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Conservatism

Economic conservatism, the market and state intervention

  • 3 things to know
  • A2 Unit 3

Overview

Recall questions on why conservatism is not committed to laissez-faire, the postwar mixed economy, monetarism, privatisation and deregulation, and the paternalist reservation.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What is economic conservatism?

Key term

How did conservatives justify the mixed economy after 1945?

Key term

What changed conservative economic thinking in the 1970s?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is economic conservatism?

    Model answer

    The conservative approach to the economy, which prizes stability, sound money and property, and treats intervention as a practical question rather than a matter of principle.

  2. 2

    Why is conservatism not committed to laissez-faire as a doctrine?

    Model answer

    Its pragmatism means intervention is judged by whether it preserves social stability, so conservatives have both regulated and freed markets according to circumstance.

  3. 3

    How did conservatives justify the mixed economy after 1945?

    Model answer

    Full employment and public provision were seen as the price of social peace and of avoiding the unrest of the interwar years.

  4. 4

    What changed conservative economic thinking in the 1970s?

    Model answer

    Simultaneous inflation and unemployment discredited demand management, and free-market economists offered an alternative explanation and remedy.

  5. 5

    Define monetarism.

    Model answer

    The doctrine that inflation is caused by growth in the money supply, so controlling that supply rather than managing demand is the government's main economic task.

  6. 6

    What is privatisation?

    Model answer

    The transfer of state-owned industries and assets into private ownership.

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