Tag Archives: Neoliberalism

Economics, Essays, Politics

‘Just Another Liberalism’

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THE HEDGEHOG REVIEW (March 1, 2025):

If critique could kill, neoliberalism would long be dead. So far, however, neither decades of intellectual opposition from the left and right nor the past decade of populist politics has done more than erode some measure of neoliberalism’s ideological preeminence. Talk from the right of “pro-family” policies, such as tax breaks and subsidies for having children, or moves by the Biden administration to secure domestic manufacturing of critical high-technology goods may hearten neoliberalism’s foes (even as they further blur the ideological map of American politics). Neither, however, offers anything like a consensus to replace the vision that, since the crises of the 1970s, has, with whatever degree of discontent, guided our collective thought and action.

Half a century ago, as the OPEC oil embargo and an unprecedented combination of inflation and unemployment disrupted the shared understanding of economics and politics that had oriented Western elites after World War II, neoliberalism became identified with a range of tactics for restoring economic growth. Understanding what neoliberalism is, and what its relation to liberalism might be, has been a central task for intellectuals ever since. Perhaps the first major thinker to undertake it was the French theorist Michel Foucault. In a series of lectures delivered at the Collège de France, in 1979, and originally intended to account for what he called “The Birth of Biopolitics,” he sidestepped the ostensible topic in favor of a study of the historical roots of neoliberalism and the philosophical essence of liberalism—and the relationship between the two.

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Left with no decent passions at its command, liberalism would be—and perhaps is—a spent force. But even illiberalism seems trapped within the specifically neoliberal anthropology, narrower and meaner than the expansive, polyvalent vision of humanity at the heart of the liberal tradition. And what comes may be still worse. The rational, self-interested individual, however base we consider him, possessed at least a certain coherence. Contemporary technologies of distraction seem to act increasingly on fragmented, disconnected parts of a splintering subject, while contemporary political rhetoric, in its systemic and transparent falsehoods, bypasses the minimal conditions of instrumental reason. If there is a subject of governance after neoliberalism, rather than transcending self-interest, he may be too psychically scattered and disoriented to be considered a self. The alternative to a recovery of the liberal imagination in its true political dimensions (and not merely as the false charms of an aestheticized inner life) may be neither illiberalism nor the neoliberal status quo but a new barbarism.

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Blake Smith is a historian of modern France and a literary translator. He is writing a book on Roland Barthes.

Essays, Foreign Affairs, Politics

Foreign Affairs Essay: ‘The Post-Neoliberal Delusion’

FOREIGN AFFAIRS MAGAZINE (February 10, 2025): Although there are many explanations for Donald Trump’s victory in the 2024 U.S. presidential election, voters’ views of the U.S. economy may have been decisive. In polling shortly before the election, more than 60 percent of voters in swing states agreed with the idea that the economy was on the wrong track, and even higher numbers registered concern about the cost of living. In exit polls, 75 percent of voters agreed that inflation was a “hardship.”

These views may seem surprising given various economic indicators at the time of the election. After all, unemployment was low, inflation had come down, GDP growth was strong, and wages were rising faster than prices. But these figures largely missed the lasting effects that dramatic price increases had on many Americans, which made it harder for them to pay for groceries, pay off credit cards, and buy homes. Not entirely unreasonably, they blamed that squarely on the Biden administration.

Biden arrived in office in 2021 with what he understood as an economic mandate to “Build Back Better.” The United States had not yet fully reopened after nearly a year of restrictions necessitated by the COVID-19 pandemic, which had suppressed activity in the service sector. Biden set out to restructure the country’s post-pandemic economy based on a muscular new approach to governing. Since the 1990s, Democratic economic policy had largely been shaped by a technocratic approach, derided by its critics as “neoliberalism,” that included respect for markets, enthusiasm for trade liberalization and expanded social welfare protections, and an aversion to industrial policy. By contrast, the Biden team expressed much more ambition: to spend more, to do more to reshape particular industries, and to rely less on market mechanisms to deal with problems such as climate change. Thus, the administration set out to bring back vigorous government involvement across the economy, including in such areas as public investment, antitrust enforcement, and worker protections; revive large-scale industrial policy; and support enormous injections of direct economic stimulus, even if it entailed unprecedented deficits. The administration eventually came to dub this approach “Bidenomics.”

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JASON FURMAN is Aetna Professor of the Practice of Economic Policy at Harvard University. He was Chair of the White House Council of Economic Advisers from 2013 to 2017.