Introduction
This article examines the twilight of the neoliberal order, which, after decades of dominance, has begun to lose its hegemony in the face of crises and social protests. Drawing inspiration from Gary Gerstle, the author presents neoliberalism not merely as a set of policies, but as a deeply internalized worldview that has eroded over time. The analysis covers protest movements such as the Tea Party, Occupy Wall Street, and Black Lives Matter, which challenge the foundations of the neoliberal social contract. The author explores how the 2008 financial crisis and the COVID-19 pandemic accelerated this process, exposing the illusions of self-regulating markets and revealing deep-seated inequalities. The article analyzes transformations in Israel and France, showcasing different paths of adaptation to this new reality. The central thesis posits that we are in a period of interregnum, where the old order is losing its legitimacy and a new one has yet to take shape, opening a space for reflection on the future of capitalism and the role of the state.
Political Order: From the New Deal to Clinton’s Neoliberalism
According to Gary Gerstle, a political order is more than just an ideology—it is a worldview shared by both elites and the masses that defines the boundaries of what is considered rational. The first such order was the New Deal, shaped after the Great Depression. It was based on the conviction that capitalism requires state intervention, financial regulation, and a compromise between labor and capital—a consensus further strengthened by Cold War competition.
Neoliberalism emerged as a response to the stagflation of the 1970s. Its essence was not a simple return to the free market, but rather a strategy of encasing the market. This involved creating institutional barriers (such as independent central banks and trade treaties) designed to protect the economy from democratic demands for redistribution. The system achieved full hegemony thanks to Bill Clinton, who, as a Democratic president, embraced globalization (NAFTA) and fiscal discipline, turning neoliberalism into the unquestioned backdrop of politics.
The 2008 Crisis and the Populist Strike Against the Status Quo
The 2008 crisis served as a turning point, exposing the fragility of the system and the hubris of the elites. Bailing out banks while failing to protect debtors destroyed the order's legitimacy. Opposition was articulated by social movements: the Tea Party (a revolt against the state and debtors), Occupy Wall Street (the return of class language and the struggle against oligarchy), and Black Lives Matter, which struck at the neoliberal "carceral state" and systemic racism.
The fracture of the order is symbolized by Donald Trump and Bernie Sanders—both broke taboos by bringing critiques of globalization and free trade into the mainstream. A scientific "autopsy" of the system was conducted by figures such as Joseph Stiglitz, who pointed to the asymmetry of global institutions, and Thomas Piketty, who proved that markets naturally lead to the concentration of wealth. Meanwhile, Dani Rodrik formulated a trilemma in which full globalization is incompatible with sovereignty and deep democracy.
Business in an Era of Disorder: Three Scenarios and Planetary Republicanism
The COVID-19 pandemic finally suspended the "small government" dogma, forcing massive fiscal interventions and a shift in central bank priorities. Local variations of adaptation, such as the Israeli hybrid of technology and security or French dirigisme in strategic sectors, signal a retreat from pure globalization. Modern business must now contend with slowbalization, prioritizing resilience (nearshoring) over mere cost efficiency.
Is neoliberalism definitively ending, or is it merely mutating into "besieged capitalism"? Gerstle and other researchers outline three scenarios: a systemic correction, a dystopian thermo-oligarchy, or planetary republicanism. This final vision involves subordinating the economy to ecological limits, equal political dignity, and basic material solidarity. It challenges business to recognize economic rationality as a subset of a broader social rationality.
Conclusion
In the face of the erosion of the neoliberal paradigm, will we dare to redefine economic rationality by subordinating it to broader social and ecological goals? Or will we condemn ourselves to a drift toward new forms of oligarchy, where wealth detached from well-being deepens the chasm between the few beneficiaries and the rest of the world? The answer to this question will determine whether the collapse of neoliberalism marks the beginning of a more just and sustainable order, or merely the prelude to another civilizational crisis.
📄 Full analysis available in PDF