Scottish economist Adam Smith wrote a wealth of nations 1776 which talks about the state having less control in economics and argues in favour of liberalism in society by removing tarrifs and regulations which would see economic growth and equality improve. Trickle down effect
But this economic liberalism created a very volatile sytem and after the great depression and crash in the 1920s Keynesian took over which was in favour of more government interventionist society where government took more of a role.
In America Franklin D. Roosevelt adopted some Keynesian policies and created the new deal, welfare state, brought in regulations and social security and taxed the rich. The UK under Clement Atlle created a welfare state, a Government house building spree and built the NHS which created an economic boom and inequality dropped
By the 1970s Pinochet, Regan and Thatcher were all bringing in a new form of Liberalism which we've had for 40 years which is neoliberalism.
Whereas liberalism wanted the state to have no role, Neoliberalism wanted wants the state to protect the sytem. In disputes the free market would be left to fight it out on something like say sewage now whereas protests will be controlled by state police to protect capital
That's why some of us have figured out even if we change Government but keep the same policies we will have austeriry, authoritarianism low taxes. Most taxes fall on the poor and middle classes and nothing will change with different people keeping a dead sytem alive.
What I would also say is America is arguably the most liberal of economies and they've realised they need to intervene in a way the EU wouldn't and will give billions to the chip industry to boost investment inside the USA.
They are going to intervene or subside business because even America has woken up. Sadly we have Sunak and Starmer who are 30 years late to the table and have no answers
