5 Lessons From Margaret Thatcher

Margaret Thatcher, known as the "Iron Lady" because of her stalwart principles and steadfastness in foreign policy, was the most influential 20th century prime minister of the United Kingdom except for Sir Winston Churchill as she revolutionized British politics and economics while preventing the once great power from falling into oblivion.

Born Margaret Roberts to a grocer and local alderman in 1925, Thatcher would lead a working-class life that imbued her with a grounding in the reality. Alfred Roberts, her father, taught Margaret the values of hard work and small “c” conservative values, including dedication to God and country. After winning a scholarship to Somerville College at Oxford, she would study chemistry and start a career in the sciences before eventually becoming a barrister (lawyer in American). While at Oxford Thatcher would become involved in the Oxford University Conservative Association, eventually becoming president. Her first attempts at electoral politics were failures as she did not get elected in the 1950 or 1951 polls for the Dartford constituency. In 1951, Margaret would marry Denis Thatcher, a successful businessman, and have a set of twins in 1953 (Mark and Carol). That same year is when she would become a barrister focusing on tax law.

It wasn’t until 1959 that Thatcher would be elected a Member of Parliament for Finchley, a seat she held until 1992. She would hold junior positions in Harold Macmillan’s (1957-63) and Alec Douglas-Home’s (1963-64) governments, including Parliamentary Undersecretary at the Ministry of Pensions and National Insurance. Labour would control government for the next six years until Edward Heath was elected in 1970, which would be a seminal time for Thatcher. Heath would appoint Thatcher as Education Secretary, and she would become infamous for ending free milk for schoolchildren, earning the nickname "Thatcher the Milk Snatcher." This was her first major confrontation with the leaders of the Conservatives and would represent the changes she wanted to implement in British society.

The confrontation with Heath would lead Thatcher to challenge him for party leadership in 1975, and when she won, she became the first woman to lead a major political party in the UK. Labour was once again in power, and their disastrous socialist policies were causing massive economic devastation, culminating in the Winter of Discontent in which labor strikes and massive inflation led to garbage piling in the street, fuel shortages, and panic buying. That catastrophic period in 1978-79 would create the conditions for Thatcher to come to power and become the first woman prime minster of the UK.

Thatcher’s premiership would be defined by her ideology (termed Thatcherism later) that sought to remove the power of the state and allow free market capitalism to bring back prosperity. According to Nigel Lawson, Chancellor of the Exchequer during her premiership, Thatcherism was a “mixture of free markets, financial discipline, firm control over public expenditure, tax cuts, nationalism, ‘Victorian values’ (of the Samuel Smiles self-help variety), privatisation and a dash of populism.” Accordingly, Thatcher made it her mission to throw off the “shackles of socialism,” and in doing so, she brought economic advancement, property ownership, and stability back to the United Kingdom. However, this would put Thatcher at extreme odds with the paternalistic One-Nation Tories and their penchant for government expenditures and snobbish elitism (they always looked own on Thatcher for being a woman with a working-class background).

During her first term, Thatcher focused on the massive inflation harming the British economy. Because she was a monetarist, Thatcher imposed higher interest rates that would bring down inflation, but that would lead to higher unemployment (a known tradeoff in the economic literature). Thatcher knew, though, that until inflation was tamed, the economy couldn’t grow. She would also focus on deregulation, privatization of state-owned industries, and reducing the power of trade unions. These were initially unpopular policies that threatened her premiership. However, it was the Falklands War when Argentina illegally invaded the Falklands Islands that Thatcher’s popularity would turn around.

Nobody thought the declining power would stand up to the military junta and protect British sovereignty, but Thatcher did, which would eventually cause the overthrow of the junta as well. Controversially, Thatcher would have the ARA General Belgrano sunk, but the UK would decisively win the war and bring national pride to the once declining power. She would win the election of 1983, and that would allow Thatcher to more fully implement her vision, such as furthering home ownership for people living in council housing (Section 8 in American) so even the poor could own property. The economic successes of her time in power include:

• Reducing inflation (reduced to 2.4% by 1986 from 22% six years before)
• Cuts to high marginal tax rates (down to 25% from a pre-Thatcher high of 83%)
• Promoting private enterprise by eliminating state ownership companies in the aerospace and shipbuilding sectors along with British Telecom, British Airways, Rolls-Royce, parts of British Steel, Leyland, the airports, and gas, water and electric utilities
• Giving trade union members power over union leaders with the secret ballot
• Reducing government expenditure from 45.1% of GDP in 1979 to 39.2% in 1990 as the economy grew an average of 4.7% between 1984 and 1988

Finally, Thatcher had tremendous success in battling the evils of communism (the Soviets were actually the first to call her the Iron Lady). Her staunch support of the United States helped President Reagan win the Cold War, and she was critical in many foreign policy actions (such as Libya and intermediate range missiles in Europe). She would also have foresight not to join the European currency, allowing for greater freedom in managing the British pound and foreshadowing Brexit.

Thatcher would fall from power in 1990 because of her refusal to compromise on the poll tax, but after her 11.5 years in power, she turned the UK from the “sick man of Europe” to a great power again. And her reforms allowed for even greater economic growth over the next few decades. Modern Britain couldn’t exist without the Iron Lady.

Note: If you're interested in a deeper dive into Thatcher's life, I recommend reading Charles Moor's trilogy Margaret Thatcher: From Grantham to the Falklands, Margaret Thatcher: At Her Zenith: In London, Washington and Moscow, and Margaret Thatcher: Herself Alone. You should also read Thatcher's two memoirs The Path to Power and Downing Street Years. If you're interested in her thought, you should read her book Statecraft (still useful). A one volume book that is excellent is John Campbell's The Iron Lady: Margaret Thatcher, from Grocer's Daughter to Prime Minister.

5 Lesson From Margaret Thatcher

Lesson 1: Stick to Your Principles

Thatcher was known for her strong and unwavering principles. She believed in free markets, individual responsibility, and a limited role for government. Her conviction and clarity of purpose helped her push through significant and often controversial reforms. Thatcher faced numerous challenges, including economic crises, political opposition, and public protests. Despite these obstacles, she remained resolute in her policies and vision for the country. That resolve would change the Conservative Party, Britain, and the world. If her will had been any less strong, then she could not have stood up to everyone who opposed her. Or as she put it, “The lady’s not for turning.” A weaker person would have broken, but by having and sticking to her principles, she conquered.

Lesson 2: Communication Skills Matter

Thatcher was an effective communicator, which allowed her to articulate her vision clearly and persuasively and garner support both within her party and amongst the public. That was not always the case, though. Before becoming prime minister, Thatcher had to be trained in how to be less “shrill” and more commanding. However, once Thatcher learned the art of communication and persuasion, she was absolutely formidable. Not only could she handle PMQs deftly (see here), but she had a penchant for being able to speak for a while without breathing, allowing her to talk down the men who tried to silence her because she could keep going after they had run out of breath. Remember, clear and persuasive communication is vital for leaders to effectively convey their vision and mobilize support. And if that fails, then just keep talking until the other person gives up.

Lesson 3: Be Decisive

Thatcher's leadership during the Falklands War demonstrated her ability to handle crises decisively. Many thought Britain too weak to take on Argentina, and European powers had long become passive and pussilanimous. Her decision to deploy military forces to reclaim the Falkland Islands showcased her commitment to national sovereignty and defense, and that decisiveness allowed her bring down a military junta. Of course, Thatcher was decisive in most areas. She refused to back down on her economic reforms, like higher interest rates, because she knew the British economy needed the medicine. One of her final acts was to encourage President Bush to be decisive against Saddam Hussein’s invasion of Kuwait and sovereignty violation. As she said, “[This is] no time to go wobbly.” She was right about that as well.

Lesson 4: Out Work Your Opponents

Thatcher’s rise to become the first female Prime Minister of the UK was not easy. She worked tirelessly, often under immense pressure, to achieve her goals. She famously only slept 4-5 hours a night (likely due to a genetic condition), and that allowed her to constantly stay focused on the job. There is a brilliant seen in season 4 of The Crown that exemplifies this. Whilst they are meant to be partying and dining with the Queen and her family, Thatcher grows tired of the idleness (a quality she gained from her father). Thatcher promptly leave the estate so she can return to work, stunning the royals. This is truly important. Some (most) are not born into privilege and power and wealth. We are disadvantaged from the beginning. But hard work, literally outworking everyone else, can push us ahead in life and make us more successful. That is not guaranteed, but it is the most likely path.

Lesson 5: An Iron Will Can Also be Your Downfall

Thatcher knew she was right, but her iron will concerning her principles not only led to her success but her downfall. When she refused to back down on the community charge (what opponents called the “poll tax”), she lost the leadership election in 1990. (She didn't really lose, but the craven backbenchers did not give her a sufficient majority in the first round. Betrayers and mutineers.) Even though Thatcher lost power that doesn’t mean she was wrong. Thatcher’s policies were often unpopular and led to significant public protests. However, she prioritized long-term national interests over short-term popularity. Leaders sometimes need to make unpopular decisions for the greater good, emphasizing the importance of long-term vision over immediate approval. Sometimes standing by your principles, no matter how right they are, will cause problems for you. Be prepared to defend what you know is right, but know there will be consequences to that as well, such as losing your position.

June's Cocktail: Sidecar

Because she was raised a Methodist, Thatcher did not grow up accustomed to alcohol, unlike her husband who was quite famous for his dipsomania. He could drink most of the day without appearing inebriated. Later, Thatcher would develop a love of whisky and soda while in the House of Commons (notice the British spelling…). Her favorite was allegedly Bell’s, but she also didn’t mind other brands of blended Scotch. Quite hilariously because Thatcher worked most of the night, her maxim was, “Dear, you cannot drink gin and tonic in the middle of the night. You must have whisky to give you energy.” Although whisky and soda was her day-to-day beverage, Thatcher’s alleged favorite drink was Cointreau, an orange-flavored liqueur. Therefore, this month’s cocktail is the Sidecar, the most famous drink with Cointreau in it. The Sidecar is iconic but under-ordered, and it was popularized by Harry MacElhone’s Harry’s ABC of Mixing Cocktails (1922) during his time at the Ritz.

Instructions:

1. Mix 2 ounces of Hennessy Fine de Cognac, 0.75 ounces of Cointreau, and 0.75 ounces of fresh lemon juice into a shaker filled with ice.
2. Shake vigorously for ten seconds.
3. Pour over a strainer into a coupe glass.
4. Garnish with an orange peel. (You can also add a sugar rim if you decide, but that generally seems unnecessary outside of a Lemon Drop.)

Note: You can substitute with the cognac or brandy of your choice and/or triple sec instead of Cointreau (if you don’t believe in doing cocktails correctly).