Thatcherism

Thatcherism refers to the set of political and economic ideas associated with British Prime Minister Margaret Thatcher and her Conservative governments from 1979 to 1990. It combines a commitment to free-market capitalism with monetarist economic methods, a reduction in the role of the state in the economy, and a strong anti-union, law-and-order stance. The term is used to describe the broader shift in British public policy that continued into later Conservative governments and influenced liberal reforms elsewhere.

Core principles center on market liberalization, privatization of state-owned enterprises, deregulation, competition, and a preference for individual responsibility over reliance on the state.

Key policies included monetarist measures to curb inflation, privatization of many state-owned industries and utilities, and extending home ownership through the Right to Buy. The 1980s saw deregulation of financial markets, culminating in the 1986 Big Bang. Trade union reform reduced strike powers under Acts in the 1980s, and welfare spending was reoriented toward encouraging work and competition.

Impact and legacy: Inflation fell during the 1980s, but unemployment rose in the early years, and regional disparities widened. Privatization altered ownership patterns and generated revenue, while the influence of trade unions diminished. Critics argue Thatcherism increased inequality and weakened the manufacturing base, while supporters credit it with modernizing the economy, boosting growth, and ending the postwar consensus.