Economic science has long come a long way from today. Many theories and laws were discovered by her, studied and developed on their basis the most correct approaches to the conduct of economic activity by man. Political economy considers many questions of the theory that fall within its competence. New teachings, views, patterns and hypotheses deserve increased attention of scientists, because the welfare of the whole society depends on this. Neoliberalism is a new economic doctrine, the main features of which and directions in the field of reality research deserve careful consideration.
Occurrence
Neoliberalism is a new direction in the economy that puts at the head of the general organization of management the principle of state non-interference in the processes of regulating relations between subjects of trade and industrial relations. This direction was formed in the 19th century.
The origin of this theory is from the system of liberal views of the English scientists A. Smith and D. Ricardo. In their opinion, the state should intervene in the economic activity of entities minimally.
Neoliberalism is also the result of the thought of the German school, whose representatives were among the first to consider political economy as a science of national economy.
Developing and improving, neoliberalism in politics and economics gave rise to many directions and teachings, became the basis for further research by scientists around the world.
The most famous representatives
Neoliberalism, whose representatives belong to the modern trends of economic science, critically characterize Keynesianism. In their opinion, the role of the state is only to provide the conditions necessary for creating competition and exercising control in areas where these conditions are absent.
Neoliberals include such schools as the Neo-Austrian (V. Hayek), Chicago (M. Friedman), Freiburg (L. Erhard and V. Oyken).
Great variability of views determined the development of many schools and approaches to the study of the laws of economic reality.
Basic principles
There are several fundamental principles of neoliberalism. They determine the doctrine of belonging to this direction. Economic neoliberalism is based on such principles as the rights and freedoms of the individual, constitutionalism, the equal rights of all members of society. The determining factors in the development of economic relations are private property and entrepreneurship.
The self-regulation of a market economy should also be facilitated by the actions of centralized management in the social sphere. Redistribution of income should take into account the interests of the poor in the first place. It strengthens social justice.
Based on the main principles of liberalism, neoliberalism was able to adapt and accept a number of new theories and trends characteristic of other economic systems (including socialist).
Historical School of Germany
In Germany in the 19th century, the classical school was not widespread. Therefore, a historical trend arose here, which was based on a number of concepts. Its representatives argued that the general laws of the economics of production and distribution are fiction, and neoliberalism explains exactly the right development. Schools of neoliberalism 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.
Three stages of development of this direction are distinguished. The first dates from 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, a new historical school was formed. Then the most recent direction was created. In the first third of the 20th century, the newest historical school arose.
Old historical school
He founded the Historical School of F. Liszt, who opposed the English classics. He identified the basic concepts characterizing neoliberalism. The schools of neoliberalism, founded after this period, have retained the basic principles of his views.
Social wealth, according to the adherents of this direction, is achieved through the coordinated activity of people. At the same time, politics should unite the masses and educate the nation with the values of industrial development. Each stage of production must have its own program, which allows all classes of society to reach a high level.
The state, according to Liszt, should encompass the whole nation, the component 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 appeared later developed the theory of neoliberalism in the new conditions. Germany at that time already existed as a cohesive nation, but the cult of the state and aggressive foreign policy mood marked this period.
One of the most prominent representatives of neoliberalism of that time was G. Schmoller. He spoke about the need to connect this trend with ethics, sociology, history and political science.
In economic practice, Schmoller identified three areas of activity: personal interest, social principles, charity. In the functions of the state, representatives of these views saw concern for upbringing, for people's health, for the development of internal public relations, for the elderly, children, and disabled people. L. Brentano put forward the idea of eliminating inequality among workers.
Latest historical school
Political neoliberalism reached its greatest extremes in the prewar era. V. Sombart in his works contrasted the "nation of merchants" (English) with the "nation of heroes" (Germans). He believed that the latter had the right, with the help of military power, to take from the former what they had gained during the years of development of their trade relations and industry.
This direction attributed to the state the functions of the initiator of national economic development planning. Here the ideas of strict centralization of power and class division of society into classes were raised. These views were applied by the German fascists and became one of the components of their policy.
At the same time, M. Weber urged to consider economic reality in comparison with its ideal model. Determining deviations from it, the degree of this discrepancy was investigated. The main ideology of neoliberalism, which was developed at that time by the German historical school, was continued in other areas of economic thought, for example, in American institutionalism and ordoliberalism.
Freiburg School
Based on the views of the new historical school, the Freiburg School developed. It is also called ordoliberal. However, from this point of view, neoliberalism is a doctrine that examines the macroeconomic processes of society, supporting the assertion that individual private property should be strengthened everywhere on the means of production. But the state from the point of view of the neoliberals of this period should intervene in the economy, in its mechanisms of profit and competition.
One of the prominent representatives of this trend was V. Oyken. He identified two types of economic system. In one, centralized management predominates , and in the other, public administration . These features, in his opinion, are found in every system. Only one of the signs prevails more.
Chicago and neo-Austrian schools
Neo-Austrian school includes the views of the outstanding economist F. Hayek. He developed the views of A. Smith and spoke about the guiding force of competition. The scientist talked about the emergence of spontaneous order in the economy. According to him, competition with the help of price changes makes it clear to market participants about the opportunities that open before them.
He believed that the market implemented mechanisms of unconscious organization. Therefore, information should be freely distributed. This will enable all subjects of market relations to organize 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 regulation of production, price, employment and wealth creation. It should only regulate the level of money in circulation. According to this scientist, a change in the level of money supply significantly affects market conditions.
M. Friedman argued that the market can both contribute to social development and prevent it. Neoliberalism in the economy, from his point of view, allows us to prevent negative interventions from interested groups of people. After all, every system uses the market. The difference is only in the amount of power that different participants have.
Having become acquainted with the basic concepts and directions of economic views in this direction, we can conclude that neoliberalism is a system of views that asserts self-regulation as the dominant governing force in the market. The state is assigned only a certain deterrent function.