Political economy. Neoliberalism is ... (definition) Neo-liberalism: schools of neo-liberalism, representatives

Economic science has come a long way from ancient times to today. A lot of 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 considers a lot of questions of theory that fall within its competence. New teachings, views, patterns and hypotheses deserve the increased attention of scientists, because the welfare of the whole society depends on this. Neo-liberalism is a new economic doctrine, the main features of which and directions in the study of reality deserve careful consideration.

Occurrence

Neo-liberalism refers to a new direction in the economy, which places the principle of non-interference of the state in the regulation of relations between the subjects of trade, production relations as the head of the general management organization. This direction was formed in the 19th century.

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

Neo-liberalism is also the result of the thought of the German school, whose representatives were among the first to consider political economy as the science of conducting national economy.

Developing and improving, neoliberalism in politics and economics gave rise to many directions and exercises, and became the basis for further research by scientists around the world.

The most famous representatives

Neo-liberalism, whose representatives refer to the current trends of economic science, critically characterize Keynesianism. In their view, the role of the state is only to ensure the conditions necessary for creating competition and monitoring in areas where these conditions are lacking.

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

Great variability of views has determined the development of many schools and approaches to studying the patterns of economic reality.

Basic principles

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

Self-regulation of market economy should also contribute to the actions of centralized management in the social sphere. The redistribution of income must take into account the interests of the poor in the first place. This strengthens social justice.

Based on the main principles of liberalism, neo-liberalism was able to adapt and adopt a number of new theories and directions peculiar to other economic systems (including socialist ones).

Historical School of Germany

In the 19th century, in Germany, the classical school of distribution did not receive. Therefore, there arose a historical trend, which was based on a number of concepts. Its representatives argued that the general laws of the economy of production and distribution are fiction, and neo-liberalism explains the correct development. Schools of neo-liberalism 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 the geographical position and history, cultural and national traditions of the country.

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

Old historical school

He founded the History School of F. Liszt, who opposed the English classics. He defined the basic concepts that characterize neoliberalism. The schools of neo-liberalism, founded after this period, preserved the basic principles of his views.

Public wealth, according to the adherents of this direction, is achieved through the harmonious activities of people. Politics must unite the masses and educate the nation with the values of industrial development. For each stage of production, a program must be implemented, which allows to reach all classes of society of a high level.

The state, according to Liszt, must cover the entire 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 followed later developed the theory of neoliberalism in the new conditions. Germany at that time already existed as a united nation, but the cult of the state and the aggressive foreign policy sentiment marked this period.

One of the most outstanding representatives of neo-liberalism of the time was G. Shmoller. He spoke about the need to link this trend with ethics, sociology, history and political science.

In economic practice, Shmoller distinguished three areas of activity: personal interest, social principles, charity. In the functions of the state representatives of these views saw the concern for education, about people's health, about the development of internal public relations, about the elderly, children, disabled people. L. Brentano put forward the idea of eliminating inequality among workers.

The newest historical school

Political neoliberalism reached the greatest extremes in the pre-war era. V. Sombart in his works contrasted the "nation of traders" (Englishmen) to the "nation of heroes" (Germans). He believed that the latter have the right, with the help of military power, to take away from the former what they acquired over the years of the development of their trade relations and industry.

This direction ascribed to the state the functions of the initiator of the planning of national economic development. Here ideas of rigid centralization of the power and class division of a society on classes have been lifted. These views were applied by the German fascists and became one of the constituent parts of their policy.

At the same time, M. Weber called for considering economic reality in comparison with its ideal model. Determining the deviations from it, the degree of this discrepancy was investigated. The basic ideology of neoliberalism, which was worked out at that time by the German historical school, was continued in other directions of economic thought, for example, in American institutionalism and ordoliberalism.

Freiburg School

Based on the views of the new historical school, the Freiburg School has developed. It is also called ordoliberal. However, from this point of view, neoliberalism is a doctrine that considers the macroeconomic processes of society's life, supporting the assertion that individual private property should be strengthened everywhere by the means of production. But the state from the point of view of neo-liberals of this period should interfere in the economy, in its mechanisms of profit and competition.

One of the outstanding representatives of this direction was V. Oiken. He singled out two types of economic system. In one dominates the centralized management, and in the other - the public. These features, in his opinion, are found in every system. Only one of the signs prevails more.

Chicago and Neo-Austrian schools

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

He believed that the mechanisms of the unconscious organization are being realized on the market. Therefore, information should be distributed without hindrance. This will enable all market participants to organize themselves in the best way.

The brightest representative of the Chicago school is M. Friedman. He adhered to the idea that the state should not be allowed into the field of regulating production, prices, employment and wealth creation. It should only regulate the level of money in circulation. According to this scientist, the change in the level of money supply significantly affects the market situation.

M. Fridman argued that the market can both contribute to social development, and prevent it. Neoliberalism in the economy, from its point of view, allows to prevent negative interference by interested groups of people. After all, every system uses the market. The difference is only in the amount of power that different actors have.

Having become acquainted with the basic concepts and directions of economic views of this direction, it can be concluded that neoliberalism is a system of views that affirms the dominant governing force in the market of self-regulation. The state is given only a certain deterrent function.