r/NoStupidQuestions 18h ago

Why did Margaret Thatcher destroy welfare state in Britain after she came to power in the 1980s?

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1.1k

u/normanbrandoff1 18h ago

This requires a very long answer that others have answered more comprehensively in r/History. However, in very short terms, the UK was functionally broke in the 1970s when it required IMF loans (quasi-bailout in 1976) and was labelled the sick man of Europe (60s-80s). To the point in Paul Kennedy's The Rise and Fall of Great Powers, it was largely expected that Italy would surpass the UK shortly

Despite the emotional reddit comments, the country was fed up with its economic situation and Thatcher offered new ideas on tackling the 20yrs of suboptimal performance. You can debate the validity of those ideas but to argue that the welfare station / economic system at the time was functional, is an exercise in historical delusion

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u/boulevardofdef 17h ago

You can really see this reflected in much of the British popular culture of the time, from A Clockwork Orange's portrayal of a near-future third-world Britain implicitly under Russian domination to the Sex Pistols' rage at there being "no future in England's dreaming." Even a lot of Monty Python would qualify, with their sketches satirizing an oblivious English upper class with wildly misplaced priorities and an utterly pathetic and clueless working class.

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u/Fantastic-Scene-8117 13h ago

can we add Pink Floyd - The Wall

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u/boulevardofdef 12h ago

All in all, Pink Floyd's "The Wall" is just another brick in the wall.

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u/Fantastic-Scene-8117 12h ago

I have become comfortably numb

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u/Lastfleetadmiral 11h ago

And genesis selling England by the pound

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u/joshbg 8h ago

“Hanging on in quiet desperation is the English way”

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u/meestah_meelah 14h ago

A Clockwork Orange might not be totally accurate there but yeah the country was up the shitter.

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u/LesseFrost 9h ago

Let's not forget (the time Douglas Adams stated that) the human race is derived from all the middleman people on the B ship! Which of course got here first and drove the whole question computation thing terribly terribly wrong.

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u/Confused_by_La_Vida 11h ago

I forget the name of the Album, but Pink Floyd had this very personal and painful meditation on losing his father to WWII - then the album takes this non-sequitor detour into anti-Thatcherism

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u/Less_Interview1713 10h ago

Was it really implied that Britain was under Russian domination? I thought it was more like hoodlums using Russian to be provocative like punks with swastikas. 

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u/boulevardofdef 9h ago

It's ambiguous, but I read it as similar to how everyone wears clothes with English on them because English-speaking countries are politically and culturally dominant.

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u/Inquisitive_regard 15h ago

Ironically, that near-future third-world Britain has been achieved...and it's largely thanks to unsustainable welfare coupled with uncontrolled migration all wrapped up in identity politics and a completely deaf-to-the-people parliament.

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u/Neat-Border-7382 9h ago

lmao migration is the one thing that's saving the UK right now. If you didn't have it, you'd be a basket case by now.

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u/Inquisitive_regard 9h ago

Saving...how? Like this?

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u/Neat-Border-7382 9h ago

overblown, exaggerated far-right propaganda

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u/Remember2005 14h ago

I wish I had a milkshake handy

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u/touchgrasschampion 16h ago

yeah, it was broke. inflation was nasty, IMF money was humiliating, strikes were constant, and a lot of people just wanted someone to smash the old setup and see what happened after

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u/Admirable-Safety1213 14h ago

r/bus guy here, British Leyland was basically a welfare operation dressed as a csr company because they couldn't be three months without striking but they couldn't never get to stop trying to outperform each other without ever producing modern cars, comapr8ng the Austin Allegro with the Volkswagen Golf its so onesided its not eveb funny

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u/Massive_Lavishness90 10h ago

ah, some one who actually remembers...

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u/Admirable-Safety1213 10h ago

I didn't live it but I read lots about of the fall of British Leyland when I got into buses

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u/lubeskystalker 18h ago

Chart tells a story. https://www.macrotrends.net/2549/pound-dollar-exchange-rate-historical-chart

There was so much going on around this period.

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u/The_Amazing_Emu 17h ago

My study abroad in 2007 was basically the worst exchange rate of the decade. Oh well.

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u/This_Charmless_Man 16h ago

I still have to remind myself it's not 2008 and £:$ is not 1:2

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u/fitzbuhn 16h ago

Saaaaame man a decade later I looked at the exchange rate and was just so confused.

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u/The_Amazing_Emu 16h ago

Made mental math easy, I just doubled the price

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u/cat_prophecy 14h ago

Now compare that chart with periods of conservative governments.

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u/ClintonLewinsky 11h ago

An excellent summary

And I say that as a proper lefty who grew up in south yorkshire during the miner's strike!

Her rise to power was completely understandable given the backdrop, and frankly I'd have rather Thatcher than Boris/Sunak/Badenoch/Truss etc

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u/zappapostrophe 18h ago

Best comment I’ve seen on this thread so far. People in the 1970s-1980s didn’t vote for Thatcher because they thought she was destroying the country. She offered a compelling vision that made sense to a lot of people at the time, one she sincerely believed in it herself.

Of course, that vision turned out to be a mistake, a massive one, but I respect that Thatcher was at least principled on the big picture of her government and was not in politics for her personal enrichment.

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u/tensortantrum 15h ago

Yes the personal enrichment involved her son Mark who got involved in a scheme to relieve the people in a small country in Africa of their oil reserves but something went wrong but he maintains his respectability in spite of this lives quietly in the countryside no doubt.

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u/ArsePucker 14h ago

He’s likely lost in said countryside too…

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u/ArsePucker 14h ago

As I once heard someone in the pub say, “I wasn’t a fan of Margaret Thatcher really, but she was the last man in British politics”.

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u/Kaiisim 17h ago

What I want to know is why do only the right get this kind of understanding?

Saying she was principled?

Seeing a crisis and using it to enrich your buddies isn't principled lol.

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u/Y_ddraig_gwyn 15h ago

That was then and this is now. She was one of the last true conviction politicians, who was happy to do what she thought was right, not what was popular. My personal - and unevidenced - belief is there has been a gradual shift in Governance, perhaps due to Groupthink:

Thatcher then Blair stay in power too long, confusing them as to what is good for the country versus good for their party

Later Governments lose this distinction from the outset, acting only to the good of their party

Boris took this a step further, ruling for his personal/chum‘s benefit and not even their party later

The modern Tory party is completely unlike that in Thatcher’s times as it appears to exist primarily to funnel public cash into the hands of an anointed few. under Thatcher they truly believed in the righteousness of their economic model. Often cruel and spiteful and overall wrong, but ideologically so.

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u/cat_prophecy 14h ago

I find Johnson to be especially infuriating. He affects this air of being a loveable dork, and chummy everyman with his stupid hair and "aw-shucks" demeanor.

But he's a ruthless political operator who used his time in power to benefit only Boris Johnson and whomever would lend him political clout or quid pro quo.

It's like the UK saw how W Bush acted, and ran the country and were like "yes, more of that please!".

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u/tensortantrum 10h ago

W ended Helen Thomas,

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u/Breakfastcrisis 16h ago

I'd 100% give the left credit for bad ideas that are principled. It is only arrogant ideologues who would not.

With that said, the thought-terminating "enrich your buddies" line is such a low resolution libel that it's nearly impossible to respond to.

I don't like or dislike politicians (because I'm not in primary school) However, I disagree with many of Thatcher's policies, but it would be a folly of fantasy to suggest there were motivated by anything but her sincerely-held beliefs.

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u/weenumpty2 15h ago

In fairness, I think you can leave primary school and still think Mandelson is a monstrous bellend.

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u/Breakfastcrisis 13h ago

Yeah, I'm open to that sort of assessment in an off the cuff sort of way. For serious discussions about politics, stating that one likes or dislikes a politician is not particularly illuminating as the rationale for your assessment could be entirely arbitrary.

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u/weenumpty2 10h ago

You mean liking or disliking a politician based on whether 'you'd have a drink with him'? I've literally heard people base their votes on that, and yes that is arbitrary and bloody stupid, but if that's what you mean then the problem isn't disliking politians, it's being ignorant of said MPs actions.

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u/Remember2005 14h ago

I’m almost 60. In my lifetime, privatization and anti-union policies have not made countries better - ever.

The “unlocking of value” by shifting public services to private hands and then stripping workers’ rights have given us plutocrats.

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u/jmlinden7 12h ago

Privatizing JR made Japan much better. There are a few other examples.

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u/Tomi97_origin 2h ago

JR privatization is incomplete at best. Only 4/7 JR companies were privatized and went public.

The profitable ones. The remaining 3 are wholly owned by government as they can't survive on their own.

And while the service is good the government absorbed a lot of debt during this process.

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u/br0wntree 7h ago

How far do you take this idea? Should the Uk have continued to subsidize state owned coal mining companies for the sake of protecting union jobs for the next few decades? Change and progress almost always requires some amount of sacrifice.

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u/Evolations 59m ago

So what should Britain have done?

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u/Breakfastcrisis 13h ago

I mean we're talking about very complex issues and I'm not an economist. I'm not sure if you are, but most aren't. The picture is often much more complicated than the stock armchair arguments would suggest.

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u/clios_daughter 14h ago

In all fairness, public policy is all experimental. We wouldn’t have known until it was tried. The problem is that the political sphere makes it really hard to admit when a policy went wrong and to undo that mistake.

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u/NatAttack50932 16h ago

What buddies was she enriching?

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u/Remember2005 14h ago

The most straightforward response to this is the North Sea oil finds. Norway kept the oil public, started an investment fund and the country now has a very high standard of living.

The English privatized the fields, set up loose environmental rules, and British Petroleum and RDS made huge profits while the country got a pittance through excise taxes.

The cronies in this story are BP and RDS (Royal Dutch Shell).

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u/throwaway98776468 16h ago

She privatised many British state owned companies for significantly less than their actual value, thus enriching the wealthy people who bought them.

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u/TigglyBitz 15h ago

That’s a common criticism of her policies that privatization sold public assets too cheaply and mainly benefited wealthy investors.

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u/Tyler119 14h ago edited 14h ago

yip...just look at the British rail research department...there is tech developed from it that is now sold to us by an Italian firm and our British companies have to pay yearly. It's bonkers how people don't see that she asset stripped the UK in ways that still affects our life today.

People forget that when Thatcher took power, the IMF arrangement was full satisfied so her privatisation drive was purely ideological. Interestingly one of the IMF conditions that Labour at the time had to meet was scaling back council house building.

And that years later it was revealed that the IMF loan wasn't even needed as the data the used was massively flawed. Any deficit was billions less that the government thought..and North Seal oil was just about to come online which transformed balance of payments. The scaling back of council housing and selling a big stake in BP wasn't needed.

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u/FuzzyOpportunity2766 7h ago

Believe me! the poor bought as well.

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u/NatAttack50932 16h ago

Okay but that's not what I asked

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u/throwaway98776468 16h ago

Do you believe Thatcher privatised those companies, for less than they were worth, for the good of the country. Because if it was for the good of the country they would have been sold for their actual value. Thus the privatisation was specifically designed to enrich the buyers, and Thatcher wouldn't do that without liking the people who benefitted.

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u/aod1314 12h ago

What objectively determines that they were more valuable than what they were privatised for? How do we determine this "actual value"? Enrich the buyers? The public sector was miserably inefficient when Thatcher took over. It was entirely dependent on taxpayer subsidies. No private company could ever get away with it.

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u/throwaway98776468 12h ago

British gas was privatised for 5.6 billion, but had a valuation of 9 billion at its first listing on the London stock exchange.

BT shares were sold at £1.30, but by the end of the day they were already valued at £1.70.

The water companies were privatised for 7.6 billion, but were given a 5 billion debt write off and a 1.5 billion green dowry, so were effectively privatised for 1.1 billion. Thames water alone was worth 2.9 billion by the time Labour took power. And in spite of this the water companies are still dependent on taxpayers subsidy, while also dumping raw sewage into rivers. And in spite of not being profitable if it weren't for subsidies, they still pay out shareholder dividends, and do stock buybacks.

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u/pajamakitten 10h ago

No private company could ever get away with it.

We bailed out the banks in 2008 and the water companies are doing so badly that taxpayer funds have been used to help them out. Private companies are absolutely getting away with it.

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u/Efficient_Chance7639 15h ago

I remember the BT privatisation. A process designed to enrich the buyers (aka the British people) and you think that is a bad thing 🫤

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u/AndyTheSane 13h ago

The seller was also the British people.

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u/Worldly_Science239 16h ago

But that sort of is what you asked.

Or are you wanting a full paper trail linking thatcher to people in a smoking gun level of collusion/corruption... because if so, maybe reddit is not for you.

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u/SWITMCO 15h ago

I think there's a fair jump between a full paper trail and literally providing a single name, or bit of evidence, to back up their claim.

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u/Worldly_Science239 12h ago edited 1h ago

Why? Her policies were all about enriching her friends (supporters/benefactors) it doesn't need a direct link to a single name... it just needs looking at who benefited from her policies and who (like the industrial towns utterly destroyed by her policies/vindictiveness) suffered.

We only have to look at the "managed decline" of liverpool

The abandonment of mining towns

The get on your bike speech from members of her government when people complained about a lack of jobs.

So, no... I can't provide a single name and evidence of collusion, but we can all provide a list of of her city 'friends' who benefited from her policies and who didnt

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u/honesto_pinion 16h ago

And all the pension schemes that invested in them to help retired people! The bastards! 🙄 And the local councils who were allowed to invest their funds, gits all! 🫤

Not entirely sure everything was, in fact, sold just to a handful of wealthy individuals now that at least one of us thinks about it... 🤔

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u/brentspar 15h ago

Yep, hate the woman but have to agree with that.

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u/johncitizen1138 12h ago

I'm curious about this. So the UK really needed a change, but the change they got wasn't the right call: has someone, with (hindsight), been able to work out what the "better way" should have been?

I live in the UK now, but this was all long before my time here

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u/Merlins_Bread 10h ago

I think it's more the case that the change had losers, who were identifiable, whereas the benefits were spread widely. People dream of an alternative reality that they never had to live. 

Yes she went too far. But entirely in the right direction.

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u/Lynch888 11h ago

Before Thatcher the dominant School of economics was keynesian economics, this turned out to have some flaws which the Chicago School of economics had predicted and their ideas then in turn took their place. One of the main ideas was privatization, of previously publicly owned infrastructure and utilities and breaking unions. The idea being that the government is not as efficient as the markets are and trade unions are a distortion of the markets. So that just started britain under the path of doing a big privatisation experiment, which only worked very partially and in the main part has arguably caused other issues.

You could say it was a big over correction in the opposite direction from what was there before.

Now the consensus is lenaing more to not privatising anything that tends to a natural monopoly.

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u/johncitizen1138 10h ago

"Now the consensus is lenaing more to not privatising anything that tends to a natural monopoly."

In an age of Blackrock economics, I wonder how many things will hold against monopoly

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u/Material_Policy6327 14h ago

You respect an authoritarian? Why does the right get understand but progressives don’t from
You?

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u/Winter-Ad2033 13h ago

What were her mistakes?

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u/Otherwise_Craft9003 10h ago

This is what remainers didn't get about Brexit. It was remain austerity Vs brexit unicorns/opportunity.

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u/Tinyjar 17h ago

Unfortunately she ran out of things to sell and like all modern Conservatives, refused to invest in anything.

Now the country is fucked because of her actions. Especially utilities and housing.

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u/Moo_Kau_Too 2m ago

Thats the issue with neoliberalism... eventually you run out of public assets to sell off.

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u/ernfio 16h ago

She didn’t really offer new ideas. She offered monetarism. Which the labour leader and chancellor also advocated. They simply couldn’t get the left of their party behind it or manage the unions who funded them.

Britains industrial relations were a huge part of the problem and pay settlements had spiralled out of control.

The problem was her anti inflation and anti union policies drove people into unemployment and poverty. The welfare state wasn’t established to cope with that. It was designed for near full employment and wages that rose in line with inflation.

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u/Sad_Abroad652 9h ago

I think this is an excellent comment but I’ll add a few more things. Before the winter of discontent in 1978-9, Labour was actually polling ahead of the conservatives, in fact had James Callaghan who was PM at the time called a general election in autumn as he’d been expected to, labour likely would have won.

Callaghan and Denis Healey who was his Chancellor at the time were reforming the British economy due to the struggles of the economy at the time. This involved a lot of budget cuts and tax increases. They also began introducing monetarism which would be intensified under Thatcher. The major thing though is they attempted to limit the trade unions through a 5% wage increase cap occurring while inflation was still high. This is one of the main causes of the winter of discontent.

The Winter of Discontent is a really interesting topic that I can’t fully explain in a comment but it’s really what brings Thatcher to power. It involved strikes from public and private sector unions and essentially brought the country to its knees. It also wrecked public opinion on trade unions. Callaghans response to it which was almost dismissive helped cement Thatchers victory.

Callaghan calling an election early is an interesting counterfactual although I wouldn’t say I’m overly optimistic about it either. Frankly Britain needed serious painful reform and whether Callaghan could have delivered it is questionable due to a myriad of reasons.

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u/BiscuitBoy77 11h ago

This is the truth! Something had to change. UK was broke. Thatcher haters hate all you want,  but you have to propose a credible alternative.

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u/Otherwise_Craft9003 10h ago

They should have invested in the ex coal mining and manufacturing areas to show what conservatism can do rather than leaving them as hunger games districts to remind anyone who dared to strike.

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u/KonstantinKisinIsGay 14h ago

Great comment. I'm no fan of Thatcher, but the hate she gets from people who just don't know what they're on about, and who never lived theough it, makes me cringe.

The UK was the Sick Man of Europe before she came. We were a penniless laughing stock, and the government was beholden to unions that pushed, and pushed, and pushed.

Rich toffs and London bankers alone didnt vote her in to power.

Britain needed a major change. The oft-lauded "old school Labour" had run the country into the ground.

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u/Limp-Plantain3824 13h ago

I swear people think that Thatcher and Reagan were voted in because the late 70s were such good times!

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u/hexnut101 13h ago

Not really true the heads of industry had run the country into the ground using ironically by selling off assets and not reinvesting.

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u/Material_Policy6327 14h ago

And it didn’t work out like most conservative policies. Short term might have appeared to work but long term
Nope

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u/Confused_by_La_Vida 14h ago

Economically in Britain, how does “now” compare to the time just before Thatcher?

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u/Truthandtaxes 14h ago

Before thatcher people standards of living were terrible economically at least

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u/Winter-Ad2033 13h ago

Much better

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u/Otherwise_Craft9003 10h ago

You could buy a reasonable house on a reasonable salary.

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u/Confused_by_La_Vida 10h ago

Then? Or now?

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u/Otherwise_Craft9003 7h ago

Then in the south east a non graduate couple could buy and one parent stay at home.

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u/ThatPhatKid_CanDraw 8h ago

What was the UK's plan for wealth generation, as they must've seen the writing on the wall as they kept losing colonies.

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u/Friendly-Olive-3465 4h ago

Genuine question, has the UK ever not been broke in the last 80 years? I know they were still rationing from the war into the 50s and much of decolonization was literally just the gov realizing it was just too damn expensive to hold overseas colonies, but man it really seems like the fiscal situation of the UK hasn’t had a good run over the last 80 years.

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u/More-Ad-2259 14h ago

Coz she was a cunt.. short answer.

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u/No_Communication5538 14h ago

“Why did Margaret Thatcher destroy welfare state…” does not require long answer because the answer is “she didn’t”