How Global Crises Are Shattering the Market's Supremacy
We live in an age of compounding emergencies—pandemics, climate disasters, and rampant inequality. These crises aren't just bad luck; they are stress tests for an economic ideology that has dominated the globe since the 1980s: neoliberalism.
Characterized by deregulation, privatization, austerity, and blind faith in markets, neoliberalism promised prosperity through unfettered capitalism. But as morgues overflowed during COVID-19 while billionaires' wealth soared, a haunting question emerged: Are we witnessing neoliberalism's final act? 1 2 5 .
This article explores how converging catastrophes expose neoliberalism's fatal flaws—and why its collapse might pave the way for a more equitable future.
Beyond a simple "pro-market" stance, neoliberalism is a totalizing worldview that recasts society as a universal marketplace. Individuals become "profit-and-loss calculators," and competition replaces collective welfare as the supreme social value 5 6 .
Unlike classical liberalism, neoliberalism demands active state intervention to create and sustain market conditions (e.g., deregulating industries, crushing unions, privatizing public goods) 6 .
| Era | Key Figures | Core Belief | Real-World Impact |
|---|---|---|---|
| Pre-1980s | Keynes | Markets need state oversight | Strong welfare states, lower inequality |
| 1980s-2000s | Thatcher, Reagan | "There is no alternative" (TINA) to markets | Union busting, tax cuts for the wealthy |
| 2008-Present | IMF, World Bank | "Expanded neoliberalism" via austerity | Rising inequality, frequent financial crises 5 6 |
The pandemic served as a brutal real-world test of neoliberalism's resilience. Its outcomes were catastrophic—and revelatory.
Hypothesis: Market-driven societies would efficiently manage a health crisis.
Procedure: Compare countries with strong neoliberal legacies (USA, UK) against those with robust public institutions (Cuba, Vietnam).
Variables Measured: Healthcare capacity, death rates, economic recovery, social cohesion 2 .
| Indicator | USA (Neoliberal) | Cuba (State-Centered) | Global Neoliberal Avg. |
|---|---|---|---|
| Hospital beds/10k | 26.4 | 52.0 | 30.2 |
| COVID deaths/100k | 372 | 18 | 225 |
| Vaccine access | Hoarding/delays | Exported vaccines globally | Profit-driven shortages |
| Inequality impact | High (3x death rate for minorities) | Low (universal healthcare) | Severe globally |
The U.S.—ranked "most prepared" by the Global Health Security Index—faced ICU bed shortages and morgue overflow. The market failed to allocate ventilators or tests efficiently, proving Hayek's theory that prices reveal "truth" was dangerously naive 2 5 .
In contrast, Cuba's state-coordinated response (including vaccine exports) demonstrated how solidarity-based systems outperform profit-driven ones in crises 2 .
| Research Reagent | Function | Real-World Effect |
|---|---|---|
| Market Fundamentalism | Treats markets as all-knowing "information processors" | Replaces democracy with price signals; equates freedom with consumer choice |
| Financialization | Prioritizes shareholder value over public good | 2008 crash; corporate buybacks over R&D |
| Deregulation | Removes "frictions" (safety nets, wages) | Weakens pandemic preparedness; enables monopolies |
| Austerity | Cuts public spending to enable tax breaks | Erodes healthcare capacity; deepens inequality |
| Privatization | Transfers public goods (water, schools) to private owners | Rationed access; profit-driven service failures |
Visualizing the differential effects of neoliberal vs. state-centered policies during crises.
How neoliberal policies have accelerated wealth concentration since the 1980s.
The IMF admitted neoliberalism fuels inequality and instability—an unprecedented self-critique 5 .
COVID-19 proved markets cannot solve collective crises. When Florida's governor prioritized "business openness" over lockdowns, deaths surged 2 .
Movements like Black Lives Matter and climate strikes reject the neoliberal mantra of "individual responsibility" in favor of systemic change .
(Biden, Starmer): Minor tweaks (green subsidies) but retains core market dogma.
Champions universal healthcare, wealth taxes, and a Green New Deal—framing equity as essential, not optional .
Neoliberalism isn't dead yet—lobbyists and billionaires cling to it fiercely. But its song is fading. COVID-19 exposed its lethal flaws, climate change demands collective action it cannot provide, and a generation raised on inequality rejects its core myths. As philosopher José Acosta argues, neoliberalism's "ruthless utilitarian logic" prioritizes markets over lives—a formula for societal collapse 2 .
What comes next? The contest is fierce: authoritarian nationalism (Trump, Bolsonaro) exploits neoliberalism's failures, while the progressive left offers solidarity-based solutions. The outcome hinges on whether we heed the lesson of neoliberalism's swan song: that no economy serves humanity when it treats people as inputs—not as lives worth saving.
Final Thought: As the Hot Take podcast declared while battling media suppression: "If neoliberalism could save us, it would have done it already" 4 . The curtain is falling. What rises next is up to us.