On Understanding the Neoliberal Age: Double Movement and the Future of Neoliberalism

In the post-WWII period, the U.S. economy transitioned from the so-called “Golden Age of Capitalism” to the current “Neoliberal Age.” Although social structure of accumulation theory and French régulation theory provide dynamic alternatives to both the structural Marxist and the neoclassical perspectives that emphasize the mechanical and deterministic nature of capitalism, and correctly accept the inherent structural weakness in capitalism, we believe that the two theories are not adequate for explaining the transition between the two “Ages.” Claiming Karl Polanyi’s “double movement” as the most appropriate perspective for analyzing the postwar U.S. economy, in this research we provide an explanation for the differences between the two “Ages,” analyze how and why the Golden Age turned Neoliberal. We find that the transition from the “Golden Age of Capitalism” to the “Neoliberal Age” was possible because the economy is “embedded” in society. That is, contrary to the claims of modern economic theory, the economy is “not autonomous”; rather, it is subordinated to politics, religion, and social relations.