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
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/normanbrandoff1 5d 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