The Reagan-Thatcher era redistributed wealth from poor to rich rather than abandoning Keynesianism

Evidence

Although Davis’s argument is somewhat weakened by his reliance on the regulation school’s inadequate crisis theory, there seems to me little doubt that he is referring here to a phenomenon of general significance. The Reagan-Thatcher era saw, not the abandonment of Keynesianism, but an important reorientation of fiscal policy, one of whose main features was a redistribution from poor to rich — the British government’s social security ‘reforms’ and drastic cuts in the taxation of those in higher-income brackets, both implemented in the spring of 1988, followed the pattern set by Reaganomics. — Alex Callinicos, Against Postmodernism, 601

Categorization

• XREF: Connects to the broader Marxist critique of capitalist restructuring — relevant to Jameson’s account of late capitalism and to debates about the post-welfare state elsewhere in the book. — connects to: Keynesian remedies shaped the 1980s economy even as Keynes fell into disrepute. — Alex Callinicos, Against Postmodernism: A Marxist…, 527; The 1980s economic booms relied on Keynesian government stimulus, not deregulation. — Alex Callinicos, Against Postmodernism: A Marxist…, 526; Reagan-era tax cuts transferred over 35 billion to high-income families — Alex Callinicos, Against Postmodernism: A Marxist…, 599 (+10 more)

Broader Connections

• Postwar Labour settlement redistributed wealth via Keynesian economic measures #complicates (0.85) — Hall, Stuart, Essential Essays, Volume 1, 1059
• New Labour operated within Thatcher’s neoliberal parameters. #expands (0.75)