ABSTRACT
Informed by the experiences of the 1920s and ‘30s, post-1945 UK governments of both the left and right shared a consensus that capitalism had to be managed so as to avoid the damaging effects of periods of economic boom and bust. Through increased business regulation and the exercise of public ownership of certain industries, plus progressive taxation levels and greater social equality, the welfare state was created. All that came to an end with the election of pro-ruling elite governments in the UK and the United States. Informed by the economists of the Chicago School and the pressure from the ruling elite, a programme of economic policies was introduced that became known as neoliberalism. Tax rates for the superrich and large companies were slashed. Trade unions’ abilities to organise workers and resist impoverishing initiatives were seriously restricted. At the same time, welfare benefits have been eviscerated, and rates of adult and child poverty have increased. Hospitality managers need to understand these shifts in ideology as representing different interests within society, which impact on the lives of customers and employees as well shaping the political, economic and social environment in which they themselves live.
