Roots of Neoliberalism: Factors Behind the “Thatcherite Revolution”

The present economic crisis, which was caused by the inadequacies of neoliberal policies, has also reignited interest in the original developmental patterns of neoliberalism. In this essay, we will survey major existing literature dealing with the multi-dimensional, multicausal character of the generative forces and motivations behind “Thatcherite” policies, particularly as it pertains to some of its central aspects like privatisation and industrial relations’ policy. In the course of this examination, we will illustrate the dialectical nature of the relationship between structure and agency, whilst keeping an eye on the shifting emphases between ideologically-driven, political and economic factors. While the relative importance of and interrelationship between these factors has to be analysed on a case-by-case basis, we will demonstrate why the general dialectical model nonetheless holds, adding several – generally neglected – points to the analysis of the neoliberal shift. The major effects of the “Thatcherite revolution” included the crushing of union power, erosion of class-consciousness, and a sharp increase of the capitalist profit share (though not really in the level of capital accumulation). It turned the state away from Keynesian corporatism closer to the “classical” function of the state as “the executive board of the bourgeoisie”, to recall Marx. This is the central reason why we believe the most productive way to conceptualise the Thatcherite political project is in terms of the resurgence of capital, the hegemonic project of restoring ruling class power