ANDY FLEMING analyses how over the past thirty years freedom of speech, innovation, personality, choice and
Do
you have a long memory? Do you remember how after her General Election victory
in May, 1979, Margaret Thatcher 'transformed' the economic landscape of Britain
with her 'resolute approach'? It was a defining moment in the social, political
and economic history of our country. Because until that date all previous
governments whether Conservative or Labour subscribed to the so-called social
democratic consensus. In other words the British economy would not be
comprehensively exposed to the vagaries of the free market, and neither at the
same time would it be a full blown command economy as per the Eastern Bloc with
all the limitations in terms of individual freedom such collectivisation would entail. Capitalism was to be the economic system rather than socialism,
but the worst excesses of the free market would be excluded by a collectively provided
welfare state.
So
the UK was dragged into the modern world with a National Health Service, a free
education system for all, benefits for the elderly, disabled and those
unfortunate enough to be unemployed, a properly integrated public transport system
and of course, 'homes for those returning heroes' from fighting Nazi Germany.
Britain was going to be a more pleasant, fairer society where opportunities
were going to be accessible to everyone without the exploitation and poverty of
the inter war years. The Gold Standard was dropped and this new social
democratic consensus was to be underpinned with Keynesian economics. The
government would regulate capitalism by stimulating the economy in a recession
with capital projects and would restrict the money supply when the economy
overheated in one capitalism's cyclical booms. That was the theory at least,
and until the late sixties and an ever increasing balance of payments deficit
the mixed economy model seemed to be a practical compromise.
Regulation
seemed to work, whether it was in employment, unemployment, housing, transport,
and telecommunications or as especially applicable here, the media. However
with the devaluation of sterling crisis in 1967 and then a major world oil
price shock in October 1973 as a direct result of an Arab-Israeli war western
economies had been hit by an economic tsunami. And it was one from which
Keynesianism was not to recover sparking as it did political and industrial
strife including three day weeks and Winters of Discontent. With another oil
shock in 1979 as a result of the Iranian revolution, the last government of the
old social democratic order and the last true Labour government led by Jim
Callaghan was swept away by a new Conservative Party in government led by Prime
Minister Margaret Thatcher. Her government was totally different to those of
the preceding four decades, espousing as it did, a return to 'monetarism' to
reduce inflation (restricting the money supply) as propounded by her economic
guru Milton Friedman and Friedrich von Hayek before him.
Thatcher's
policies were socially brutal and divisive. Whole state industries were to be
privatised and closed if not profitable irrespective of the country's strategic
needs, or if the result led to mass unemployment. Inflation was to be reduced
at all costs as was taxation; but just income tax and mainly the rates for top
earners. VAT was doubled, and from the outset there was a re-distribution of
wealth from the poor to the rich. Benefits were slashed in an effort to cut
state spending and regulations across business, including in the media were cut
to maximise profits. State 'red tape' to protect the consumer was apparently
strangling private enterprise. Infact, Thatcher's whole philosophy could be
summed up succinctly as state equals bad; private equals good. Period. But what
would the effect of these gargantuan economic changes be on the media, and radio
in particular?