Lessons from Thatcher
At a conference in October 1975 at the Winter Gardens in Blackpool, UK, Margaret Thatcher critiqued socialism. Despite her insights 51 years ago, left-leaning leaders today still try and fail to make socialism work.
From Canada under Justin Trudeau, and New Zealand under Jacinda Ardern, to the U.K under Keir Starmer, and even the U.S. under Biden, nations have elected officials to enact ideological promises with disastrous fiscal, economic and social consequences.
While no one’s policies are perfect and many were flawed, let Margaret Thatcher’s criticism of the socialist agenda 51 years ago be a reminder to our voters today that we can’t tax our way to prosperity. Prosperity requires financial discipline, enterprise, affordable energy, productivity, and investment.
“And I will go on criticising Socialism, and opposing Socialism because it is bad for Britain.”
“Let’s look at the record.”
“It is the Labour Government that have caused prices to rise at a record rate of 26 per cent a year. They told us that the Social Contract would solve everything. But now everyone can see that the so-called contract was a fraud—a fraud for which the people of this country have had to pay a very high price.”
“And it’s the Labour Government that have brought the level of production below that of the 3-day week in 1974. We’ve really got a 3-day week now,—only it takes five days to do it.”
“It’s the Labour Government that have brought us record peace-time taxation. They’ve got the usual Socialist disease—they’ve run out of other people’s money.”
“And it’s the Labour Government that have pushed public spending to record levels.
And how’ve they done it? By borrowing, and borrowing and borrowing.
“Labour’s failure to cope, to look at the nation’s problems from the point of view of the whole nation, not just one section of it, has led to loss of confidence and a sense of helplessness.
“I sometimes think the Labour Party is like a pub where the mild is running out. If someone doesn’t do something soon, all that’s left will be bitter. (Laughter). And all that’s bitter will be Left.”
– Margaret Thatcher
Here in Australia, Labor was elected in 2022. Since then, productivity has collapsed, and per capita real GDP has plunged below zero and remained there. Labor’s leader Anthony Albanese promised cheaper electricity, abundant housing, cheaper childcare, higher living standards, and to leave negative gearing and CGT untouched. Had he studied economic history without bias, he might have avoided breaking every single one of those promises.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
