The market economy and the environment

It was in the 1980s that market fundamentalism – the faith in the market’s omnipotence – became extremely fashionable in Europe and the United States. In 1979, Margaret Thatcher took office as prime minister of the United Kingdom and, in 1981, Ronald Reagan became president of the United States. In Japan, Yasuhiro Nakasone became prime minister in 1982. Each of these three politicians was second to none in terms of their vitality and leadership, and they resolutely pushed free-market reforms forward in their respective countries. Based on their conviction that the best policy is to entrust all economic activity to the market, these three administrations loosened or rescinded legal regulations, privatized state-owned industries, liberalized financial markets and relaxed or abolished protectionism.

Related Subject(s): Environment and Climate Change