive assistance from
Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician who served as the 40th president of the United States The president of the United States (POTUS) is the head of state and head of government of the Un ...

Ronald Reagan
's administration, with the National Endowment for Democracy's Center for International Private Enterprise (CIPE) providing his ILD with funding. The economic policy President of Peru, President Alan García distanced Peru from international markets, resulting in lower foreign investment in the country. Under García, Peru experienced hyperinflation and increased confrontations with the guerrilla group Shining Path, leading the country towards high levels of instability. The Peruvian armed forces grew frustrated with the inability of the García administration to handle the nation's crises and began to draft an operation – Plan Verde – to overthrow his government. The military's Plan Verde involved the "Genocide, total extermination" of impoverished and indigenous Peruvians perceived as a drain on the economy, the control or censorship of media in the nation and the establishment of a neoliberal economy in Peru. During his campaigning for the 1990 Peruvian general election, Alberto Fujimori initially expressed concern against the proposed neoliberal policies of his opponent Mario Vargas Llosa. Peruvian magazine ''Oiga'' reported that following the election, the armed forces were unsure of Fujimori's willingness to fulfill the plan's objectives, though they planned to convince Fujimori to agree to the operation prior to his inauguration. After taking office, Fujimori abandoned his campaign's economic platform, adopting more aggressive neoliberal policies than those espoused by his election competitor Vargas Llosa.Gouge, Thomas. ''Exodus from Capitalism: The End of Inflation and Debt''. 2003, page 363. With Fujimori's compliance, plans for a coup as designed in Plan Verde were prepared for two years and finally executed during the 1992 Peruvian coup d'état, which ultimately established a civilian-military regime. Shortly after the inauguration of Fujimori, his government received a $715 million grant from United States Agency for International Development, United States Agency for International Development (USAID) on 29 September 1990 for the Policy Analysis, Planning and Implementation Project (PAPI) that was developed "to support economic policy reform in the country". De Soto proved to be influential to Fujimori, who began to repeat de Soto's advocacy for deregulating the Peruvian economy. Under Fujimori, de Soto served as "the President's personal representative", with ''The New York Times'' describing de Soto as an "overseas salesman", while others dubbed de Soto as the "informal president" for Fujimori. In a recommendation to Fujimori, de Soto called for a "shock" to Peru's economy. The policies included a 300% tax increase, unregulated prices and privatizing two-hundred and fifty state-owned entities. The policies of de Soto led to the immediate suffering of poor Peruvians who saw unregulated prices increase rapidly. Those living in poverty saw prices increase so much that they could no longer afford food. ''The New York Times'' wrote that de Soto advocated for the collapse of Peru's society, with the economist saying that a civil crisis was necessary to support the policies of Fujimori. Fujimori and de Soto would ultimately break their ties after de Soto recommended increased involvement of citizens within the government, which was received with disapproval by Fujimori. USAID would go on to assist the Fujimori government with rewriting the 1993 Peruvian constitution, with the agency concluding in 1997 that it helped with the "preparation of legislative texts" and "contributed to the emergence of a private sector advisory role". The policies promoted by de Soto and implemented by Fujimori eventually caused macroeconomic stability and a reduction in the rate of inflation, though Peru's poverty rate remained largely unchanged with over half of the population living in poverty in 1998. According to the Foundation for Economic Education, USAID, the United Nations Population Fund, United Nations Population Fund (UNFPA) and the Nippon Foundation also supported the sterilization efforts of the Fujimori government. E. Liagin reported that from 1993 to 1998, USAID "basically took charge of the national health system of Peru" during the period of forced sterilizations. At least 300,000 Peruvians were victims of forced sterilization by the Fujimori government in the 1990s, with the majority being affected by the PNSRPF. The policy of sterilizations resulted in a generational shift that included a smaller younger generation that could not provide economic stimulation to rural areas, making such regions more impoverished. Though economic statistics show improved economic data in Peru in recent decades, the wealth earned between 1990 and 2020 was not distributed throughout the country; living standards showed disparities between the more-developed capital city of Lima and similar coastal regions while rural provinces remained impoverished. Sociologist Maritza Paredes of the Pontifical Catholic University of Peru stated, "People see that all the natural resources are in the countryside but all the benefits are concentrated in Lima." In 2020, the COVID-19 pandemic in Peru exasperated these disparities even further. Political scientist professor Farid Kahhat of the Pontifical Catholic University of Peru stated that "market reforms in Peru have yielded positive results in terms of reducing poverty ... But what the pandemic has laid bare, particularly in Peru, is that poverty was reduced while leaving the miserable state of public services unalteredmost clearly in the case of health services." The candidacy of Pedro Castillo in the 2021 Peruvian general election brought attention to the disparities between urban and rural Peruvians, with much of his support being earned in the exterior portions of the country. Castillo ultimately won the election, with ''The New York Times'' reporting his victory as the "clearest repudiation of the country's establishment".


Argentina

In the 1960s,
Latin America * ht, Amerik Latin, link=no * pt, América Latina, link=no , image = Latin America (orthographic projection).svg , area = , population = ( est.) , density = , ethnic_groups = , ethnic_groups_year = 2018 , ethnic ...

Latin America
n intellectuals began to notice the ideas of
ordoliberalism Ordoliberalism is the German variant of economic liberalism that emphasizes the need for the state to ensure that the free market produces results close to its theoretical potential. Ordoliberal ideals became the foundation of the creation of ...

ordoliberalism
; they often used the Spanish term "neoliberalismo" to refer to this school of thought. They were particularly impressed by the social market economy and the Wirtschaftswunder ("economic miracle") in Germany and speculated about the possibility of accomplishing similar policies in their own countries. Note that neoliberalism in 1960s Argentina meant a philosophy that was more moderate than entirely Laissez-faire free market, free-market
capitalism Capitalism is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), distribution of goods and services within ...

capitalism
and favored using state policy to temper social inequality and counter a tendency towards monopoly. In 1976, the National Reorganization Process, military dictatorship's economic plan led by José Alfredo Martínez de Hoz was the first attempt at establishing a neoliberal program in Argentina. They implemented a fiscal
austerity Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: higher taxes to fund spending, ...

austerity
plan that reduced money printing in an attempt to counter inflation. In order to achieve this, salaries were frozen. However, they were unable to reduce inflation, which led to a drop in the real salary of the working class. They also liberalized trade policy so that foreign goods could freely enter the country. Argentina's industry, which had been on the rise for 20 years after the economic policies of former president Arturo Frondizi, rapidly declined as it was not able to compete with foreign goods. The deregulation of the financial sector, however, lead to short-term economic growth, before rapid decline after capital fled to the United States. Following the measures, there was an increase in poverty from 9% in 1975 to 40% at the end of 1982. From 1989 to 2001, more neoliberal policies were implemented by Domingo Cavallo. This time, the privatization of public services was the main focus, although financial deregulation and free trade with foreign nations were also re-implemented. Along with an increased labour market flexibility, the unemployment rate dropped to 18.3%. Public perception of the policies was mixed; while some of the privatization was welcomed, much of it was criticized for not being in the people's best interests. Protests resulted in the death of 29 people at the hands of police, as well as the resignation of president Fernando de la Rúa two years before the full completion of his term.


Mexico

Along with many other Latin American countries in the early 1980s, Mexico experienced a Latin American debt crisis, debt crisis. In 1983 the Mexican government ruled by the Institutional Revolutionary Party#:~:text=The Institutional Revolutionary Party (Spanish,, PNR), then as the, PRI, the Institutional Revolutionary Party, Mexico and the International Monetary Fund, accepted loans from the IMF. Among the conditions set by the IMF were requirements for Mexico to privatize state-run industries, Devaluation, devalue their currency, decrease trade barriers, and restrict governmental spending. These policies were aimed at stabilizing Mexico's economy in the short run. Later, Mexico tried to expand these policies to encourage growth and foreign direct investment (FDI). The decision to accept the IMF's neoliberal reforms split the PRI between those on the right who wanted to implement neoliberal policies and those the left who did not. Carlos Salinas de Gortari, who took power in 1988, doubled down on neoliberal reforms. His policies opened up the financial sector by deregulating the banking system and privatizing commercial banks. Though these policies did encourage a small amount of growth and FDI, the growth rate was below what it had been under previous governments in Mexico, and the increase in foreign investment was largely from existing investors. On 1 January 1994 the Zapatista Army of National Liberation, Zapatista Army of National Liberation, named for Emiliano Zapata, a leader in the Mexican revolution, launched an armed rebellion against the Mexican government in the Chiapas region. Among their demands were rights for indigenous Mexicans as well as opposition to the North American Free Trade Agreement (NAFTA), which solidified a strategic alliance between state and business.  NAFTA, a trade agreement between the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

United States
, Canada, and Mexico, significantly aided in Mexico's efforts to liberalize trade. In 1994, the same year of the Zapatista rebellion and the enactment of NAFTA, Mexico faced a Mexican peso crisis, financial crisis. The crisis, also known as the Mexican peso crisis, "Tequila Crisis" began in December 1994 with the devaluation of the peso. When investors' doubts led to negative speculation they fled with their capital. The central bank was forced to raise interest rates which in turn collapsed the banking system as borrowers could no longer pay back their loans. After Salinas, Ernesto Zedillo (1995–2000) maintained similar economic policies to his predecessor. Despite the crisis, Zedillo continued to enact neoliberal policies and signed new agreements with the
World Bank The World Bank is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its o ...
and the IMF. As a result of these policies and the 1994 recession, Mexico's economy did gain stability. Neither the 2001 or Great Recession, 2008 recessions were caused by internal economic forces in Mexico. Trade increased dramatically, as well as FDI. However, as Mexico's business cycle synced with that of the United States, it was much more vulnerable to external economic pressures. FDI benefited the Northern and Central regions of Mexico while the Southern region was largely excluded from the influx of investment. The crisis also left the banks mainly in the hands of foreigners. The PRI's 71 year rule ended when Vicente Fox of the PAN, the National Action Party (Mexico), National Action Party, won the election in 2000. However, Fox and his successor Felipe Calderón, Calderon did not significantly diverge from the economic policies of the PRI governments. They continued to privatize the financial system and encourage foreign investment. Despite significant opposition, Enrique Peña Nieto, president from 2012 to 2018, pushed through legislation that would privatize the Petroleum industry in Mexico, oil and Electricity sector in Mexico, electricity industries. These reforms marked the conclusion to the neoliberal goals that had been envisioned in Mexico in the 1980s.


Brazil

Brazil adopted neoliberal policies in the late 1980s, with support from the worker's party on the left. For example, tariff rates were cut from 32% in 1990 to 14% in 1994. During this period, Brazil effectively ended its policy of maintaining a closed economy focused on import substitution industrialization in favor of a more open economic system with a much higher degree of privatization. The market reforms and trade reforms ultimately resulted in price stability and a faster inflow of capital, but had little effect on income inequality and poverty. Consequently, mass protests continued during the period.


United Kingdom

During her tenure as Prime Minister,
Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013), was Prime Minister of the United Kingdom The prime minister of the United Kingdom is the head of government The head of government is either ...

Margaret Thatcher
oversaw a number of neoliberal reforms, including tax cut, tax reduction, exchange rate reform,
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a r ...
, and privatisation. These reforms were continued and supported by her successor John Major. Although opposed by the Labour Party (UK), Labour Party, the reforms were, according to some scholars, largely accepted and left unaltered when Labour returned to power in 1997. The Adam Smith Institute, a United Kingdom–based free-market think tank and lobbying group formed in 1977 which was a major driver of the aforementioned neoliberal reforms, officially changed its libertarian label to neoliberal in October 2016. According to economists Denzau and Roy, the "shift from Keynesian ideas toward neoliberalism influenced the fiscal policy strategies of New Democrats and New Labour in both the White House and Whitehall.... Reagan, Thatcher, Clinton, and Blair all adopted broadly similar neoliberal beliefs.".


United States

While a number of recent histories of neoliberalism in the United States have traced its origins back to the urban renewal policies of the 1950s, Marxism, Marxist economic geographer David Harvey argues the rise of neoliberal policies in the United States occurred during the 1970s energy crisis, and traces the origin of its political rise to Lewis F. Powell Jr.#Powell Memorandum, Lewis Powell's 1971 confidential memorandum to the United States Chamber of Commerce, Chamber of Commerce in particular. A call to arms to the business community to counter criticism of the free enterprise system, it was a significant factor in the rise of conservative and libertarian organizations and think-tanks which advocated for neoliberal policies, such as the Business Roundtable, The Heritage Foundation, the Cato Institute, Citizens for a Sound Economy, Accuracy in Academia and the Manhattan Institute for Policy Research. For Powell, universities were becoming an ideological battleground, and he recommended the establishment of an intellectual infrastructure to serve as a counterweight to the increasingly popular ideas of Ralph Nader and other opponents of big business. The original neoliberals on the left included, among others, Michael Kinsley, Charles Peters, James Fallows, Nicholas Lemann, Bill Bradley, Bruce Babbitt, Gary Hart, and Paul Tsongas. Sometimes called "Atari Democrats", these were the men—and they were almost all men—who helped to remake American liberalism into neoliberalism, culminating in the election of
Bill Clinton William Jefferson Clinton (; born August 19, 1946) is an American politician and attorney who served as the 42nd president of the United States The president of the United States (POTUS) is the head of state and head of government of ...

Bill Clinton
in 1992. These new liberals disagreed with the policies and programs of mid-century liberals like Walter Reuther or John Kenneth Galbraith or even Arthur M. Schlesinger Jr., Arthur Schlesinger. Early roots of neoliberalism were laid in the 1970s during the Presidency of Jimmy Carter, Carter administration, with deregulation of the Motor Carrier Act of 1980, trucking, banking and Airline Deregulation Act, airline industries, as well as the appointment of Paul Volcker to chairman of the Federal Reserve. This trend continued into the 1980s under the
Reagan administration The presidency of Ronald Reagan began at noon EST (17:00 UTC) on January 20, 1981, when Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician who served as the 40th president of the United S ...
, which included Economic Recovery Tax Act of 1981, tax cuts, increased defense spending, financial deregulation and trade deficit expansion. Likewise, concepts of supply-side economics, discussed by the Democrats in the 1970s, culminated in the 1980 Joint Economic Committee report "Plugging in the Supply Side". This was picked up and advanced by the Reagan administration, with Congress following Reagan's basic proposal and cutting federal income taxes across the board by 25% in 1981. During the 1990s, the Presidency of Bill Clinton, Clinton administration also embraced neoliberalism by supporting the passage of the North American Free Trade Agreement (NAFTA), continuing the deregulation of the financial sector through passage of the Commodity Futures Modernization Act of 2000, Commodity Futures Modernization Act and the repeal of the Glass–Steagall Act and implementing cuts to the Welfare state#United States, welfare state through passage of the Personal Responsibility and Work Opportunity Act.Nikolaos Karagiannis, Zagros Madjd-Sadjadi, Swapan Sen (eds).
The US Economy and Neoliberalism: Alternative Strategies and Policies
'' Routledge, 2013.
p. 58
/ref> The neoliberalism of the Clinton administration differs from that of Reagan as the Clinton administration purged neoliberalism of neoconservative positions on militarism, family values, opposition to multiculturalism and neglect of ecological issues.Manfred B. Steger and Dr. Ravi K. Roy.
Neoliberalism: A Very Short Introduction
'' Oxford University Press, 2010.

/ref> Writing in ''New York (magazine), New York'', journalist Jonathan Chait disputed accusations that the Democratic Party (United States), Democratic Party had been hijacked by neoliberals, saying that its policies have largely stayed the same since the New Deal. Instead, Chait suggested these accusations arose from arguments that presented a false dichotomy between free-market economics and socialism, ignoring mixed economies. American feminist philosopher Nancy Fraser says the modern Democratic Party has embraced a "progressive neoliberalism", which she describes as a "progressive-neoliberal alliance of financialization plus emancipation". Historian Walter Scheidel says that both parties shifted to promote free-market capitalism in the 1970s, with the Democratic Party being "instrumental in implementing financial deregulation in the 1990s". Historians Andrew Diamond (professor), Andrew Diamond and Thomas Sugrue argue that neoliberalism became a "'dominant rationality' precisely because it could not be confined to a single partisan identity." Economic and political inequalities in schools, universities, and libraries and an undermining of democratic and civil society institutions influenced by neoliberalism has been explored by Buschman.


Asia-Pacific

Scholars who emphasized the key role of the developmental state in the early period of fast industrialization in East Asia in the late 19th century now argue that South Korea, Taiwan and Singapore have transformed from developmental to close-to-neoliberal states. Their arguments are matter of scholarly debate.


China

Following the death of Mao Zedong in 1976, Deng Xiaoping led the country through far ranging market-centered reforms, with the slogan of Moderately prosperous society, Xiǎokāng, that combined neoliberalism with centralized authoritarianism. These focused on agriculture, industry, education and science/defense. Experts debate the extent to which traditional Maoist communist doctrines have been transformed to incorporate the new neoliberal ideas. In any case, the Chinese Communist Party remains a dominant force in setting economic and business policies. Throughout the 20th century, Hong Kong was the outstanding neoliberal exemplar inside China.


Taiwan

Taiwan exemplifies the impact of neoliberal ideas. The policies were pushed by the United States but were not implemented in response to a failure of the national economy, as in numerous other countries.


Japan

Neoliberal policies were at the core of the leading party in Japan, the Liberal Democratic Party (Japan), Liberal Democratic Party (LDP), after 1980. These policies had the effect of abandoning the traditional rural base and emphasizing the central importance of the Tokyo industrial-economic region. Neoliberal proposals for Japan's agricultural sector called for reducing state intervention, ending the protection of high prices for rice and other farm products, and exposing farmers to the global market. The 1993 Uruguay Round of the General Agreement on Tariffs and Trade negotiations opened up the rice market. Neoconservative leaders called for the enlargement, diversification, intensification, and corporatization of the farms receiving government subsidies. In 2006, the ruling LDP decided to no longer protect small farmers with subsidies. Small operators saw this as favoritism towards big corporate agriculture and reacted politically by supporting the Democratic Party of Japan (DPJ), helping to defeat the LDP in nationwide elections.


South Korea

In South Korea, neoliberalism had the effect of strengthening the national government's control over economic policies. These policies were popular to the extent that they weakened the historically very powerful chaebol family-owned conglomerates.


India

In India, Prime Minister Narendra Modi took office in 2014 with a commitment to implement neoliberal economic policies. This commitment would shape national politics and foreign affairs, and put India in a race with China and Japan for economic supremacy in East Asia.


Australia

In Australia, neoliberal economic policies (known at the time as "economic rationalism" or "economic fundamentalism") have been embraced by governments of both the Australian Labor Party, Labor Party and the Liberal Party of Australia, Liberal Party since the 1980s. The Labor governments of Bob Hawke and Paul Keating from 1983 to 1996 pursued a program of economic reform focused on economic liberalisation. These governments privatised government corporations, deregulated factor markets, floated the Australian dollar and reduced trade protections. The government of John Howard (1996–2007) added fiscal prudence to the mix, running surpluses in eight out of its 11 years in office. Keating, building on policies he had introduced while federal treasurer, implemented a compulsory Superannuation in Australia, superannuation guarantee system in 1992 to increase national savings and reduce future government liability for old age pensions. The financing of universities was deregulated, requiring students to contribute to Tertiary education fees in Australia, university fees through a repayable loan system known as the Higher Education Contribution Scheme (HECS) and encouraging universities to increase income by admitting full-fee-paying students, including foreign students. The admission of domestic full-fee-paying students to public universities was abolished in 2009 by the Rudd Government (2007–10), Rudd Labor government. Immigration to the mainland capitals by refugees have seen capital flows follow soon after, such as from war-torn Lebanon and Vietnam. Later economic-migrants from mainland
China China (), officially the People's Republic of China (PRC; ), is a country in East Asia East Asia is the eastern region of Asia Asia () is Earth's largest and most populous continent, located primarily in the Eastern Hemisphere ...

China
also, up to recent restrictions, had invested significantly in the property markets. Australia was one of few developed countries not to go through a recession during the
Great Recession The Great Recession was a period of marked general decline (recession In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution ( ...
; Australia's last recession before the COVID-19 recession occurred in 1991.


New Zealand

In New Zealand, neoliberal economic policies were implemented under the Fourth Labour Government of New Zealand, Fourth Labour Government led by Prime Minister David Lange. These neoliberal policies are commonly referred to as Rogernomics, a portmanteau of "Roger" and "economics", after Lange appointed Roger Douglas minister of finance in 1984. Lange's government had inherited a severe balance of payments crisis as a result of the deficits from the previously implemented two-year freeze on wages and prices by preceding Prime Minister Robert Muldoon, who had also maintained an exchange rate many economists now believe was unsustainable. The inherited economic conditions lead Lange to remark "We ended up being run very similarly to a Polish shipyard." On 14 September 1984, Lange's government held an Economic Summit to discuss the underlying problems with Economy of New Zealand, New Zealand's economy, which lead to calls for dramatic economic reforms previously proposed by the New Zealand Treasury, Treasury Department. A reform program consisting of
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a r ...
and the removal of tariffs and subsidies was put in place. This had an immediate effect on New Zealand's agricultural community, who were hit hard by the loss of subsidies to farmers. A superannuation surcharge was introduced, despite having promised not to reduce superannuation, resulting in Labour Party (New Zealand), Labour losing support from the elderly. The financial markets were also deregulated, removing restrictions on interest rate, interests rates, lending and foreign exchange. In March 1985, the New Zealand dollar was Floating exchange rate, floated. Additionally, a number of government departments were converted into state-owned enterprises, which lead to significant job losses: 3,000 within the Electricity Corporation; 4,000 within the Coal Corporation; 5,000 within the Forestry Corporation; and 8,000 within the New Zealand Post. New Zealand became a part of the global economy. The focus in the economy shifted from the productive sector to finance as a result of zero restrictions on overseas money coming into the country. Finance capital outstripped industrial capital and the manufacturing industry suffered approximately 76,000 job losses.


Middle East

Beginning in the late 1960s, a number of neoliberal reforms were implemented in the Middle East. Egypt is frequently linked to the implementation of neoliberal policies, particularly with regard to the 'open-door' policies of President Anwar Sadat throughout the 1970s, and Hosni Mubarak's successive economic reforms between 1981 and 2011. These measures, known as ''Infitah, al-Infitah'', were later diffused across the region. In Tunisia, neoliberal economic policies are associated with former president and ''de facto'' dictator Zine El Abidine Ben Ali; his reign made it clear that economic neoliberalism can coexist and even be encouraged by authoritarianism, authoritarian states. Responses to globalisation and economic reforms in the Gulf Cooperation Council, Gulf have also been approached via a neoliberal analytical framework.


International organizations

The adoption of neoliberal policies in the 1980s by international institutions such as the
International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The ...

International Monetary Fund
(IMF) and the
World Bank The World Bank is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its o ...
had a significant impact on the spread of neoliberal reform worldwide. To obtain loans from these institutions, developing or crisis-wracked countries had to agree to institutional reforms, including
privatization Privatization (or privatisation in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, ea ...
, trade liberalization, enforcement of strong private property rights, and reductions to
government spending Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting A variety of measures of national income and output are used in economics to estimate total economic activity ...
. This process became known as
structural adjustment Structural adjustment programs (SAPs) consist of loans (structural adjustment loans; SALs) provided by the International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washing ...
, and the principles underpinning it the Washington Consensus.


European Union

The European Union (EU), created in 1992, is sometimes considered a neoliberal organization, as it facilitates
free trade Free trade is a trade policy A commercial policy (also referred to as a trade policy or international trade policy) is a government's policy governing international trade International trade is the exchange of capital, goods, and service ...
and freedom of movement, erodes national protectionism and limits national subsidies. Others underline that the EU is not completely neoliberal as it leaves the development of welfare , welfare policies to its constituent states.


Traditions


Austrian School

The Austrian School is a school of economic thought originating in late-19th and early-20th century Vienna which bases its study of economic phenomena on the interpretation and analysis of methodological individualism, the purposeful actions of individuals.Ludwig von Mises. Human Action, p. 11, "r. Purposeful Action and Animal Reaction". Referenced 2011-11-23. In the 21st century, the term has increasingly been used to denote the free-market economics of Austrian economists
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a heterodox In religion, heterodoxy (from Ancient Greek Ancient Greek includes the forms of the Greek languag ...

Ludwig von Mises
and
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
, including their criticisms of government intervention in the economy, which has tied the school to neoliberal thought. Economists associated with the school, including Carl Menger, Eugen Böhm von Bawerk, Friedrich von Wieser,
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
, and
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a heterodox In religion, heterodoxy (from Ancient Greek Ancient Greek includes the forms of the Greek languag ...

Ludwig von Mises
, have been responsible for many notable contributions to economic theory, including the subjective theory of value, marginalism in price theory, Friedrich von Wieser's theories on opportunity cost, Eugen von Böhm-Bawerk's theories on time preference, the formulation of the economic calculation problem, as well as a number of criticisms of Marxian economics. Former Federal Reserve System, Federal Reserve Chairman
Alan Greenspan Alan Greenspan (; born March 6, 1926) is an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economi ...

Alan Greenspan
, speaking of the originators of the School, said in 2000 that "the Austrian School have reached far into the future from when most of them practiced and have had a profound and, in my judgment, probably an irreversible effect on how most mainstream economists think in [the United States]".


Chicago School

The Chicago school of economics is a Neoclassical economics, neoclassical school of thought within the academic community of economists, with a strong focus around the faculty of the University of Chicago. Chicago macroeconomic theory rejected Keynesianism in favor of
monetarism Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply In macroeconomics, the money ...
until the mid-1970s, when it turned to new classical macroeconomics heavily based on the concept of rational expectations. The school is strongly associated with University of Chicago economists such as
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
,
George Stigler George Joseph Stigler (; January 17, 1911 – December 1, 1991) was an American economist An economist is a professional and practitioner in the social science Social science is the branch The branches and leaves of a tree. A br ...
, Ronald Coase and Gary Becker. In the 21st century, economists such as Mark Skousen refer to
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
as a key economist who influenced this school in the 20th century having started his career in Vienna and the Austrian school of economics. The school emphasizes non-intervention from government and generally rejects regulation in markets as inefficient, with the exception of the regulation of the money supply by central banks (in the form of
monetarism Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply In macroeconomics, the money ...
). Although the school's association with neoliberalism is sometimes resisted by its proponents, its emphasis on reduced government intervention in the economy and a ''
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), d ...
'' ideology have brought about an affiliation between the Chicago school and neoliberal economics.


Washington Consensus

The Washington Consensus is a set of standardized policy prescriptions often associated with neoliberalism that were developed by the
International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The ...

International Monetary Fund
(IMF), the
World Bank The World Bank is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its o ...
, and the US Department of Treasury for crisis-wracked developing countries. These prescriptions, often attached as conditions for loans from the IMF and World Bank, focus on market liberalization, and in particular on lowering barriers to trade, controlling inflation, privatizing state-owned enterprises, and reducing government budget deficits. However, Williamson has emphatically rejected any association with Neoliberalism and has publicly stated his regret with the term itself, saying that the original 10 points were supposed to be a model for fiscal discipline and macroeconomic stabilization, not monetarism, supply-side economics, or a minimal state (which Williamson argues are the important elements of the Neoliberal model).Williamson J. (2002)
''Did the Washington Consensus Fail?''
/ref>


Political policy aspects

Neoliberal policies center around
economic liberalization Economic liberalization (or economic liberalisation) is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities. In politics, the doctrine is associated with classical libe ...
, including reductions to
trade barriers Trade barriers are government-induced restrictions on international trade International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services ...
and other policies meant to increase
free trade Free trade is a trade policy A commercial policy (also referred to as a trade policy or international trade policy) is a government's policy governing international trade International trade is the exchange of capital, goods, and service ...
,
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a r ...
of industry,
privatization Privatization (or privatisation in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, ea ...
of state-owned enterprises, reductions in
government spending Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting A variety of measures of national income and output are used in economics to estimate total economic activity ...
, and
monetarism Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply In macroeconomics, the money ...
. Neoliberal theory contends that free markets encourage economic efficiency, economic growth, and technological innovation. State intervention, even if aimed at encouraging these phenomena, is generally believed to worsen economic performance.


Economic and political freedom

Many neoliberal thinkers advance the view that economic and political freedom are inextricably linked.
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
argued in his book ''Capitalism and Freedom'' that
economic freedom Economic freedom, or economic liberty, is the ability of people of a society to take economic actions. This is a term used in economic and policy debate Policy debate is a form of debate competition in which teams of two advocate for and against ...
, while itself an extremely important component of freedom, absolute freedom, is also a necessary condition for political freedom. He claimed that centrally planned economy, centralized control of economic activities is always accompanied by political repression. In his view, the voluntary character of all transactions in an unregulated market economy and the wide diversity of choices that it permits pose fundamental threats to repressive political leaders by greatly diminishing their power to coerce people economically. Through the elimination of centralized control of economic activities, economic power is separated from political power and each can serve as a counterbalance to the other. Friedman feels that competitive capitalism is especially important to minority groups since impersonal market forces protect people from discrimination in their economic activities for reasons unrelated to their productivity.Milton Friedman. ''Capitalism and freedom''. (2002). The University of Chicago. pp. 8–21 In ''The Road to Serfdom'',
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
offered a similar argument: "Economic control is not merely control of a sector of human life which can be separated from the rest; it is the control of the means for all our ends". Amplifying their arguments, it has often been pointed out that increasing economic freedoms tends to raise expectations on political freedoms, eventually leading to democracy.


Free trade

A central feature of neoliberalism is the support of free trade, and policies that enable free trade, like the North American Free Trade Agreement, are often associated with neoliberalism. Neoliberals argue that free trade promotes economic growth, reduces
poverty Poverty is the state of having little material possessions or income In microeconomics, income is the Consumption (economics), consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expresse ...

poverty
, produces gains of trade like lower prices as a result of comparative advantage, maximizes consumer choice, and is essential to freedom, as they believe voluntary trade between two parties should not be prohibited by government. Relatedly, neoliberals argue that protectionism is harmful to consumers, who will be forced to pay higher prices for goods; incentives the misuse of resources; distorts investment; stifles innovation; and props up certain industries at the expense of consumers and other industries.


Monetarism

Monetarism is an economic theory commonly associated with neoliberalism. Formulated by
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and c ...

Milton Friedman
, it focuses on the macroeconomic aspects of the supply of money, paying particular attention to the effects of central banking. It argues that excessive expansion of the money supply is inherently inflationary and that monetary authorities should focus primarily on maintaining price stability, even at the cost of other macroeconomic factors like economic growth. Monetarism is often associated with the policies of the Federal Reserve System, US Federal Reserve under the Chair of the Federal Reserve, Chairmanship of economist Paul Volcker, which centered around high interest rates that are widely credited with ending the high levels of inflation seen in the United States during the 1970s and early 1980s as well as contributing to the Early 1980s recession in the United States, 1980–1982 recession. Monetarism had particular force in Chile, whose central bank raised interest rates to counter inflation that had spiraled to over 600%. This helped to successfully reduce inflation to below 10%, but also resulted in job losses.


Criticism

Neoliberalism has faced criticism by academics, journalists, religious leaders, and activists from both the left-wing politics, political left and right-wing politics, right. Notable critics of neoliberalism in theory or practice include economists Joseph Stiglitz, Amartya Sen, Michael Hudson (economist), Michael Hudson, Ha-Joon Chang, Robert Pollin, Julie Matthaei, and Richard D. Wolff; linguist Noam Chomsky; geographer and anthropologist David Harvey (geographer), David Harvey; Slovenian continental philosopher Slavoj Žižek, political activist and public intellectual Cornel West; Marxist feminist Gail Dines; author, activist and filmmaker
Naomi Klein Naomi A. Klein (born May 8, 1970) is a Canadian author, social activist, and filmmaker known for her political analyses, support of ecofeminism Ecofeminist thinkers draw on the concept of gender Gender is the range of characteristics pertai ...

Naomi Klein
; head of the Catholic Church Pope Francis; journalist and environmental activist George Monbiot; Belgian psychologist Paul Verhaeghe; journalist and activist Chris Hedges; conservative philosopher Roger Scruton; and the alter-globalization movement, including groups such as ATTAC. The impact of the
Great Recession The Great Recession was a period of marked general decline (recession In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution ( ...
in 2008 has given rise to a surge in new scholarship that criticizes neoliberalism and seeks policy alternatives.


Market fundamentalism

Neoliberal thought has been criticized for supposedly having an undeserved "faith" in the efficiency of
market Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland and Sweden Art, entertainment, and media Films *Market (1965 film), ''Market'' (1965 ...
s, in the superiority of markets over Economic planning, centralized economic planning, in the ability of markets to self-correct, and in the market's ability to deliver economic and political freedom. Economist Paul Krugman has argued that the "
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), d ...
absolutism" promoted by neoliberals "contributed to an intellectual climate in which faith in markets and disdain for government often trumps the evidence". Political theorist Wendy Brown (political theorist), Wendy Brown has gone even further and asserted that the overriding objective of neoliberalism is "the economization of all features of life". A number of scholars have argued that, in practice, this "market fundamentalism" has led to a neglect of social goods not captured by economic indicators, an erosion of democracy, an unhealthy promotion of unbridled
individualism Individualism is the Ethics, moral stance, political philosophy, ideology and social outlook that emphasizes the intrinsic worth of the individual. Individualists promote the exercise of one's goals and desires and to value independence and self ...
and social Darwinism, and economic inefficiency. Some critics contend neoliberal thinking prioritizes economic indicators like economic growth, GDP growth and inflation over social factors that might not be easy to quantify, like labor rights and access to higher education. This focus on economic efficiency can compromise other, perhaps more important, factors, or promote Exploitation of labour, exploitation and social injustice. For example, anthropologist Mark Fleming argues that when the performance of a public transport, transit system is assessed purely in terms of economic efficiency, social goods such as strong labor rights, workers' rights are considered impediments to maximum performance. He supports this assertion with a case study of the San Francisco Municipal Railway (Muni), which is one of the slowest major urban transit systems in the US and has one of the worst on-time performance rates. This poor performance, he contends, stems from structural problems including an aging fleet and maintenance issues. However, he argues that the neoliberal worldview singled out transit drivers and their trade union, labor unions, blaming drivers for failing to meet impossible transit schedules and considering additional costs to drivers as lost funds that reduce system speed and performance. This produced vicious attacks on the drivers' union and brutal public smear campaigns, ultimately resulting in the passing of Proposition G, which severely undermined the powers of the Muni drivers' union. Other critics contend that the neoliberal vision de-emphasizes public good (economics), public goods. The geographers Birch and Siemiatycki claim that the growth of marketization ideology has shifted discourse on public goods to monetary rather than social objectives, making it harder to justify public goods driven by Equity (economics), equity, Environmental justice, environmental concerns or social justice. American scholar and cultural critic Henry Giroux alleges that neoliberal market fundamentalism fosters a belief that market forces should organize every facet of society, including economic and social life, and promotes a social Darwinist ethic that elevates self-interest over social needs. Marxist economic geographer David Harvey argues that neoliberalism promotes an unbridled individualism that is harmful to social solidarity. While proponents of
economic liberalization Economic liberalization (or economic liberalisation) is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities. In politics, the doctrine is associated with classical libe ...
have often pointed out that increasing
economic freedom Economic freedom, or economic liberty, is the ability of people of a society to take economic actions. This is a term used in economic and policy debate Policy debate is a form of debate competition in which teams of two advocate for and against ...
tends to raise expectations on political freedom, some scholars see the existence of non-democracy, democratic yet free market, market-liberal regimes and the seeming undermining of democratic control by market processes as evidence that this characterization is ahistorical. Some scholars contend that neoliberal focuses may even undermine the basic elements of democracy.Wendy Brown (political scientist), Wendy Brown, ''Undoing the Demos: Neoliberalism's Stealth Revolution,'' (Cambridge, Massachusetts: MIT Press, 2015),
p. 17
Kristen Ghodsee, ethnographer and Professor of Russian and East European Studies at the University of Pennsylvania, asserts that the triumphalist attitudes of Western world, Western powers at the end of the Cold War and the fixation on linking all left-wing politics, leftist political ideals with the excesses of Stalinism, permitted neoliberal, free-market capitalism to fill the void, which undermined democratic institutions and reforms, leaving a trail of economic misery,
unemployment Unemployment, according to the OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de Coopération et de Développement Économiques, OCDE) is an intergovernmental economic organisation with 38&nbs ...
and rising economic inequality throughout the former Eastern Bloc and much of the West that fueled a resurgence of extremist nationalism. Costas Panayotakis has argued that the economic inequality engendered by neoliberalism creates inequality of political power, undermining democracy and the citizen's ability to meaningfully participate. Despite the focus on economic efficiency, some critics allege that neoliberal policies actually produce economic inefficiency, economic inefficiencies. The replacement of a government-owned monopoly with privately held company, privately owned companies might reduce the efficiencies associated with economies of scale. Structurally, some economists argue that neoliberalism is a system that social ownership, socializes costs and private property, privatizes profit (economics), profits. They argue this results in an abdication of private responsibility for socially destructive economic choices and may result in regressive governmental controls on the economy to reduce damages by private individuals.


Inequality

Critics have argued that neoliberal policies have increased economic inequality and exacerbated global
poverty Poverty is the state of having little material possessions or income In microeconomics, income is the Consumption (economics), consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expresse ...

poverty
. The Center for Economic and Policy Research , Center for Economic and Policy Research's (CEPR) Dean Baker argued in 2006 that the driving force behind rising inequality in the United States has been a series of deliberate neoliberal policy choices, including anti-inflationary bias, anti-Trade union, unionism and profiteering in the healthcare industry. The economists David Howell and Mamadou Diallo contend that neoliberal policies have contributed to a Economy of the United States, United States economy in which 30% of workers earn low wages (less than two-thirds the median wage for full-time workers) and 35% of the labor force is underemployment, underemployed while only 40% of the working-age population in the country is adequately employed. The globalization of neoliberalism has been blamed for the emergence of a "precariat", a new social class facing acute socio-economic insecurity and alienation. In the United States, the "neoliberal transformation" of industrial relations, which considerably diminished the power of trade union, unions and increased the power of employers, has been blamed by many for increasing precarity, which could be responsible for as many as 120,000 excess deaths per year. In Venezuela, prior to the Crisis in Venezuela, Venezuelan crisis, deregulation of the labor economics, labor market resulted in greater informal economy, informal employment and a considerable increase in work accident, industrial accidents and occupational diseases. Even in Sweden, in which only 6% of workers are beset with wages the OECD considers low, some scholars argue that the adoption of neoliberal reforms—in particular the privatization of public services and the reduction of state benefits—is the reason it has become the nation with the fastest growing income inequality in the OECD. A 2016 report by researchers at the
International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The ...

International Monetary Fund
(IMF) was critical of neoliberal policies for increasing economic inequality. While the report included praise for neoliberalism, saying "there is much to cheer in the neoliberal agenda," it noted that certain neoliberal policies, particularly freedom of capital and fiscal consolidation, resulted in "increasing economic inequality, inequality", which "in turn jeopardized durable [economic] expansion". The report contends that the implementation of neoliberal policies by economic and political elites has led to "three disquieting conclusions": * The benefits in terms of increased economic growth, growth seem fairly difficult to establish when looking at a broad group of countries. * The costs in terms of increased inequality are prominent. Such costs epitomize the trade-off between the growth and equity (economics), equity effects of some aspects of the neoliberal agenda. * Increased inequality in turn hurts the level and sustainability of growth. Even if growth is the sole or main purpose of the neoliberal agenda, advocates of that agenda still need to pay attention to the distributional effects. A number of scholars see increasing inequality arising out of neoliberal policies as a deliberate effort, rather than a consequence of ulterior motives like increasing economic growth. Marxism, Marxist economic geographer David Harvey (geographer), David Harvey describes neoliberalism as a "social class, class project" "carried out by the corporate capitalist class", and argued in his book ''A Brief History of Neoliberalism'' that neoliberalism is designed to increase the class power of economic elites.Archived a
Ghostarchive
and th
Wayback Machine
Also see .
Economists Gérard Duménil and Dominique Lévy posit that "the restoration and increase of the power, income, and wealth of the upper classes" are the primary objectives of the neoliberal agenda. Economist David M. Kotz contends that neoliberalism "is based on the thorough domination of working class, labor by Bourgeoisie, capital". Sociologist Thomas Volscho argues that the imposition of neoliberalism in the United States arose from a conscious political mobilization by capitalist elites in the 1970s, who faced two self-described crises: the legitimacy of capitalism and a falling rate of profit (economics), profitability in industry. SSRN Pre-publication is free access ; SAGE Journals doi publication is closed access . In ''The Global Gamble'', Peter Gowan argued that "neoliberalism" was not only a free-market ideology but "a social engineering project". Globally, it meant opening a state's political economy to products and financial flows from the core countries. Domestically, neoliberalism meant the remaking of social relations "in favour of creditor and rentier interests, with the subordination of the productive sector to financial sectors, and a drive to shift wealth, power and security away from the bulk of the working population."


Financialization

The implementation of neoliberal policies and the acceptance of neoliberal economic theories in the 1970s are seen by some academics as the root of financialization, with the
Great Recession The Great Recession was a period of marked general decline (recession In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution ( ...
as one of its results.Manfred B. Steger and Ravi K. Roy,
Neoliberalism: A Very Short Introduction
'', (Oxford University Press, 2010), , p. 123
David M Kotz,
The Rise and Fall of Neoliberal Capitalism
'' (Harvard University Press, 2015),
In particular, various neoliberal ideologies that had long been advocated by elites, such as
monetarism Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply In macroeconomics, the money ...
and supply-side economics, were translated into government policy by the
Reagan administration The presidency of Ronald Reagan began at noon EST (17:00 UTC) on January 20, 1981, when Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician who served as the 40th president of the United S ...
, which resulted in decreased government regulation and a shift from a tax-financed state to a debt-financed one. While the profitability of industry and the rate of economic growth never recovered to the heyday of the 1960s, the political and economic power of Wall Street and finance capital vastly increased due to debt-financing by the state. A 2016
International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The ...

International Monetary Fund
(IMF) report blames certain neoliberal policies for exacerbating financial crises around the world, causing them to grow bigger and more damaging.


Mass incarceration

Several scholars have linked Incarceration in the United States, mass incarceration of the poor in the United States with the rise of neoliberalism.Marie Gottschalk.
Caught: The Prison State and the Lockdown of American Politics
'' Princeton University Press, 2014.
p. 10
/ref> Sociologist Loïc Wacquant and Marxist economic geographer David Harvey have argued that the criminalization of poverty and mass incarceration is a neoliberal policy for dealing with social instability among economically marginalized populations. According to Wacquant, this situation follows the implementation of other neoliberal policies, which have allowed for the retrenchment of the social
welfare state The welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity Equal o ...
and the rise of punitive workfare, whilst increasing gentrification of urban areas,
privatization Privatization (or privatisation in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, ea ...
of public functions, the shrinking of collective protections for the working class via economic
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a r ...
and the rise of underpaid, precarity, precarious wage labor. By contrast, it is extremely lenient in dealing with those in the upper echelons of society, in particular when it comes to economic crimes of the upper class and corporations such as fraud, embezzlement, insider trading, credit and insurance fraud, money laundering and violation of commerce and labor codes. According to Wacquant, neoliberalism does not shrink government, but instead sets up a "centaur state" with little governmental oversight for those at the top and strict control of those at the bottom. In expanding upon Wacquant's thesis, sociologist and political economist John L. Campbell of Dartmouth College suggests that through Private prison, privatization the prison system exemplifies the centaur state. He states that "on the one hand, it punishes the lower class, which populates the prisons; on the other hand, it profits the upper class, which owns the prisons, and it employs the middle class, which runs them." In addition, he argues that the prison system benefits corporations through outsourcing, as inmates are "slowly becoming a source of low-wage labor for some US corporations". Both through privatization and outsourcing, Campbell argues, the penal state reflects neoliberalism. Campbell also argues that while neoliberalism in the United States established a penal state for the poor, it also put into place a debtor state for the middle class and that "both have had perverse effects on their respective targets: increasing rates of incarceration among the lower class and increasing rates of indebtedness—and recently home foreclosure—among the middle class." David McNally (professor), David McNally, Professor of Political Science at York University, argues that while expenditures on social welfare , welfare programs have been cut, expenditures on prison construction have increased significantly during the neoliberal era, with California having "the largest prison-building program in the history of the world". The scholar Bernard Harcourt contends the neoliberal concept that the state is inept when it comes to economic regulation, but efficient in policing and punishing "has facilitated the slide to mass incarceration". Both Wacquant and Harcourt refer to this phenomenon as "Neoliberal Penality".


Corporatocracy

Some organizations and economists believe neoliberal policies increase the power of corporations and shift wealth to the upper classes.Richard D. Wolff, Wolff, Richard D. (2012).
Democracy at Work: A Cure for Capitalism
'' Haymarket Books.
p. 37.
/ref> For instance, Jamie Peck and Adam Tickell argue that urban citizens are increasingly deprived of the power to shape the basic conditions of daily life, which are instead shaped by companies involved in the competitive economy.Jamie Peck and Adam Tickell, "Neoliberalizing space," Antipode 34 (2002): 380–404. The
International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The ...

International Monetary Fund
(IMF) and
World Bank The World Bank is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its o ...
, two major international organizations which often espouse neoliberal views, have been criticized for advancing neoliberal policies around the world. Sheldon Richman, editor of the libertarian journal ''The Freeman'', argues that the IMF has imposed a "corporatist-flavored 'neoliberalism' on the troubled countries of the world." He contends that IMF policies of spending cuts and tax increases, as well as subjection to paternalistic supranational bureaucrats, have fostered "long-term dependency, perpetual indebtedness, moral hazard, and politicization" in the developing world, which has undermined "real market reform" and "set back the cause of genuine liberalism." Ramaa Vasudevan, associate professor of economics at Colorado State University, states that trade policies and treaties fostered by the United States in the neoliberal era, along with bailouts brokered by the World Bank and the IMF, have allowed corporate capital to expand around the world unimpeded by trade protections or national borders, "sucking countries in different regions of the world into global corporations' logic of accumulation." This expansion of global corporate capital, Vasudevan says, has buttressed its ability to "orchestrate a global division of labor most conducive to the demands of profitability" which in turn has facilitated "a brutal, global race to the bottom". Mark Arthur, a Senior Fellow at the Center for Global Development Research in Denmark, has written that the influence of neoliberalism has given rise to an "anti-corporatists, anti-corporatist" movement in opposition to it. This "anti-corporatist" movement is articulated around the need to reclaim the power that corporations and global institutions have stripped from governments. He says that Adam Smith's "rules for mindful markets" served as a basis for the anti-corporate movement, "following government's failure to restrain corporations from hurting or disturbing the happiness of the neighbor [Smith]".


Globalization

Neoliberalism is commonly viewed by scholars as encouraging of
globalization Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relations ...

globalization
, which is the subject of much Anti-globalization movement, criticism. The emergence of the "precariat", a new class facing acute socio-economic insecurity and alienation, has been attributed to the globalization of neoliberalism. Globalization can subvert nations' ability for self-determination.


Imperialism

A number of scholars have alleged neoliberalism encourages or covers for imperialism. For instance, Ruth J Blakeley, Professor of Politics and International Relations at the University of Sheffield, accuses the United States and its allies of fomenting state terrorism and mass killings during the Cold War as a means to buttress and promote the expansion of
capitalism Capitalism is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), distribution of goods and services within ...

capitalism
and neoliberalism in the developing world. As an example of this, Blakeley says the case of Indonesia demonstrates that the U.S. and the UK put the interests of capitalist elites over the human rights of hundreds of thousands of Indonesians by supporting the Indonesian Army as it waged a Indonesian mass killings of 1965–66, campaign of mass killings, which resulted in the annihilation of the Communist Party of Indonesia and its civilian supporters. Historian Bradley R. Simpson posits that this campaign of mass killings was "an essential building block of the neoliberal policies that the West would attempt to impose on Indonesia after Sukarno's ouster." Geographer David Harvey argues neoliberalism encourages an indirect form of imperialism that focuses on the extraction of resources from developing countries via financial mechanisms. This is practiced through international institutions like the
International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The ...

International Monetary Fund
(IMF) and
World Bank The World Bank is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its o ...
who negotiate debt relief with developing nations. He alleges that these institutions prioritize the financial institutions that grant the loans over the debtor countries and place requirements on loans that, in effect, act as financial flows from debtor countries to developed countries (for example, to receive a loan a state must have sufficient foreign exchange reserves—requiring the debtor state to buy US Treasury bonds, which have interest rates lower than those on the loan). Economist Joseph Stiglitz has said of this: "What a peculiar world in which poor countries are in effect subsidizing the richest."


Global health

The neoliberal approach to global health advocates
privatization Privatization (or privatisation in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, ea ...
of the healthcare industry and deregulation, reduced government interference in the market, and focuses on non-governmental organizations (NGOs) and international organizations like the
International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The ...

International Monetary Fund
(IMF) and the
World Bank The World Bank is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its o ...
rather than government. This approach has faced considerable criticism. James Pfeiffer, Professor of Global Health at the University of Washington, has criticised the use of Structural adjustment, Structural Adjustment Programs (SAPs) by the World Bank and IMF in Mozambique, which resulted in reduced government health spending, leading international NGOs to fill service holes previously filled by government. He alleges this "new policy agenda" fragmented local health systems, undermined local control of health programs, and contributed to social inequality. Rick Rowden, a Senior Economist at Global Financial Integrity, has criticised the IMF's monetarism, monetarist approach of prioritising price stability and fiscal restraint, which he alleges was unnecessarily restrictive and prevented developing countries from scaling up long-term investment in public health infrastructure. He argues this resulted in chronically underfunded public health systems and demoralising working conditions, which fueled a brain drain of medical personnel and undermined the fight against HIV/AIDS, as well as public health more generally, in developing countries. Some academics and commentators have blamed neoliberalism and hyper-capitalism for exacerbating and normalizing the social ills and violence of contemporary society, including the increase in mass shootings, particularly Mass shootings in the United States, in the United States.


Infrastructure

Nicolas Firzli has argued that the rise of neoliberalism eroded the post-war consensus and Presidency of Dwight D. Eisenhower, Eisenhower-era Republican centrism that had resulted in the massive allocation of public capital to large-scale infrastructure projects throughout the 1950s, 1960s and 1970s in both Western Europe and North America: "In the pre-Reagan era, infrastructure was an apolitical, positively connoted, technocratic term shared by mainstream economists and policy makers […] including President Eisenhower, a praetorian Republican leader who had championed investment in the Interstate Highway System, America's national road grid […] But Reagan, Thatcher, Delors and their many admirers amongst Clintonian, "New Labour" and EU Social-Democrat decision makers in Brussels sought to dismantle the generous state subsidies for social infrastructure and public transportation across the United States, Britain and the European Union". Following Brexit, the 2016 United States presidential election and the progressive emergence of a new kind of "self-seeking capitalism" ("wikt:Trumponomics, Trumponomics") moving away to some extent from the neoliberal orthodoxies of the past, there is speculation that the United States, Britain, and other advanced economies may see increases in infrastructure investment:
With the victory of Donald Trump, Donald J. Trump on November 8, 2016, the 'neoliberal-neoconservative' policy consensus that had crystallized in 1979–1980 (Deng Xiaoping's visit to the United States, election of Reagan and Thatcher) finally came to an end [...] The deliberate neglect of America's creaking infrastructure assets (notably public transportation and water sanitation) from the early 1980s on eventually fueled a widespread popular discontent that came back to haunt both Hillary Clinton and the Republican establishment. Donald Trump was quick to seize on the issue to make a broader slap against the ''laissez-faire'' complacency of the federal government.
Others, such as Catherine Rottenberg, do not see Trump's victory as an end to neoliberalism, but rather a new phase of it. American political theologian
Adam Kotsko Adam Kotsko (born 1980) is an American theologian, religious scholar, culture critic, and translator, working in the field of political theologyPolitical theology is a term which has been used in discussion of the ways in which theological concept ...
argues that contemporary right-wing populism, exemplified by Brexit and the Trump Administration, represent a "heretical" variant of neoliberalism, which accepts its core tenets but pushes them to new, almost "parodic" extremes.


Environmental impact

It has been argued that trade-led, unregulated economic activity and lax state regulation of pollution have led to environmental degradation. Furthermore, modes of production encouraged under neoliberalism may reduce the availability of natural resources over the long term, and may therefore not be sustainable within the world's resource depletion, limited geographical space. In Robert Fletcher's 2010 piece, "Neoliberal Environmentality: Towards a Poststructuralist Political Ecology of the Conservation Debate" his premise is that there is a conflict of ideas in conservation; that on one side of things you have deep ecology and protectionist paradigms and on the other side you have community based conservation efforts. There are problems with both approaches, and on either side they frequently fail to do conservation work in a substantial way. In the middle, Fletcher sees a space where social sciences are able to critique both sides of and blend the approaches, forming not a triangle of ideologies, but a spectrum. The relationship between capitalism and conservation is one that has to be reckoned with due to an overarching neoliberal framework guiding most conservation efforts. Marxism, Marxist economic geographer David Harvey argues neoliberalism is to blame for Holocene extinction, increased rates of extinction. Notably, he observes that "the era of neoliberalization also happens to be the era of the fastest mass extinction of species in the Earth's recent history." American philosopher and animal rights activist Steven Best argues that three decades of neoliberal policies have "marketized the entire world" and intensified "the assault on every ecosystem on the earth as a whole". Neoliberalism reduces the "tragedy of the commons" to an argument for private ownership. The Friedman doctrine, which Nicolas Firzli has argued defined the neoliberal era, may lead companies to neglect concerns for the environment. Firzli insists that prudent, fiduciary-driven long-term investors cannot ignore the environmental, social and corporate governance consequences of actions taken by the CEOs of the companies whose shares they hold as "the long-dominant Friedman stance is becoming culturally unacceptable and financially costly in the boardrooms of pension funds and industrial firms in Europe and North America". Critics like Noel Castree focus on the relationship between neoliberalism and the biophysical environment explain that critics of neoliberals see the free market as the best way to mediate the relationship between producers and consumers, as well as maximize freedom in a more general sense which they view as inherently good. Castree also asserts that the assumption that markets will allow for the maximization of individual freedom is incorrect.


Political opposition

In political science, disillusionment with neoliberalism is seen as a cause of politicization, depoliticization and the growth of anti-political sentiment, which can in turn encourage populism, populist politics and "repoliticization". Instances of political opposition to neoliberalism from the late 1990s onward include: * Research by Kristen Ghodsee, ethnographer and Professor of Russian and East European Studies at the University of Pennsylvania, shows that widespread discontent with neoliberal capitalism has led to a "Communist nostalgia, red nostalgia" in much of the former Communist bloc. She notes that "the political freedoms that came with democracy were packaged with the worst type of unregulated, free-market capitalism, which completely destabilized the rhythms of everyday life and brought crime, corruption and chaos where there had once been comfortable predictability," which ultimately fueled a resurgence of extremist nationalism. * In Latin America, the "pink tide" that swept leftist governments into power at the turn of the millennium can be seen as a reaction against neoliberal hegemony and the notion that "there is no alternative" (TINA) to the Washington Consensus. * In protest against neoliberal globalization, South Korean farmer and former president of the Korean Advanced Farmers Federation Lee Kyung-hae committed suicide by stabbing himself in the heart during a meeting of the World Trade Organization in Cancun, Mexico, in 2003. He was protesting against the decision of the South Korean government to reduce subsidies to farmers. *The rise of anti-austerity parties in Europe and SYRIZA's victory in the Greek legislative election, January 2015, Greek legislative elections of January 2015 have some proclaiming "the end of neoliberalism". *In 2018, the Yellow vests movement in France and the 2019–2021 Chilean protests, have emerged in direct opposition to neoliberal governments and policies including
privatization Privatization (or privatisation in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, ea ...
and
austerity Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: higher taxes to fund spending, ...

austerity
, which are blamed for the rising cost of living, surging personal debts, and increased economic inequality. In 2019, protests against neoliberal reforms, policies and governments have taken place in scores of countries on 5 continents, with opposition to austerity, privatization and tax hikes on the working classes being a common theme among many of them. * During the 2021 Chilean general election, president-elect Gabriel Boric promised to end the country's neoliberal economic model, stating that "if Chile was the cradle of neoliberalism, it will also be its grave."


See also

* Anarcho-capitalism * Beltway libertarianism * Capitalism * Classical liberalism * Conservatism in the United States * Conservative liberalism * Cultural globalization * Economic globalization * Economic liberalism * Elite theory * Free market * Globalism * Globalization * History of macroeconomic thought * Inverted totalitarianism * Late capitalism * Neoclassical economics * Neoclassical liberalism * Neoconservatism * Neo-libertarianism * Objectivism * Political Economy * Reagan Democrat * Reaganomics * Reason magazine * Right libertarianism * Shock therapy (economics) * Thatcherism * Triangulation (politics), Triangulation * Trickle-down economics


Notes


Further reading


Summaries and histories

* * * Burgin, Angus. ''The Great Persuasion: Reinventing Free Markets since the Depression'' (Harvard University Press, 2012) 303pp * Cahill, Damien, et al., eds. ''The SAGE handbook of neoliberalism'' (Sage, 2018). * Cahill, Damien and Konings, Martijn. ''Neoliberalism''. John Wiley & Sons. 2017. * Campbell, John L., and Ove K. Pedersen, eds. ''The Rise of Neoliberalism and Institutional Analysis'' Princeton University Press, 2001. 288 pp. * Eagleton-Pierce, Matthew (2015).
Neoliberalism: The Key Concepts
'' Routledge. * * Jones, Daniel Steadman (2012). Masters of the Universe (book), ''Masters of the Universe: Hayek, Friedman, and the Birth of Neoliberal Politics''. Princeton University Press. . * Kingstone, Peter. ''The Rise and Fall (and Rise Again?) of Neoliberalism in Latin America'' (Sage Publications Ltd, 2018). * * Springer, Simon (2016).
The Discourse of Neoliberalism: An Anatomy of a Powerful Idea (Discourse, Power and Society)
.'' Rowman & Littlefield International. * * * * * Wang, Hui, and Karl, Rebecca E. "1989 and the Historical Roots of Neoliberalism in China," ''positions: east Asia cultures critique'', Volume 12, Number 1, Spring 2004, pp. 7–70


Criticisms

* * Brady, David. 2008. ''Rich Democracies, Poor People: How Politics Explain Poverty''. New York: Oxford University Press. * Wendy Brown (political scientist), Brown, Wendy (2005). "Neoliberalism and the End of Liberal Democracy" in ''Edgework: critical essays on knowledge and politics'' Princeton University Press, ch 3
Abstract
* * Buschman, John. ''Libraries, Classrooms, and the Interests of Democracy: Marking the Limits of Neoliberalism''. The Scarecrow Press. Rowman & Littlefield. 2012. 239 pp. notes. bibliog. index. . * * Crouch, Colin.
The Strange Non-death of Neo-liberalism
', Polity Press, 2011. (Reviewed in
The Montreal Review
') * Davies, William.
The Limits of Neoliberalism: Authority, Sovereignty and the Logic of Competition.
' Sage Publications, 2014. * * * * * Henry Giroux, Giroux, Henry (2008). ''Against the Terror of Neoliberalism: Politics Beyond the Age of Greed (Cultural Politics and the Promise of Democracy).'' Paradigm Publishers. * Giroux, Henry (2013)
''Public Intellectuals Against the Neoliberal University''
''philosophersforchange.org''. * Giroux, Henry (2014). ''Neoliberalism's War on Higher Education.'' Haymarket Books. * Bernard Harcourt, Harcourt, Bernard (2012).
The Illusion of Free Markets: Punishment and the Myth of Natural Order
'' Harvard University Press. * * * Lyon-Callo, Vincent (2004).
Inequality, Poverty, and Neoliberal Governance: Activist Ethnography in the Homeless Sheltering Industry
.'' University of Toronto Press. * * * Vicenç Navarro, Navarro, Vicenç, ed. ''Neoliberalism, Globalization, and Inequalities: Consequences for Health and Quality of Life (Policy, Politics, Health, and Medicine Series).'' Baywood Publishing Company, 2007. * Overbeek, Henk and Bastiaan van Apeldoorn (2012).
Neoliberalism in Crisis
'' Palgrave Macmillan. * * Springer, Simon (2015).
Violent Neoliberalism: Development, Discourse, and Dispossession in Cambodia
'' Palgrave Macmillan. * Stiglitz, Joseph (13 May 2019)
"Three decades of neoliberal policies have decimated the middle class, our economy, and our democracy"
Market Watch. * * Paul Verhaeghe, Verhaeghe, Paul (2014). ''What About Me? The Struggle for Identity in a Market-Based Society.'' Scribe Publications. * Loïc Wacquant, Wacquant, Loïc (2009).
Prisons of Poverty
'' University of Minnesota Press. *


Other academic articles

* * Cahill, Damien. "The End of Laissez-Faire?: On the Durability of Embedded Neoliberalism". Edward Elgar Publishing. 2014. * * Cooper, Melinda (2017). ''Family Values: Between Neoliberalism and the New Social Conservatism.'' Zone Books. * * Ferris, Timothy. ''The Science of Liberty'' (2010) HarperCollins 384 pages * Foucault, Michel. ''The Birth of Biopolitics'' Lectures at the College de France, 1978–1979. London: Palgrave, 2008. * Griffiths, Simon, and Kevin Hickson, eds. ''British Party Politics and Ideology after New Labour'' (2009) Palgrave Macmillan 256 pp. * * * * Ingar Solty, Solty, Ingar (2012). "After Neoliberalism: Left versus right projects of leadership in the global crisis," in Stephen Gill (political scientist), Stephen Gill (Ed) (2012). ''Global Crises and the Crisis of Global Leadership'' (Cambridge University Press), pp. 199–214. * Stahl, Garth; "Identity, Neoliberalism and Aspiration: Educating White Working-Class Boys" (London, Routledge, 2015).


External links


Neoliberalism
— entry at ''Encyclopædia Britannica''
"Neoliberalism 101"
— podcast by The Cato Institute
"What is Neoliberalism?"
— video by the Barnard Center for Research on Women
"Monetarism"
— The New School's Economics Department's History of Economic Thought website
"Neoliberalism and the State"
— discussion between Ryerson University professors John Shields and Bryan Evans
"A Look at Argentina's 2001 Economic Rebellion"
– video report by ''Democracy Now!''
"The Scorecard on Development, 1960–2010: Closing the Gap?"
— report by the Center for Economic and Policy Research, April 2011
"The crisis of neoliberalism"
– 2010 interview with economist Gérard Duménil on ''The Real News''
"Henry Giroux on Resisting the Neoliberal Revolution"
— interview with Henry Giroux by Bill Moyers, February 21, 2014.
The Politics of the Anthropocene in a World After Neoliberalism
''Boston Review''. March 10, 2021.
Capitalism: What Makes Us Free?
NPR. July 1, 2021.
Has Covid ended the neoliberal era?
''The Guardian''. September 2, 2021

''New York (magazine), New York''. October 14, 2021.


Online lectures


"The Neoliberal City"
David Harvey. University Channel. October 4, 2010.
"Wall St. Crisis Should Be for Neoliberalism What Fall of Berlin Wall Was for Communism"
Naomi Klein Naomi A. Klein (born May 8, 1970) is a Canadian author, social activist, and filmmaker known for her political analyses, support of ecofeminism Ecofeminist thinkers draw on the concept of gender Gender is the range of characteristics pertai ...

Naomi Klein
. University of Chicago. ''Democracy Now!''. October 2008.
"Neo-Liberalism: An Accounting"
Noam Chomsky. University of Massachusetts Amherst. April 19, 2017. {{authority control Neoliberalism, Classical liberalism Conservative liberalism Economic globalization Economic liberalism Ideologies of capitalism Imperialism studies Liberalism Political terminology Political theories