The Concept of Neoliberalism

3117 Words Jan 30th, 2018 12 Pages
This type of social structure demands that the economic system must become less strict, and advocates more free trade and open markets. According to Paul Treanor, "Neoliberalism is a philosophy in which the existence and operation of a market are valued in themselves, separately from any previous relationship with the production of goods and services" (Fish). One of the most important components of neoliberalism is the removal of big government from the business world and the allowance of state-owned enterprises to be controlled by private citizens. Neoliberalism was a term coined by Alexander Rustow who defined it as "the priority of the price mechanism, the free enterprise, the system of competition and a strong and impartial state" (Mirowski 13). The basic thesis behind neoliberalism is that the government needs to evacuate their position as dominator of enterprise. Businesses should be controlled by the people and the government's function in industry only to protect the individual participants. Chris Harman writes:
This ideology contended that free market economies will run smoothly, steadily producing more wealth. Any problems that arise are supposedly a result of "unnatural monopolies" (especially in the labour market), which prevent the free movement of prices and wages pulling…
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