The System Everyone Hates Is the One That Has Actually Worked (Richard Hanania, Oct 24, 2025, Doomslayer)
Neoliberalism was a response to stagnation and malaise around the globe. Outside the Communist Bloc, the mid-20th century was dominated by Keynesianism in the West and state-led development in the Global South. Governments regulated industries, controlled capital flows, and expanded welfare states. By the 1970s, cracks appeared in this system: stagflation (low growth and high unemployment) in the United States and Europe and recurring fiscal crises discredited state-centered models. In the developing world, mounting debt and balance-of-payments problems forced governments to seek assistance from international institutions, setting the stage for policy change.
This atmosphere of crisis created an opening for market-oriented thinkers who had been marginalized in earlier decades, perhaps most notably the Chicago University economist Milton Friedman, who would win the Nobel Prize for economics in 1976 and become highly influential as a public figure advocating for deregulation. The law and economics movement, centered on figures including Ronald Coase, Richard Posner, and Gary Becker, also emerged at the University of Chicago, and they began to apply cost-benefit analysis to government regulations that had previously gone unquestioned. They called for taking efficiency concerns into consideration when interpreting legal doctrine.
Neoliberalism was characterized by taking seriously classical liberalism’s commitment to free markets and limited government. In the context of the world created by the 1970s, this approach meant slowing the growth in the money supply, deregulating industry, taking a skeptical approach to labor unions and industrial policy, opening markets up to the free flow of capital and trade, and in some cases, trying to shrink or at least prevent the expansion of the welfare state.
This cross-partisan convergence toward such ideas beginning in the late 1970s and continuing into the early 2000s has been called hegemonic neoliberalism. The first wave was identified with the right, associated with the tenures of Ronald Reagan (1981–1989) and Margaret Thatcher (1979–1990). The second came in the 1990s in the form of the “Third Way” leaders, notably Bill Clinton (1993–2001) and Tony Blair (1997–2007). Far from rejecting their conservative predecessors, they consolidated the new order: Clinton championed the North American Free Trade Agreement (NAFTA), welfare reform, and financial deregulation, while Blair’s New Labour accepted Thatcherite economic reforms.
…once you have a system where everyone succeeds? The End of History demonstrates that white men are nothing special.