A Short History of Neoliberalism (And How We Can Fix It)

As a university lecturer, I often find that my students take today’s dominant economic ideology – namely, neoliberalism – for granted as natural and inevitable. This is not entirely surprising given that most of them were born in the early 1990s, for neoliberalism is all that they have known. In the 1980s, Margaret Thatcher had to convince people that there was “no alternative” to neoliberalism. Today, this assumption comes ready-made; it’s in the water, part of the common-sense furniture of everyday life, and generally accepted as given by the Right and Left alike. But it has not always been this way.

Neoliberalism has a specific history, and knowing that history is an important antidote to its hegemony, for it shows that the present order is not natural or inevitable, but rather that it is new, that it came from somewhere, and that it was designed by particular people with particular interests.

If an economist living in the 1950s had seriously proposed any of the ideas and policies in today's standard neoliberal toolkit, they would have been laughed right off the stage. At that time pretty much everyone was a Keynesian, a social democrat, or some shade of Marxist. As Susan George has put it, “The idea that the market should be allowed to make major social and political decisions; the idea that the State should voluntarily reduce its role in the economy, or that corporations should be given total freedom, that trade unions should be curbed and citizens given less rather than more social protection – such ideas were utterly foreign to the spirit of the time.” Read More