I find political theory confusing. For example, what’s up with the “neoliberal” label? I keep seeing it used in reference to Trump and his band. Those guys are certainly conservative, not liberal. Are they trying to “own the libs” by co-opting their label?
So I asked Claude.ai for an explanation and as usual, Claude gave me clarification that made sense. I’m going to paraphrase that conversation to share what I learned.
The term “neoliberalism” doesn’t align with what most people understand as traditional liberal politics.
- Traditional liberalism typically supports robust government involvement in social programs, economic regulation, and safety nets.
- Neoliberalism, by contrast, advocates for minimal government intervention, free-market capitalism, deregulation, and privatization.
The “neo” prefix suggests a new or updated form of liberalism, but it’s more accurately a radical reinterpretation that prioritizes market-driven solutions over government-led social support.
Historically, neoliberalism emerged in the mid-20th century and promotes ideas like:
- Reducing government spending on social programs
- Privatizing public services
- Lowering trade barriers
- Cutting taxes, especially for corporations and wealthy individuals
- Reducing labor union power
So while the name might sound like it’s connected to traditional liberal politics of supporting social welfare, neoliberalism actually represents a market-focused approach that often undermines such social support systems.
There are several terms that are used synonymously with neoliberalism:
Market Fundamentalism
- Emphasizes the belief that free markets can solve most social and economic problems
- Suggests an almost religious devotion to market-based solutions
Reaganomics
- Specifically refers to the economic policies of Ronald Reagan
- Represents the American implementation of neoliberal economic principles
- Focused on tax cuts, deregulation, and reducing government spending
Thatcherism
- Named after British Prime Minister Margaret Thatcher
- Similar to Reaganomics, but specific to the UK context
- Emphasized privatization, reducing trade union power, and free-market economics
Washington Consensus
- A set of economic policy prescriptions considered standard fare for economic development
- Developed by international institutions like the World Bank and IMF
- Includes policies of privatization, deregulation, and free trade
Laissez-Faire Capitalism
- Emphasizes minimal government intervention in the economy
- Literally means “let do” in French
- Suggests an extreme form of free-market economics
Corporate Globalism
- Highlights the global nature of neoliberal economic policies
- Emphasizes the role of multinational corporations in driving economic change
These terms aren’t exactly identical, but they share core principles with neoliberalism: minimal government intervention, prioritization of market solutions, deregulation, and global economic integration. Each term slightly nuances the concept, reflecting different historical, geographical, or political contexts.
And now you know. Don’t be confused: neoliberalism is not liberal.
