Understanding Economics

Currently Playing: What is neoliberalism and why does it still dominate our economies?

What is neoliberalism, and why has it had such a devastating impact on Britain’s economy, public services and democracy? Neoliberalism has dominated economic and political thinking for more than 45 years. But what does it actually mean, who benefits from it, and why have successive governments accepted its ideas? In this episode of Understanding Economics, I explain how neoliberalism emerged, why economists such as Friedrich Hayek and Milton Friedman promoted it, and how it became the dominant economic ideology of our time. I explore how neoliberalism has encouraged privatisation, deregulation, austerity and lower taxes on wealth, while transferring economic power away from democratically elected governments towards corporations, financial markets and the wealthy. I also explain why neoliberalism’s claims about government money are fundamentally misleading. Governments that issue their own currencies are not financially constrained in the way households are. Understanding that changes how we think about taxation, public spending and the possibilities for economic reform. The consequences of neoliberalism are everywhere, from NHS waiting lists and privatised water companies to growing inequality and weakened democratic accountability. But there is an alternative. I argue that we need a caring state that puts people, public services, democracy and the environment before financial wealth. The economy should serve people, not the other way around. This is part of my Understanding Economics series, which explains how the economy really works and how we could make it work better. You can watch the rest of this series here: https://www.youtube.com/playlist?list=PLaSguNBvHIto Take a look at the poll below: https://www.youtube.com/post/UgkxmqOJNl7bO3QPLV-F0By9__UXl0dPj-eV 00:00 What Is Neoliberalism? 01:03 Neoliberalism Is Economic and Political 02:06 Where Did Neoliberalism Come From? 03:09 The Central Beliefs of Neoliberalism 04:13 Privatisation, Deregulation and Individual Responsibility 05:17 How Neoliberalism Changes Society 06:21 What Happens to Public Services? 07:25 Why Neoliberalism Increases Inequality 08:29 The Neoliberal Money Myth 09:33 Why Has Neoliberalism Survived? 10:37 What Does Neoliberalism Do to Democracy? 11:41 Is There an Alternative to Neoliberalism? 12:45 Making the Economy Serve Everyone 13:27 Why People Must Come Before Finance TRANSCRIPT A transcript for this video is available at: https://www.taxresearch.org.uk HOW TO SUPPORT US Please consider donating: https://ko-fi.com/taxresearch ABOUT RICHARD MURPHY Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best-known book is ‘The Joy of Tax’. This video was edited by Thomas Murphy. RICHARD MURPHY ON BLUESKY: https://bsky.app/profile/richardjmurphy.bsky.social OR ON MY BLOG: http://www.taxresearch.org.uk/Blog/ HIT SUBSCRIBE & GET NOTIFICATIONS Subscribe and get notified of new videos released. INTRODUCTION: https://www.youtube.com/watch?v=HdHsRPy3060 Take a look at our playlist page to view older videos: https://www.youtube.com/@RichardJMurphy/playlists #Neoliberalism #UnderstandingEconomics #Economics #PoliticalEconomy #Privatisation #Deregulation #Austerity #PublicServices #Inequality