Thatcherism continues to be one of the most contentious approaches in British politics today, just as its figurehead continues to be one of the most divisive figures in British political history. Despite its regard with both shame and pride within the Conservative party, it remains an influential approach to polity today, affecting every government that has followed Mrs Thatcher’s.
The philosophy that Thatcher and her closest allies embodied and brought to life between 1979 and 1990 is being exhumed for its values of a smaller state and a stronger, more independent economy following a ruinous financial crisis and critical public examination of national finances. The Keynesian renaissance that took hold at the height of the financial crisis has lost grip and ground to a resurgence in what is essentially a Thatcherite consensus.
This dissertation will first explore the key philosophical points of Thatcherism, exemplified during her time in office as Prime Minister. Secondly, it will examine the legacy of Thatcher and how Thatcherism has been an undeniable influence on politics since 1990. Finally, it will examine whether a return to stronger Thatcherite influences on public policy are desirable in light of an on-going economic crisis of British public finances. Britain’s national debt is now over £4 trillion – a staggering amount – with budget deficits of up to £150 billion each year adding to this crippling economic burden. As the economic affairs of Britain and the dire state of public finances are enduring topics of debate in both political and economic circles, the Thatcherite ideals of a small but powerful central government, reducing the prevalence of ‘welfarism’ and increasing the role that the private sector plays in the economy are of great relevance.
Ultimately, Thatcher’s legacy is undeniable and has watermarked many areas of public policy in governments that have followed her resignation as Prime Minister in 1990. It is the goal of this dissertation to examine and explore the newfound relevance of Thatcherism as not only a political philosophy, but also as a methodology with which to approach policy making in Britain. Calls for a fundamental rethink in the way that the British economy and the government as a whole is operated are becoming more prominent in many circles and it is likely that looking to the lessons of the past is just as, if not more, prudent than trying to reinvent the wheel of public policy.
Contents
1. Introduction
2. 1979 – 1990: The Thatcher Years
2.i. The Economics of Thatcherism
2.ii. The Social Impact of Thatcherism
2.iii. Summary
3. 1997 – 2007: The New Labour Years
3.i. The Thatcherite Legacy & Blatcherism
3.ii. Breaking Away from Thatcherism
3.iii. Summary
4. 2008 – 2011: The Political Economies of Crisis
4.i. The Keynesian Renaissance
4.ii. The Neo-Thatcherite Movement
4.iii. Summary
5. Conclusion
Objectives & Research Themes
This dissertation examines the enduring influence of Thatcherism on British economic and social policy from 1979 to 2011, questioning whether a resurgence of Thatcherite principles is the appropriate response to contemporary British economic challenges.
- Analysis of Thatcherite philosophical and economic foundations (1979-1990).
- Evaluation of Thatcherism’s impact on New Labour policy (1997-2007).
- Assessment of the shift in political economy during the 2008-2011 financial crisis.
- Comparative study of Neo-Thatcherism under the coalition government.
- Investigation into the effectiveness of privatisation and small-state governance in modern Britain.
Excerpt from the Book
The Economics of Thatcherism
The key tenets of Thatcherite economic policy were exemplified by the drive to privatisation, the radical shift to neoclassical economic practices and their effects upon the tax system. This radical shift from the post-war Keynesian consensus only truly came to fruition after the 1979 general election, though it had long been a concern amongst the back benches as early back as the 1950s as a reaction to ‘Buttskellism’ and was strongly supported by prominent Conservatives including Enoch Powell and Iain Macleod. The perpetuation of high levels of taxation, a growing welfare state and ever-increasing powers of trades unions was found to be alarming amongst the Conservative party rank and file, particularly with the culmination of Edward Heath’s premiership which was eventually defeated in no small part by the National Union of Mineworkers.
This exemplary display of the way in which power had shifted away from the state gave rise to the Right of the party, led by figures such as Keith Joseph, John Biffen and Margaret Thatcher. The 1975 leadership contest was far from ideologically innocent and was, on reflection, a call not just for a new party leader, but a new approach to governing Britain within the Conservative party. By 1975 the ideology circulating the Conservative Party that would inform and guide the path of Thatcherism was well-established and only required a leader with the necessary conviction to follow through on these ideas; even Labour Prime Minister James Callaghan had resigned himself to the fact that Keynesianism was no longer plausible and that spending one’s way out of a recession was a fallacy.
The initial course of economic policy plotted for the Conservative government was not one of strict neoclassicism however; it was the radical new idea of monetarism that was placed firmly on the desk of the then Chancellor of the Exchequer, Geoffrey Howe. As the now infamous story goes: when confronted by a white paper outlining a centrist approach to the economy Mrs. Thatcher produced a copy of The Constitution of Liberty, by monetarism’s key intellectual proponent Friedrich Hayek, slammed it on a desk and said in her trademark stern tone “this is what we believe.”
Summary of Chapters
1. Introduction: Outlines the economic instability of 1970s Britain and the subsequent emergence of Thatcherism as a transformative political and economic philosophy.
2. 1979 – 1990: The Thatcher Years: Examines the core economic and social policies of the Thatcher era, including privatisation and tax reform, which fundamentally reshaped the British state.
3. 1997 – 2007: The New Labour Years: Discusses how the Labour Party, under Tony Blair, largely adopted the Thatcherite economic consensus, a shift colloquially known as 'Blatcherism'.
4. 2008 – 2011: The Political Economies of Crisis: Analyzes the return to interventionist policies following the financial crisis and the subsequent re-emergence of Thatcherite ideals within the 2010 coalition government.
5. Conclusion: Synthesizes the legacy of Thatcherism and argues for its continued relevance as a prudent methodology for navigating modern economic challenges.
Keywords
Thatcherism, Neo-Thatcherism, Privatisation, Monetarism, New Labour, Blatcherism, Economic Policy, Public Spending, Taxation, Financial Crisis, Keynesianism, Welfare State, David Cameron, Conservative Party, Industrial Relations.
Frequently Asked Questions
What is the core focus of this dissertation?
The dissertation analyzes Thatcherism as both a political philosophy and a methodology for policy-making, tracing its influence from the 1980s through to the early 21st century.
What are the primary thematic fields covered?
The work covers economic management, the role of the state, privatisation of public assets, and the evolution of political ideologies within both Conservative and Labour parties.
What is the author's primary research objective?
The objective is to evaluate whether Thatcherite ideals, such as a smaller central government and increased private sector involvement, offer a valid solution to Britain’s current economic and public debt problems.
Which scientific methodology is utilized?
The research relies on an extensive analysis of primary sources (e.g., government debates, official financial accounts) and a review of secondary academic literature regarding British political and economic history.
What topics are discussed in the main body?
The main body treats the specific economic and social policies of the Thatcher governments, the convergence of New Labour with these ideas, and the response of the 2010 coalition government to the financial crisis.
Which keywords best characterize this work?
Keywords include Thatcherism, Privatisation, Neo-Thatcherism, New Labour, Economic Policy, and Financial Crisis.
How did New Labour interact with the legacy of Thatcherism?
New Labour initially embraced the Thatcherite consensus by committing to fiscal discipline and privatisation, though they later diverged toward interventionist strategies during the financial crisis.
What is the significance of the "FirstBuy" programme mentioned?
FirstBuy is analyzed as a modern, Neo-Thatcherite successor to the 1980s "Right-to-Buy" scheme, aimed at stimulating the housing market and construction sector.
How does the author interpret the growth of the national debt under Labour?
The author argues that the national debt exploded due to the use of Private Finance Initiatives and excessive public spending, which contradicted the Thatcherite ideal of prudent, limited government.
- Citation du texte
- Alexander Boni (Auteur), 2011, Thatcherism Revisited, Munich, GRIN Verlag, https://www.grin.com/document/171291
