Neoliberalism and Contemporary American Literature

Jelly-Schapiro Note 1

Though the historiographic literature tends to locate the political and economic origins of neoliberalism in the 1970s, Michel Foucault, in his 1978–1979 lectures at the Collège de France, notably highlighted the proto-neoliberal significance of the ordoliberals in postwar Germany, who imagined the market and its rationality as the foundation for the reconstituted German state. The intellectual history of neoliberalism, meanwhile, has even deeper origins. In the 1930s, economists and philosophers such as Friedrich Hayek and Ludwig von Mises formulated a critique of Keynesianism that associated the latter with “totalitarian” forms of collectivism such as Nazism and communism. Government planning, these “Austrian School” thinkers avowed, ultimately led to the negation of individual freedom. The realization of that freedom, Hayek, von Mises, and the other attendants at the famous 1947 Mont Pelerin meeting insisted, required the liberation of market forces and generalization of market logics. While the Keynesian consensus prevailed in the immediate postwar period, neoliberal thinking took root in and spread throughout think tanks and other ideological state apparatuses; when the postwar political-economic order was thrown into crisis in the early1970s, the already insidious ideology of neoliberalism found concrete political expression.

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