The invincible Mrs. Thatcher

Much more than any other modern British politician—particularly Conservative politicians accustomed to swimming against a leftish cultural tide—Margaret Thatcher fought, and Margaret Thatcher won. Her victory was so great that it changed her political opponents—the Labour Party—as much as it changed her own party. Her defeat of the left made Tony Blair possible. And today, with David Cameron having finally led the Conservatives back to No. 10 Downing Street and wrestling with a massive inherited government deficit, as Mrs. Thatcher did 30 years earlier, all the old debates have become relevant once more.

As well as elections, Margaret Thatcher won wars. When Argentina invaded the British colony of the Falkland Islands, in the South Atlantic, in April 1982, she sent a task force of 27,000 across the world and recaptured them by June. As the force set sail, she paraphrased Queen Victoria: “Failure—the possibilities do not exist!” With Ronald Reagan in the White House for most of her time as prime minister, she was able to re-forge a mighty defensive alliance that outpaced the Soviet Union and hastened the end of the Cold War. After Saddam Hussein invaded Kuwait, in September 1990, she attended a conference with Reagan’s successor, George H. W. Bush, who was undecided about how best to act. She told him, “Look, George, this is no time to go wobbly!”

Perhaps more important still, she won the big arguments. She argued that inflation was a disease of money that could be cured by controlling the growth of the money supply alone, without suppressing incomes. During her premiership, inflation fell from a high of 27 percent in 1975 to 2.5 percent by 1986. She believed that the political power of British labor unions had strangled enterprise and placed the country at the mercy of unelected barons. When she removed the legal immunities that protected unions from the financial consequences of their actions and overcame a yearlong strike organized by the hard-left leadership of the coal miners’ union, the employee days lost to strikes each year fell from 29.5 million in 1979 to 1.9 million in 1986. She said that taxes were too high and brought the top rate down from 98 percent to 40 percent. She declared that the state should not be running British business and led the world in “privatization”—a word she found ugly but a concept she loved—selling off airlines, airports, utilities, and phone and oil companies to the private sector. In every case, her critics said that it could not be done. Yet, for better and for worse, she did it.