On Monday 8th April 2013 it was announced that the former Prime Minister Margaret Thatcher was dead. The sense of jubilation at her death was truly remarkable and obviously distressing to the many millions of right-wing people that describe her legacy in glowing terms, even going as far as making claims that she was "the best Prime Minister ever", despite her massive unpopularity and her appalling legacy of failure.
The fact that so many people took to open celebration of her death is evidence of her destructive legacy. The woman clung to power by dividing society and setting the factions against each other, instead of allowing them to unite against her. Even after her death British society is still clearly divided, and the same divisive scapegoating tactics are being used again by the incumbent Tory led government.
|Margaret Thatcher and her friend, the murderous|
Chilean dictator Augusto Pinochet.
Thatcher's rise to power signaled the end of the post-war consensus mixed economy and the beginning of the neoliberal age. The old agreement between the parties that Britain should strive to balance regulated capitalism with state control over vital infrastructure was torn up in favour of Thatcher's barmy post-industrial dream of a hyper-capitalist nation built around the financial services industry in London.
One of the core tenets of Thatcher's neoliberal agenda was the fire sale of state assets based on the absurdly fallacious reasoning that capitalists can always run things more efficiently than the state. Huge swathes of taxpayer funded industry and infrastructure were given away at bargain basement prices. In some cases such as the sale of British Telecom, the exponential improvements in technology give the impression that privatisation was a success, however the privatisation of utilities like gas, electric and water have severely damaged the UK economy by eroding the disposable income of the public with ever inflating prices, meaning that the public have less money to save or to invest in genuinely productive activity.
Even after Thatcher's demise, this mania for privatisation continued with all kinds of economically illiterate privatisation scams from John Major's botched privatisation of the railways to Gordon Brown's massive expansion of PFI economic alchemy schemes. Some of the most barmy privatisations include the sale and leaseback of the HMRC property portfolio to a tax haven based company (seriously) and the privatisation of the UK independent nuclear deterrent into the hands of a consortium 66% owned by US based companies!
Another way in which the Thatcher government fueled the City of London post-industrial fantasy was through the abandonment of capital controls and the deregulation of the financial sector, which opened the floodgates to an unprecedented tax-dodging bonanza. In return for these changes, financial sector interests and major tax-dodgers poured cash into Tory party coffers allowing them to present their loopy free-market ideology as some kind of slick modernisation programme through expensive ad agencies such as Saachi and Saachi.
The Thatcher government introduced the new brand of politics where style took precedence over substance and the real political agenda remained hidden behind impenetrable layers of presentation. Subsequent leaders such as Tony Blair and David Cameron have pushed this kind of spin even further, seeming at perfect ease as they outright lie to the public (Iraqi WMDs, David Cameron's debt reduction lies, "No more top-down reorganisations of the NHS", etc).
|Margaret Thatcher and Rupert Murdoch shared a marriage of convenience. |
She allowed him to build up a vast anti-competitive press empire, and he
used that empire to back her policies.
Aside from handing over valuable state assets for derisory prices and recklessly deregulating the financial sector, another way in which Thatcher coddled the wealthy was through huge tax cuts justified with the ludicrous trickle down fallacy. Allowing the wealthy to extract ever more wealth from society was never going to enrich the poor as the Thatcherites loved to claim, especially given the the way that the Thatcher regime facilitated offshore tax-dodging.
Instead of investing the glut of North Sea oil wealth and the cash raised through privatisations into a sovereign wealth fund like Norway, or reinvesting it in British industry, Thatcher wasted it all on ludicrous tax breaks for the super wealthy and obvious pre-election bribes for the masses.
Another area in which Thatcher wreaked her havoc was in housing policy. Her loathing of anything social led to her direct attacks upon social housing. Her government arranged the fire sale of social housing with the stipulation that the money raised could not be reinvested in building more social housing or renovating existing social housing stock. The construction of social housing was all but abandoned in the 1980s and has never resumed. Othodox neoliberal theory tells us that a reduction in state intervention in the housing market should lead to a rise in private sector housebuilding, however, just like with most neoliberal theory, the reality has been completely different and this rise in private sector housebuilding never happened. In fact, private sector housebuilding has declined ever since the 1980s. The housing shortage created by Thatcher's assault on social housing led to unsustainable property price inflation, with investors preferring to get fat as ever rising demand pushed their property prices and profit margins upwards, rather than investing in anything economically productive like the actual construction of new houses.
Thatcher also oversaw the deregulation of the private rental sector and the abolition of security of tenure for private tenants. Countless greedy Thatcherites have sat back and raked in the cash as they allowed other people to pay off their buy-to-let mortgages. This idle rentier class is now a clearly defined Tory demographic. In a way, it is a return to the old days of idle landlords soaking up the wealth of entire communities by renting shit houses to transitory "peasants". One of the very worst aspects of Thatcher's housing reforms is that one third of all of the social housing that was sold off on the cheap has now found it's way into the hands of the idle buy-to-let brigade. In fact, probably the largest former council house property portfolio in the entire country belongs to the son of the minister charged with selling off all those state owned properties in the first place!
In order to build the foundations of this ideologically driven neoliberalisation experiment, Thatcher needed to hobble all opposition and consolidate as much power as possible in her own hands. She castrated local government, closed down the Greater London Council and oversaw a centralisation of the education system (based on privately operated exam boards competing to make their exams ever easier to pass) that has churned out generation after generation of inadequately prepared and politically naive students.
|Thatcher spent eleven consecutive new years eve celebrations with |
Jimmy Savile. The idea that he would have been allowed such a close
relationship with the Prime Minister without being thoroughly vetted by
the security services is frankly laughable.
Such a centralisation of power runs entirely contrary to the libertarian and minarchist principles that supposedly underpin neoliberal theory, but the only way that such a barmy neoliberalisation process could ever have been enforced was through the ruthless revocation of power from anyone that stood in her way. The fact is that all of Thatcher's successors have all enjoyed the dictatorial powers she carved out for herself, with very few central government powers being redistributed back to local government.
Another defining characteristic of the Thatcher regime was brazen economic mismanagement. The massive inflation peaks in the early and late 1980s; the deliberate neglect of British manufacturing; the ever widening trade deficits; and the fact that her government ran constant budget deficits in all but two of the years for which she was Prime Minister (in fact the 1988 and 1989 budget surpluses are the only Tory budget surpluses recorded since 1973, so perhaps, with an 18% budget surplus rate as compared to 0% for all of her Tory party successors, she wasn't actually that bad by the usual Tory standards).
Still, it didn't seem to matter that interest rates on people's mortgages went through the roof; that the long forgotten phenomena of mass unemployment was stalking the land again after a 50 year hiatus; that British industry was collapsing into terminal decline: The right-wing press and the Tory propaganda machine spun an unrelentingly positive story of "modernisation" and the public lapped it up and carried on voting for her.
Returning to Thatcher's war with the trade unions. The ongoing decline in British manufacturing can be traced back to this divisive class war against the working people of Britain. Thatcher's ideological hatred of the trade unions was so rabid that she would rather the entire industry be destroyed than allow adequate trade union representation for the workforce. A good contrast can be made with Germany, where instead of playing class warfare, with the government and business interests on one side and the workers and trade unions on the other as Thatcher did, they built their industrial strategy on co-operation between the bosses and the unions, even allowing union representatives onto the boards of directors as a matter of course. Thatcher's divide and rule strategy has resulted in decades of industrial decline, social fragmentation and vast trade deficits, whilst Germany have cemented their place as world leader in the production of high tech machinery, successfully reunified their divided nation and run enormous trade surpluses.
Any commentary on Thatcher would be incomplete without mention of the Falklands. It is quite clear from declassified documents that the conflict was deliberately provoked through the withdrawal of the South Atlantic naval defence. Thatcher was warned several times by military experts that such a withdrawal would be seen as an open invitation for the Argentine military dictatorship to invade. In the buildup to the invasion, Thatcher was languishing in the polls, the most unpopular Prime Minister in history. After the Falklands victory she rode the tide of jingoism to a landslide election victory and a whitewash investigation concluded that the war had been "unavoidable".
Another incident that must not be forgotten is the Hillsborough disaster where 96 Liverpool FC fans were crushed to death due to police incompetence. It took 23 years for the evidence to be released. Evidence which demonstrates beyond any doubt that the Thatcher government and South Yorkshire police colluded in a massive cover-up campaign, where blame was deliberately transferred to innocent Liverpool supporters with the willing assistance of the right-wing press. Especially the S*n, (belonging to Thatcher's chum Rupert Murdoch) which is still boycotted in the city of Liverpool to this day as a result of the outright lies that were printed about the behavior of Liverpool fans on that tragic day.
The final factor that cannot possibly be excluded is the policy that eventually brought the Thatcher regime down. By the late 1980s Thatcher must have come to believe that she was invincible. She'd crushed the unions, castrated local government, sold off the national silver on the cheap, slashed taxes for her wealthy backers and done it all with three landslide victories at the polls. Her final folly was Poll Tax; a policy so unpopular that it provoked the largest wave of civil disobedience in living memory. Only a power crazed fool with a head full of neoliberal gibberish could possibly have thought that they could get away with imposing it. She was warned by her Tory party colleagues that it wouldn't float but she persisted with it until she was driven out of office by her own MPs.
Only the blue tinted spectacles brigade would even try to pretend that Thatcher didn't leave the UK countless toxic legacies such as over-centralised power, adherence to ideological neoliberal pseudo-economics, countless failed privatisations, the massive scale of tax-dodging, industrial decline, mass unemployment, housing policy neglect, rising debt (national, corporate and private), a hopelessly mismanaged education system, political subservience to the Murdoch propaganda empire and the reckless gambling of the deregulated financial sector that eventually led to the global financial sector meltdown.
Probably the single thing that stands out above all of these toxic legacies is the way that Thatcher ruthlessly reversed the gains of the post war society, cynically setting sectors of society at each others throats whilst deliberately re-extending the wealth gap.
Another of Thatcher's toxic legacies was Tony Blair. Many Tories try to deny the link between Thatcher and Blair, however the similarity is absolutely obvious to most people. Tony Blair was quite clearly a Tory in a red tie. Instead of undoing the damage that Thatcher had wrought, he intensified it with more privatisations, more dodgy outsourcing contracts, more Murdoch love-ins, more bank deregulations, more tax-dodging scams and more deliberate neglect of British industry. Even the most rabid Tory would hesitate to contradict Thatcher herself ,and when asked what her greatest achievement in politics was, her reply was "Tony Blair and New Labour". The affection between the two was mutual, with Blair providing a grotesquely uncritical eulogy to the sworn enemy of anyone remotely left-wing or socially liberal:
"Margaret Thatcher was a towering political figure. Very few leaders get to change not only the political landscape of their country but of the world. Margaret was such a leader. Her global impact was vast. And some of the changes she made in Britain were, in certain respects at least, retained by the 1997 Labour Government... As a person she was kind and generous spirited and was always immensely supportive to me as Prime Minister ... you could not disrespect her character or her contribution to Britain's national life. She will be sadly missed."Tony Blair was obviously saddened to hear of the death of his ideological mentor. I thought that I'd actually be much happier on the day that Thatcher finally died. However, it is absolutely clear from the shape of the UK political landscape that she is actually still alive. All three of the establishment parties are now wedded to her brand of ideologically driven orthodox neoliberalism; the scars of her economic blundering can be seen carved across the landscape and across countless communities; the gap between rich and poor is wider than ever and still growing; the post war welfare system is under ruthless attack; crony capitalism and industrial scale tax-dodging are rife and the tactic of playing elements of society off against each other in order to distract attention away from the villainy of the establishment powers is even more prevalent today than it was at the height of Thatcherism.
It doesn't matter that the woman is so reviled that her grave would need to be kept behind a security cordon to prevent it from becoming an extremely popular open air toilet. It doesn't matter that she is dead and that people are satisfied that she is gone. Her toxic legacy has not gone, in fact, the current Tory government are busy with schemes that Thatcher herself would never have dared dream of, such as privatising the NHS and simply giving away thousands of schools in England (£billions worth of taxpayer funded property and all) for free, to unaccountable private sector interests (including several major Tory party donors).
It is 34 years since Thatcher introduced neoliberal pseudo-economics to the UK and we're still paying the price now. Hell, we'll still be paying the price in another 34 years given that the entire political establishment is utterly riddled with this rotten ideology. The economic and social destruction she inflicted can never be fully repaired. Too many industries destroyed, too many taxes dodged, too many communities divided, too many lives ruined and too many generations brought up on the right-wing mantra of "greed good; social conscience bad".
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