Neoliberalism at a Crossroads: Crises, Popular Discontent, and the Future of Global Policies

Originating in the 1930s and implemented after the collapse of the Bretton Woods system, neoliberalism has prevailed in most aspects of economic policy. Although not a strict ideology, it is grounded in the belief that competitive market prices should govern economic and social behaviors. Accordingly, the role of the state should be to support institutions that help markets remain efficient in creating prices. In practice, the implementation of a free-market society has revealed significant flaws. It has deepened wealth and income inequality, accelerated deindustrialization, and generated numerous financial imbalances. Politically, socially, and economically, the neoliberal framework has shown itself to be unstable. In response to crises such as the 2008 financial collapse, the COVID-19 pandemic, and rising geopolitical tensions, many countries, including the United States, have shifted away from pure neoliberalism. Yet, these adjustments have neither alleviated popular discontent nor resulted in a coherent new policy framework. Figures like Donald Trump remain influential in U.S. politics, while far-right movements gain ground across Europe, both at national and federal levels. At last, the neoliberal approach appears ill-suited to addressing the challenges of the green transition. Nobel laureate William Nordhaus's proposal of relying solely on carbon pricing to transform the global production and consumption system within a few decades seems unrealistic. This presentation will examine the neoliberal framework, exploring its social, political, and economic consequences and questioning its future.