[…] In my view the ruptures in British and American politics happened in the 1990s with the accession of Bill Clinton in 1993 and Tony Blair in 1997. These were men who inherited the Democratic Party of Franklin D. Roosevelt and the Labour Party of Clement Attlee, but instead of pursuing the kind of prosperity yielding democratic socialism of their predecessors they adopted a “third way” strategy.
Clinton and Blair held onto power by slightly slowing down the radical and destructive right-wing neoliberalisation agenda rather than actively working to reverse the worst of the damage. Of course they seemed like an improvement after the chaotic crisis-ridden 1980s, but both men slowly continued the progress of the right-wing zealotry introduced by Margaret Thatcher and Ronald Reagan.
One of Clinton’s most overt moves towards hard-right economic dogma was a piece of legislation called the Commodity Futures Modernization Act of 2000 which exempted all manner of derivatives trading from financial regulation. a move that unleashed the frenzy of speculative derivative trading that resulted in the 2007-08 global financial sector insolvency crisis.
Aside from the extraordinarily dodgy PFI privatisation scams and the commodification of the higher education system through the introduction of student fees (aspiration taxes), one of Tory Blair’s most blatant rightward lurches saw the de facto privatisation of the Bank of England and the establishment of what turned out to be an astoundingly weak tripartite system of financial sector regulation.