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In the 1970s, however, both problems arose simultaneously – rising inflation and rising unemployment, or ‘stagflation’. The traditional Keynesian policy solutions were incapable of dealing with this conjunction, thus seemingly dictating a turn to alternative theories. It is important to be clear that, at this point, multiple interpretations of the economic problem were possible. The production of inflation through wage rigidities and trade union power was not the only possible framing of the problem, and neoliberalism was not the only possible solution.

Thus was born the Mont Pelerin Society (MPS): a closed intellectual network that provided the basic ideological infrastructure for neoliberalism to ferment. It is no exaggeration to say that almost all of the important figures in the postwar creation of neoliberalism were in attendance at its first meeting in 1947, including the Austrian economists, the UK liberals, the Chicago School, the German ordoliberals and a French contingent.

the Walter Lippmann Colloquium held in Paris just before the eruption of World War II. For the first time, this event brought together the classical liberal theorists, the new German ordoliberals, the British LSE liberals, and Austrian economists such as Friedrich Hayek and Ludwig von Mises

neoliberalism differs from classical liberalism in ascribing a significant role to the state. A major task of neoliberalism has therefore been to take control of the state and repurpose it.

Over the course of three decades, this small community (pop. 2,700) has built up a ‘communist utopia’ that has expropriated land, built its own housing and co-operatives, kept living costs low, and provided work for everyone.