The election of Margaret Thatcher in 1979 is often viewed as the beginning of the end for the post-war consensus that had developed in Britain. The post-war period of 'consensus' was defined by a paternal and pragmatic approach to politics with an acceptance of Keynesian economics and the welfare state. In many ways, Thatcher undermined consensual politics with her belief and implementation of economic models proposed by the 'New Right', the atomisation of society and the attack on the Trade Unions. However, it is important to acknowledge that the post-war years were not an era of 'consensus' and 'agreement', as there were prominent disagreements in areas of economic, domestic, racial and foreign policy. Thus, although Margaret Thatcher's premiership marked an important shift in the direction of government policy in the UK, it was not in complete antithesis to what had come before. Thatcher's implementation of neoliberal economics and the draconian policy against the Trade Unions were transformative for the United Kingdom. However, the existence of neoliberal ideas under Ted Heath and the undermining of Keynesian economics by James Callaghan undermines the notion that there was a 'consensus' before Thatcher. The dramatic change regarding economic policy during the Thatcher governments starkly contrasts the Keynesian economic model followed throughout the post-war years. Thatcher's belief in free market policies, influenced by Professor Friedrich von Hayek's work and later certified by Sir Keith Joseph, focused on increasing efficiency and competition within the economy. 'Consensus' politics was further undermined as Thatcher sought to abolish the 'creeping socialism ' within the British economy which had allowed for subsidies for failing industries, greater government intervention and powers for Trade Unions. The subsequent fall of the coal and mining industries confirmed Thatcher's neoliberal approach to the economy, which stands in direct contrast to the interventionist policy of Edward Heath who nationalised Rolls-Royce in 1971. Keynesian economics prioritised high employment and government intervention. The shift from Keynesian to Monetarism and, later, supply-side economics saw unemployment rise to three million in 1984. Thatcher focused on reducing taxation, controlling inflation and reducing government spending to decrease the 'dependency culture' that had seemingly developed during the post-war years. The privatisation of multiple industries, from coal to electricity, was symptomatic of the shrinking role of the state and the greater agency given to the private sphere. Rest of the essay:Discuss Thatcher's policies towards the Trade Unions (banning flying pickets and ensuring all strikes were balloted), Miners' Strikes.Thatcher's approach to Europe - although she further integrated the UK into the EU, she became highly Euro-sceptic. This stands in direct contrast with 'consensus' politicians.Discuss Edward Heath as the 'Selsdon Man', the Industrial Relations Act, abandoning an incomes policy, as demonstrative of the seeds of 'Thatcherism'. Enoch Powell's Rivers of Blood speech is somewhat reflective of Thatcher's views on society?James Callaghan infamously declared that Keynesian economics is an option that 'no longer exists' as he dealt with rising inflation and the Winter of Discontent - demonstrating how the so-called 'consensus' was already disintegrating.
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