Blair's Third Way
- Labour Party prime minister; Tony Blair, who followed Thatcher had run in 1997 on a platform of a “Third Way.”
- It wasn’t the conservative approach, or the old labour party approach, which focused on trade unions, public ownership, a strong welfare state, government intervention and redistribution of wealth.
- The Third Way was a shift to a more moderate platform that had free market policies, and maintained social programs; this was a new mixed economy.
- It was a mix between the Keynesian economics and monetarism, or individualistic values with collectivist values.
- During Blair’s running, the government increased public spending on healthcare and education and introduced a minimum wage.
Ebb & Flow of Liberal Economic
Following Thatcher`s unsuccessful attempt to boost the economy through pure capitalism, Blair turned Britain into a mixed economy, increasing government spending and providing people with social programs and benefits.