The UK 1979-95: Myths and Realities of Conservative Capitalism

Abstract

Examines the 1980s-1990s British economic model as a test case for modern conservative capitalism. The conservative capitalist model that emerged during the prime ministership of Margaret Thatcher had four unequivocal points: low taxes, small governments, production oriented to profit, & a naturalization of inequality. This model is shown to have reduced inflation, revitalized British management, & raised a number of economic indicators in the intermediate terms. However, as a long-term model, it is argued that conservative capitalism is a failure. The 1990s has seen a drastic rise in inequality, substantial growth in poverty, concerted loss of public morale, & net reduction in private ownership of property. The failure of conservative capitalism is traced to large macroeconomic mistakes, gross misunderstandings of microeconomics, & a hypercompetitive ethic that prevented cooperation, thus leading to a need for more governmental regulation. 1 Table. D. Ryfe