A recent column by A.N. Wilson has sounded a stark warning regarding the economic direction advocated by the new Prime Minister, drawing comparisons to the perceived failures of the 1970s. Wilson contends that the Prime Minister's critique of the 1980s, which he interprets as an attack on Margaret Thatcher's policies, ignores the grim realities of the preceding decade.
In his Downing Street address, the Prime Minister stated, "In the 1980s, Britain took some wrong turns. Political power was centralised, economic power privatised, large parts of the country de-industrialised, and they still haven’t recovered." Wilson suggests this sentiment reflects a lingering animosity towards Thatcher among some Labour MPs, particularly those representing "Red Wall" constituencies.
Wilson argues that while de-industrialization had a significant impact on areas like Stoke-on-Trent, blaming Thatcher overlooks the economic conditions of the 1970s. He recalls a period of economic collapse due to what he describes as "reckless tax and spend policies." During this time, power outages were common, thermostats were mandated at 17C (62.6F), and streetlights were dimmed. Wilson also cites instances of strikes affecting essential services, such as a funeral procession being halted because gravediggers were on strike, leading to a backlog of coffins.
The columnist attributes the economic woes of the 1970s to the widespread adoption of John Maynard Keynes's theories, which he believes encouraged excessive borrowing and fueled inflation. He notes that under socialist governments of the era, wages struggled to keep pace with rising prices, and trade unions held significant power over the economy, with politicians reportedly fearful of their influence. Wilson recalls instances where major publications, like The Times, were shut down for extended periods due to disputes with print unions.
He recounts that in 1976, the International Monetary Fund intervened, indicating the severity of Britain's financial situation. Wilson contends that politicians at the time lacked the will to implement necessary measures such as curbing union power, reducing borrowing, and cutting welfare programs. He credits Margaret Thatcher with enacting these difficult reforms, which he believes led to economic prosperity, albeit at the cost of the manufacturing industry. He also notes Tony Blair's similar approach in winning successive elections.
While acknowledging the validity of concerns for those in de-industrialized areas, Wilson cautions against a return to policies reminiscent of the 1960s and 1970s, characterized by dependency on borrowing and welfare. He highlights that the social fabric of Britain was more cohesive in the 1970s than it is today, with divisions now exacerbated by ethnicity, religion, and culture.
Wilson draws a parallel between current public sector union dealings, citing a recent pay rise for junior doctors, and past wage increases for civil servants and doctors during the Harold Wilson premiership. He predicts that under the current Prime Minister's proposed policies, unemployment will rise, non-public sector workers will be negatively impacted, and the value of the pound will collapse. He warns of potential anarchy, street violence, and unrest in an already fractured society.
"So long as we have politicians who do not dare to tell us the truth about the economy, we are heading for real social disaster," Wilson writes. He contrasts the passive acceptance of hardship in the 1970s with a prediction of riots and widespread blame in the present day. He urges a halt to excessive borrowing and unaffordable welfare spending, advocating for policies that foster enterprise and innovation rather than hindering them through taxation and regulation. Wilson concludes by stating that those he seeks to help, residents of the poorest areas, will ultimately suffer the most from such policies.