Neoliberalism for Dummies — An Explanation in Simple Words for this Widely-Used Term
I bet you have heard this word so many times, and in different ways. You probably use the word neoliberalism too. But, do you really know its proper meaning?
Canonical (hard) Definition: Neoliberalism is an economic theory that supports free markets and limiting the role of the state.
For dummies, please!!
Economic theory is the set of general principles or statements that try to explain the realty economic.
I still don’t get it. … An economic theory is a plan to change/improve the economy of a country, zone, area, by applying different actions.
Who does do the plan? Experts put forward their theories, but are the governments those who make them effective.
I still don’t get it at all… What Neoliberalism wants is not to pay any taxes to either any government or other kind of organization. There are no fees, no levies, no borders to capital, companies, money. In two words: free trade.
Neoliberalism believes that if we let free the market, it could regulate itself. And this will be beneficiate to everyone because we will get the first quality of goods to the best possible prices.
Neoliberalism characteristics
from CFI
Privatization
Every service could/should be private. Banks, bakeries, restaurants, but also schools, hospitals, street cleaning, cares, etc et
Deregulation — Free Trade
No fees, no explanation to any government or supra structure. Let businesses be free.
Reducing Public Expenditure
Neoliberalism always tries to reduce state action. Controversial economist Francis Fukoyama said: If a state-dominated economy does not work very well, why not cut back the state to the greatest extent possible?
Why not see whether the market can supply all social institutions, without the overseeing hand of the state?
This seems to me an entirely reasonable course of action; but if you join me in accepting it, I fear that we will not qualify for a Professorship at the Paul Nitze School of Advanced International Studies at Johns Hopkins University.
Elimination of the Public Good
The poor and most disadvantaged people in society are left to fend for themselves because the state shouldn’t take care of them.
More Neoliberalism Ideas
Labor flexibility. What about working in Honolulu?
Reducing cash in circulation. Only credit card, please.
Foreign investment. Globalization.
A very little piece of History
“Neocapitalism” was first called were the economist Ludwing Von Misles and Friedrich Hayek, from the Austrian School. As a response to the State Intervention of the Keyne Theories.
During the ’80s and 90’s appeared a series of measures from the FMI and World Bank to steer the world economy towards neoliberalism.
Ronald Reagan in the USA and Margaret Thatcher in the UK were the more known defenders of neoliberalism ideas. Although they really exercised great protectionist measures for their domestic economies.
More Popular Criticisms of Neoliberalism
Most of the time Neoliberalism`s criticisms are about capitalism (ups! I had to do a Capitalism for Dummies, I will). That’s why here I only list the ones against Neoliberalism.
From Stanford Encyclopedia of Philosophy
Ethos Criticisms
Economic is -irrationality- over every other thing.
Inequality
No equal opportunities for everyone.
Undermining Democracy
And as the final goal: no democracy at all.
Economic Irrationality
Because private profits command everything, results can be irrational.
Trickle-Down Economics
Neoliberalism says: money could drop tear by tear over the poor people. All of us know that’s no true.
Colonialist Criticisms
As Neoliberalism has taken place in the Anglophone world and Western Europe area, many experts are arguing that neoliberal regimes are colonialist in character, though in an unusually direct way.
Feminist Criticisms
One Neoliberalism point is “meritocracy”: you get what you deserve. But this is not true. CEO Women number is ridiculous compared with men one. See entry on feminist perspectives on globalization.
VERY SHORT ABSTRACT OF EVERYTHING I SAID
Neoliberalism is an economic theory that argues any brake on the market which is bad. State, the government is a brake so: bad.
Since the 1980s, it has been the prevailing economic trend in the West. Neoliberalism birth inside a capitalist system that thinks private profit can move everything on our planet to be better. Autoregulation to get the order…
Please feel free to make your own conclusions, this is not an opinion article.
