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Neoliberal Policies

Definition

Neoliberal policies are economic strategies that emphasize the reduction of government intervention in the economy, promoting free-market competition and privatization.

Analogy

Think of neoliberal policies like a referee stepping back during a soccer game. Instead of constantly blowing the whistle and controlling every move, the referee (the government) allows players (businesses) to play freely, only intervening when absolutely necessary.

Related terms

Privatization: The process by which a public service or industry is transferred into private ownership and control.

Free Market Economy: An economic system where prices for goods and services are determined by open market and consumers, with little to no government intervention.

Laissez-faire Economics: A policy or attitude of letting things take their own course without interfering; in economics, it refers to an environment in which transactions between private parties are free from state intervention.