What are the similarities and differences between traditional liberalism and neoliberalism?

Classical liberalism is completely laissez-faire. Neo-liberalism opposes Keynesian excessive intervention. They are all policies for economic development.

/kloc-Political economics or economics since the late 8th century is based on the viewpoint of continuously developing production to increase economic output. On the other hand, Keynes believed that the reduction of total demand for commodities was the main reason for the economic recession.

Based on this, he pointed out that measures to keep the overall economic activity data balanced can balance supply and demand at the macro level. Therefore, Keynes and other economic theories based on Keynesian theory are called macroeconomics, which is different from microeconomics that focuses on individual behavior.

Keynes believed that the level of production and employment depends on the level of total demand. Total demand is the total demand for goods and services of the whole economic system. In microeconomic theory, the automatic adjustment of prices, wages and interest rates will automatically make total demand tend to the level of full employment. Keynes pointed out that the situation of production and employment deteriorated rapidly at that time, and pointed out that the theory was better.

In fact, this automatic adjustment mechanism did not work. The key to the problem is whether there is "insufficient demand". According to the classical economic theory commonly used in the early practice of the General Theory, insufficient demand is only a symptom of recession and economic chaos, not a cause, so it will not appear in the normal market.