By 1987, the Conservatives under Thatcher's leadership had won their third successive election victory over a divided opposition and enjoyed a degree of political and ideological dominance that led many commentators to speak of the end of the socialist era and the emergence of a new consensus in Britain. A new word—Thatcherism—had entered the political lexicon. It has come to signify a broad-ranging and distinctive program aimed at promoting economic recovery through the privatization of public enterprise and restoring the authority of the state. The Free Economy and the Strong State explores the roots of Thatcherism and its relationship to the Conservative tradition, to the economic liberal ideology of the New Right, and to the "new politics" which emerged from the recession and crisis of the world order in the mid 1970s.

Savoie considers the war of reform waged by the leaders of these major industrial countries. Reagan declared that he had come to Washington to “drain the swamp” of bureaucracy, and set up the Grace Commission to investigate the operation of the U.S. government. Thatcher and Mulroney were equally committed to reform and initiated wide-ranging changes. By the end of the 1990s, the changes were dramatic. Many governments operations had been privatized in all three countries, and new management techniques had been introduced. In Great Britain, one observer judged that the changes were historically as important as the collapse of Keynesian economics.
 
Is government now better in these countries, and was political leadership right in focusing on management of the bureaucracy as the villain? Savoie suggests that the reforms overlooked problems now urgently requiring attention and, at the same time, attempted to address non-existent problems. He combines theory and research based on sixty-two interviews, nearly all with members of the executive branch of the governments of Britain, Canada and the United States.