1. An Alternative to Modern Liberalism
Neo Conservatism
An Alternative to Modern Liberalism

2. 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

3. 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

4. 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

5. 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

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

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