Thatcher

Several people have said on here what a wonderful leader Thatcher was. Yet to me looking from afar she was a disaster for Britain.

Thatcher solved certain problems – high inflation, time lost to strikes, poor manufacturing productivity, but also created new problems. – Mass unemployment, rising inequality and a more fragmented society. It is also ironic that she came to power promising to solve inflation, but left power with an unnecessary inflationary boom, which led to another unnecessary recession of 1991. Other failures as a result of the Thatcher years:

• The 1980s saw a return of mass unemployment – levels not seen since the 1930s.
• Two recessions were caused by deliberate policies. Although inflation needed controlling in 1980, arguably the government deflated the economy too much – chasing money supply targets which were unreliable. The cost was unemployment and social disorder, which need not have been so deep.
• Growth in north-south divide and regional inequality. Unemployment particularly affected former industrial areas; the government were slow to help deal with problems of structural unemployment.
• The government deliberately allowed a boom and bust which caused an unnecessary and painful recession of 1991. For all Mrs Thatcher’s claims to see the importance of keeping inflation low. It was ironic; the government made such a mistake in allowing an inflationary bubble in the late 1980s. Part of the reason is that they really felt they had created a supply side miracle – which hadn’t actually occurred.
• The rise in home-ownership was good for those who could buy but has increased wealth inequality in the UK. The supply of council homes is now at record lows because many were sold off.
• A Large rise in inequality during the 1980s.
• Financial deregulation of the 1980s laid the framework for credit bubble of 2000s and subsequent credit crisis. For example, privatized building societies like Northern Rock, and Bradford & Bingley pursued risky growth strategies which eventually needed government bailouts in the aftermath of the 2008 recession. Financial deregulation was good for some, but arguably created greater financial instability in the long-term.
• Thatcher reduced the power of trades unions, but arguably at the cost of alienating many working class because of the fierce nature of her conflict.
• Privatisation involved selling off state assets at an undervalued price. Many who could afford to buy shares, saw immediate gains. This was politically popular, but another missed opportunity to use nations resources to invest in the future.
• Thatcher made little attempt to deal with environmental issues during a decade of increased concerns over global warming, pollution and environmental degradation.

At the same time, in Australia, the Hawke/Keating Government negotiated a pact with the Trade Unions called "The Prices and Incomes Accord" which led the way to major economic and industrial reform and benefits including

• The first Accord secured for all workers a 4.3% pay rise (September 1983), a 4.1% pay rise (April 1984), and a deferred 2.6% pay rise over the initial 3-year period
• Improvements in family payments and child care, and the introduction of Medicare.
• Unemployment also fell from over 10% (in the 2nd quarter of 1983) to just under 8%.
• The establishment of the Economic Planning Advisory council.
• The introduction of the Tripartite Australian manufacturing council, together with other industry councils.
• The introduction of a National Occupational Health and Safety Commission.
• Increases in family income supplements for low-income families.
• Targeted tax cuts for low-income and middle-income workers.
• The introduction of various tax avoidance measures.
• Increased pensions and unemployment benefits.
• The fastest employment and economic growth in the OECD.
• The introduction of various steel and vehicle industry plans.
• Pay rises of 3.8% (November 1985) and 2.3% (1 July 1986).
• The introduction of 3% award superannuation.
• Cut to the top personal tax rate from 60 cents to 47 cents in the dollar.

Australia has not had a recession since that time. The difference in attitude and outcome between the two countries is staggering which is why it astounds me that Thatcher is even liked at all never mind highly regarded.

Re: Thatcher

Don't get me wrong I hated her vision for uk with a passion but she was a conviction politician and I always admire anyone like that. No one since has had a real plan.

She destroyed various industries and social housing. Then said everyone was responsible for themselves. The two couldn't compute in my head, take away work and housing but then blame people for not being able to cope.

I can't hate her, she was doing what she thought best that just didn't match what I think is right but she was doing what she did because she believed it.

Looking at pms since we've never had anyone with a vision like that they seem to react instead of making things happen.

Re: Thatcher

I don't agree Julie darlin' - Thatcher (phth, phth, phth) was an evil, spiteful witch of the first order!!!

Re: Thatcher

I think for most of us, we look back on Thatcher as being the last Prime Minister who put Britain first. Don't get me wrong, I was not a fan of hers at the time but having witnessed the succession of Lily Livered, gas filled pillocks that followed, she wasn't that bad.

Re: Thatcher

The trouble with basing opinions on Internet economics for students is you get completely the wrong impression. For those of us who lived through her premiership, as workers in the private sector being held to ransom by workers in the public sector and public sector unions she was a godsend. I certainly don't propose to go through all the post singling out individual paragraphs but most of it is inaccurate.

I think to compare the UK at that time with Australia is comparing chalk and cheese. With the UK you have a crowded country who in recent times fought two world wars from which it took a long while to recover. A country whose coalmines were no longer economical, who was in the process of modernising many of our traditional industries such as iron and steel and car manufacturing. A country trying to compete with foreign imports which were considerably cheaper and better quality than our own products.

Compared to Australia, a new sparsely populated country who don't have the encumbering baggage of outdated industries to modernise.. A country who have the space to grow and infinite supplies of raw materials and resources which were only just beginning to be exploited and are in demand the world over. It is only natural that Australia should be able to introduce modern reforms more easily than the UK and have the funding to back them.
I think if you're going start to compare countries, then they should be countries of similar standing, the only thing we have in common, particularly these days, with Australia is the English language.

Re: Thatcher

This country is not "crowded", only 7% is inhabited. Therefore 93% is rural. It is a total myth about this country being full, perpetrated by the tabloid media.

Re: Thatcher

A brilliant piece of writing Bruce....You have managed to take a couple of mistakes by Mrs Thatcher and spread them over several paragraphs which more or less say the same thing but in different ways.

There is not a prime minister past or present who could not attract criticism in retrospect.

CC...The area of land afforded by any country does not have a bearing on the size of the sustainable population. Of the 93% some is mountainous, some lies on flood plains, and some is required to grow crops to feed the population. Where would you suggest we obtain our food from? Perhaps reliance on the French or Germans?

Schools, Hospitals and Industry also takes up it's fair share of land providing jobs for that same population. Roads and Railways are the arteries of any country improving the movement of goods and people.

A country is described as 'Full' when utilities and services have not kept up with the swift increase in the population over the last twenty years. Try making an appointment at your local surgery or hospital to realise that there are more people than we can comfortably cope with. It's no good inviting ten people to stay at your house if you have only three bedrooms....

Re: Thatcher

Well put OGF.

Re: Thatcher

Thatcher's Achievements

https://www.jonathanlea.net/2013/mar...-achievements/

Falklands War

Right To Buy Scheme

Supply Side Reforms and Entrepreneurship

Foreign Investment

Defeat Of The Trade Unions

Privatisations and Share Ownership

The End Of The Cold War

Re: Thatcher

Call those achievements?