“Neoliberalism is hard to define. It could refer to intensified resource extraction, financialization, austerity, or something more ephemeral – a way of life – in which collective ideals of citizenship give way to marketized individualism and consumerism.”

Greg Grandin

In response to the economic fallout of the Great Depression, the federal government opted to embrace a liberalized approach to trade, meaning that trade restrictions were removed. A freer exchange of goods ushered in a new era of economic prosperity, particularly following the Second World War. This period is often referred to as the “Long Boom” or the ‘Golden Age’ of capitalist expansion.

For a time, America’s economy flourished but by the the early 1970s was once again sluggish as economic growth slowed. Stagflation, characterized by a stagnant economy and high inflation, ensued and was highlighted by the recession lasting from 1973 to 1975.

To counteract slow economic growth, a new brand of liberal trade policies, i.e. neoliberalism, was promoted and ultimately adopted. It was believed that this new flavor of liberalism would prevent the problems supposedly caused by the first wave of trade liberalization.

Achieving such results required rejecting socially-liberal policies and embracing political and economic restructuring via privatization, deregulation, and support for globalization.

However, neoliberalism is more than just an approach to politics. Instead, it as an all-encompassing political and economic philosophy that embraces the market, rather than the government, as the mechanism to satisfy all human needs. In turn, the influence of market conditions becomes pervasive not only in communities but also in individual lives by ingraining the importance of individualism, efficiency, and self-help (as opposed to systems, efficacy, and community).

The ultimate objective of this restructuring is to achieve maximum (economic) efficiency enabled via the free flow of capital. It is essential to understand that, despite neoliberalism being considered a narrow subdivision of economics aligned with monetarist and supply-side economics, it is itself a broader political ideology.

Overcoming these issues to redevelop a strong central body capable of regulating the private sector in a proactive and forward-thinking manner demands an intellectual and lifestyle revolution. However, the current lack practical yet innovative ideas from both sides of the economic aisle indicate that fresh perspectives from outside the standard arena of politics will be needed to remedy the pervasive effects of neoliberalism in the United States.