To what extent is British Conservatism still committed to 'the free market and the strong state'?

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Sophia Money-Coutts        Page         5/2/2007

To what extent is British Conservatism still committed to ‘the free market and the strong state’?

Andrew Gamble was the political theorist who first argued that the dual character of Thatcherism was ‘a commitment to the free market and the strong state’.  At present, the Conservative Party is trying, or at least should be trying, to shake off the legacy left to it by Britain’s first female Prime Minister.  Margaret Thatcher was leader of the party when it first truly embraced the ostensibly contradictory elements of neo-liberalism and neo-conservatism.  These two concepts combined the ideas of a free-market, (to combat the problems caused by Keynesian economic policies) and the traditional conservative belief in a strong authoritative state.  Although David Edgar argued that the Conservative New Right has been prepared to place ‘the good’ before ‘the free’, suggesting therefore that Thatcher’s government placed more emphasis upon a strong state rather than a free-market.  However, following the demise of Thatcher, the Conservative Party has watched their dismal descent down the opinion polls.  More recently though, whilst still arguing for policies like tougher laws on asylum seekers, the party has been trying to modernise shown by policies such as their more recent commitment to public sector services.  

Having said that the two strands, neo-liberalism and neo-conservatism, were at face value incompatible, Letwin argues that the pair are consistent at a deeper ideological level.  He maintains that Thatcherism was a ‘moral crusade’ designed to protect certain moral values such as uprightness, self-sufficiency, energy, independent mindedness, loyalty and robustness.  Letwin says that in the economic sphere these need the rolling back of the state but in social life imply the need for increased intervention to maintain law and order, uphold national ideals and strengthen defence.  Gamble adds further weight to this argument saying that in the context of widening inequality (because of Thatcher’s policy of lowering income tax while raising indirect taxes) as a result of weakening state supports there is a more greater need to police the state and to uphold social and political order.  And Willetts adds another dimension asserting that the apparent tension within the New Right reflects nothing more than the basic and enduring concern of conservatism, which is to balance its commitment to the individual against its commitment to community.  So therefore, if the two strands which made up the New Right are not so incompatible as might first appear, then would not be surprising to find that it has survived, over the past couple of decades, at the heart of British Conservatism.      

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Regan’s administration in America mirrored that of Thatcher’s in Britain in that the influence of ‘New Right’ economics could be seen in both.  Keynesian interventionist economic strategies were being condemned following the unemployment and inflation of the 1970s.  Friedrich von Hayek and Milton Friedman thus argued that government interference ‘was invariably the cause of economic problems, rather than the cure’. (Heywood.)  Thatcher therefore, by adopting the policies of the free market economists, shifted the emphasis of the Conservative Party away from paternalism and stressed a new strand of conservatism.  This new strand was seemingly contradictory because whilst on the ...

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