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The Economic Legacy That Margaret Thatcher Left Behind

Margaret Thatcher

Margaret Thatcher came into office in the UK in 1979 with the promise of transforming the economy there. A promise that she managed to live up to. In the 70's, the UK's economy was suffering from energy shortages, 3 day working weeks, massive strikes and rising inflation. Thatcher's dose of tough medicine was known as Thatcherism.

She cut the 98% tax rate for high earners to 40 %, she made it tougher for unions to call strikes, she deregulated Londons financial markets creating a financial power house to rival NY. She also privatized many companies from British Airways, to British Petroleum (NYSE:BP) to British Telecom. She believed privatizing companies and creating competition would in turn create wealth. Margaret Thatcher believed in cutting taxes and government spending.

On the negative side during her years in power she widened the gap between rich and poor. The number of people living in poverty increased by 4, and old people who were already having a tough time economically had an even harder time of it.

In 1997 when Labour went back into office after 16 years of Margaret Thatchers rule as Prime Minister Labour reversed none of the measures that she had implemented which perhaps is a sure sign that she had made wise moves for the country.

However now that the financial crisis has happened it may be a time to reconsider the measures she implemented as times and economic challenges are now different.

First published on Binary Options Leader