Theresa May is right to argue for greater state intervention when it comes to housebuilding—even if it puts her at odds with the Theresa May of only nine months agoby Sam Moore / March 5, 2018 / Leave a comment
I think, if you asked Theresa May last year what she thought defined modern Conservative politics, she would have said that it’s a belief in the free market. In her conference speech last year, she went so far as to call it “the greatest agent of collective human progress ever made.”
However, Theresa May seems to be the next in a long line of people to refute Fukuyma’s idea that history is over, and that liberal democracies with market economies are the end point of civilisation. In her housing speech on Monday, the Prime Minister said the fact bonuses are paid to developers “not on the number of homes they build” but on profits “creates a perverse incentive.”
This perverse incentive, tied to maximising shareholder value, is one of the cornerstones of the modern Anglo-American form of capitalism. Yet housing has become too big an issue for even the most hardline free marketer to ignore.