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Analyse the Conservative approach to state intervention after 1979 and outline labours response since 1997 The Conservative Thatcherite, new right policies had two general aims as far as state intervention, those two general aims were a free economy (I.e. non interventionism) and a strong state. The Conservatives believed in minimum state intervention and therefore a small public sector. They were arguably the first pre-war government not to follow the first post war consensus. Although in reality the consensus came to an end in 1968 with an IMF bank loan, loaned on condition that there was to be a subsequent reductions in public spending, with the aim of bringing down the amount of money in the economy so as to lower the inflation rate. In practise though this abrupt end to Keynesian economics was for purely pragmatic and not ideological reasons. The first time that monetarist policies were implementing for purely...

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