Which ideology is most closely associated with privatization and deregulation of markets in the late 20th century?

Which ideology is most closely associated with privatization and deregulation of markets in the late 20th century?

• A. Mercantilism
• B. Neoliberalism
• C. Keynesianism
• D. Protectionism

Answer: (B)

Privatization and deregulation of markets in the late 20th century embody neoliberalism, the economic viewpoint that markets operate best with minimal government meddling. Proponents argue that selling state-owned enterprises to private investors and stripping away unnecessary regulations boosts efficiency, competition, and growth. This approach gained prominence in the policies of leaders like Thatcher and Reagan and shaped broader reforms such as trade liberalization and financial deregulation. By contrast, mercantilism centers on state control to accumulate wealth through a favorable trade balance, Keynesianism emphasizes active government spending to manage demand, and protectionism relies on barriers to shield domestic industries. So the emphasis on privatizing state assets and removing market constraints makes neoliberalism the best fit.

Privatization and deregulation of markets in the late 20th century embody neoliberalism, the economic viewpoint that markets operate best with minimal government meddling. Proponents argue that selling state-owned enterprises to private investors and stripping away unnecessary regulations boosts efficiency, competition, and growth. This approach gained prominence in the policies of leaders like Thatcher and Reagan and shaped broader reforms such as trade liberalization and financial deregulation. By contrast, mercantilism centers on state control to accumulate wealth through a favorable trade balance, Keynesianism emphasizes active government spending to manage demand, and protectionism relies on barriers to shield domestic industries. So the emphasis on privatizing state assets and removing market constraints makes neoliberalism the best fit.