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Liberalism vs. Neoliberalism — What's the Difference?

Edited by Tayyaba Rehman — By Fiza Rafique — Updated on September 22, 2023
Liberalism is a political and economic ideology advocating for individual freedoms, democratic governance, and social equality. Neoliberalism, stemming from liberalism, focuses more on market deregulation and reducing state intervention in the economy.
Liberalism vs. Neoliberalism — What's the Difference?

Difference Between Liberalism and Neoliberalism

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Key Differences

Liberalism is a broad ideological and political tradition rooted in the ideals of individual freedom, equal opportunity, and democracy. It spans social liberalism, which emphasizes social welfare, and classical liberalism, which advocates for limited government and free markets.
Neoliberalism emerged in the 20th century and concentrates on economic liberalism. It emphasizes the role of free-market capitalism, deregulation, and reduced government spending on social services. Neoliberalism seeks to apply market logic even to non-market social structures.
Liberalism generally involves a balanced approach to economic regulation and social programs, recognizing the roles of both the public and private sectors. It also values civil liberties and aims to create social equality through measures like progressive taxation and social safety nets.
In contrast, Neoliberalism pushes for a more minimized state role in the economy, aiming for privatization of services and commodities. Neoliberal policies usually involve cutting social programs to reduce government spending, which often exacerbates income inequality.
Both Liberalism and Neoliberalism derive from the Enlightenment era's focus on individualism and reason. While they share some original principles, they have diverged over time, primarily in their views on the role of the state and market forces in society.
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Comparison Chart

Focus

Individual freedoms, democracy, social equality
Market deregulation, reduced state intervention

Economic Approach

Balanced regulation
Free-market capitalism

Social Welfare

Emphasizes social programs
Reduces social spending

Historical Context

Emerged in the Enlightenment
Gained prominence in the late 20th century

Application

More comprehensive, covers social and political
Primarily economic

Compare with Definitions

Liberalism

Economic stance favoring a mixed economy.
Liberalism supports both free markets and government regulation.

Neoliberalism

Ideology promoting reduced government spending.
Neoliberalism often leads to austerity measures.

Liberalism

A system emphasizing democratic governance.
Liberalism is foundational to many Western democracies.

Neoliberalism

An economic policy model focusing on free markets.
Neoliberalism seeks to deregulate industries.

Liberalism

Focus on equal opportunity and social justice.
Liberalism aims to level the playing field.

Neoliberalism

Focus on privatization of public services.
Neoliberalism has privatized many utilities.

Liberalism

A tradition rooted in the Enlightenment.
Liberalism has its intellectual roots in 18th-century philosophy.

Neoliberalism

Stresses competition and efficiency.
Neoliberalism looks to make services more competitive.

Liberalism

Liberalism is a political and moral philosophy based on liberty, consent of the governed and equality before the law. Liberals espouse a wide array of views depending on their understanding of these principles, but they generally support individual rights (including civil rights and human rights), democracy, secularism, freedom of speech, freedom of the press, freedom of religion and a market economy.

Neoliberalism

A 20th-century adaptation of classical liberal principles.
Neoliberalism modernizes some aspects of classical liberalism.

Liberalism

The state or quality of being liberal.

Neoliberalism

Neoliberalism (or neo-liberalism) is a term used to describe the 20th-century resurgence of 19th-century ideas associated with economic liberalism and free-market capitalism. It is generally associated with policies of economic liberalization, including privatization, deregulation, globalization, free trade, austerity and reductions in government spending in order to increase the role of the private sector in the economy and society; however, the defining features of neoliberalism in both thought and practice have been the subject of substantial scholarly debate.

Liberalism

A political theory founded on the natural goodness of humans and the autonomy of the individual and favoring civil and political liberties, government by law with the consent of the governed, and protection from arbitrary authority.

Neoliberalism

A political theory of the late 1900s holding that personal liberty is maximized by limiting government interference in the operation of free markets.

Liberalism

Often Liberalism The tenets or policies of a Liberal party.

Neoliberalism

A political ideology or ideological trend based on neoclassical economics that espouses economic liberalism, favouring trade liberalisation, financial deregulation, a small government, privatisation and liberalisation of government businesses, passive antitrust enforcement, accepting greater economic inequality and disfavouring unionisation.

Liberalism

An economic theory in favor of laissez-faire, the free market, and the gold standard.

Neoliberalism

(US) The ideology associated with the New Democrats and the Democratic Leadership Council.

Liberalism

A 19th-century Protestant movement that favored free intellectual inquiry, stressed the ethical and humanitarian content of Christianity, and de-emphasized dogmatic theology.

Neoliberalism

A political orientation originating in the 1960s, blending liberal political views with an emphasis on economic growth.

Liberalism

A 19th-century Roman Catholic movement that favored political democracy and ecclesiastical reform but was theologically orthodox.

Neoliberalism

A political orientation originating in the 1960s; blends liberal political views with an emphasis on economic growth

Liberalism

The quality of being liberal.

Liberalism

(politics) Any political movement founded on the autonomy and personal freedom of the individual, progress and reform, and government by law with the consent of the governed.

Liberalism

(economics) An economic ideology in favour of laissez faire and the free market (related to economic liberalism).

Liberalism

Liberal principles; the principles and methods of the liberals in politics or religion; specifically, the principles of the Liberal party.

Liberalism

A political orientation that favors progress and reform

Liberalism

An economic theory advocating free competition and a self-regulating market and the gold standard

Liberalism

Political ideology advocating individual freedom.
Liberalism emphasizes personal liberties.

Common Curiosities

What is Neoliberalism?

Neoliberalism is an economic framework emphasizing market deregulation and reduced state intervention.

Is Neoliberalism left or right politically?

Neoliberalism is often associated with right-wing economic policies.

What is Liberalism?

Liberalism is a political ideology advocating for individual freedom, democracy, and social equality.

How does Liberalism view government?

Liberalism supports a balanced role for government in economic regulation and social welfare.

Does Neoliberalism care about social issues?

Neoliberalism primarily focuses on economic issues, often neglecting social welfare.

Is Neoliberalism a form of Liberalism?

Neoliberalism is derived from liberal principles but focuses mostly on economic aspects.

Is Liberalism left or right politically?

Liberalism can manifest in both left and right political contexts but is generally considered left-leaning in the U.S.

What does Neoliberalism say about government?

Neoliberalism advocates for reduced government intervention, especially in economic matters.

How does Liberalism address social issues?

Liberalism emphasizes social programs, human rights, and equality.

How do both ideologies view taxes?

Liberalism may support progressive taxation, while Neoliberalism prefers low taxes.

What’s the historical context of Liberalism?

It emerged during the Enlightenment era.

When did Neoliberalism become prominent?

It gained prominence in the late 20th century.

Is democracy important in Neoliberalism?

Democracy isn't a primary focus in Neoliberalism, which centers more on economic freedom.

Can Liberalism and Neoliberalism coexist?

They can coexist but often have conflicting views on the role of the state.

What role does democracy play in Liberalism?

Democracy is a cornerstone of Liberalism.

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Author Spotlight

Written by
Fiza Rafique
Fiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Tayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.

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