Published online by Cambridge University Press: 10 May 2012
After 1945, neo-liberal thinkers and think-tanks in the US and UK outlined different state welfare systems for the poor, such as Milton Friedman's negative income tax. These were underpinned by a rational, economistic conception of human nature. Between 1975 and 1979, Thatcher's Conservative party abandoned attempts to develop comprehensive, state-led, paternalistic schemes to tackle poverty. Thatcherites focused instead on creating what they saw as a rational tax/benefit system which would provide a safety-net for the poor, but encourage effort and thrift. They attempted to marginalize the importance of state welfare for the middle classes, to re-invigorate the ‘bourgeois virtues’ which had flourished in Victorian Britain. A family-centred, moralistic individualism underpinned Thatcherite policies; this individualism was not precisely congruent with that of neo-liberal theorists. Its roots lay in personal sources (particularly Methodism), as well as home-grown discourses on poverty and a Hayekian fear of the state. Though Thatcherites took ideas from diverse sources, their political project had a single guiding purpose: the moral (and, secondarily, economic) rejuvenation of Britain. Thatcherism was, thus, an ‘ideology’ in the sense used by Michael Freeden.
Many thanks are due to Dr Jon Lawrence, Professor Peter Mandler, James Stafford, the two anonymous referees, and to the organizers and participants at the ‘Neo-liberalism and British Politics’ workshop in Oxford, June 2011, for their extremely helpful comments on earlier drafts of this article.
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