25.5: Conservatism

In Europe, the incredible economic boom of the postwar decades came to a screeching halt in the early 1970s, when OPEC instituted an embargo (official ban on trade) of oil in protest of western support of Israel in the Yom Kippur War of 1973. Gas prices skyrocketed, and economic growth simply stopped, never to regain the momentum it had from 1945 - 1973. However, the baby boom and economic boom had resulted in social democracy, large immigrant populations, and high standards of living. European politics addressed many of these issues.

The politically 'far right' called for extremely limited quotas for immigration, laws banning the expression of non-Christian religious traditions (mostly associated with Islam), and a broader cultural shift rejecting tolerance. They also attacked non-white citizens of European countries, citizens born in Europe to immigrant parents. However, citizens of immigrant ancestry were legally the same as any other citizen.

While the 'far right' gained strength in many European countries, center-right conservatism, often called "neoconservativism', developed. This group came to reject the welfare state, which often provided free health care and education, subsidies for housing, and strong unions.

The iconic neo-conservative politician was British Prime Minister Margaret Thatcher, who held office from 1979 to 1990. Thatcher acquired the nickname "the Iron Lady" for her blunt manner of speaking and her refusal to compromise. While prime minister, she privatized a number of industries in Britain and took a hard line with unions. For example, she advocated for the shutting down of northern English coal mines rather than giving in to the demands of the coal miners' union. As a result, the English mining industry simply shut down, and never recovered. In addition, she slashed government subsidies for various industries, resulting in an increase in unemployment in manufacturing areas.

Figure 25.1.1: Margaret Thatcher in 1977.

Banks thrived as regulations to protect investors and customers were dropped, and they were allowed to pursue vast profits through financial speculation. During Thatcher's tenure, London became the country's premiere dynamic, wealthy financial and commercial center. Thatcher was reviled by her opponents, and adored by millions of Britons at the same time for her British pride, her hard-nosed refusal to compromise, and her unapologetic, Social Darwinist contempt for the poor. (She once advised the English that they ought to “glory in inequality” because it was symptomatic of the strong and smart succeeding.)

The British economy began to recover as a whole in the early 1980s. In 1982, a brief war over the Falkland Islands in the Pacific Ocean between Argentina and Britain increased her popularity. Plus, the British Labour party was in disarray. Thus, Thatcher remained in power until 1990, when her own party decided she was no longer desirable and replaced her with a somewhat forgettable politician named John Major.

Outside of Britain, the essential characteristics of western and central European politics were in place by the 1980s that remain to this day. Center-right parties from Italy to Germany and from France to Britain correspond to the Thatcherite neo-conservative model, embracing the free market and trying to limit the extent of the welfare state. Note: These parties do not openly advocate getting rid of the welfare state entirely. Generations of Europeans, including people who vote for center-right parties, expect free health care, education, and social benefits to some extent.

On the other side of the political spectrum, the left-wing parties definitively abandoned Marxist ideology. The Labour Party created "New Labour," a political philosophy that supports the welfare state but also accepts that the free market is essential for economic growth. The iconic figure of New Labour in Britain was the prime minister Tony Blair, who held office from 1997 - 2007.

Even in countries whose major leftist parties had the word "socialist" in their titles - France's Socialist Party, for example - the whole notion of revolution was gone by the 1990s. Instead, the center-left parties came to be the custodians of the welfare state while joining the center-right in favoring market economics in the private sector.

Today, the 'far left' in Europe is often represented by the Green parties. Green parties are very strong supporters of environmental legislation and are the most hostile to free market deregulation of any political faction, but they remain limited in their electoral impact. An example can be found in Germany.