The Thatcher Years, 1979-1990

Margaret Thatcher’s first term as Prime Minister was marked by two things: a determination to bring down inflation by a rigid application of "monetarist" policy (restricting the supply of money), and a small but costly war fought against Argentina for control of the Falkland Islands in the South Atlantic.

The determination to bring down inflation whatever the short-term cost meant the death of much of Britain's traditional industry. The refusal to subsidise industry or to compromise with trade unions was the end of a long postwar consensus. It was clear from the beginning that the social cost in terms of unemployment would be high, but "fixing the fundamentals" of the economy (that is, bringing down inflation) was given priority. This was despite the Conservatives having run an election campaign in 1979 that was critical of high unemployment, with the slogan "Labour isn't working". In 1977 there were 1.3 million unemployed in Britain; by 1981 2.7 million.

In 1981 there was rioting in several major cities: in Brixton (London), Chapeltown (Leeds), Handsworth (Birmingham), Toxteth (Liverpool), and Moss Side (Manchester). In each case there was an element of racial conflict in the rioting, as well as a sense of grievance relating to unemployment and urban decay.

Victory in the Falklands meant that the social and industrial cost of monetarist economics could be overlooked by the electorate. There was also, in the early Eighties, no real political alternative: the Labour Party had fallen under the sway of a Trotskyist-infiltrated left wing, and made itself unelectable. Four senior members of the more moderate wing of the party - including Roy Jenkins - broke away to form the Social Democratic Party (SDP). In terms of policy the SDP presented an attractive alternative to the two main parties, but it lacked the party machinery and established mass base to win power. The SDP formed an electoral pact with the Liberal Party, and in 1988 the two parties merged under the name Liberal Democrats.

It was in her second term that Margaret Thatcher began to change the British economy in ways that were soon copied in other countries, by a commitment to the privatisation of state-owned companies. Together with the sale of council houses, this created a new "popular capitalism" of home ownership and share ownership. At the same time, the deregulation of financial markets meant that speculation was producing massive new wealth, and London was becoming the most active financial market in the world. A Labour government had begun the exploitation of oil fields in the North Sea in 1975, but it was Thatcher who reaped the benefit of growing revenues and a measure of energy self-sufficiency, subsidising her economic reforms.

It was during her third term that Thatcher began to lose popularity in the country, as her policies to make the rich richer came to seem equally calculated to make the poor poorer (income tax cuts, sales tax increases, the "poll tax"). At the same time, she was becoming increasingly unacceptable to other leading figures within the Conservative Party through her populist anti-Europeanism, wrecking their attempts to gain Britain a "leading role" in the European Union.

More echoes of appeasement

To conclude our round-up, here are a Boston Globe opinion piece from last May about Bush's attempt to smear Obama as an "appeaser", and a very brief overview from the Churchill Archives Centre at Cambridge University.

Recycling rhetoric

Just to indicate how "contemporary" the 1940s still are, even at the level of political rhetoric, there's an interesting piece in the Times Higher Education of 30 July 2004 which touches on the attempts of a Labour Prime Minister, Tony Blair, to clothe himself in Churchillian rhetoric, and of his Conservative predecessor, John Major, to draw on the language of George Orwell.

And of course, it's not only politicians who invoke the powerful phrases of the past:

George Formby

After spending so long this afternoon contemplating the lives and words of old boys of Eton and Harrow, here's the voice of someone who actually came from Wigan, and left school at the age of seven to be apprenticed to a jockey. In between the songs (which might not be to everybody's taste) there are very English utterances, entirely without Churchillian rhetorical flourishes, at 1 min. 45 sec. and at 4 min. 24 sec.

Mass-Observation recorded that the fantasy sequence in [the film] Let George do it (1940), in which Formby landed at Nuremberg and knocked out Hitler, was one of the biggest cultural morale-boosters of the early war years, the visual encapsulation of the people's war with the English Everyman flooring the Nazi Superman. The popularity of his character is indicated by the fact that from 1937 to 1943 inclusive Formby was the top British male star at the cinema box office, and from 1938 to 1942 the highest-paid entertainer in Britain. [...] Formby maintained his popularity through the Second World War both in films and on the ENSA [Entertainments National Service Association] tours he undertook, entertaining the troops frequently in close proximity to the front line. It was estimated that he had sung to 3 million service personnel by 1946, and in that year he was appointed OBE in recognition of his morale-boosting activities.

(From Jeffrey Richards, ‘Formby, George (1904–1961)’, Oxford Dictionary of National Biography, Oxford University Press, Sept 2004; online edn, Oct 2005)

Churchill's rhetoric of defiance

When Napoleon lay at Boulogne for a year with his flat-bottomed boats and his Grand Army, he was told by someone. “There are bitter weeds in England.” There are certainly a great many more of them since the British Expeditionary Force returned.

[...]

I have, myself, full confidence that if all do their duty, if nothing is neglected, and if the best arrangements are made, as they are being made, we shall prove ourselves once again able to defend our Island home, to ride out the storm of war, and to outlive the menace of tyranny, if necessary for years, if necessary alone. At any rate, that is what we are going to try to do. That is the resolve of His Majesty’s Government-every man of them. That is the will of Parliament and the nation. The British Empire and the French Republic, linked together in their cause and in their need, will defend to the death their native soil, aiding each other like good comrades to the utmost of their strength. Even though large tracts of Europe and many old and famous States have fallen or may fall into the grip of the Gestapo and all the odious apparatus of Nazi rule, we shall not flag or fail. We shall go on to the end, we shall fight in France, we shall fight on the seas and oceans, we shall fight with growing confidence and growing strength in the air, we shall defend our Island, whatever the cost may be, we shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender, and even if, which I do not for a moment believe, this Island or a large part of it were subjugated and starving, then our Empire beyond the seas, armed and guarded by the British Fleet, would carry on the struggle, until, in God’s good time, the New World, with all its power and might, steps forth to the rescue and the liberation of the old.

(a section of the speech dealing with home defence and fifth columnists has been omitted)

Chamberlain announces War

I am speaking to you from the cabinet room of 10 Downing St. This morning the British Ambassador in Berlin handed the German Government a final note stating that, unless we heard from them by 11 o'clock that they were prepared at once to withdraw their troops from Poland, a state of war would exist between us. I have to tell you now that no such undertaking has been received, and that consequently this country is at war with Germany.

You can imagine what a bitter blow it is to me that all my long struggle to win peace has failed. Yet I cannot believe that there is anything more, or anything different, that I could have done, and that would have been more successful. Up to the very last it would have been quite possible to have arranged a peaceful and honourable settlement between Germany and Poland. But Hitler would not have it; he had evidently made up his mind to attack Poland whatever happened. And although he now says he put forward reasonable proposals which were rejected by the Poles, that is not a true statement. The proposals were never shown to the Poles, nor to us. And though they were announced in the German broadcast on Thursday night, Hitler did not wait to hear comments on them but ordered his troops to cross the Polish frontier the next morning.

His action shows convincingly that there is no chance of expecting that this man will ever give up his practice of using force to gain his will. He can only be stopped by force, and we and France are today in fulfillment of our obligations going to the aid of Poland who is so bravely resisting this wicked and unprovoked attack upon her people. We have a clear conscience, we have done all that any country could do to establish peace, but a situation in which no word given by Germany's ruler could be trusted, and no people or country could feel itself safe, had become intolerable. And now that we have resolved to finish it, I know that you will all play your parts with calmness and courage.