The Wall Street Journal
written by Paul Johnson
Monday April 8, 2013
Margaret Thatcher had more impact on the world than any woman ruler since Catherine the Great of Russia. Not only did she turn around—decisively—the British economy in the 1980s, she also saw her methods copied in more than 50 countries. "Thatcherism" was the most popular and successful way of running a country in the last quarter of the 20th century and into the 21st.
Her origins were humble. Born Oct. 13, 1925, she was the daughter of a grocer in the Lincolnshire town of Grantham. Alfred Roberts was no ordinary shopkeeper. He was prominent in local government and a man of decided economic and political views. Thatcher later claimed her views had been shaped by gurus like Karl Popper and Friedrich Hayek, but these were clearly the icing on a cake baked in her childhood by Councillor Roberts. This was a blend of Adam Smith and the Ten Commandments, the three most important elements being hard work, telling the truth, and paying bills on time.
Hard work took Miss Roberts, via a series of scholarships, to Grantham Girls' School, Somerville College, Oxford, and two degrees, in chemistry and law. She practiced in both professions, first as a research chemist, then as a barrister from 1954. By temperament she was always a scholarship girl, always avid to learn, and even when prime minister still carried in her capacious handbag a notebook in which she wrote down anything you told her that she thought memorable.
At the same time, she was intensely feminine, loved buying and wearing smart clothes, had the best head of hair in British politics and spent a fortune keeping it well dressed. At Oxford, punting on the Isis and Cherwell rivers, she could be frivolous and flirtatious, and all her life she tended to prefer handsome men to plain ones. Her husband, Denis Thatcher, whom she married in 1951 and by whom she had a son and daughter, was not exactly dashing but he was rich (oil industry), a capable businessman, a rock on which she could always lean in bad times, and a source of funny 19th-hole sayings.
Denis was amenable (or resigned) to her pursuing a political career, and in 1959 she was elected MP for Finchley, a London suburb. She was exceptionally lucky to secure this rock-solid Tory seat, so conveniently placed near Westminster and her home. She held the seat without trouble until her retirement 33 years later. Indeed, Thatcher was always accounted a lucky politician. Prime Minister Harold Macmillan soon (in 1961) gave her a junior office at Pensions, and when the Conservatives returned to power in 1970, she was fortunate to be allotted to the one seat in the cabinet reserved for a woman, secretary of state for education.
There she kept her nose clean and was lucky not to be involved in the financial and economic wreckage of the disastrous Ted Heath government. The 1970s marked the climax of Britain's postwar decline, in which "the English disease"—overweening trade-union power—was undermining the economy by strikes and inflationary wage settlements. The Boilermakers Union had already smashed the shipbuilding industry. The Amalgamated Engineers Union was crushing what was left of the car industry. The print unions were imposing growing censorship on the press. Not least, the miners union, under the Stalinist Arthur Scargill, had invented new picketing strategies that enabled them to paralyze the country wherever they chose.
Attempts at reform had led to the overthrow of the Harold Wilson Labour government in 1970, and an anti-union bill put through by Heath led to the destruction of his majority in 1974 and its replacement by another weak Wilson government that tipped the balance of power still further in the direction of the unions. The general view was that Britain was "ungovernable."
Among Tory backbenchers there was a growing feeling that Heath must go. Thatcher was one of his critics, and she encouraged the leader of her wing of the party, Keith Joseph, to stand against him. However, at the last moment Joseph's nerve failed him and he refused to run. It was in these circumstances that Thatcher, who had never seen herself as a leader, let alone prime minister, put herself forward. As a matter of courtesy, she went to Heath's office to tell him that she was putting up for his job. He did not even look up from his desk, where he was writing, merely saying: "You'll lose, you know"—a characteristic combination of bad manners and bad judgment. In fact she won handsomely, thereby beginning one of the great romantic adventures of modern British politics.
The date was 1975, and four more terrible years were to pass before Thatcher had the opportunity to achieve power and come to Britain's rescue. In the end, it was the unions themselves who put her into office by smashing up the James Callaghan Labour government in the winter of 1978-79—the so-called Winter of Discontent—enabling the Tories to win the election the following May with a comfortable majority.
Thatcher's long ministry of nearly a dozen years is often mistakenly described as ideological in tone. In fact Thatcherism was (and is) essentially pragmatic and empirical. She tackled the unions not by producing, like Heath, a single comprehensive statute but by a series of measures, each dealing with a particular abuse, such as aggressive picketing. At the same time she, and the police, prepared for trouble by a number of ingenious administrative changes allowing the country's different police forces to concentrate large and mobile columns wherever needed. Then she calmly waited, relying on the stupidity of the union leaders to fall into the trap, which they duly did.
She fought and won two pitched battles with the two strongest unions, the miners and the printers. In both cases, victory came at the cost of weeks of fighting and some loss of life. After the hard men had been vanquished, the other unions surrendered, and the new legislation was meekly accepted, no attempt being made to repeal or change it when Labour eventually returned to power. Britain was transformed from the most strike-ridden country in Europe to a place where industrial action is a rarity. The effect on the freedom of managers to run their businesses and introduce innovations was almost miraculous and has continued.
Thatcher reinforced this essential improvement by a revolutionary simplification of the tax system, reducing a score or more "bands" to two and lowering the top rates from 83% (earned income) and 98% (unearned) to the single band of 40%.
She also reduced Britain's huge and loss-making state-owned industries, nearly a third of the economy, to less than one-tenth, by her new policy of privatization—inviting the public to buy from the state industries, such as coal, steel, utilities and transport by bargain share offers. Hence loss-makers, funded from taxes, became themselves profit-making and so massive tax contributors.
This transformation was soon imitated all over the world. More important than all these specific changes, however, was the feeling Thatcher engendered that Britain was again a country where enterprise was welcomed and rewarded, where businesses small and large had the benign blessing of government, and where investors would make money.
As a result Britain was soon absorbing more than 50% of all inward investment in Europe, the British economy rose from the sixth to the fourth largest in the world, and its production per capita, having been half that of Germany's in the 1970s, became, by the early years of the 21st century, one-third higher.
The kind of services that Thatcher rendered Britain in peace were of a magnitude equal to Winston Churchill's in war. She also gave indications that she might make a notable wartime leader, too. When she first took over, her knowledge of foreign affairs was negligible. Equally, foreigners did not at first appreciate that a new and stronger hand was now in control in London. There were exceptions. Ronald Reagan, right from the start, liked what he heard of her. He indicated that he regarded her as a fellow spirit, even while still running for president, with rhetoric that was consonant with her activities.
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