Neoliberalism
From Simple English Wikipedia, the free encyclopedia
Neoliberalism is a term for different social and economic ideas. Originally the term was used by a group of liberals who helped shape social market economy in the mid 20th century. Today, it is mostly people who are critical of the ideas of globalisation as well as trade unionists who use the term.
The ideas were developed by the economists Friedrich Hayek, Wilhelm Röpke, Walter Eucken, as well as other less prominent thinkers. They were first presented at a conference in 1938.
[edit] What do Neoliberals want?
Neoliberals want a free market economy, with everything it stands for (private property of the means of production, the freedom for the market price to establish itself, the freedom of everyone to do what they want, etc). They see however, that in some cases the freedom of the market fails or it does not yield the results wanted. In such cases, the state should intervene. The main focus of the state should therefore be measures to regulate the following:
- Monopolies and Cartels.
- Social fairness
- Equal opportunities for everyone
- Internalising external effects
- Decreasing the effects of fluctuating business cycles.
Neoliberals are openly against lobbying of groups, state interventions that aim to protect national interests, like import duties or subsidies. Neoliberalism is also against totalitarian regimes or a centrally governed economy. What it more it frowns upon the Laisser-faire of classical Liberalism.
[edit] Examples of Neoliberal froms of Government
- Chile was a playing field for neoliberal thought.
- Ronald Reagan and Margaret Thatcher were the first to intorduce Neoliberal ideas in industrialised states.
- New Zealand went from a closely regulated to a very free economy.
