The Perverse Effect of Neoliberalism on Morality
How Deregulation, Corporate Power, and Market Chaos Have Hollowed Out Morality in Society.
“If the state does anything for you, it will soon take everything from you”
– Margaret Thatcher
“Man is not free unless government is limited”
– Ronald Reagan
These two powerful quotes capture the trajectory the Western world followed through the 70s and 80s: deregulate the market, shrink the state, and let people fend for themselves — metaphorically at first, but increasingly real.
While Ronald Reagan, Thatcher’s ideological twin across the Atlantic, unleashed similar neoliberal forces in the U.S. — through Reaganomics, Cold War posturing, and a rebranding of “traditional values” — this article will focus primarily on the Thatcher effect and the devastating impact she had left in the UK.
Economist and Activist, Gary Stevenson once told a story that sticks with me. Two men see a bear in the woods. One kneels down and tightens his shoelaces. The other says, “You can’t outrun a bear.” The first man replies, “I don’t have to outrun the bear — I just have to outrun you.” That, in a sentence, is neoliberalism: survival of the fastest, not the fairest.
Thoughts into words, words into actions: The Decimation of public unity.
When Margaret Thatcher took power in 1979, she had a plan: dismantle government regulations, sell off British assets to foreign investors, and weaken the collective power of the people. While many know her name, it's crucial to understand the policies she put in place — policies that paved the way for today's economic challenges in the UK.
One key area of reform was the Employment Act, originally passed in 1963 under Conservative Prime Minister Harold Macmillan. Thatcher’s government introduced major amendments to this act.
In 1980, she reduced the scope for picketing and required ballots before closed-shop agreements, directly targeting trade unions. It became compulsory for union members to vote before shops could be union-only — a subtle but firm blow to union solidarity, tightening the grips for people to organise themselves and to protect their interests.
By 1982, further changes followed. Unions became legally liable for unlawful strikes, harsher penalties were introduced, and protections against unfair dismissal were weakened. These changes gave employers more freedom to dismiss workers, effectively tipping the scales in their favour.
Then, in 1988, another shift came. Workers were given the right not to join a union — framed as freedom of choice, but in practice it eroded union membership and undermined their ability to resist corporate or government pressure.
Together, these amendments hollowed out the power of organized labour. For Thatcher, the individual — not the union — was the core of society. While neoliberals touted this as progress, it fractured collective resistance and strengthened the grip of corporations and market ideologues. These moves didn’t just sideline the left — they disarmed the working public entirely.
But this was only one front in Thatcher’s neoliberal campaign. The most seismic change came with financial deregulation, or the Big Bang of 1986. It transformed the UK’s financial landscape: fixed commission charges were abolished, foreign firms were allowed to buy up UK institutions, and London evolved from an industrial capital into a global financial hub. For the elite, this was progress. For the average person, it marked the start of rising inequality, unstable housing markets, and a growing disconnect between national identity and economic power.
Rebuilding after the war: Why the economy was stable.
It’s important to note that prior to Thatcher’s wave of deregulation, the UK enjoyed a relatively stable financial environment, especially during the 1950s and 60s. This period was marked by strong government oversight of banks, controls on capital flows, and tighter regulation of financial markets, which helped prevent major financial crises. For example, during these decades, the UK avoided the kind of severe stock market crashes and banking collapses that became more frequent in later years. The post-war consensus embraced managed capitalism and Keynesian economic policies, which contributed to steady growth, low unemployment, and a balanced housing market.
However, Thatcher’s deregulation — culminating in the 1986 “Big Bang” — loosened these controls significantly. The removal of fixed commission rates, the opening of markets to foreign ownership, and the reduction of government oversight all contributed to a more volatile financial sector. This deregulated environment paved the way for speculative bubbles, culminating in crises like the 1992 ERM crash and eventually the 2008 global financial meltdown. In short, while deregulation fueled short-term growth and global financial prominence, it also exposed the UK economy to greater instability and risk than had been experienced in the more regulated decades before.
The poor get poorer, whilst the rich get richer
The Thatcher era didn’t just weaken union power and deregulate markets — it also laid the groundwork for one of neoliberalism’s most lasting effects: wealth inequality. According to the Office for National Statistics, between April 2020 and March 2022, the wealthiest 10% of UK households held at least £1.2 million in assets, while the poorest 10% had just £16,500 or less. The top 1% now control roughly the same amount of wealth as the bottom 50% combined. Probably even more since covid.
This massive disparity didn’t appear overnight — it’s the result of decades of policies that prioritised capital over labour. Since 1979, union membership has halved, dropping from 13.2 million to just 6.7 million in 2023, and union density has fallen from 53% to 22%. While deregulation promised broad prosperity, the result has been rising living costs, stagnant wages, and a generation priced out of stability. Neoliberalism didn’t just shift economics — it shifted power.
“The time to buy is when there's blood in the streets — even if it's your own.”
This quote speaks volumes about the current mindset driving modern, what we call, capitalism. What we're witnessing is the rise of the plutocratic-proletariat — everyday people participating in wealth-generation systems once reserved for the elite, even if it means profiting off conflict and chaos. Or, outrunning the other guy from the bear, if you like.
In a recent debate with a group of American peers — where we typically discuss topics like religion, warfare, and geopolitics — I was presented with something jarring. As news broke of missile exchanges between Israel and Iran, the conversation didn’t stay focused on the politics or human cost. It shifted — not separately, but seamlessly — into which military-tech stocks to buy: Lockheed Martin, BAE Systems, Raytheon. Some even mentioned their oil shares rising within the hour.
It struck a nerve. What kind of morality is at play here?
From a purely financial standpoint, it makes sense: war increases demand for weapons, fuel, and defence logistics. Stocks rise, portfolios swell. But ethically, it's disturbing. These investments indirectly endorse the production and deployment of weapons — sometimes nuclear-capable, sometimes used in residential areas.
Of course, billionaires and lobbyists have always played these games. But now, through trading apps and retail investing, everyday people — the middle and working classes — are doing it too. The system has normalized it. Profit over principle.
Reflecting personally, I once lived on less than £300 a month. I was vegan then, but the economic toll forced me to go vegetarian — partly for ethics as I did not consume meat or buy animal-based clothing, but self-preservation. I needed more calories to function at less cost. In a twisted way, that same instinct drives people to invest in war stocks. If the system’s squeezing you, you find relief however you can — even if it means indirectly profiting off suffering you’ll never directly see.
So, what does this have to do with neoliberalism?
Everything.
Neoliberalism strips regulation, empowers markets, and weakens the state’s role in safeguarding people. It turns crises into opportunities — not for healing, but for monetization. Financial security becomes a blood sport. The 2008 housing crisis is a case in point: deregulation created a bubble, people lost homes, but others got rich.
In the end, neoliberalism doesn't just erode wages or inflate housing — it chips away at morality itself. It teaches people to survive, not together, but alone. And in doing so, it replaces solidarity with strategy. Compassion with capital. And survival of the fittest.
Sources:
ONS. Household total wealth in Great Britain: April 2020 to March 2022, Statistical Bulletin (January 2025) — data on wealth distribution https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/totalwealthingreatbritain/april2020tomarch2022?
House of Commons Library. Wealth in Great Britain briefing (March 2025) — top 1% share, wealth deciles researchbriefings.files.parliament.uk
Department for Business and Trade. Trade Union Membership UK: 1995–2024, Statistical Bulletin — union membership figures https://www.gov.uk/government/statistics/trade-union-statistics-2024/trade-union-membership-uk-1995-to-2024-statistical-bulletin
Big Issue. “…membership has halved since 1979… around 6 million in 2024” (May 2024) — union density figures https://www.bigissue.com/news/employment/trade-unions-power-young-people-lgbtq-disabled/