Thatcherism is a political thought applied by the 3 successive governments led by Margaret Thatcher, from 1979 to 1990. It quickly evolved as a doctrine. Thatcherism came at a time when the post-war consensus was collapsing, and aimed at checking the decline of the British economy, suffering "retro development". Thatcherism finds its roots in the "New Right" economic theories of Hayek, Friedman, and the School of Chicago. A thorough economic liberalism: Thatcherism advocates a pragmatic and common sense freedom of the market. As Hayek, Mrs Thatcher is a fierce detractor of exaggerated state interventions. Thatcherism focuses on the market rather than on the State to share out resources. The market naturally regulates itself, without any necessity for planning. For Hayek and, therefore, Thatcher, Planning and freedom cannot be combined. Thatcherism denies planning because it means risk aversion. No incomes policy is consequently necessary. It also induces lots of privatizations and low taxations to improve the competitiveness of the country.
[...] Big efforts were devoted to reduce the role of the State in economic relationships, as Thatcherism has “been committed to the neo-liberal view that the market is by far the best mechanism for producing and distributing resources. [ ] The market is seen to be more efficient, responsive to people's needs, and ultimately more productive than any state system could (Savage, P. and Robins, L. (1992), Public Policy under Thatcher. p.5) As shown on the graph below, civil service employment shrunk at the post-war level in the Thatcher years. [...]
[...] Conclusion Undeniably, Thatcherism marked the end of talks about Great Britain's long-lasting decline, dramatically increased its competitiveness, proned the demonisation of collectivism and was the golden age of “Thatchernomics”, allied with the Reaganomics in place at the time of Reagan Thatcherism prized patriotism, entrepreneurial spirit and individual responsibility. Privatisation was the most enduring legacy of the political economy of Thatcherism. Thatcherism though was a lot of rhetoric. This new way of government is still in palce at the moment, as Tony Blair claimed are all thatcherites even if some adapations have been made through the years References Savage, P. [...]
[...] That would minimize the so-called Thatcherite revolution Assessing thatcherism's recast of political and economic relationships 2.1 Economic relationships Economically speaking, Thatcherism decisively changed the face of the country. Ideologically, it meant the return to the ultra-liberal ideas advocated before the two World Wars. It rejuvenated the 1944 works of Friedrich von Hayek, setting off an alternative theory which had hitherto been forsaken. For the first time since 1945 were the very forces of the market allowed to rule. In this economic liberalism a la Professor Hayek, emphasis of economic policy would no longer be on managing demand to maintain full employment but rather on stimulating profits by removing regulations and making the labour market more free” (Flynn, N. [...]
[...] On the other hand there was an explosion of investment in financial services.” (http://pubs.socialistreviewindex.org.uk/sr170/briefing.htm) 2.2 Political relationships THATCHERISM AND THE GOVERNMENT'S AUTHORITY The 1979 Manifesto swore to restore incentives, economic and social life in Britain. Indeed, Victorian values prone respect for authority, morality and pride in the country. The Government strengthened the capacity of the State to repress disorder. government was implacable in its opposition to the republican movement in northern Ireland in March 1979” (Gamble, A. (1988) The free economy and the strong state. [...]
[...] Basingstoke: Palgrave Macmillan. Dutton, D. (1997), British Politics Since 1945, 2nd ed. Blackwell publishers Ltd. Loney, M. (1986) The Politics of Greed: The New Right and The Welfare State, Pluto Press Limited. Gladstone, D. (1999), The twentieth-century Welfare State. St Martin's Press. Gamble, A. (1988) The free economy and the strong state. McMillan Education Ltd Pierson, P. (1994) Dismantling the Welfare State? Reagan, Thatcher and the Politics of Retrenchment. Cambridge University Press. Mishra, R. (1990) The Welfare State in Capitalist Society. Harvester [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
