A general characteristic of neoliberalism is the desire to intensify and expand the market which acts as a balancing force. Neoliberalism has overcome the problems of socialism by the rightful mix of market and state role in providing efficient and effective goods and services to citizens.
Also Read :- characteristics of Neoliberalism
The fundamental difference between NeoLiberalism and Democratic Socialism is the role of the state, relative to the markets and players in it. In the former, the state serves the market (thus subjecting every aspect of citizen-subjects’ lives to its influence)- in the latter, the state checks its excesses and failures, thus buffering citizens’ lives from corporate power. In Democratic Socialism, we’re still capitalists and have private property and all that, but the role of the state is to regulate the markets, in the public interest. It involves things like correcting market failures like monopolies and trusts, putting boundaries around public goods like the environment to discourage market failures like externalities. In NeoLiberalism, we’re still capitalists and have private property and all that, but the role of the state is in service of the markets, in the interest of market players. Of the two, the latter cannot be reconciled with the values of liberal democracy. The former creates a separation between powerful corporate interests and political power with which to retrench their influence, while the latter erases that separation, thus consolidating the interests of the state and those of corporate titans.
How Different is Neoliberalism from socialism:
- Government role:
- it has the role of facilitator with a limited role in neoliberalism whereas in socialism, the state has a major role responsible for the welfare of its citizens.
- The role of the state is to regulate the markets, in the public interest in socialism, whereas the role of the state is in service of the markets, in the interest of market players in neoliberalism.
- The government impose trade barriers in interest of the domestic producers whereas, in socialism, there are limited trade barriers in interest of domestic consumers.
- Labour is mainly domestic and there is the limited flow of labour as well as capital in socialism whereas in neoliberalism, labour and capital mobility is relaxed.
- Citizen welfare and well-being is the responsibility of the state in socialism whereas in neoliberalism it is contingent on market forces and individual.
- The citizens are viewed mainly in passive welfare perspective in socialism whereas in neoliberalism, they are seen as active consumers.