Concept in Definition ABC

The term Neoliberal refers to all that is found linked or is typical of Neoliberalism.

What is typical of Neoliberalism and supporter of this economic trend that defends the technocratic, focuses on the macroeconomic, and proposes minimal state intervention

And on the other hand, he will be called Neoliberal individual supporter of Neoliberalism.

The Neoliberalism is a politics economic that places the accent on the technocratic and macroeconomic, pretending reduce as much as possible the intervention of the state in everything that concerns the economic and social, through the defense of the capitalist free market as the best guarantor of Balance institutional and growth of a country.

Origins and distinctive signs

Developed from 1940, Neoliberalism, promotes the Renaissance of classical liberalism, although he proposes an even more extreme position, because he claims the total abstention by the state, especially in the market economy.

The economy It is considered the main engine of humanity's progress and therefore the rest of the aspects of life must be subordinated to it, including the political one.

Meanwhile, if the state owns companies, what a neoliberal government will promote when taking over power will be the sale of them to private companies, because considers the management of a private sector to be more efficient than that of the state, which is usually won by corruption, when it is the owner of the companies private.

Of course there are exceptions, but a large part of the world's governments, especially those with a populist profile or those classified as Social Democrats, when they come to the government, and due to the imprint of their management, propose among other issues to recover the companies state to manage them per se, and there tend to be setbacks because corruption and lack of suitability in the job.

That is to say, in these cases, which are the antipodes of neoliberalism, the state is considered as the great and only executor in all areas and for Of course, it is denied and it is practically forbidden for any private company to manage any matter that they consider should be in the hands of the condition.

This type of government demonizes neoliberalism and its practices and to a certain extent the latter also does the same with this excessive interference by the state in every aspect that governments with the characteristics of mentioned.

The Classical LiberalismOn the other hand, it is a philosophical current with aspects in the social, political and economic planes, which emerged with the Illuminism of the 18th century , which was promoted with the French Revolution. One of the most prominent references, Adam smith, proposed that the state should not intervene in economic matters, since it will be rearranged, raising or lowering the prices of products, according to the increase in demand or decrease in supply or vice versa.

Subsequently, and before the failure of the liberal model, the Socialism He would impose his idea of ​​state interventionism to turn things around, redistributing goods unfairly in the hands of a few. One of its most famous measures has been to raise taxes on those individuals economically better positioned to thus to be able to protect the most humble classes and that these are not the ones that also pay the well-off lives of some very few.

Once communism fails, Neoliberalism will emerge with great force, demanding the enjoyment of right privately owned, once criticized by the more fundamentalist communists.

Neoliberalism maintains that social welfare will be achieved by virtue of competition, which will lower prices if they are high, or will raise them if they are very low.

The macroeconomic policies proposed by liberalism are: restrictive monetary policies (increase interest rates or reduce the money supply to curb inflation and avoid a devaluation), restrictive fiscal policies (increase taxes on consumption and decrease those corresponding to production and income), liberalization (both from trade and investments), privatization (State companies will go into private hands to gain effectiveness) and deregulation (reduction of laws to a minimum to boost the economy).

Supporters and detractors

As with all social, philosophical, political and obviously economic trends, there are voices in favor and voices against... In the case of neoliberalism, we can find many detractors who argue that it is an absolutely unbalanced proposal and that contributes to social injustice precisely because it does not guarantee or take care of guaranteeing the implementation of social policies that have the mission to end the inequality social or at least reduce it as much as possible.

Opponents of neoliberalism believe that this type of system only widens the gap of social differences existing in almost all societies and especially in those less developed where this last question becomes more difficult above.

And on the side of the defenders of this current, among their fundamental arguments are that only economic prosperity will reach a context in which the state does not intervene the least possible.

Topics in Neoliberal