Here’s where thinking about neoliberalism as a governing rationality is important: this rationality switches the meaning of democratic values from a political to an economic register. Liberty is disconnected from either political participation or existential freedom, and is reduced to market freedom unimpeded by regulation or any other form of government restriction. Equality as a matter of legal standing and of participation in shared rule is replaced with the idea of an equal right to compete in a world where there are always winners and losers.
The promise of democracy depends upon concrete institutions and practices, but also on an understanding of democracy as the specifically political reach by the people to hold and direct powers that otherwise dominate us. Once the economization of democracy’s terms and elements is enacted in law, culture, and society, popular sovereignty becomes flatly incoherent. In markets, the good is generated by individual activity, not by shared political deliberation and rule. And, where there are only individual capitals and marketplaces, the demos, the people, do not exist.
