1 What does the word neoliberalism mean A

1. What does the word neoliberalism mean? A SHORT HISTORY OF CONSERVATIVE ECONOMIC POLICY

1. What’s the difference in liberal and conservative economic policy? ECONOMICS?

LIBERALS CONSERVATIVES • HANDS ON: Government has a role in the economy • HANDS OFF: Government should not interfere • No regulation • Economy on autopilot! • Protect workers • Protect the environment

2. Origin of HANDS-OFF Economic Policy (Classical Liberalism) • Adam Smith: Wealth of Nations (1776) • Government should not interfere in economy • Here’s the confusing part: These ideas are known as “classical liberalism. ” • An “invisible hand” will guide the economy ? ? ? • Yes, these ideas are supported by conservatives • But they are “liberal” in that individuals are free to compete for profit. • Promote competition • Increase profit • Grow the economy • Called “classical liberalism” • Main economic policy in US for 200 years

HANDS-OFF Economic Policy • Show video: 60 second adventures in economics: The Invisible Hand • http: //www. open. edu/openlearn/society/politics-policypeople/economics/60 -second-adventures-economics-the-invisiblehand )

3. The Origin of HANDS-ON Economic Policy The “invisible hand” dropped the ball! • Great Depression: FDR and New Deal • Government was needed to help people and to restore economy • Many programs started • Policies continued in 1960 s under President Johnson’s Great Society and War on Poverty • Government play big role in the economy 1930 s-1970 s

4. HANDS-OFF Returns Only now it’s called neoliberalism! Neo = New Like Smith’s “Classical Liberalism” only it’s new! • 1970 s: Weak economy • Conservatives and corporate leaders blamed govt. regulation and taxes • Wanted return to free market • Neoliberalism has been the main economic policy since the 1980 s.

What are the principles of neoliberalism and how do they affect us? Stay tuned for the next lesson!