The day after neoliberal triumphalism

Abstract

PurposeThe purpose of this paper is to analyse the causes of failure of the neoliberal model of capitalism and rise of state capitalism. The arguments that efficient market economy can thrive under autocracy are refuted.Design/methodology/approachBoth western neoliberal capitalism and state capitalism in China and Russia are juxtaposed and critically analyzed.FindingsNeoliberalism is a conceptual model of enthusiastic true believers who never succeed in developing a workable economic system but rather a travesty of its own ideal. The USA instead of an efficient, competitive market economy became a playground for lobbyists and a corporate autocracy fraught with deep imbalances. Yet due to the rule of law and inherent freedoms the post‐neoliberal USA will be capable of “self repair” which is not possible in state capitalism.Research limitations/implicationsThe connections between politics and economics are inherently complex and difficult to be presented as predicable dependences. An interdisciplinary approach is necessary and revealing but it has obvious analytical limitations because of inadequate tools.Practical implicationsThe proclamation of the end of the democratic capitalism is unfounded. The neoliberal ideologues are hardly to blame for the failures of the western market economy because they have merely created a pretext for corporate America to reduce the regulatory power of the government. The solution is in returning to the model of interventionist government mindful of the nation's long‐term wellbeing.Originality/valueThe author creates unique functional characteristics of western market capitalism and state capitalism and points out clear advantages of democratic western market capitalism often forgotten in the heat of the post‐crises debates.