Neoliberalism is a political philosophy that emphasizes free markets and economic growth, advocating for deregulation and privatization. It is based on the idea that economic growth is supported by allowing businesses to function freely. Proponents argue it creates a more competitive business climate, while opponents argue it could be harmful to disadvantaged groups.
Born in the 1960s and gaining prominence in the 1980s, neoliberalism is a political philosophy that has its roots in classical liberalism but focuses on free markets and economic growth. Some fundamental concepts advocated by neoliberals, also called economic liberals, include deregulation, privatization, and limiting the government’s role in social financing. This economic philosophy is based on the idea that economic growth is supported by allowing businesses to function freely or relatively freely. Neoliberalism, therefore, is more akin to libertarianism on economic issues than is liberalism, for example.
Deregulation
Neoliberals are in favor of deregulation, arguing that it allows markets to open up to others with little government interference and oversight. By loosening investment and government control, the market opens up to a wider range of buyers, driving up stock prices and creating a more competitive economic environment. The competitive market, they argue, fosters economic growth. Deregulation also contributes to a competitive market and can help small businesses and other investors emerge.
While deregulation is favored by most neoliberals, outright deregulation is generally not. If corrupt business practices are not addressed by free markets or regulation, economic growth could be hampered. Most commonly, neoliberals advocate minimal regulation for safety and environmental concerns or to protect consumers.
Privatization
Privatization is another key policy concern in neoliberalism, which takes the position that government funds, such as those provided for government-sponsored education or retirement programs, should be managed by private individuals or corporations. In other words, national pension programs for all citizens should be managed by commercial pension plans and education should be managed by private educational companies. Privatization could even affect natural resources such as water or natural gas. The idea behind privatization is that putting these services on the free market will self regulate those industries to an optimal state.
The spectrum of beliefs
Like most political philosophies, there is a spectrum of beliefs within neoliberalism. Some neoliberals believe in a limited number of privatizations. More extreme views within neoliberalism call for the elimination of government-funded social programs such as payments to the poor and public health care.
pros and cons
Proponents of neoliberalism say it could be beneficial to economies by creating a more competitive business climate and allowing the emergence of cutting-edge new business practices. Opponents, like classical liberals, generally do not trust that firms free from government intervention will be able to regulate themselves in ways that benefit society as a whole. Furthermore, opponents argue that the neoliberal philosophy could be harmful to disadvantaged and underrepresented groups in society.
Protect your devices with Threat Protection by NordVPN
