In this theoretical article, we analyze from a critical cultural psychological perspective why neoliberalism is ill-suited to handle crises such as the COVID-19 pandemic. In doing so, we describe a process whereby neoliberalism motivates individualism, which in turn contributes to precarity, inequality, depoliticization, and penality, each of which have exacerbated the severity of the COVID-19 pandemic. We conclude with a critique of how hegemonic practices in the field of psychological science are implicated in this process of neoliberal individualism and consider how the field might resist neoliberalism.