What is neo-liberalism?

Ideology

Neo–liberalism refers primarily to ideas associated with economic liberalism. These include extensive economic liberalisation policies such as privatisation, fiscal austerity, deregulation, free trade, and reductions in government spending in order to enhance the role of the private sector in the economy. Neo–liberals make the argument that economic freedom, while itself an extremely important component of total freedom, is also a necessary condition for political freedom, and that centralised control of economic activities is always accompanied with political repression.

The term neo–liberal tends to refer to theories which have diverged from the more laissez faire doctrine of classical liberalism and which promote instead a market economy under the guidance and rules of a strong state. Most neo–liberal theory argues that a free market will promote efficiency, economic growth, income distribution, and technological progress. Any state intervention to encourage these phenomena will worsen economic performance.

Followers

Neo–liberals support maximum economic freedom and moderate restrictions on cultural freedom. Neo–liberals oppose economic regulations unless advantageous. Neo–liberals oppose increased cultural restrictions.

Allies

Neo–liberals will ally themselves with those nearby on the political spectrum, such as neo-conservatives, minarchists, capitalists, and conservatives.

Enemies

Neo–liberals consider all socialists to be their enemies.

Location on the political spectrum

Neo–liberalism is located at the centre far-right of the political spectrum. It is bordered by neo-conservatism, minarchism, libertarian capitalism, conservatism, and authoritarian capitalism. As it is a fringe ideology, neo–liberalism does not occupy as much space on the spectrum as more mainstream ideologies.