The New Right grew out of the collapse of the in the UK but was part of a wider international revival of 19th century classical liberal economics and conservatism. The approach is based on the ideas of people like Milton Friedman and Friedrich Hayek, both supporters of the use of free market solutions to social problems. In the words of Margaret Thatcher, 'you can't buck the market'. It draws on classical liberal thinkers such as J S Mill and Bentham. Society is seen as based on individual self interest: our motivation is primarily towards our family and their needs rather than any general concept of a 'common good' as put forward by the social democratic model. Mrs. Thatcher is reputed to have said, 'there's no such thing as society'. By this she meant that ultimately it is individuals who must be seen as the building block of policy, their responsibilities and behaviour is crucial to how society as we know it functions. Against this is the corporatist tendency of the post war era that viewed society more as competing classes or interests, ( e.g. Labour versus capital ); this was formalised in the principle of tri-partism, that was the system of negotiating between the CBI, TUC and government. The New Right believed that the paternalistic, corporatist tendency of post war governments had created a lot of society's problems such as benefit dependency and the suppression of enterprise. As part of this approach, social inequality was seen as a necessary part of an enterprise economy. This draws directly on Friedman and his views of pauperisation.
This neo-liberalism is of a classical variety as opposed to the modern version of it, of an antistatist genre. It is seen to restrict the individual, stopping them using their initiative and being creative. As the individual is seen to be rational, there is no reason to stop them making their own choices. The New Right is liberalist in its economic views as well, leaving a laissez-faire economy, where the individual is free to rise and fall in the market. There is a total removal of the ‘nanny state’, which was condemned but Robert Nozick, as it led to the nation and individual falling into a ‘culture of dependency’. The collective power of the government can be seen as the principle threat towards the individual, and therefore the only way to ensure freedom is to have the ‘rolling back of the state’.
On the other hand, another strand of the New Right is actually authoritarian, the belief in a strong national identity, law and order, and traditional values; this is illustrated in the introduction by the Conservatives of Clause 28 banning the promotion of homosexuality by local authorities. This draws on a view of human nature similar to the views of Thomas Hobbes. But in general there has been a major rejection of big government and state involvement in the economy and society. This form of neo-conservatism reemphasizes the social principles of the 19th century, like family and the nation. It was seen as a guarantee of stability, making social cohesion and civilized society possible, whilst producing discipline and respect.
Margaret Thatcher and her supporters began to argue that the mixed economy and the welfare state had lead to the economic problems of the late 1970s, with a stagnant economy and inflation. Thatcher began to argue on a Neo-Liberal line, suggested by the liberal Adam Smith, that for economic growth more industries would need to be privatised, as the government was supporting industries that would collapse if its support was withdrawn. She put forward the idea for re-privatisation, to let the ‘invisible hand of the market’ decide which industries would survive, letting the economy regulate itself. Laissez-faire policies would mean that the minimum amount of government interference would be allowed. To Thatcher this made more economic sense, as industries would be run more efficiently as a result of competition. This greater efficiency would probably mean a rise in unemployment in some key industries, for example coal. Many of these industries had strong trade unions, which held strikes over employment conditions in the Winter of Discontent leading up to Thatcher’s election. By increasing unemployment she thought that workers would be more concerned with keeping their jobs, which were now under threat, than worrying about a rise in pay. Neo-liberalism, which was termed “New-Right” under Thatcher also holds the view that the Welfare State was not working as it had been intended to, which was that it should act as a safety net for the worse off. Instead Thatcher believed that it had become a restraint upon self-help, and that a nanny culture had developed with people not taking full responsibility for themselves and their families, some people preferring to stay on benefits than get a job. These ideas are based upon Classical Liberal ideas, but were combined with the Traditional conservative view that a strong state is required to provide law and order, and discipline so that people are less likely to break the law. Another idea suggested was that national interests should be defended, especially in America, as a close friendship had developed between Thatcher and Reagan. This also involved a rejection to work closer with the European Union, as she did not want further integration with this institution.