difference between z

Difference between Capitalism and Neo-liberalism

Difference between Capitalism and Neo-liberalism

What are the key differences between capitalism and neo liberalism? In essence, capitalism is an economic system where businesses and individuals operate in a free market to make a profit. Neo liberalism, on the other hand, is a variant of capitalism that places an increased emphasis on deregulation and privatization. While there are some similarities between the two systems, there are also key differences that set them apart. In this blog post, we will explore the key differences between capitalism and neo liberalism, and discuss the implications of each system.

What is Capitalism?

Capitalism is an economic system in which private individuals or businesses own assets and produce goods or services for profit. The main characteristic of capitalism is the pursuit of profit, which encourages companies to compete and innovate. Capitalism also relies on a free market, where prices are determined by supply and demand rather than by government intervention.

However, some critics argue that capitalism leads to inequality and exploitation, as businesses seek to maximize profits at the expense of workers and consumers. Nevertheless, capitalism has been the dominant economic system in the world for centuries, and its impact can be seen in virtually every aspect of modern life.

What is Neo-liberalism?

Neo-liberalism is a political ideology that emphasizes the importance of individual freedom and free markets. Neo-liberals believe that people are best able to flourish when they are free to make their own choices and that the role of government should be limited to ensuring that everyone has an equal opportunity to succeed.

Neo-liberalism has had a profound impact on both developed and developing countries around the world, and its supporters argue that it has lifted millions of people out of poverty. However, critics argue that Neo-liberal policies have increased inequality and resulted in environmental degradation.

Neo-liberalism remains a controversial and highly polarizing ideology, but its supporters continue to advocate for its adoption as a way to promote economic growth and human development.

Difference between Capitalism and Neo-liberalism

Capitalism is an economic system based on private ownership of the means of production and free market exchange. Prices, wages, and competition are all regulated by the market, with the ultimate goal of maximizing profit.

  • Neo-liberalism, on the other hand, is a political and economic ideology that favors laissez-faire capitalism and limited government intervention.
  • Proponents of neo-liberalism believe that individuals are best equipped to make decisions about their own lives and that the role of government should be limited to providing basic public goods and services.
  • While Capitalism and Neo-liberalism both emphasize individual freedom and free market exchange, they differ in their understanding of the role of government in society.

Capitalism supports a more active role for the government in regulating the economy, while Neo-liberalism favors a smaller role for the government.


Capitalism, at its heart, is about private ownership of capital with the goal of making a profit. Neo-liberalism takes that a step further by advocating for the deregulation of markets and privatization of public goods and services. This has led to increased inequality around the world as well as economic instability. In contrast, socialism is based on collective ownership of the means of production with the goal of meeting human needs. It’s not perfect, but it does provide more stability and equality than neo-liberalism.

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on email