Economy - the New Right

Neoclassical economics/monetarism - role of the state

• Only to control currency and public finances (therefore maintain stability)

Neoclassical economics/monetarism - the economy

• Contains internal mechanisms to ensure we always return to full employment and growth

  • These internal mechanisms rely on the state not interfering

Neoclassical economics/monetarism - Thatcher and Reagan

• Left the economy alone in a time of high inflation and unemployment caused by excessive government intervention

  • The economy recovered

Neoliberal and neoconservative agreement on the economy

• Private property/property ownership are vital

Neoliberal - meaning of property

• Property is a reflection of effort

• Earned by hard work

Neoliberal - accumulation of wealth

• Important incentive for behaviour

Neoconservative - role of property ownership

• Promotion of order and stability in society

Neoliberal economics - likes

• Low taxation and high controls on government spending

  • Minarchist state

• Privatised and deregulated economy

Neoliberal economics - dislikes

• Trade unions

• Local councils

• Welfare

Neoconservative economics - government spending

• High, especially on defence

Neoliberal economics - government spending

• Low

Interactions of neoconservative and neoliberal economics - taxation

• Low taxation as wanted by neoliberals is facilitated by low welfare spending which relates to the neo conservative view about traditional morality

• Nuclear families don’t need welfare spending as this is taken up by lone mothers

Interactions of neoconservative and neoliberal economics - free market

• Tensions caused by the free market (neolib) need the authoritarian state (neocon) to maintain order

Interactions of neoconservative and neoliberal economics - govt spending

• Decrease in welfare spending by neoliberals leaves more money for law and order spending for neoconservatives

Friedman

• State interference in economy leads to loss of economic freedom

  • Leads to a wider loss of political freedoms