Conclusion
First-wave neoliberalism in the 1980s amounted to a successful
ideological crusade against Keynesian-style ‘big government’ and
state ‘interference’ in the market. Anchored in common principlescentred on releasing the entrepreneurial energies of the individual,
Reaganomics and Thatcherism nonetheless represented quite
unique responses to an increasingly globalized economic and
political context. As we have seen in this chapter, these two
variations on the neoliberal theme took distinct approaches to
issues such as the relative importance accorded to budget deficits
and taxes. Both advocated a reduced role of government, but their
economic initiatives depended, paradoxically, on the muscle of
state-imposed neoliberal reforms on local and regional authorities.
Thus, it is important to recognize that the rise of neoliberalism
would have been impossible without strong government action.
Similarly, while espousing the need to cut public expenditures for
social programmes, Reaganomics and Thatcherism supported
increases in military spending. In spite of their ideological tensions
and contradictions, however, it would be foolish not to
acknowledge the broad appeal enjoyed by these two variants of
neoliberalism by the late 1980s. It is a remarkable testimony to
the power of Reaganomics and Thatcherism that the forces
of the democratic Left started to incorporate major portions of
the neoliberal agenda into their own political programmes.