What is Neoliberalism?

Neoliberalism is an ideology and policy model that advocates for the free market economy and argues in favor of transferring the power of controlling the economy from public sector to private sector. 

What are the Principles of Neoliberalism?

The ideology is based on the basic principles of neoclassical economics that recommends limiting government subsidies, reforming tax regulations to increase the tax base, decreasing deficit spending, opening up market and capital, and limiting protectionism.

Neoliberalism promotes privatization, austerity, deregulation, free trade and reduced government spending. It aims at limiting the state inference in the economy and increasing the control of the private sector over it. 

What are the Objectives of Neoliberalism?

The proponents of the neoliberalism believe a sustained economic growth will result in achieving human progress. They argue that the free market is the most efficient way of resource allocation. 

The Differences Between Neoliberalism and Liberalism

Liberalism and neoliberalism are two distinct ideas although they share some similarities. Both of these philosophies have their roots in 19th century's classical liberalism which argued for the laissez-faire economics. 

While liberalism is more of a political and philosophical theory advocating for the liberty of the people, neoliberalism is an economic policy focused on free market theory. 

Criticism of Neoliberalism

Neoliberalism has been labelled as anti-democratic leading to exploitation and social injustice. 

Neoliberalism tends to limit the power of trade unions, as the worker's unions are perceived as the hindrance to the performance by the proponents of this policy. 

 Many critics are of the view that under this system, the poor become poorer and the rich become richer. 

Neoliberalism is also seen by some as  criminalizing the poverty.

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