By Andrew Gamble
The Thatcher period used to be a turbulent and arguable interval in British politics. Andrew Gamble's authoritative account - now revised and up-to-date to hide Thatcher's fall and legacy - analyses the ideology, statecraft, and fiscal and social programme of the Thatcher executive. He explores rival interpretations of Thatcherism and assesses the proof for claims that the Thatcher govt reworked British politics. a brand new end considers the Conservative occasion after Thatcher.
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Extra info for The Free Economy and the Strong State: The Politics of Thatcherism
Example text
Once the system of fixed exchange rates became unsustainable due to the financial weakness of the United States, the major external constraint on domestic financial prudence was removed. The opportunity was created for an unlimited inflation, as countries sought to expand domestic demand in order to sustain employment and prosperity while allowing their currencies to depreciate to keep their costs in line with their competitors. Such a situation did begin to unfold in 1973, a year of very rapid growth throughout the Western economy, fuelled by large injections of domestic demand and increases in money supply.
The existing state had to be reformed in order to permit the restoration of the rules, the institutions and the culture of the free economy. Since the condition of the social-democratic regime of social democracy was judged to be so serious, brought about by its high-spending policies and modes of intervention, radical measures were necessary for recovery. But success depended on a party pledged to a New-Right agenda first obtaining a mandate for reform in a political market corrupted by decades of state intervention, and then carrying it through with the assistance of the agencies of the extended state.
The commitment to economic liberalism was much stronger in the 1980s than it was in the 1930s. The breakdown of the world economy in the 1930s destroyed faith in capitalism and gave a significant boost to collectivist doctrines of both the right and the left. In the 1970s and 1980s, however, it was these collectivist doctrines and institutions that came under attack. The new politics that emerged had a double thrust - on the one side the upholding of the principle of the international economic order and cooperation, on the other the unceasing effort to modernise each national economy to make it more effective in international competition.
