Livres éco:

As early as the 1990s, anti-globalization activists and heterodox economic liberal scholars began
pointing to mounting problems and unintended consequences that stemmed from neoliberal-
inspired globalization. They proposed different solutions but shared the idea that markets need
to be embedded in social and political institutions in order to have legitimacy and to resolve
fundamental human problems. In the short run, unfettered global markets were hurting some
of the world’s poorest people and destroying the environment. In the long run, through
outsourcing and environmental degradation, they might even undermine the prosperity of
developed countries.

We Are All Keynesians NowDespite the financial crisis, orthodox economic liberals prefer to
keep the main laissez-faire characteristics of the free market, subject to a few more reforms.
They propose to:
■ Limit government support for banks, infrastructure projects, and social welfare programs;
■ Decrease regulation of the economy;
■ Cut taxes of the wealthy and middle class to stimulate economic growth; and
■ Foster more globalization, which is good for the United States and the world.
During the Great Depression, a split emerged between Keynesians who supported a positive
role for the state in the economy and orthodox liberals who saw the state’s role in the economy
as decidedly negative. In the 1980s, the chasm widened even more. The Reagan and Thatcher
administrations implemented neoliberal policies, emphasizing economic growth alongside cuts
in domestic welfare programs. Globalization and the current financial crisis have led to
criticisms of neoliberal faith in markets. Many heterodox liberals maintain that some state
intervention serves the public interest, especially when it protects social groups and countries
from the negative effects of the seemingly Darwinian global economy. Orthodox liberals believe
that austerity will lay a foundation for sustainable recovery.
Both orthodox and heterodox liberals ultimately believe that capitalism is a desirable system to
maintain, despite the differences in how they propose to reform globalization and tackle the
problems arising from trade and inequality. In that sense, they both place their faith in the
ability of markets to promote the interests of most people in the world.