Margaret Thatcher once said that “there can be no liberty unless there is economic liberty.” She was right. For far too long before Margaret Thatcher took office there was very little economic liberty in the United Kingdom. We had relied on the same school of Keynesian Economic thought for much too long. At that time it was clear that this was not working. By the 1970s the effect of state control had become clear. We had become overall less productive as a nation and it was time for a bold new change.
In 1975 Margaret Thatcher became leader of the Conservative party. This heralded a new turn. A staunch economic proponent of the Free Market, she sought to change the course of Britain’s decline, and change she did! Margaret Thatcher successfully changed the course of Britain’s decline and put the United Kingdom back on the up!
Margaret Thatcher saved Britain from the economic abyss, the British economy turned from an unproductive, nationalised and over regulated economy to a thriving Free Market, pro individual and pro freedom economy. Thanks to her and her proponents, London became a center of world finance, business and commerce.
Before Margaret Thatcher took office income tax was 83%. Under Margaret Thatcher in 1980, the tax rate was reduced to 60% and in 1989 to 40%. Margaret Thatcher created a country that promoted growth not what had been previous which was an over regulated inefficient bureaucratic and over nationalised program. Productivity grew, investment grew, inflation was down. And the National debt was down.
Now what can we learn from the Economics of Margaret Thatcher in 2020 and what can we take with it? Well in short everything! In the era of Coronavirus and the recession we are currently enduring we must follow her principles to the letter. Unfortunately, the government seems to be turning to old Kenyesian consensus economics. This is not the way we can successfully rebound from this crises. We must not over spend, we must control inflation, and we must keep taxes low. Otherwise I’m afraid we will not rebound to the fullest we can.