5.2.3 New Right: Neo-Liberal Economics and Neo-Conservative Values

Key Scholars:

• Ayn Rand
• Robert Nozick
• Milton Friedman

Historical Context and Emergence

• Economic Stagnation: By the 1970s, the post-war consensus began to break down due to economic stagnation, rising inflation, and high unemployment. Traditional Keynesian economic policies appeared ineffective, leading to a search for new solutions.
• Rise of the New Right: The New Right emerged as a reaction to the perceived failures of the post-war consensus. It combined neo-liberal economic policies, which emphasized free-market solutions, with neo-conservative social policies, which focused on restoring traditional values and social order. This fusion aimed to address both the economic and social challenges of the time.

Margaret Thatcher (UK Prime Minister, 1979-1990):

• Thatcher is often seen as the embodiment of New Right principles. Her government implemented a series of neo-liberal economic reforms, including privatization of state-owned industries, deregulation of financial markets, and reducing the power of trade unions.
• Thatcher also embraced neo-conservative policies, emphasizing law and order, promoting traditional family values, and opposing what she saw as the permissiveness of the 1960s and 1970s.

"There is no such thing as society. There are individual men and women, and there are families."

– This reflects Thatcher's belief in individual responsibility and scepticism of state intervention.

• Ronald Reagan (US President, 1981-1989):
  • Reagan's presidency in the United States mirrored Thatcher's approach, with a focus on cutting taxes, reducing government regulation, and promoting free-market principles.
  • He also championed neo-conservative values, advocating for strong national defense, law and order, and traditional family values.

The Economy: Neo-Liberal Policies

• Privatization:
  • One of the hallmark policies of neo-liberalism, privatization involves transferring ownership of state-owned enterprises to the private sector. This was seen as a way to increase efficiency, promote competition, and reduce government spending.
  • In the UK, Thatcher's government privatized industries such as British Telecom, British Gas, and British Airways.
• Deregulation:
  • Neo-liberals argue that removing government regulations on businesses allows for greater innovation, competition, and economic growth. Thatcher's government deregulated the financial sector, leading to the "Big Bang" in 1986, which transformed the City of London into a global financial hub.
• Tax Cuts:
  • To stimulate economic activity, neo-liberals advocate for reducing taxes, particularly on businesses and high earners. This, they argue, encourages investment and job creation, leading to overall economic growth.

Atomistic Individualism

• Core Concept:
  • Atomistic individualism is the belief that society is made up of self-reliant individuals who are primarily responsible for their own success and well-being. This concept rejects collectivist ideas that emphasize state support or social safety nets.
  • Neo-liberalism promotes this form of individualism, arguing that individuals should have the freedom to pursue their own goals without interference from the state.
• Impact on Welfare:
  • The emphasis on individual responsibility led to reductions in welfare provisions and a shift towards policies that encourage self-reliance. For example, Thatcher's government introduced stricter eligibility criteria for benefits and encouraged private pensions over state pensions.

Social Fragmentation: Neo-Conservative Concerns

• Fear of Social Disintegration:
  • Neo-conservatives are concerned that the rapid social changes of the 1960s and 1970s, including the rise of the counter-culture, increased crime rates, and the breakdown of traditional family structures, were leading to social fragmentation.
  • They argue that a cohesive society is necessary for stability and order, and that shared values and social norms must be maintained.
• Promoting Social Cohesion:
  • To counteract social fragmentation, neo-conservatives advocate for policies that promote traditional family structures, national identity, and shared moral values. They emphasize the importance of cultural continuity and social discipline.

Law and Order: Neo-Conservative Policies

• Tough on Crime:
  • Neo-conservatives believe that maintaining law and order is essential to prevent social decay and protect the moral fabric of society. They advocate for strict enforcement of laws, harsher penalties for criminals, and greater support for the police.
  • Thatcher's government implemented a series of law-and-order measures, including increasing police powers and toughening sentencing for crimes.
• Public Morality:
  • Neo-conservatives emphasize the importance of public morality in maintaining social order. They argue that the state has a role in promoting and enforcing moral standards, often focusing on issues like drug use, obscenity, and the promotion of traditional family values.

"We must create a society in which crime does not pay, and in which law and order are preserved." – Margaret Thatcher

Public Morality: Neo-Conservative Ideals

• Traditional Values:
  • Neo-conservatives argue that the erosion of traditional values, such as respect for authority, family integrity, and community responsibility, leads to social decay. They believe that these values should be upheld to maintain a strong and stable society.
• Role of the State:
  • Neo-conservatives support the idea that the state should play an active role in promoting public morality. This includes supporting institutions like the family, the church, and schools in instilling these values in society.
• Cultural Conservatism:
  • There is an emphasis on preserving cultural traditions and national identity, which neo-conservatives see as essential to social cohesion. This can include promoting national symbols, history, and education that reflects traditional values.

Conclusion

• The New Right represents a fusion of neo-liberal economic policies and neo-conservative social policies, creating a powerful ideological movement that reshaped Western politics in the late 20th century.
• It sought to address both the economic inefficiencies and the perceived social decay of the time, advocating for free-market capitalism combined with a strong emphasis on law, order, and traditional moral values.
• This approach was most notably implemented by leaders like Margaret Thatcher and Ronald Reagan, whose policies continue to influence contemporary conservative thought.