How does neoliberalism differ from classical liberalism?

Neoliberalism differs from classical liberalism in several ways.

Firstly, while classical liberalism emphasizes limited government intervention in the economy, neoliberalism supports a more active role for the state in promoting free markets and economic growth. Neoliberals believe that government intervention can be beneficial in creating and maintaining competitive markets, ensuring property rights, and providing public goods.

Secondly, classical liberalism prioritizes individual freedom and liberty, whereas neoliberalism places greater emphasis on economic efficiency and market outcomes. Neoliberals argue that market forces and competition can lead to optimal resource allocation and overall societal welfare.

Additionally, neoliberalism tends to advocate for globalization and free trade, promoting the removal of barriers to international trade and investment. This differs from classical liberalism, which may have been more focused on domestic economic policies.

Lastly, neoliberalism often supports the privatization of public services and deregulation of industries, aiming to increase efficiency and competition. Classical liberalism, while also advocating for limited government intervention, may not have placed as much emphasis on these specific policies.

Overall, neoliberalism represents an evolution of classical liberalism, incorporating a more active role for the state in promoting market-oriented policies and economic growth.