The Return of American Neoliberalism and Web3 Financial Innovation

The development of mainstream economic theories in American history has gone through several important stages, from early mercantilism and agrarianism, to classical economics and laissez-faire in the 19th century, and then to Keynesianism and neoliberalism in the 20th century, reflecting the ongoing exploration of the relationship between government and the market.

Trump's economic philosophy leans more towards neoliberalism, advocating for reduced government intervention and stimulating economic vitality through supply-side reforms. He believes that the Democratic Party's policies have led to problems such as the debt crisis, decline of traditional industries, and widening wealth gaps.

In this context, Trump's issuance of digital currency conveys an important signal - the hope that Web3 will become the core of a new round of financial innovation. There are several benefits to doing this:

1. Bypass the vested interest groups in traditional finance.

2. The decentralized nature of Web3 aligns with neoliberal ideology.

3. Conducive to maintaining the hegemony of the US dollar

4. Improve the efficiency of capital flow and bypass financial controls of other countries.

But this may also bring greater risks to the financial system and widen the gap between the rich and the poor. In the next two years, financial innovations based on Web3 and traditional industries are worth paying attention to. This marks the return of American neoliberalism, and Web3 is likely to become an important battleground for financial innovation in the new cycle.