Neoliberalism is an economic philosophy that advocates for a market-driven approach to the governance of economics, such as fiscal austerity, deregulation, free trade, privatization, and a reduction in government spending. It first began to take root in the 1970s as countries around the world were dealing with economic uncertainty. The economic policies of Margaret Thatcher in the United Kingdom and Ronald Reagan in the United States certainly accelerated the process. Neoliberalism pushed for the privatization of public services, decreased wages and labor protections, reduced social welfare and consumer protections, deregulated industries, lowered trade barriers, and encouraged investment in foreign countries.

Critics argue that neoliberalism gives too much power and control to corporations, contributing to economic inequality between citizens and nations. Its emphasis on market-driven approaches and reduced government spending has limited the capacity of governments to support social welfare and public services, leading to an increased reliance on private corporations, often with adverse consequences on workers' rights and wages. Additionally, free trade initiatives may lead to an undemocratic system of corporate control in which the decisions of corporate boards override those of governments and citizens. Neoliberal policies can appear to favor the interests of the affluent over those of poorer citizens.

Despite the criticisms of neoliberalism, neoliberal initiatives such as free trade agreements, business deregulation, lower income tax rates and cuts in capital gains tax rates all had bipartisan political support. Even today, neoliberal doctrines remain influential around the world. In some cases, governments use neoliberalism as a way to control their economies while preserving freedom and democracy. In other cases, neoliberalism has been used to support oppressive regimes by allowing them to gain access to global markets and increase foreign investment.

Regardless of the effectiveness of neoliberalism, it has become a major force in the global economy and politics. Though neoliberalism may have some benefits, its use can lead to a concentration of wealth and power in the hands of a few, at the expense of workers, nations, and democracies. Without proper checks and balances in place, countries may be tempted to focus on short-term benefits, global capital flows and reduced taxes to attract businesses, without considering the long-term consequences on their citizens. 1 Wren, Jordan. (2021, March 1). What Is Neoliberalism? Retrieved from https://www.investopedia.com/terms/n/neoliberalism.asp