At the age of 30, Margaret Thatcher became a Conservative member of parliament. Her first parliamentary post was junior minister for pensions in Harold Macmillan’s government From 1964 to 1970, she served in a number of positions in Edward Heath’s shadow cabinet. In 1970, she was appointed Secretary of Education. In 1974, she became the leader of the Conservative party. In 1979, under her leadership, the Conservative party came to power and M. Thatcher became prime minister. In 1983, victory in the Falklands Qar and a divided opposition contribueted to M. Thatcher’s victory in the general election. In 1987, M. Thatcher won an unprecendented thrid term in office. In 1990, she resigned to be succeeded by John Major. In 1992, she left the House of Commons and was appointed a peeress in the House of Lords. In 1995, she became a emember of the Order of the Garter. In 2002, she retired from public speaking. In 2013, she died at the age of 87. (BBC History: Margaret Thatcher, 2013)
She promoted radical conservative change known as Thatcherism She was the first woman to lead a British political party She represented a new kind of Conservative party, a new kind of Tory Her economic vision was grounded in: Her ability to lead people “where they initially did not want to go” (Thompson & Thompson, 1994, p. 5). She was renowned for her “the rock-hard conviction of her ideas” (Thompson & Thompson, 1995, p. 5) Her economic policies grounded in change to enhance stability of the existing economic system
M. Thatcher rejected compromise She strongly criticized consensus politics Her leadership style was marked by conviction and courage Conviction became her ideology and philosophy of economic change. “One of her greatest arts was the ability to crystallize and glamorize profound ideas and sell them to the voting public in terms of good and evil and as notions which are easily comprehensible” (Thompson & Thompson, 1995, p. 8).
“The Iron Lady tag was meant to be offensive and to denigrate her. Brilliantly she embraced it” (Blundell, 2008, p. 144). She said what she meant and meant what she said. She was what Britain needed – an Iron Lady. Margaret Thatcher “spoke truths” (Blundell, 2008, p. 218) She wanted economic change to establish Society of individual men and women and their families. She wanted to free the British economy In her words, “To cure the British disease with socialism was trying to cure leukemia with leeches” (Blundell, 2008, p. 194).
She was for privatization of state-owned industries and utilities She advocated the reform of trade unions She lowered taxes She reduced social expenditure across the board She reduced inflation She broke free of the Exchange Controls “It was liberating. The general view was that if Prime Minister Thatcher had done nothing else over the term of her Parliament it would be voted a success just because of this one reform” (Blundell, 2008, p 94). The UK abandoned all price controls M. Thatcher facilitated privatizing the commanding heights of the British economy. She utilized the “right to buy” scheme. She promoted the idea of “contracting out” of public services. She initiated the “denationalization” of major companes by moving them to private ownership (Blundell, 2008, p. 218).
Thatcher’s government encouraged tenants to by homes Council tenants were given the right to by their own homes “Some three million housing units have moved from public to private hands since 1979, changing the balance of ownership” (Blundell, 2008, p. 112) - millions of people could exercise their right to purchase their own homes instead on spending their money on paying rents - After three years, their discounts ranged from 33 percent - The balance of ownership changed from 1979 to 1997. - In 1979, privately owned homes amounted to 53 percent, whereas in 1997 privately owned homes amounted to 71 percent. - In 1979, public owned homes amounted to 37 percent, whereas in 1997 public owned homes drecreased to 17 percent (Blundell, 2008, p. 112).
(i) Thatcher tackled the practice of picketing: secondary picketing became illegal; (ii) She proposed to give more rights to individual workers; (iii) She proposed to halt the pressure by widening use of secret and postal ballots for all major union decisions. She comprehended the link between the monopoly nationalized industries and union power. She knew that the British trade unions were “pay-masters of the Labour Party” (Blundell, 2008, p. 129). She wanted to bring the British trade unions back within the Rule of Law.
1. Foundations of Thatcherism were established: 1979 -1983. 2. The “pinnacles of Thatcherism”: 1983 -1987. 3. The downfall of Thatcherism: 1987 -1990. Phase 1: Thatcherism proposed cabinet control, home ownership, privatization, trades union control, and the monetarist economy. Phase 2: British Telecom (1984) and Airwats (1987) were sold to private investors within the ideological framework of a share-owning democracy. The process was challenged by the miner’s strike (1984) and the Westland helicopter affair (1985). Phase 3: There began steady economic growth. The Poll Tax proposal in 1990 and Thatcher’s Euro-sceptic stance put an end to Thatcherism (Falshaw, 2004).
Thatcherism broke with Conservative traditions. Thatcherism prescribed change. Thatcher’s style was confrontational Thatcher was a political and social outsider. Thatcher’s view of the world is narrow Legacy of Thatcher’s reforms was questioned She undermined the economic links with the European Union She hated socialism She served the interests of the rich
Thatcherism raised Britain’s status in the world. Thatcherism halted the march of state authority and influence. Thatcherism brought our change Thatcherism showed that the UK was capable of promoting economic change Thatcherism implemented change by halting the march of state authority and influence. “Thatcherism may have beguiled more than it benefited, but it certainly changed things” (Evans, 2004, p. 112). .
Thatcher’s government was responsible for the economic depression of 1980 -1981. She had enemies within the Conservative Party who wanted to get rid of her. Thatcher’s preferences of US links over European ones. Thatcher’s government was responsible for the economic crisis of 1980 -1981. “She honoured the conventions of Cabinet government more in the breach than in the observance” (Evans, 2004, p. 114).
Conservative reforms evolved and became coherent over time, in particular under the Conservaties’ strategy implemented by John Major. Class compromises and institutional factors enabled Thatcherism to emerge. Thatcherism is not a uni-dimensional phenomenon but a diverse and complex Thatcherite project. Thatcherism is the product of both structural and intentional factors. Thatcherism’s exceptionalism is influenced by the domestic and external contexts (Kerr, 2001, p. 32)
Opinion 1: The Thatcherite project articulated an alternative to “common sense” ethos (Hall, Hay, O’Shea, Philips). Opinion 2: The Thatcherite project was a response to crises in capitalist profitability (Jessop, Overbeek, Taylor). In Kerr’s view, there were two main responses to the Thatcherite project: 1) an alternative to “common sense” ethos; 2) an international response to crises in capitalist profitability. “A central feature of the rhetoric of Thatcherism was its powerful adherence to the idea that the Conservatives had come to power with an informed blueprint for an extensive overhaul of the institutional practices responsible for Britain's long-term political and economic decline” (Kerr, 2001, p. 20). .
A reduction in the rate of income tax A substantial increase in the rate of value added tax Implementation of deflationary economic policies Control of inflation and privatization Thatcherism intensified the liberalization of the financial sector Temporarily fixed the economy Facts Before Thatcher, the owners of firms felt confident to invest: in real terms, capital investment grew by 4. 6 per cent a year before her reforms and only 2. 6 per cent afterwards. Unemployment averaged 2. 3 per cent a year before reform and after 1976 rose to average 7. 7 per cent a year. In terms of the public finances, public debt measured as a share of GDP fell by an average of 5 percentage points a year in the period before Thatcherism. It rose by 1. 3 percentage points per year in the period afterwards. (Source: Thatcher’s Economic Legacy, 2013, np)
Free markets Free trade Competition Low tax A small state Thatcherism utilized the traditional liberal economic agenda: No to excessive government spending and taxation, excessive power of the British trade unions and lax financial discipline Yes to crude monetarism (abandoned in the mid 1980 s) Yes to free markets and trade, and lower taxes Thatcherism brought the upset to the existing order (Bootle, 2013)
Increases in product market competition through the withdrawal of industrial subsidies Competition in privatised sectors with independent regulators A strengthening of competition policy Increases in labour market flexibility Increases in work benefits A sustained expansion of the higher education system A faster increase in the share of working age adults with university degree in the UK than in France, Germany, and the US
HOUSING: The Right to Buy with discounts up to 70 percent Outcomes: The property available was sold without building new houses The result: Homeless people became visible Thousands of families were not able to pay the mortgage Today, a third of the council properties are owned by landlords The reform of housing failed: Today, in big cities there is no alternative but to rent
PRIVATIZATION: British Telecom, British Gas, British Aerospace, Jaguar, British Steel, British Petroleum, Rolls Royce, British Airways and the water and electricity companies were all sold off. Legacy: redistribution of public money into private hands FACT: By 2010, only 10 percent of shares were owned by UK individuals, so it was the wealthy who have gained from Thatcher’s privatization. . Unemployment: doubled during the era of Thatcherism (three million people) Facts: In 1979, one in seven children were living in poverty in 1997, one in three children were living in poverty
Thatcherism is a historical period whose reforms have not brought about effective outcomes. Thatcher’s reforms declared that the country needs drastic economic reforms. Thatcherism liberated the markets without enhancing stability and hope. Thatcherism showed that real change can be within the framework of culture of change. Thatcherism increased inequity and inequalities within the British society.
1. BBC History: Margaret Thatcher, 2013. Retrieved from http: //www. bbc. co. uk/history/people/margaret_thatcher 2. Blundell, J. (2008). Margaret Thatcher: A Portrait of the Iron Lady. NY: Algora. 3. Bootle, R. (April 8, 2013). Margater Thatcher: the economic achievements and legacy of Thatcherism. Telegraph. Retrieved from http: //www. telegraph. co. uk/news/politics/margaretthatcher/9979362/Margaret-Thatcher-the-economic-achievementsand-legacy-of-Thatcherism. html 4. Evans, E. J. (2004). Thatcher and Thatcherism. L. : Routledge. 5. Falshaw, E. (2004). Britain 1979 -1997: Edward Falshaw Completes His Survey of Questions on Contemporary Britain. History Review. Issue, 49: 42+. Retrieved from http: //www. questia. com/read/1 G 1128205757/britain-1979 -1997 -edward-falshaw-completes-his-survey 6. Kerr, P. (2001). Postwar British Politics: From Conflict to Consensus. L. : Routledge. Thatcher’s Economic Legacy (2013). Retrieved from http: //www. newstatesman. com/business/2013/04/thatcherseconomic-legacy 7. Thompson, J. S. & Thompson, W. C. (Eds. ) (1994). Margaret Thatcher: Prime Minister Indomitable. Boulder, CO: Westview Press.
