"My third thesis is that the meshing of workfare and prisonfare partakes of the making of the neoliberal state. Economists have propounded a conception of neoliberalism that equates it with the rule of the “free market” and the coming of “small government” and, by and large, other social scientists have adopted that conception. The problem is that it captures the ideology of neoliberalism, not its reality. The comparative sociology of actually existing neoliberalism reveals that it involves everywhere the building of an erection of a Centaur-state, liberal at the top and paternalistic at the bottom. Then neoliberal Leviathan practices laissez faire et laissez passer toward corporations and the upper class, at the level of the causes of inequality. But it is fiercely interventionist and authoritarian when it comes to dealing with the destructive consequences of economic deregulation for those at the lower end of the class and status spectrum. This is because the imposition of market discipline is not a smooth, self-propelling process, it meets with recalcitrance and triggers resistance; it translates into diffusing social instability and turbulence among the lower class; and it practically undermines the authority of the state. So it requires institutional contraptions that will anchor and support it, among them an enlarged and energetic penal institution."
January 1, 1970
https://en.wikiquote.org/wiki/Neoliberalism