Understading neoliberal politics by the mediation of institutional economics

Abstract

Neoliberalism, which cannot be described by a certain rule, includes a wide range of perspective. Therefore, it is a highly effective notion in terms of economics and politics. This efficiency has a mutual meaning in socio-cultural area. However, it is obvious that the most effective area of neoliberal politics is economics, because intended efficiency in politics and socio-cultural levels are provided through applicable economics politics. Although it has some certain notions derived from all the economics premises, neoliberalism fundamentally forces financial market orders and thus requires the use of state power systematically. Institutional economics is the economics stream established by Thorstein Veblen, linking man’s nature of society with economics affected by Darwin’s ideas of the origins of species. Thus, institutional economics claims that the economics behavior cannot be thought separately from all institutional forms such as social, cultural and politics of the society. So, economics can vary between societies, depending on time and place. This study focuses on two main premises: Putting forward the relationship between mainstream economics (neoclassical economics) and neoliberal economics politics, and the criticism of institutional economics on this. Firstly, relationship between neoliberalism and mainstream economics will be analyzed, then the nature of institutional economics will be examined especially in terms of the thoughts of its founder Thorstein Veblen and finally relationship between neoliberalism and institutional economics will be discussed. By the mediation of new aspects provided by institutional economics to neoliberal economics politics, the applications of economics can be better maintained, and this can create more fair steps towards economics politics.