The question of what might replace neoliberal capitalism is significant in current political discourse, particularly for former President Donald Trump. Trump has expressed skepticism towards aspects of the Washington Consensus that emphasize free markets and liberal trade. While he supports neoliberal principles such as privatization and deregulation that favor profit maximization, he opposes tariff-free trade, low budget deficits, and barriers to foreign investment, which he views as incompatible with his America First agenda.
The fallout from the 2008 financial crisis has led to widespread questioning of neoliberal policies. In response, a group of economists has sought to develop a new economic consensus, exploring effective strategies for thriving economies in the 21st century. Their recent publication, referred to as the London Consensus, aims to provide an alternative to frameworks established decades ago.
This initiative emerged from discussions at a London conference sponsored by the London School of Economics and has gained recognition due to the involvement of prominent economists with diverse backgrounds. Unlike Trump’s approach, the London Consensus promotes ideas that focus on broad-based progress rather than isolationist policies. Proponents argue that an economic environment characterized by increased inequality will hinder not just overall prosperity but particularly the prospects for younger generations.
The conversation surrounding economic improvement has shifted, with an emphasis on individual and household well-being rather than solely on GDP growth. Advocates propose measuring success through indicators like mental health, which they argue is universally relevant and linked to societal participation and physical health.
While Trump and his supporters may find the proposals in the London Consensus radical, the hope remains that broader political leaders, including governors in the U.S. and globally, will engage with these new perspectives to steer economic policy in a more inclusive direction.
Source: https://www.theguardian.com/business/2025/nov/01/london-consensus-neoliberalism-trump-fairer-growth