An Alternative to Modern Liberalism Neo Conservatism An Alternative to Modern Liberalism

The ’70’s = Economic Crisis Economic Recession High Inflation Oil Crisis All of these forced governments to borrow money and go into DEBT to maintain the welfare programs that they had created since WWII

An Economic Shift- Monetarism This is a return to classical liberal laissez- faire economics The Theory: Controlling a country’s money supply is the best way for a government to intervene in the economy This was promoted by Milton Freidman

How do you control money supply? Interest Rates That’s How! By making money easier to get (lowering interest rate), you increase consumer spending By making money harder to get (increasing interest rate), you can slow down the economy when needed

Other Core Ideas of Neo-Conservatism Government involvement in the economy would lead to government interference in other aspects of life Planned economies could not make appropriate decisions The Free Market was the best way to balancing supply and demand while maintaining personal freedom

A Neo-Con’s who’s who Ronald Reagan: Championed Reaganomics: Reduction of taxes Spend on military Trickle Down Economics

The Iron Lady- Thatcherism Margaret Thatcher Privatized Government owned businesses Cut Social Spending Confronted Labor groups