New Labour also believes in Privatisation, which is the opposite of Old Labours nationalisation.
It was a theory formed that if businesses were made private more money would be spread around the economy to help everyone not only the rich or poor.
For example; the war in Iraq was not supported by Blairs backbenchers another example of this is when Blair supported the foundation school bid however his backbenchers again didn’t.
In this essay key factors will be addressed such as; the differences between the re-written Clause iv and the old version, nationalisation and privatisation, trade unions, communitarism and collectivism and finally the future of the Labour Party. Collectivism means for the people to care for society around them.
However New Labour rejects the neo-liberal, minimalist view of state welfare, but accepts that the nature of state welfare must be changed to reflect a society very different from the one that the report from Beveridge perceived.
Again for example; the redistribution of wealth theory and NHS that were both systems created for helping the poor.
For example; the trickle down theory put into place by Margaret Thatcher.
This was based upon the theory of lowering tax which would help the rich get richer by developing businesses, industry and therefore meaning for the poor to get richer at the same time, which therefore in theory means a stronger working economy.
Many of these factors help address the reasons for and against the issue on whether New Labour has broken from its traditional roots.
Although the Labour party were making extensive changes they were still losing many votes to the conservative party so therefore in 1994 Tony Blair was brought into power and in 1995 he changed the history of the Labour Party by rewriting Clause iv.