The British Empire

Lesson 8: Modern Britain

The Margaret Thatcher Era

Along with most of the industrialized nations of the world, Britain entered a period of depression in the l970's. In l974, the great strike by the country's coal miners (over the government's "freeze" of wages) caused the Conservatives to lose the general election.

Bitter confrontation between unions and the government continued to escalate. A strike byLondon dock workers idled hundreds of ships and prevented British goods from being exported.

In May l979 Conservative leader Margaret Thatcher became the nation's first woman prime minister. Her promises to cut income taxes, scale down social services, and reduce the role of the state in daily life had wide appeal and gave her a large majority. Many in Britain also wished to curb the power of the unions, which they believe had grown into a monster, out of control.

The first female Prime Minister in the nation's history, Mrs. Thatcher gained her reputation as "the iron lady" for her tight control of Britain's monetary policy. Her emphasis on "self-help" encouraged private enterprise, but her cutting back of expenditures on health, social services and education made her extremely unpopular with the masses.

In l982, Argentina invaded the Falkland Islands, claiming sovereignty over the small group of islands they called the Islas Maldivas in the South Atlantic that was home to a few thousand British settlers. Responding immediately, Mrs. Thatcher sent a task force to recapture the islands; and after two months, the better-trained and disciplined British infantry, aided by its highly maneuverable airplanes (launched from carriers), won the day. The nation was jubilant, and Mrs. Thatcher regarded as something of a national hero.

Mrs. Thatcher's second government continued her policies of tight economic control and "dismantling" of the Welfare State. Privatization of British Gas, British Telecom, the Water Authorities, British Airways and the electricity industry (termed by Macmillan as 'the family silver") proved a godsend to government revenues and also created a new class of British shareholders. Mrs. Thatcher's decision to send British forces into the Gulf to participate in the United Nations multi-national task force ranged against the government of Iraq divided the whole country.

The government was mainly split by the question of integration into Europe. In November, l990, the Thatcher Era came to an end. For many, the main achievement of the Iron Lady was to free her country from the iron grip of the trade unions. For others, it was the restoration of British pride in the victory in the Falklands. For most, it was apparent that Britain was beginning to come to terms with the loss of much of its heavy industry and the increasing reliance on finance, communications, oil, insurance, tourism, accounting and other service industries.

The question of just how much should Britain integrate itself into Europe remained a thorny issue with the new Labour government. It was now joined by a much more ancient problem: that of devolution with the British Isles, with powerful voices being raised in Scotland and Wales for more self-government, and the seemingly insoluble problem of Northern Ireland casting a deep shadow over the entire so-called United Kingdom.

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