One of the more interesting turns in the literature on neoliberalism that I've noticed is a recognition of a gap between neoliberalism-as-theory and 'really existing neoliberalism', where the latter has outrun the former in ways utterly unseen by it's promulgators. Wendy Brown puts it succulently:
"Instead of being insulated from and thus capable of steering the economy, the state is increasingly instrumentalized by big capital— all the big industries, from agriculture and oil to pharmaceuticals and finance, have their hands on the legislative wheels. Instead of being politically pacified, citizenries have become vulnerable to demagogic nationalistic mobilization decrying limited state sovereignty and supranational facilitation of global competition and capital accumulation. And instead of spontaneously ordering and disciplining populations, traditional morality has become a battle screech, often emptied of substance as it is instrumentalized for other ends." (
In The Ruins of Neoliberalism)
Elsewhere, Michel Feher notes that the ascendency of finance means that it's become increasingly hard - per neoliberal theorizing - to approach markets as entrepreneurs, insofar as it's
speculation, and not entrepreneurship that ultimately rules the roost: "Neoliberal reforms purported to fashion individuals who would rely on utilitarian calculus - rather than on collective bargaining and vested rights - to maximize their income. By contrast, the subjects of financialized capitalism tend to wager their prosperity on the continuously rated value of their assets - material and immaterial - that make up their capital... Contrary to their conversion to the entrepreneurial ethos, the subscription of economic agents to the dictates of financial markets does not deactivate the polarity between employers and employees without fostering another kind of conflict - one that involves the allocation of credit and that pits investors against the investees who depend on their largesse". (
Rated Agency)
In other words, the model sold to people as the best way to get by in life under neoliberalism - you're a utility maximizing individual capable of rational decisions in a fully transparent information landscape! - is simply not fit - is utter garbage - for a world in which it's a literal case of making
wagers - betting, gambling - on mostly unknown and unknowable futures that is the key driver of wealth creation in the modern economy. It's the ascendency of the 'animal spirits' (Keynes) that the price mechanism was supposed to put into abeyance.
Anyway, the point of all this is that the traditional distinction between state and market - the one acting as a bulwark on the other - is simply no longer conceptually feasible. The state - which is in debt everywhere around the world - is beholden to (extra-democratic) financiers' interests and is simply incapable of playing the extra-market role so often attributed to it by both neoliberalism
and its opponents. So the irony is that there is more than a grain of truth in the neoliberal disdain for the state; only, the reasons are wrong. It's because, and not in spite of, neoliberalism, that the state is so fucking wretched.