Neoliberalism’s Bailout Problem

Neoliberalism began driving economic policy around the world in the early 1980s.

Neoliberalism posits that the path to economic prosperity is through unfettered markets that are free from government intervention. In this construct, productivity rises, the quality of life improves and social equity prevails. Economists like Milton Friedman and political leaders such as Margaret Thatcher and Ronald Reagan championed this orthodoxy in the early 1980s. Mainstream economists and officials worldwide have stood behind neoliberal economics ever since.

While many tout neoliberalism as the only way to prosperity, the reality is that large-scale government support has propped it up for decades, including...