16 Facts About Neoliberalism

Neoliberalism, or neo-liberalism, is a term used to signify the political reappearance of 19th-century ideas associated with free-market capitalism.

Neoliberalism is contemporarily used to refer to market-oriented reform policies such as "eliminating price controls, deregulating capital markets, lowering trade barriers" and reducing, especially through privatization and austerity, state influence in the economy.

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.

Neoliberalism is, according to some scholars, commonly used as a pejorative by critics, outpacing similar terms such as monetarism, neoconservatism, the Washington Consensus and "market reform" in much scholarly writing.

Neoliberalism began accelerating in importance with the establishment of the Mont Pelerin Society in 1947, whose founding members included Friedrich Hayek, Milton Friedman, Karl Popper, George Stigler and Ludwig von Mises.

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Neoliberalism pointed out that he is commonly classified as neoliberal and that he accepted this classification.

Neoliberalism 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.

Neoliberalism's rule was later given legal legitimacy through a controversial 1980 plebiscite, which approved a new 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.

Neoliberalism's policies opened up the financial sector by deregulating the banking system and privatizing commercial banks.

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.

Neoliberalism claimed that centralized control of economic activities is always accompanied by political repression.

Neoliberalism has faced criticism by academics, journalists, religious leaders, and activists from both the political left and right.

Neoliberalism 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]".

Neoliberalism is commonly viewed by scholars as encouraging of globalization, which is the subject of much criticism.

Neoliberalism 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.

Neoliberalism reduces the "tragedy of the commons" to an argument for private ownership.