How are today's privatization programs, often associated with neoliberalism, an unsurprising result of adam smith's perspective on economic growth?

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Social Studies

Killian Black

1 March, 08:28

How are today's privatization programs, often associated with neoliberalism, an unsurprising result of adam smith's perspective on economic growth?

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Camryn Mcknight · Answer 1

Neoliberalism supports laissez-faire economics. In other words, an economy in which their private parties can realize transactions between them without government intervention. It also supports free-market capitalism which beliefs in private ownership of entities and the operation of them in order to make a profit.

Adam Smith is the economist behind this ideology. In his book: "The Wealth of nations" he strongly criticized mercantilism, government subsidies, and the licensing of monopolies.

Privatization programs go in line with this current of thought and have dominated world politics in the western hemisphere during a great part of the 20th century until nowadays.