Permanent high unemployment in Western Europe. Collapse of Communism basically means that the debate between intervention and laissez-faire is the only one left. Deregulation Privatization De-regulation Widespread realization that regulation mainly protects producers, not consumers, leads to deregulation of some industries. Large decline in prices due to large increase in productive efficiency. Just because the government pays for a service doesn't mean that the government has to produce it.
Government can take competitive bids from private suppliers.
Political determination of spending. Easier to privatize retailing and agriculture than manufacturing. Saving jobs and paying pensions. Welfare state without high taxes yields high inflation. Designing new and stable legal framework.