Question

Compare and contrast the public finance philosophies of Libertarianisn and Neo-liberalism.

Answer 1

Although both neoliberalism and liberalism are rooted in 19th-century classical liberalism, neoliberalism focuses on markets, while liberalism defines all aspects of a society.

Neo-liberalism seeks to transfer control of economic factors to the private sector from the public sector. It tends towards free-market capitalism and away from government spending, regulation, and public ownership. Neoliberalism supports fiscal austerity, deregulation, free trade, privatization, and greatly reduced government spending.

Libertarianism  is a political philosophy and movement that upholds liberty as a core principle. Libertarians seek to maximize political freedom and autonomy, emphasizing individualism, freedom of choice and voluntary association.

Liberalism at its essence is a broad political philosophy, one that holds liberty to a high standard and defines all social, economic, and political aspects of society, such as the role of government, toleration, and freedom to act. Neoliberalism, on the other hand, is seen as more limited and focused, concerned with markets and the policies and measures that help them function fully and efficiently.