Former British prime minister Margaret Thatcher, also known as “The Iron Lady,” died on Monday.
A leader whose tactics and policies were widely disputed during and after her 11-year term (the longest for any British politician), Thatcher made a lasting impact on the nation — economically, socially and culturally.
She was steadfast on her set of principles, which became known as “Thatcherism.” What exactly were those priniples? According to the New York Times they’re “the belief that economic freedom and individual liberty are interdependent, that personal responsibility and hard work are the only ways to national prosperity, and that the free-market democracies must stand firm against aggression.”
Here are three of the policies that’ll remain in her legacy:
1. Raising the tax burden.
Denying the advice of many academic economists at the time, she raised the tax burden and curtailed public sector budgets. According to the BBC, 364 of Britain’s leading economists condemned her policies in a letter to the Times, predicting a worsening slump in a recession already marked by mass unemployment. But the following eight years saw economic revival with annual growth above 3 percent.
2. Breaking labor unions.
Thatcher broke the power of the labor unions. She stood against the all-powerful National Union of Mineworkers and announced plans to shut down several plants and eliminate thousands of jobs. A violent strike by coal miners erupted. It lasted nearly a year, but ended without settlement — though with Thatcher as the clear victor.
3. “Popular Capitalism.”
Thatcher pushed hard for bringing “popular capitalism” to Britain, moving major state industries like telephones and gas supply to the private sector. The economy thrived to the point that in 1985, the Treasury announced it would not need deficit spending in the next fiscal budget.
What Thatcher didn’t change
Nonetheless, Thatcher did face a number of drawbacks.
She did not follow through with her plans to privatize the water industry or the National Health Service, and failed to revamp Social Security. Inflation rose and inflation rates remained high. Among political tensions, she resigned from office in 1990.
Margaret Thatcher"s legacy: Three things that changed for the U.K.
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