Neoliberalism is a widely used but contested term for ideas and reforms that give markets and competition a larger role in economic and social life. This lesson introduces the term, its common associations, and why scholars disagree about its meaning.
Neoliberalism is generally associated with market-oriented reform: policies that expand the role of private enterprise and competition and reduce some forms of direct state direction of the economy. Commonly associated measures include privatization, deregulation, lower taxes, free trade, economic globalization, austerity, monetarism, and more flexible labor markets. Some accounts also emphasize consumer choice and the depoliticization of decisions by placing them under market rules.
All flashcards
What is neoliberalism in broad terms?
A contested term for ideas and reforms that expand the role of markets, competition, and private-sector activity.
What does privatization mean?
Transferring a public enterprise or service to private ownership or management.
Why is neoliberalism often used pejoratively?
Critics use it to condemn market reforms and their social consequences; the term gained negative associations in academic discussions of reforms under Pinochet.
What are common ways scholars use the term neoliberalism?
It may refer to an ideology, policy program, development model, or broad social transformation.
Does neoliberalism necessarily mean that government vanishes?
No. Governments may create institutions and rules that establish or extend markets while reducing some public services or direct economic management.
Quiz questions
What did the 1938 Walter Lippmann Colloquium help reveal about the emerging liberal project?Answer: Participants disagreed about how much state action was needed to protect a competitive order.
What role did the Mont Pelerin Society play after its founding in 1947?Answer: It connected advocates of individual liberty and competitive markets in an international network.
Which statement best describes monetarism as presented in debates about neoliberal policy?Answer: It emphasizes managing the money supply and prioritizing price stability.
What was structural adjustment in the context of international lending?Answer: Loan-linked reforms that could include privatization, trade liberalization, and reduced public spending.
What is one criticism of labor-market flexibilization?Answer: It can contribute to insecure work with uncertain income, limited benefits, or reduced job security.
Based on the Wikipedia article Neoliberalism, licensed CC BY-SA 4.0. Adapted into a summary, flashcards and quizzes.