Neoliberalism

#Neoliberalism

#신자유주의

Neoliberalism is a political and economic ideology that emerged prominently in the late 20th century, advocating for free markets, deregulation, privatization, and a reduced role for the state in economic affairs.

It is rooted in classical liberal ideas but adapted to modern global capitalism.

Key Principles of Neoliberalism

1. Free Markets

• Belief that unregulated markets lead to efficient allocation of resources.

• Government interference is seen as distorting the “natural” market dynamics.

2. Deregulation

• Removing government rules that restrict business activities (e.g., labor laws, environmental protections).

Promotes entrepreneurship and competition.

3. Privatization

• Transferring public services (like water, electricity, transportation) to private ownership.

• Based on the belief that private entities operate more efficiently than public ones.

4. Reduced Government Spending

• Cuts to welfare programs, social services, and public sector employment.

• Emphasis on individual responsibility over collective support.

5. Globalization

• Open borders for trade and investment.

• Encouragement of foreign direct investment (FDI), free trade agreements (FTAs), and global financial integration.

Historical Context

• 1970s–1980s: In response to economic stagnation and inflation (stagflation), neoliberal policies gained traction.

• Key Figures:

• Margaret Thatcher (UK Prime Minister)

• Ronald Reagan (US President)

• Economists like Milton Friedman and the Chicago School of economics

• Institutions: IMF, World Bank, and WTO have often promoted neoliberal policies in developing nations, especially through structural adjustment programs.

Criticism of Neoliberalism

• Increased Inequality: Wealth tends to concentrate among elites.

• Social Welfare Erosion: Reduced support for healthcare, education, and housing.

• Corporate Power: Rise of multinational corporations with little accountability.

• Environmental Degradation: Deregulation often leads to unchecked environmental harm.

• Democratic Deficit: Markets begin to override democratic choices and public interest.

Neoliberalism Today

While neoliberalism remains influential, especially in global finance and trade, it has faced increasing backlash. Many economists, policymakers, and activists now advocate for alternatives such as:

• Post-neoliberalism

• Green New Deal

• Universal Basic Income (UBI)

• Democratic socialism

If you’d like, I can break this down further into real-world examples or country-specific policies.

#Chicago_School_of_Economics