Masters of the Universe: Hayek, Friedman, and the Birth of Neoliberal Politics

In impressive fashion, Jones analyzes the impact of free market economics and deregulation on political leaders in Washington, D.C., and London since the 1970s. According to Jones, when New Deal and Keynesian solutions could not reverse 1970s stagflation, “neoliberals” like Milton Friedman stepped in to influence policy, stressing money, interest rates, and inflation, rather than government regulation or spending. To the enduring dismay of the left, this approach seemed to ignite renewed and sustained prosperity. Jones disapproves of neoliberalism as it has hardened into faith since the days of Thatcher and Reagan, and deplores the rise of a political culture in both countries that is “unable to escape a fantasy world in which free markets solved everything.” After soft-pedaling Clinton and Blair as deregulation’s great Third Way champions, he finishes with an unnecessary attack on the American Tea Party and the British Conservatives’ “radical” health and education program. The theme of neoliberalism will confuse readers who consider Hayek and Friedman founders of economic conservatism and whose photographs, along with Thatcher’s and Reagan’s, grace the cover. Still, anyone intrigued by the intersection of economic theory and political affairs will appreciate this learned, detailed book. (Oct.)