The Thatcher Government and State Activity

Abstract

This chapter, and the next, examine the experience of two contemporary governments influenced in different degrees by the New Right economic and political theories reviewed in this book. This necessarily implies considerable compression, but is allowable given the primary aim of assessing the influence of liberal theories upon the policies of the Thatcher Government: these concern reducing public spending and the public sector, adopting monetarist economic targets, privatising state enterprises, and weakening trade unions in the political economy. The main theme of these policy objectives comes, to some extent, from liberal precepts: reducing the government’s role in the economy, giving greater power to market forces and limiting the public sector. Whether the Thatcher Government has succeeded in these aims is a different issue, considered subsequently. Concentrating upon the liberal sources of the Thatcher Government’s public policy means neglecting other aspects of their policy: for example, foreign affairs and the pursuit of tougher law and order measures. These issues are important but the main interest here is with the influence of New Right liberalism. The chapter begins with the Thatcher leadership in the Conservative Party and concludes with interpretations of this Government produced in the academic literature.