Political economy. Neoliberalism is ... (definition) Neoliberalism: schools of neoliberalism, representatives

Economic science from ancient times to today has come a long way. Many theories and laws were discovered by her, the most correct approaches to the conduct of economic activity by man were investigated and developed on their basis. Political economy deals with many questions of the theory that fall within its competence. New teachings, attitudes, patterns and hypotheses deserve increased attention of scientists, because the well-being of the whole society depends on it. Neoliberalism is a new economic doctrine, the main features of which and directions in the field of research of reality deserve careful consideration.


Neoliberalism is a new direction in the economy, which places at the head of the general organization of management the principle of non-interference of the state in the processes of regulating relations between the subjects of trade and production relations. This trend was formed in the 19 century.

The origin of this theory is from the system of liberal views of English scientists A. Smith and D. Ricardo. In their opinion, the state should intervene in the economic activities of the subjects minimally.Neoliberalism is

Neoliberalism is also the result of the thought of the German school, whose representatives were among the first to begin to view political economy as a science of the management of national economy.

Developing and improving, neoliberalism in politics and economics gave rise to many areas and teachings, became the basis for further research of scientists around the world.

The most famous representatives

Neoliberalism, whose representatives belong to modern trends in economic science, critically characterize Keynesianism. In their opinion, the role of the state is only to provide the conditions necessary for creating competition and exercising control in areas where these conditions are absent.Neoliberalism School of Neoliberalism

Neoliberals include such schools as Neo-Austrian (V. Hayek), Chicago (M. Friedman), Freiburg (L. Erhard and V. Oiken).

The large variety of views has determined the development of many schools and approaches to the study of the laws of economic reality.

Basic principles

There are several fundamental principles of neoliberalism. They determine the teaching belonging to this direction. Economic neoliberalism is based on such principles as the rights and freedoms of the individual, constitutionalism, equality of all members of society. The determining factors in the development of economic relations are private property and entrepreneurship.Economic neoliberalism

The self-regulation of the market economy should also be promoted by the actions of centralized management in the social sphere. The redistribution of income should take into account the interests of the poor in the first place. It strengthens social justice.

Based on the basic principles of liberalism, neoliberalism was able to adapt and adopt a number of new theories and directions characteristic of other economic systems (including the socialist one).

Historical School of Germany

In the 19 century in Germany, the classical school did not spread. Therefore, a historical trend arose here, which was based on a number of concepts. Its representatives argued that the general laws of the economics of production and distribution are fiction, and neoliberalism explains the correct development. Schools of neoliberalism in this direction were of the opinion that the economic organization of each country should function according to its own laws. They are determined by geography and history, cultural and national traditions of the country.Neoliberalism representatives

There are three stages of development of this direction. The first is dated 40-60 of the 19 century. This is the so-called Old Historical School. The second stage lasted from the 70-s to the 90-s of the 19 century. At this time, formed a new historical school. Then the most recent direction was created. In the first third of the 20 century, the Newest Historical School was born.

Old historical school

He founded the Historical School F. List, who opposed the English classics. He identified the basic concepts that characterize neoliberalism. Schools of neoliberalism, founded after this period, retained the basic principles of his views.

Social wealth, in the opinion of the adherents of this trend, is achieved through harmonious activities of people. At the same time, politics should unite the masses and educate the nation with the values ​​of industrial development. For each stage of production, its own program should be implemented, allowing all classes of society to reach a high level.Theories of Neoliberalism

The state, according to Liszt, should cover the whole nation, the constituent classes of which are independent. It directs the main efforts of individual links in the right direction to achieve the long-term interests of society.

New historical school

The direction that emerged later developed the theories of neoliberalism under new conditions. Germany at that time already existed as a united nation, but the cult of the state and aggressive foreign policy sentiment marked this period.

One of the most prominent representatives of neoliberalism of that time was G. Schmoller. He spoke of the need to link this trend with ethics, sociology, history and political science.The ideology of neoliberalism

In economic practice, Schmoller identified three areas of activity: personal interest, social principles, charity. The representatives of these views saw in the functions of the state concern for the upbringing, for the health of the people, for the development of internal public relations, for the elderly, children and the disabled. L. Brentano put forward ideas about eliminating inequality among workers.

Newest historical school

Политический неолиберализм достиг самых больших крайностей в предвоенную эпоху. В. Зомбарт в своих работах противопоставил «нации торговцев» (англичан) «нацию героев» (немцев). Он считал, что последние имеют право с помощью военной мощи забрать у первых то, что они приобрели за годы развития их торговых отношений и промышленности.Political neoliberalism

This trend attributed to the state the function of initiator of national economic development planning. Here ideas of rigid centralization of power and the estate division of society into classes were raised. These views were applied by the German fascists and became one of the constituent parts of their policies.

At the same time, M. Weber urged to consider the economic reality in comparison with its ideal model. Determining the deviations from it, the extent of this discrepancy was investigated. The main ideology of neoliberalism, which was developed at that time by the German historical school, was continued in other areas of economic thought, for example, in American institutionalism and ordoliberalism.

Freiburg School

Based on the views of the new historical school, the Freiburg school developed. It is also called ordoliberal. However, from this point of view, neoliberalism is a teaching that examines the macroeconomic processes of social life, supporting the assertion that individual private property should be strengthened everywhere in the means of production. But from the point of view of the neoliberals of this period, the state should intervene in the economy, in its mechanisms of profit and competition.

One of the prominent representatives of this trend was V. Oiken. He identified two types of economic system. In one, centralized control prevails, and in the other - public. These features, in his opinion, are found in every system. Only one of the signs prevails more.

Chicago and Neo-Austrian Schools

The neo-Austrian school includes the views of the outstanding economist F. Hayek. He developed the views of A. Smith and spoke about the guiding force of competition. The scientist spoke about the emergence of a spontaneous order in the economy. In his opinion, competition by means of price changes makes it clear to market participants about the opportunities that are opening up for them.

He believed that the market implements the mechanisms of unconscious organization. Therefore, the information should be distributed freely. This will enable all subjects of market relations to organize themselves in the best way.

The most prominent representative of the Chicago school is M. Friedman. He adhered to the idea that the state should not be allowed to regulate the scope of production, price, employment and wealth creation. It should only regulate the level of money in circulation. According to this scientist, a change in the level of money supply significantly influences the market situation.

M. Friedman argued that the market can both contribute to social development and prevent it. Neoliberalism in the economy, from his point of view, allows to prevent negative interventions from interested groups of people. After all, every system uses the market. The difference is only in the amount of power that different participants possess.

After reviewing the basic concepts and directions of the economic views of this direction, we can conclude that neoliberalism is a belief system that claims the dominant governing force in the market of self-regulation. The state is given only a certain deterrent function.

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