Essay: Thatcher’s economic and global successes

During the 1960s and 70s it is clear that Britain was faced by one key factor, post-war decline, this is argued as a result of Britain’s lack of membership in the EEC and a growing Europe. The Wilson and Heath governments both struggled immensely to tackle a declining Britain, causing a “Harder Christmas than we have known since the War” in 1973 and the ‘Winter of Discontent’ in 1979. It was clear that Britain was a declining world power and had been since the 1956 Suez crisis. Evaluating the Britain obtained by Thatcher and the Britain left by Thatcher we can see a significant difference in the declining world power inherited from James Callaghan, but did she do any good for Britain? It is argued by some that Thatcher’s influence in Britain was deeply damaging and resulted in social and economic implications for many years, whereas others argue her influence stopped a post-war declining Britain and brought back international status . This essay will validate  “Success/ successful policy” through achieved manifesto and parliamentary aim and will conclude, whilst her policies were damaging, looking at the state of Britain by the early 1980s her tough removal of anything weak was necessary in order for Britain to regain its status economically and internationally.
So what did Thatcher do for Britain? Some argue she saved Britain’s world status. Ever since the disaster of the 1956 Suez crisis and decolonisation, Britain’s world presence significantly fell. Losing their influence over continents and falling behind competing European countries Britain fell into decline and was unable to compete with their German and Japanese competitors. “Virtually all European countries, except for Britain, had so-called ‘economic miracles’. Britain was often described as the ‘sick man of Europe’. The targets for blame included: failure to invest in new plant and machinery; restrictive working practices and outdated attitudes on the shop floor (‘us and them’); amateurish management; loss of markets; and rise of competition.” Kavanagh(BBC History 2011). One of Thatchers most widely accepted achievements was her victory in the Falklands War. Being Britain’s first victory since 1945 the Falklands war regained world presence and recognised strength. Thatcher became and internationally recognised stateswoman bringing international power back to Britain removing the reputation held after the 1956 Suez Crisis.  Thatcher’s time in office also gained significant presence for Britain in the EEC negotiating rebate in 1988, signing the single Europeans act and maintaining a stronger presence. In regards to world status Thatcher strengthened the special relationship with America with her strong connection to Ronald Reagan and their shared capitalist ideologies. This allowed her to help lead to negotiations with Gorbachev sparking the catalyst that lead to the fall of the Berlin Wall in 1989.
By Thatcher’s time trade union power had grown to an extent that it controlled the government’s success and decisions. It can, therefore, be argued that her smashing of power and numbers was effectively inevitable and necessary. Whilst leaving miners in a compromising position, the hard and almost cruel smashing allowed Britain to modernise industrially and grow economically through more effective outputs. Her stubbornness, cruel policies and smashing the miners, unionists and weakening of the North V South divide are her legacy and what she’s most remembered for. It is argued that her ‘smashing’ was, however, necessary for Britain to grow and modernise. Before Thatcher’s premiership miners and unionists had grown so powerful they were able to hold the government to ransom. In 1973 Edward Heath introduced the three day week, symbolising the power of the TUs, inevitably becoming a major factor into his fall from power. Comparably Harold Wilson was also hindered by the power of the TUs and Miners. Following the failed In Place of Strife policy, the miners and TUs continued to influence the government, hindering the resolutions of the conflict in Northern Ireland as peace treaties were paused due to rising conflict at home become a more prioritising issue. Strike days lowered and her ‘smashing’ overall ended the trade union problem Britain had faced for over 20 years, therefore being a key success during Thatcher’s time in power.  It can, therefore, be argued that her smashing of power and numbers was effectively inevitable and necessary. Whilst leaving miners in a compromising position, the hard and almost cruel smashing allowed Britain to modernise industrially shifting to more modern scenes allowing Britain to catch up with competing countries.
Thatcher’s three election victories lead to significant changes occurring politically. Argued as a result of smart timing rather than effective leadership her election victories during the 1980s caused devastating effects for Labour, the continuous loss lead to a radical shift in party policy later forming ‘New Labour’ disregarding the traditional view for state ownership and policy under the leadership of first, Neil Kinnock and later Tony Blair. Thatcher’s election victories and removal of the post-war consensus are argued as the main cause for the invention of New Labour and their radical shift of policy, as it was necessary in order to gain back support and voters. Another way Thatcher changed politics was her disregard for the post-war consensus. Since 1945 both parties followed the main policies of the post-war consensus, commitment to full employment, acceptance of trade unions, the welfare state, a mixed economy and state intervention. By the 1980s Thatcher had thrown this policy out the window, privatising ‘lame duck’ industries such as, Rolls Royce and British Gas and introducing monetarism. Thatcher’s government smashed the grip held over the country by the public sector and government creating a better Britain for entrepreneurs to thrive, weakening regulation and cutting taxes meant businesses could thrive regenerating the economy.
Overall Thatcher’s economic and global successes froze Britain’s post-war economic fall, and whilst they weren’t met with the same effects nationwide, her policies left Britain able to recover from decline and re-grow domestically and internationally. Removal of trade union power saw the end of nationwide strikes and enabled the government to regain power. Thatcher’s election victories meant Labour re-invented themselves leading to great social advance in the 1990s. Whilst Thatcher did not better Britain during her time in power, her policies and successes meant that British government were then able to recover from decline and rebuild off the back of her failure.