ABSTRACT
Neoliberalism is a world view that supports economic liberalization, or freedom from government intervention, as the best way to maximize the effect of trade, or economic efficiency. Liberalism was the most influential economic theory until the Great Depression in the 1930s, when Keynesian economics was introduced and quickly became influential. Keynesian economics also supports the notion that private markets maximize economic efficiency; however, it acknowledges the role of public sector interventions when private sector decisions result in inefficient macroeconomic outcomes. Keynesian economics was very influential from the 1930s until the 1970s; the manifestations may be seen in increased government intervention in everything from monetary policy to public assistance, such as income support for those out of the labor market such as the elderly or those that are temporarily unemployed. Two of the most popular and influential programs in the United States are Social Security, which provides income support to seniors, and Medicare, which provides health benefits.
