Put simply, neoliberalism can be interpreted as a new form of liberalism. Due to the basic thought, there are two types of thought that talked about neoliberalism. The first thought used to be known as the order of neoliberalism. Order of neoliberalism was developed by experts in the School of Freiburg in Germany in the late 20th century.
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Freiburg school of thought emerged from a group of experts to refute Marx's criticism of socialism or Marxism. The political economist among them were Wilhelm Röpke, Walter Eucken, Franz Böhm, Alexander Rustow, and Alfred Muller-Armack. They began to develop the idea of this economy in 1928 by publishing a journal titled “Order: Jahrbuch für die Ordnung von und Gesellschaft Witschraft” (Deliarnov, 2006: 162).
Neoliberal system that carried by the Freiburg school was about the market economy or a socialist or ‘soziale Marktwirtschaft’ social market economy. The concept in the form of a free economic system that was maintained by various government regulations. The purpose of this regulation was to prevent the concentration of economic power and to maintain fairness and efficiency. The Order believed that the performance of the market requires political action (Deliarnov, 2006: 163).
Freiburg thought proposed a political form of social policy. This concept was considered to prevent the symptoms of the large concentrated power of business corporations. Politics of social policy in the form of welfare become essential in creating the competitive and fair economy. The concept of social policy is also intended to create and expand entrepreneurial society. Recently, this theory is not really popular or not often be studied (Deliarnov, 2006: 163).
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