Neoliberalism

Neoliberalism refers to a political-economic philosophy that has had major implications for government policies beginning in the 1970s – and increasingly prominent since 1980 – that de-emphasizes or rejects government intervention in the economy (that complements private initiative), focusing instead on achieving progress and even social justice by encouraging free-market methods and fewer restrictions on business operations and economic development. Supporters argue that by implementing business-friendly policies, a society can assure that its businesses grow, creating jobs and other economic benefits which improve the welfare of the entire economy. This is commonly referred to as 'trickle down economics' or 'Reaganomics.' Detractors tend to think that government intervention is necessary to create an equitable society.

Brief description

Neolibereralism is an economic ideology centred around the values of a global economy, or globalization --free market, free trade, and the unrestricted flow of capital. Neoliberals advocate minimal: Government spending, taxation, regulations, and direct involvment in the economy. In the West, neoliberalism is taking prevelence over, the Keynes' Welfare State.

Related Topics:
Global economy - Globalization - Keynes - Welfare State

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Some portray neoliberalism as the imposition of "free markets from the top-down" since it has been promoted by international financial institutions such as the IMF and the World Bank and by centralized state organizations such as the European Union and the United States government. Others identify neoliberalism with neo-corporatism, and political-economic domination by multinational corporations.

Related Topics:
IMF - World Bank - European Union - United States - Neo-corporatism - Corporations

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Contrary to what the name seems to suggest, most "liberals" oppose neoliberalism. Neoliberalism is not a version of the new liberalism of John Dewey, Woodrow Wilson, John Maynard Keynes, Franklin Roosevelt, or the British Liberal Democrats, which advocated limited intervention in the economy as a tool to benifit people.

Related Topics:
New liberalism - John Dewey - Woodrow Wilson - John Maynard Keynes - Franklin Roosevelt - Liberal Democrats

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Critics state that neoliberal policies give multinational corporations power over democratically elected governments, as these corporations can use their abilities to withdraw or infuse capital (and therefore effect jobs and the economy) as a tool to have governments do as they say. Supporters of neoliberalism will state that rights over the flow of capital is essential for neccesary market efficieny.

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"Neoliberalism" is often used as a pejorative; in this context it means not the economic theory, but the implementation of global capitalism and the power of multinational corporations, as well as the effects of free trade on wages and social structures.

Related Topics:
Global capitalism - Multinational corporations

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The term neoliberalism is not the only one for this movement, many supporters argue that it is simply "liberalism," while critics (along with some supporters) often label it "Thatcherism (United Kingdom), Reaganomics (United States of America) or Rogernomics (New Zealand)" Because of close association between this philosophy and neoclassical economics, and confusion with the ambiguous term "liberal," some advocate the term "neoclassical philosophy."

Related Topics:
Thatcherism - Reaganomics - Rogernomics - Neoclassical economics - Liberal

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