April 25, 2018 / C H Thompson

New Right social theory

In addition to Friedman Peter Bauer advocated additional responsibility’s for government in two areas:

In essence Friedman and Bauer’s free-market economy does not eliminate the need for government it simply ‘rolls it back’ to a minimum
this is because the production, distribution and trade of goods and services is best left to private profit making firms rather than public government (state run) organisations – in contrast Corbyn wants to expand the role of the state
In other words business should be free of government interference to do as it wishes as ‘exchange can bring about co-ordination without coercion.
A working model of a society organised through voluntary exchange is a free enterprise exchange economy’ (Friedman).
These principles were famously adopted by Mrs Thatcher who started introducing free market economic policies in education – 1988 Education Reform Act – marketization of education.

Further evaluative points

Noam Chomsky’s book ‘Profit Over People’ (1999) adopts a similar position to Corbyn
by arguing that neo-liberal economics has reduced the power of ordinary people to influence government policy as it has merely served to increase the wealth and power of unelected executives of corporations
Chomsky points out reducing the role of the state (and its size) restricts its capacity to improve or assist vulnerable people in society.
Therefore reduced state involvement, reduces the power of the state to shape society according to its wishes (state centred theorists) or the wishes of the people (pluralist state theory).

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