Neoliberalism is an economic and political ideology that places emphasis on competition, personal agency, individualism, and free-market capitalism.

The ideology became intertwined with economic policy in the 1980s, but before then, was studied extensively by Friedrich von Hayek, an economist and critic of John Maynard Keynes.

Neoliberalism is different from liberalism and laissez-faire economics because unlike the latter ideologies that ask the government to be completely separate from the economy, neoliberals ask that the state heavily involve itself in the economy to uphold free markets.

Neoliberalism demands active intervention because its popularity is reactionary. In the United States, the ideology was popularized by President Ronald Reagen in the 1980s in response to President Franklin D. Roosevelt’s more Keynesian welfare state. Combatting the then status quo required constant campaigning and strong policies.

As such, beyond appearing in economic policies, neoliberalism has spilled over in helping to define the way people think. In today’s world, people often view personal wellbeing as the responsibility of the individual, when in the past, it was seen as the responsibility of the state.

Examples of neoliberal policies include:

• Abolishing welfare and social housing programs as seen in recent reductions in SNAP and Medicaid and the 1998 Faircloth Amendment preventing the expansion of public housing
• Privatizing public goods and services such as energy, airports, railroads, prisons, and schools
• Reducing or removing taxes and trade barriers as seen in cuts to corporate taxes and an increase in free trade agreements such as NAFTA
• Weakening labor unions and decreasing minimum wages as seen in policies like the Taft-Hartley act

Neoliberalism is deeply intertwined with both our economy and society. Make sure you can identify its influences!