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How Mr Brown is a ‘Thatcherite’ and yet how being a ‘Thatcherite’ is too free market

When the Labour party came into office in 1997, government was already vast. Mr Major, the Conservative Prime Minister, had allowed government Welfare State spending to greatly increase, “we have spent more money than Labour promised to spend” was his boast, and the tide of European Union required regulations was in full flood.

Since 1997. after an initial lull, government Welfare State spending has continued to increase at a tremendous rate, taxes have greatly increased (and become vastly more complicated ) and most of the few limitations (the so-called “opt outs”) that Mr Major put on the flood of EU required regulations have been removed. There were also “little” things under the Labour government – like the looting of the private pension funds via a tax increase first considered by the ‘conservative’ government headed by Mr Major, the re-nationalization of the railways (most British people do not seem to know that “Network Rail” is 100% government owned) and the selling off of most of the nation’s gold reserves for fire sale prices.

Mr Brown.the current Prime Minister, has been in charge of the Labour government’s economic policies over the last ten years and his policy has been to have vastly more government spending, much higher and greatly more complex taxes, and more power for the EU, and so on. And so Mr Brown has been called a ‘Thatcherite’ by this week’s issue of The Economist. Now if you have read the above paragraphs you will understand why I find this… odd.

However, I suppose one could make a case.

After all, between 1979 and 1982 both taxes and government spending vastly increased in the United Kingdom (that was one reason why the world recession was worse here than in other lands – although the BBC broadcast about ‘cuts’ every day of this period of out-of-control government growth. Also in 1986 Mrs Thatcher agreed to the EU ‘Single Market’ which the EU used to require the tide of regulations that has flooded us since then.

However, Mrs Thatcher moved Chancellor Howe and replaced him with Chancellor Lawson. Nigel Lawson, for all his lack of understanding of monetary policy (he greatly expanded the money supply in the late 1980s as part of a scheme to rig the exchange rate between the British Pound and the German Mark, thus creating a boom-bust), at least believed in reducing, and making less complicated, taxes and controlling government spending. The fiscal policy of Mr Lawson, supported by Mrs Thatcher, of lower and less complicated taxes and controlling government spending is the exact opposite of the economic policy Mr Brown has followed. Although Mr Brown, via the “independent Bank of England” controlled by its government appointed board, has, like Mr Lawson before him, vastly increased the money supply in recent years – in spite of his claim not to want to create “boom and bust” (perhaps Mr Brown shares the demented notion, spread by the media and the “education system”, that boom-bust under Mr Lawson was caused by tax cuts).

So either Mr Lawson and Mrs Thatcher were ‘Thatcherites’ or Mr Brown is – Mr Brown and Mrs Thatcher can not both be Thatcherites.

There is also the point that Mrs Thatcher returned to private enterprise many state owned companies – whereas the Labour government has, as I pointed out above, re-nationalized the railways – network rail. Mrs Thatcher also regretted the flood of EU required regulations, feeling that she had been tricked, whereas there is no such regret from the current government. There are also other things, such as the PC policies of the present government (“diversity” and so on), but The Economist may have covered itself here by saying that Labour had “humanized “Thatcherism” by adding “social liberalism” to it – I suppose all this politically correct stuff could be what they mean by “social liberalism”.

However, there was also another part to The Economist article – this was the implication that “Thatcherism” was too free market and, therefore, bad. It was claimed that those Conservatives who wish to return to the principles of limited government and national independence that Mrs Thatcher believed in are fools – who did not understand that the lady won three landslide election victories for quite different reasons.

“Thatcherism”, we were told by The Economist, is understood by the British people to mean wicked “greed” and other such (the vast salary increases for certain people connected with central and local government under Mr Brown, and the vast increases in income for top people in certain politically connected companies and “charities” is somehow not “greed” – perhaps because of their PC “social liberalism”). So the Conservatives would be mad to return to it. The fact that millions of Conservative voters simply stayed at home, and have continued to stay at home, after Mr Major abandoned the principles of Mrs Thatcher was not even mentioned. This is more than a minor oversight.

So, according to The Economist, Mr Brown is a “Thatcherite” (although with a bit of PC “social liberalism” on top), but it would be very silly and wrong for the Conservatives to return to “Thatcherism”.

All very odd.

9 comments to How Mr Brown is a ‘Thatcherite’ and yet how being a ‘Thatcherite’ is too free market

  • lucklucky

    It’s not odd. It’s the new The Economist.

  • chip

    The kind of nonsensical reasoning you just summarized sounds just the The Economist I gave up about a year ago.

    It’s interesting though how the magazines slide into mediocrity has mirrored a similar slide in the UK as a whole.

  • Alice

    It’s interesting though how the magazines slide into mediocrity has mirrored a similar slide in the UK as a whole.

    Not just the Economist, and not just the UK — unfortunately. Left-wingers are really King Midas in Reverse (for fans of old Hollies hits, back when London was swinging). Everything that left-wingers get hold of ends up trashed & worthless — Economist, Soviet Union, Universities, Church of England, Democrat Party, you name it.

    Strange thing — the process is sufficiently slow that it is difficult for people to recognize cause & effect.

    The good news is that, because of the left wing’s built-in failure mechanism, stultifying political correctness and intrusive Euro-bureaucrazy will ultimately fail. The bad news is — what comes after?

  • guy herbert

    It is not just RailTrack.

    There’s a strong case for saying that a lot of other nationalisation has taken place. As the Liberal Democrats used to be fond of pointing out, it is not nominal ownership that matters but control.

    Politics is part-nationalised: Parties only participate if registered and regulated. Councillors have ceased to be answerable solely to the electorate, but must comply with the Standards Boards.

    Charity is part-nationalised, as we have covered here often.

    Voluntary organisations must largely have their staff vetted by the state.

    And from the beginning of next month the directors of companies will cease to be solely reponsible to the owners of those companies. As part of a general duty to promote the ‘success’ (undefined) of the company a director must henceforth consider (inter alia): the likely consequences of any decision in the long term; the interests of the company’s employees; the need to foster the business relationships of the company with suppliers, customers and other organisations; the impact of the company’s operations on the community and the environment; and, the desirability of the company maintaining a reputation for high standards of business conduct. That’s the thin end of a very large wedge.

    Children have already been nationalised, making use of existing educational and social services institutions; but the progress in nationalising the adult population is slow.

  • Jacob

    One little consolation: the word “Thatcherite” is used even by the Economist, and despite some caveats, as a possitive term.

    But this is standard practice in PR today, and probably always was: take a “positive” term (one that has positive associacions) – like for example: “green”, stck it in fromt of everything – like “green car”, “green power”… and your sales soar (you hope so, anyway).

  • Paul Marks

    Guy Herbert makes some very good points (no disrespect to the other comments – it is just that Guy has got me thinking enough to want to comment).

    Perhaps the vastly amounts of money we have seen, over the last ten years, going not only to top people in government service, but also to people in politically connected companies and “charities” (indeed some of the people running these “charities” manage to be in official government jobs at the same time – and even the ones that are not get vastly more pay and perkes than charity managers once did, indeed I can remember when people ran charities for NOTHING) is part of a bargain.

    “We will control you, you will serve the “progressive consensus”, but you will get lots and lots of money for doing so”.

    Still, as the “education system” (which both produces and is backed up by, the media) means that the administrators of the polticially connected companies and various “charities” believe in the “progressive consensus” anyway it is hard to see why the vast amounts of taxpayer’s money are needed (although I suppose it is nice for politicians and top national and local government administrators to reward their friends).

    The biggest joke is the endless use of the word “diversity”, these people are about as un “diverse” as one could possibly get.

    They all have the same beliefs and attitudes.

  • Paul Marks

    Guy Herbert’s point about how, from October, company directors (not just the “poltically correct” subsidy grubbing, politically connected enterprises – but all companies) are no longer just responsible to the shareholders warrents a comment on its own.

    This would seem to be socialism of the early 20th century German type (first seen in “War Socialism” during the latter part of World War One, and later under the National Socialist government of the 1930’s). In that ownership remains formally private but managers must serve “social” objectives (or be punished).

    Almost needless to say, such vague (but very sharp) power for the state is not compatible with the rule of law as traditionally understood.

    Still I do not think that the Economist or the Financial Times will have trouble living under such a regime – they will argue that they serve the “social” good, and their friends in positions of power will agree with them.

  • Alice

    … ownership remains formally private but managers must serve “social” objectives (or be punished).

    There was a word for that system of political control of “private” capital — Fascism. Wecome back! The last 60 years have been kind of quiet without you.

  • Frederick Davies

    Maybe it is that compared to Cameron, Brown can pass for a “Thatcherite”. As for Alice’s comment, so true.