Neoliberalism is a term for different social and economic ideas. There is no agreed definition. Originally the term was used by a group of liberals who helped shape social market economy in the mid 20th century. Classic liberalism is characterized by free market trade, deregulation of financial markets, mercantilism and the shift away from state welfare provision.

Alexander Rustow was the first economist to develop this concept, looking after a Social Democracy system rather than a Laissez Faire Capitalist Society.