the freer the market, the freer the people my arse
The 'Nightwatchman State' you envisage would be volatile as hell, divisive and almost back to the Victorian and Edwardian eras in terns of social inequalities. There is no doubt in my mind that the U.Ks trend rate of economic growth would be lower, due to their not being much in the way of supply side policies, state education leading to an untrained and occupationally immobile workforce and the NHS, which will lead to increased absenteeism due to illness and ultimately death, further reducing the workforce. I even doubt how much Aggregate Demand will increase due to massive tax cuts for the rich, as though who are on the 50% income tax rate tend to have a rather low marginal propensity to consome.
My views are somewhere between social democracy and neo-revisionism/3rd way socialism, so I am bound to disagree a lot with you view
