Comment Neoliberalism: A Scourge to Humankind

Abstract

The term ‘neoliberalism’ was coined by the German scholar Alexander Rustow at the Colloque Walter Lippmann in 1938. Ludwig von Mises popularized it as ‘new liberalism’ in his writings. The exponents of neoliberalism defined it as ‘the priority of the price mechanism, the free enterprise, the system of competition and a strong and impartial state’. They belonged to what were called the Freiburg School, the Austrian School and the Chicago School of Economics. The concept of neoliberalism draws from Adam Smith the notion that the invisible hand of self-interest in the free market results in the common good but obscures his idea that labor power is the creator of new material values and social wealth. It harps on the notion that the economic freedom of the entrepreneurs spells political freedom of the entire society. It idealizes and perpetuates the idea of free competition capitalism.