Conclusions: Nationalism, Internationalism and Democracy

By the mid-1970s the state in Britain had become the largest single employer (Social Trends, 17, 1987), spending almost 60 per cent of national output each year (Robinson, 1978), the consequence of popular pressures in a context of particular types of economic problem, industrial technology and warfare needs. State employments by mid-20th century fell into the broad categories of Armed Forces and arms manufacture; law and order; welfare and education; other administration; and infrastructural provision (primarily transport, communications and energy). A failing economy leaves the state incapable of funding all these activities at unchanged levels, and forces politicians to make choices between them. The Conservative government in power from 1979 spelt out its choice as less government; a shrunken budget deficit; ‘sound money’; incentives for the rich in the shape of lower taxes; and incentives for the poor in the shape of lower benefits and wages (Johnson, 1982). The steady redistribution of wealth towards the already wealthy has been detailed earlier. The monetarist fight against inflation so as to achieve ‘sound money’ has also been addressed, its destructive impact on manufacturing capital and employment levels being notable among its achievements.