June 7, 2012
In the spring of 1981 the UK was in the early stages of a monetarist revolution linked to the economic philosophy of Milton Friedman. Keith Joseph the principal advocate of the `Chicago School’ was forced to abandon his ambition of leading the British Conservative Party after delivering a speech about cycles of depravation where the perceived feckless behaviour of the poor was held to be the key to understanding poverty. The leadership baton was handed to his feisty acolyte and former Conservative Education Minister, Margaret Thatcher, who gained fame in the 1970s, “as Maggie Thatcher Milk Snatcher”.
Mrs Thatcher became Prime Minister in May 1979. Her first words those of Saint Francis of Assisi, uttered as she entered Downing Street, sounded increasingly hollow as the inner cities went up in flames and a war ensued over the Falkland Islands invasion. Her doctrine at home was the `Resolute Approach` and abroad she earned the new nickname of `Iron Lady.’
Mrs Thatcher faced early opposition from many quarters. She confronted her first enemy within, not the political left but elements of her own cabinet a faction of `One Nation Tories’ contemptuously described as `wets.’ These liberal Tories viewed her agenda as anathema, adhering as they did to an economic orthodoxy forged in the post war consensus. However, the Conservative victory in 1979 was viewed as a mandate to overturn the Keynesian settlement to restructure the UK economy and in doing so laying waste the industrial heartlands of Britain.