Thatcher’s greatest legacy: the rewriting of the seventies

Several months of strikes in 1978 and 1979 have come to stand for a whole decade. Britain was not a "failed state".

Since the death of Margaret Thatcher last week, it has been hard to find much agreement. Countless articles and hours of footage from the last few days reveal only two real areas of consensus: she was a divisive figure who would have enjoyed her dominance of a week’s newscycle and, regardless of your political persuasions, everyone knew Britain needed to change from the mire of the 1970s. The first belief is irrefutable; the second far less so. 

According to almost all reports, the 1970s can be condensed into one single event: the "winter of discontent." Several months of strikes in 1978 and 1979 have become the symbol of a whole decade of British politics and a clear representation of the gloomy years of the greys; Heath, Wilson Mark II and Callaghan. Politicians, journalists and citizens all recall, with various anecdotes, how awful those years were. Simon Jenkins succinctly summed up the consensus opinion:

"Britain in the 1960s and 70s was, in European terms, a failed state. Ted Heath felt the country had become ungovernable. The word ‘strike’ was in every page of every newspaper almost every day. Public services really were collapsing. This country really was a mess."

The 1970s is rarely visited in detail in discussions of Thatcher. Graham Stewart did briefly in the Sunday Telegraph under the banner, "Never Forget The Chaos Of Life Before Thatcher." Stewart admits it is wrong to focus solely on the winter of 1978 to summarise the decade, but he still concludes that there was an "overriding sense...of living in a country that had lost its way." His evidence? A quote from a newspaper in 1977 and a lyric from the Sex Pistols.

Stewart, like the rest of us, is a victim to one of Thatcher’s greatest legacies: a rewriting of the nation’s memory that makes the 1970s appear so monumentally dire that if Thatcher hadn’t have come along, Britain would have been the Greece of the 1980s. As the historian Nick Tiratsoo puts it: "We have come to see the decade in a way which magnifies the bad and neglects the good."

Re-examining the 1970s entails looking at three key areas: Thatcher’s popularity compared to Callaghan’s, the state of the economy and the actual effect strikes and the unions had on the country.

James Callaghan, the only individual to ever hold the four Great Offices of State, may have claimed he would probably be remembered as the worst Prime Minister in 200 years, but he was consistently viewed as more popular than Thatcher. Throughout the late 1970s, Thatcher regularly trailed Callaghan in the polls and a certain number still felt the party would fare better electorally if they had Edward Heath back in charge. While the Conservatives were polling above Labour by around 18 points at the end of 1976, by the end of 1978, before the "winter of discontent,” Labour had a slim lead of around two to three points. Labour held the Berwick and East Lothian constituency with an increased majority on 26 October1978, a feat difficult for any government nearly five years into its administration.

Furthermore, it would be wrong to suggest Thatcher’s election in 1979 represented a dramatic shift; the Conservative manifesto of that year was incredibly cautious. Her privatisation ideas were limited, and the proposals outlined to sell back shares in aerospace, shipbuilding and national freight operations were merely a continuation of trademark Conservative policy. Furthermore, Callaghan himself knew that there needed to be changes to the pervading consensus: his 1976 speech at the Labour party conference signaled an end to the government attempting to spend its way out of unemployment. Callaghan, as ever, is a figure who deserves his own rewriting.

Callaghan is often seen as a mess when it came to the economy: he was moved to the Home Office in 1967 after the devaluation of the pound and his tenure as prime minister is seen as similarly calamitous. Still, the 1970s was not necessarily a complete failure in economic terms. While the $3.9bn loan from the IMF in 1976 was the largest amount ever requested, it did calm the British economy and allow Denis Healy to reduce public expenditure from 44.9 per cent of GDP in 1974 to 42.8 per cent in 1979, a level it remained at until the 1990s. With the economic outlook helped by new revenue from North Sea oil, the UK didn’t need all of the IMF fund and inflation, so often argued to be ridiculously high throughout the decade, slumped from 24 per cent in 1975 to just 8 per cent in 1978.

Furthermore, while the economy throughout the decade may have not been booming, it is wrong to lay the blame at the feet of the Conservative and Labour governments of the 1970s. The economic downturn was a global one and beyond the control of successive prime ministers. US unemployment continued to rise throughout the period and Japan’s growth shrunk from an annual average of 10.6 per cent in the 1960s to a lowly 4.7 per cent in the 1970s. Britain was not the sick man of Europe or even the world, but simply another economy, once dominant, struggling. 

Finally, the trade unions, so long vilified as selfish, controlling and debilitating, are perhaps the greatest victims of Thatcherite revisionism. Historians of the 1970s have forgotten that in a strike, there are two sides: the unions and the employers. Hugh Parker, a former director at McKinsey’s during the 1970s in London, said, "Too many managers identify themselves with the interests of the managed. They stay aloof – at arm’s length from the workers.”

In most situations, the trade unions, in the face of difficult and unrelenting managers, attempted to avoid strikes. The facts back this theory up. During the 1970s, accidents and certified illnesses accounted for roughly 320 million lost days a year, thirty times more than those caused by industrial disputes. Between 1971 and 1973, according once again to historian Nick Tiratsoo, "as many as 98% of manufacturing establishments were without disputes at all." Tiratsoo continues, "Britain, it seems, had several troubled industries – coal, the docks and cars – rather than an all-embracing industrial relations pathology."

In 1979, when James Callaghan handed the keys over to Thatcher, inflation was lower, unemployment was falling and the balance of payments was strong. Wilson and Callaghan maneouvered the country through a difficult period – worldwide – of higher inflation and slower growth. That is what should be remembered. Unfortunately, the "winter of discontent" has created a fog over our collective memory of the 1970s, aided and abetted by Thatcherite propaganda that continues today from journalists and politicians who find it easier to reach for a generalisation than a history book. 

A portrait of Margaret Thatcher is pictured in the 'Margaret Thatcher Room' at the Conservative Party headquarters. Photograph: Getty Images.

Kiran Moodley is a freelance journalist at CNBC who has written for GQ, the Atlantic, PBS NewsHour and The Daily Beast.

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Want to send a positive Brexit message to Europe? Back Arsene Wenger for England manager

Boris Johnson could make a gesture of goodwill. 

It is hard not to feel some sympathy for Sam Allardyce, who coveted the England job for so many years, before losing it after playing just a single match. Yet Allardyce has only himself to blame and the Football Association were right to move quickly to end his tenure.

There are many candidates for the job. The experience of Alan Pardew and the potential of Eddie Howe make them strong contenders. The FA's reported interest in Ralf Rangner sent most of us scurrying to Google to find out who the little known Leipzig manager is. But the standout contender is Arsenal's French boss Arsene Wenger, 

Would England fans accept a foreign manager? The experience of Sven Goran-Eriksson suggests so, especially when the results are good. Nobody complained about having a Swede in charge the night that England won 5-1 in Munich, though Sven's sides never won the glittering prizes, the Swede proving perhaps too rigidly English in his commitment to the 4-4-2 formation.

Fabio Capello's brief stint was less successful. He never seemed happy in the English game, preferring to give interviews in Italian. That perhaps contributed to his abrupt departure, falling out with his FA bosses after he seemed unable to understand why allegations of racial abuse by the England captain had to be taken seriously by the governing body.

Arsene Wenger could not be more different. Almost unknown when he arrived to "Arsene Who?" headlines two decades ago, he became as much part of North London folklore as all-time great Arsenal and Spurs bosses, Herbert Chapman or Bill Nicholson, his own Invicibles once dominating the premier league without losing a game all season. There has been more frustration since the move from Highbury to the Emirates, but Wenger's track record means he ranks among the greatest managers of the last hundred years - and he could surely do a job for England.

Arsene is a European Anglophile. While the media debate whether or not the FA Cup has lost its place in our hearts, Wenger has no doubt that its magic still matters, which may be why his Arsenal sides have kept on winning it so often. Wenger manages a multinational team but England's football traditions have certainly got under his skin. The Arsenal boss has changed his mind about emulating the continental innovation of a winter break. "I would cry if you changed that", he has said, citing his love of Boxing Day football as part of the popular tradition of English football.

Obviously, the FA must make this decision on football grounds. It is an important one to get right. Fifty years of hurt still haven't stopped us dreaming, but losing to Iceland this summer while watching Wales march to the semi-finals certainly tested any lingering optimism. Wenger was as gutted as anybody. "This is my second country. I was absolutely on my knees when we lost to Iceland. I couldn't believe it" he said.

The man to turn things around must clearly be chosen on merit. But I wonder if our new Foreign Secretary Boris Johnson - albeit more of a rugger man himself - might be tempted to quietly  suggest in the corridors of footballing power that the appointment could play an unlikely role in helping to get the mood music in place which would help to secure the best Brexit deal for Britain, and for Europe too.

Johnson does have one serious bit of unfinished business from the referendum campaign: to persuade his new boss Theresa May that the commitments made to European nationals in Britain must be honoured in full.  The government should speed up its response and put that guarantee in place. 

Nor should that commitment to 3m of our neighbours and friends be made grudgingly.

So Boris should also come out and back Arsene for the England job, as a very good symbolic way to show that we will continue to celebrate the Europeans here who contribute so much to our society.

British negotiators will be watching the twists and turns of the battle for the Elysee Palace, to see whether Alain Juppe, Nicolas Sarkozy end up as President. It is a reminder that other countries face domestic pressures over the negotiations to come too. So the political negotiations will be tough - but we should make sure our social and cultural relations with Europe remain warm.

More than half of Britons voted to leave the political structures of the European Union in June. Most voters on both sides of the referendum had little love of the Brussels institutions, or indeed any understanding of what they do.

But how can we ensure that our European neighbours and friends understand and hear that this was no rejection of them - and that so many of the ways that we engage with our fellow Europeans rom family ties to foreign holidays, the European contributions to making our society that bit better - the baguettes and cappuccinos, cultural links and sporting heroes remain as much loved as ever.

We will see that this weekend when nobody in the golf clubs will be asking who voted Remain and who voted Leave as we cheer on our European team - seven Brits playing in the twelve-strong side, alongside their Spanish, Belgian, German, Irish and Swedish team-mates.

And now another important opportunity to get that message across suddenly presents itself.

Wenger for England. What better post-Brexit commitment to a new Entente Cordiale could we possibly make?

Sunder Katwala is director of British Future and former general secretary of the Fabian Society.