What does neoliberalism mean?
Neoliberalism is an economic and political approach that places markets, private enterprise, and competition at the center of social organization. It commonly supports deregulation, privatization, reduced taxes, flexible labor markets, and a smaller role for government in providing services or controlling business. Supporters associate it with economic freedom, efficiency, and individual choice, whereas critics argue that it expands corporate power, weakens social protections, and increases inequality. The term has been applied especially to policies affecting taxation, labor, education, health care, housing, and public spending, but no single policy package defines it in every context. Because neoliberalism is often debated rather than merely described, choosing it can itself signal a political position. Its usefulness lies in naming a broad contemporary approach to the relationship between markets and government, while its ambiguity makes careful attention to context essential.
nounNeoliberalism is a political and economic ideology that emphasizes markets, private enterprise, deregulation, privatization, and a limited role for government in the economy. The term is also used critically for policies that favor market solutions while reducing public provision or social protections.
- A political and economic ideology emphasizing private enterprise, competitive markets, deregulation, privatization, and limited government intervention.
- A critical term for policies that extend market logic into areas such as education, health care, housing, or environmental protection.
"The government defended its economic reforms as neoliberalism intended to encourage investment and competition."
"Many economists describe the policy package as an example of neoliberalism."
"Critics argued that neoliberalism weakened labor protections and increased economic inequality."
Rarely used; neoliberalism is normally an uncountable mass noun.
"The article compares different forms of neoliberalism across several countries."
A term coined to describe a modern version of economic liberalism later became one of the sharpest political labels of the late twentieth and early twenty-first centuries.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does neoliberalism come from?
The word combines the Greek-derived prefix neo-, meaning new, with liberal, from Latin liberalis, meaning free or generous, and the suffix -ism, denoting a doctrine or system. It was coined in the 1930s to refer to a proposed modern form of economic liberalism, and it was later adopted more broadly, especially by critics of policies associated with privatization and deregulation. Its development reflects the changing public language of economic debate: what began as a relatively specific label for one version of liberalism became a broad and often pejorative term for market-centered politics.
Related word forms
How neoliberalism is actually used
Neoliberalism is a contested and politically loaded term. Its meaning and degree of acceptance vary by country, political perspective, and policy area; some scholars use it descriptively, while others use it primarily as criticism. The adjective neoliberal is more neutral than the noun.
Easily confused with neoliberalism
Liberalism broadly supports individual freedom and limited government, whereas neoliberalism specifically emphasizes market mechanisms and economic restructuring.
Neoliberal is an adjective describing people, policies, or ideas associated with neoliberalism, while neoliberalism names the ideology itself.