Margaret Thatcher (1925-2013) provided the West with many morally courageous moments. The moniker, “The Iron Lady” was bestowed upon her by the Soviet Army newspaper Red Star in 1976 because of her piercing denouncement of communism. Thatcher, of course, adored the unofficial title.
She toasted President Ronald Reagan after his then controversial Westminster speech in 1982, declaring, “We are so grateful to you for putting freedom on the offensive.” It is often forgotten today that 195 of the 225 Labour MP’s boycotted Reagan’s harsh condemnation of the Soviet Union. In her book, Statecraft: Strategies for a Changing World, she reminded Americans to “never believe that technology alone will allow America to prevail as a superpower.”
R&L: Would you comment on the temptation to identify virtue with collectivism?
Thatcher: Liberty is an individual quality and a moral quality. It does not exist in the abstract, but only in a civilized state with a rule of law. Without that, the strong would oppress the weak. The collective law is what makes individual freedom work. I remember a famous quotation of George Bernard Shaw, “Freedom incurs responsibility; that’s why men fear it.” Too many people try to cast their personal responsibility on to the state. It is so much easier to parade with banners demanding that government do something to remedy a wrong than it is to take action oneself. But it will build neither character nor independence.
The ultimate collectivist was, of course, the communist state. It operated the most total tyranny the world has ever known. It had all of the brutal, evil characteristics of other tyrannies, with its secret police, absence of remedy, and no opposition. In addition to that, it confiscated everyone’s private property and took away everyone’s job, so they became totally dependent upon the state.
The danger is that the more you turn to the state, the more you are diminishing the sense of freedom and the responsibility of the individual, and the more difficult it is to re-establish when the Communist system has gone.
As has been mentioned today on the PowerBlog, Margaret Thatcher was a recipient of Acton’s Faith and Freedom Award in 2011. Due to her declining health, she was unable to accept the award in person. Accepting the award in her place was John O’Sullivan, the Executive Editor of Radio Free Europe/Radio Liberty and former senior aide in the Thatcher government. The comments of O’Sullivan on Margaret Thatcher, her government and her character are below.
Lady Margaret Thatcher, former Prime Minister of the United Kingdom of Great Britain, has passed away from an apparent stroke at the age of 87.
In 2011, the Acton Institute presented Lady Thatcher with its “Faith and Freedom” award which “recognizes an individual who exemplifies commitment to faith and freedom through outstanding leadership in civic, business, or religious life.” Thatcher served as Prime Minister for eleven years, during which time she struggled to reform and stabilize Great Britain’s economy. However, she will likely best be remembered for the role she played, along with Ronald Reagan and Pope John Paul II, in bringing down the Soviet Union’s Communist regime.
Acton will be providing more coverage of Lady Thatcher’s political and economic contributions here on the PowerBlog as the day continues.
In the Washington Times, Nile Gardiner praises Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future, the new book by Acton Research Director Samuel Gregg. Gardiner, the director of the Margaret Thatcher Center for Freedom at The Heritage Foundation and a Washington-based foreign affairs analyst for The Telegraph, says Becoming Europe “should be on the desk of every member of the House and Senate who cares about the future of America as a prosperous and free nation.” Gardiner recommends the book for its “rich detail describing the economic and social ‘Europeanization’ of America, from the rise of vast welfare systems to growing skepticism of the merits of the free-enterprise system.” Excerpt from the review:
“Becoming Europe” is a meticulously researched and well-argued thesis that lays out what is at stake for the world’s superpower, as it faces a stark choice between European-style decline or a return to the original vision of America’s Founding Fathers, as well as the classical liberal teachings of Alexis de Tocqueville, Friedrich von Hayek and Adam Smith. Mr. Gregg, who is director of research at the Acton Institute, paints a grim picture of the direction America is taking but, nevertheless, conveys a positive message to his readers. Mr. Gregg argues that while America is indeed on the path to the European model, it can still turn back and avoid the fate that Europe looks doomed to suffer. In many respects, this is an optimistic book based upon faith in America’s ability to renew itself through rediscovering the principles of economic liberty.
I agree with Mr. Gregg’s assessment. As Gallup polling consistently shows, America is still at its core a conservative nation, one that cherishes the foundations of individual liberty. The fire of freedom still burns brighter on this side of the Atlantic than it does in the Old World, where the suffocating supranationalism of the European Union marches on, with the EU heading toward ever-greater political and economic centralization. The European nightmare can be avoided here, however, only if America’s leaders, at both a national and state level, are willing to stand up for economic freedom and reject the destructive ideology of big government. Washington is already on the path to Brussels, Paris and Athens, but it still has an opportunity to reverse course and avoid the road to economic ruin.
Read Nile Gardiner’s full review of Becoming Europe in the Washington Times.
Mats Tunehag has written a blog highlighting the increased popularity and momentum of business as mission throughout the world. He cites an example that probably would not be the first to come to your mind, but is someone we are very familiar with here at Acton. Lady Margaret Thatcher was the recipient of this year’s Faith and Freedom Award. Mr. John O’Sullivan, who accepted the award on her behalf, described it as one that befits Lady Thatcher’s accomplishments in office and following as she tirelessly worked to advance the cause of faith and liberty.
Two things from the blog strike me as significant. One, Lady Thatcher’s remarks quoted in the blog come from 1988. This was well ahead of the current popularity and acceptance of business as mission in Christian circles. Second, is the response made by Jonathan Thornton mentioning Lord Griffiths of Ffastforach as a speech writer for Lady Thatcher. Lord Griffiths has spoken at Acton events and written a monograph. His influence upon economic matters is not insignificant.
On the American Spectator, Acton Research Director Samuel Gregg examines the baleful influence exerted on economic thought and public policy for decades by John Maynard Keynes. Gregg observes that “despite his iconoclastic reputation, Keynes was a quintessentially establishment man.” This was in contrast to free-market critics of Keynes such as Friedrich Hayek and Wilhelm Röpke who generally speaking “exerted influence primarily from the ‘outside': not least through their writings capturing the imagination of decidedly non-establishment politicians such as Britain’s Margaret Thatcher and West Germany’s Ludwig Erhard.” Perhaps not so surprisingly, many of Keynes’ most prominent devotees are also “insider” types:
The story of Keynes’s rise as the scholar shaping economic policy from “within” is more, however, than just the tale of one man’s meteoric career. It also heralded the surge of an army of activist-intellectuals into the ranks of governments before, during, and after World War II. The revolution in economics pioneered by Keynes effectively accompanied and rationalized an upheaval in the composition and activities of governments.
From this standpoint, it’s not hard to understand why New Dealers such as John Kenneth Galbraith were so giddy when they first read Keynes’s General Theory. Confident that Keynes and his followers had given them the conceptual tools to “run” the economy, scholars like Galbraith increasingly spent their careers shifting between tenured university posts, government advisory boards, international financial institutions, and political appointments — without, of course, spending any time whatsoever in the private sector.
In short, Keynes helped make possible the Jeffrey Sachs, Robert Reichs, Joseph Stiglitz’s, and Timothy Geithners of this world. Moreover, features of post-Keynesian economics — especially a penchant for econometrics and building abstract models that borders on physics-envy — fueled hopes that an expert-guided state could direct economic life without necessarily embracing socialism. A type of nexus consequently developed between postwar economists seeking influence (and jobs), and governments wanting studies that conferred scientific authority upon interventionist policies.
The full video of our 21st Annual Dinner is now up: Acton Executive Director Kris Alan Mauren, Kate O’Beirne as master of ceremonies, AU alumnus Gareth Bloor, Bishop Hurley of Grand Rapids, special address by Acton President Rev. Robert A. Sirico, and keynote address by John O’Sullivan. Acton’s Faith and Freedom Award was presented to Mr. O’Sullivan on behalf of Lady Margaret Thatcher, who sent her former advisor and speechwriter in her place.
Now up for your viewing pleasure, John O’Sullivan’s acceptance of our Faith & Freedom Award on behalf of Margaret Thatcher, and Rev. Robert Sirico’s remarks at the dinner. Mr. O’Sullivan, Lady Thatcher’s speechwriter and advisor, painted a warm, personal portrait of his former boss — at times he had us in stitches, and when he finished, we were all inspired. The dinner was given at the JW Marriott Hotel in Grand Rapids on October 20; if you couldn’t make it, enjoy the videos!
Thursday, October 20, former United Kingdom Prime Minister Margaret Thatcher will be honored with the 2011 Faith & Freedom Award in Grand Rapids. The award will be accepted by former Thatcher adviser John O’Sullivan at Acton’s 21st Annual Dinner. O’Sullivan is currently vice president and executive editor Radio Free Europe/Radio Liberty. Still a close friend of Thatcher, O’Sullivan defined the essence of ‘Thatcherism:’
Thatcherism is a combination of economic liberty, traditional conservative and Christian values, British patriotism, and a strong attachment to the United States and other like-minded countries in the English speaking world. In her intellectual life – her occasional lectures, her reading, her participation in seminars – she has been extremely consistent in her attachment to these ideas.
“The Iron Lady” title was bestowed upon her upon by the Soviet Army newspaper Red Star in 1976 because of her piercing denouncement of communism. Thatcher, who of course loved it, allowed the moniker to stick. Below is a superb video of Thatcher sweeping away the socialist state.
In the “Wealth Inequality Mirage” on RealClearMarkets, Diana Furchtgott-Roth looks at the campaign waged by “levelers” who exaggerate and distort statistics about income inequality to advance their political ends. The gap, she says, is the “main battle” in the Nov. 2 election. “Republicans want to keep current tax rates to encourage businesses to expand and hire workers,” she writes. “Democrats want to raise taxes for the top two brackets, and point to rising income inequality as justification.”
This is a constant refrain from the religious left, which views the income or wealth gap as evidence of injustice and grounds for reforming political and economic structures. In the video posted here, you’ll see Margaret Thatcher, in her last speech in the House of Commons on November 22, 1990, brilliantly defending her policies against the same charge.
Furchtgott-Roth zeroes in on a recent interview with Robert Reich, Secretary of Labor for President Bill Clinton and now a professor at the University of California, Berkeley.
[Reich said:] “Unless we understand the relationship between the extraordinary concentration of income and wealth we have in this country and the failure of the economy to rebound, we are going to be destined for many, many years of high unemployment, anemic job recoveries and then periods of booms and busts that may even dwarf what we just had.”
Mr. Reich is wrong. He and other levelers exaggerate economic inequality, eagerly, because they rely on pretax income, which omits the 97% of federal income taxes paid by the top half of income earners and the many “transfer payments,” such as food stamps, housing assistance, Medicaid and Medicare. This exaggerated portrait of inequality undergirds the present effort by the Democrats to raise income tax rates for people with taxable incomes of $209,000 a year on joint returns and $171,000 a year on single returns.
A more meaningful measure of inequality comes from an examination of spending. On Wednesday the Labor Department presented 2009 data on consumer spending, based on income quintiles, or fifths. This analysis shows that economic inequality has not increased, contrary to what the levelers contend.
Much of the discussion around this issue from the left uses the data to portray America as a heartless land of haves and have-nots. Here’s a quote from a Sept. 28 AP story on new census data, including income figures:
“Income inequality is rising, and if we took into account tax data, it would be even more,” said Timothy Smeeding, a University of Wisconsin-Madison professor who specializes in poverty. “More than other countries, we have a very unequal income distribution where compensation goes to the top in a winner-takes-all economy.”
Here’s an amazing statistic: The average 2009-10 faculty salary at Wisconsin Madison was $111,100. But the median household income for all Americans in 2007 (a roughly parallel comparison) was just over $50,000. Isn’t something out of whack here? Isn’t this evidence of severe economic injustice demanding structural reform? Sounds to me like the Bucky Badger faculty has been helping itself to second and third helpings at the “winner-take-all” buffet.
The faculty at Prof. Reich’s school do even better on average income: $145,800. I suspect some celebrity professors might even be … above average.
… recent events have added nothing that we did not know before or, more accurately, should have known as social scientists or otherwise as people attentive to empirical evidence. The crucial fact here, of course, is the vast superiority of capitalism in improving the material standards of living of large numbers of people, and ipso facto the capacity of a society to deal with those human problems amenable to public policy, notably those of poverty. But, if this fact had been clear for a long time, recent events have brought it quite dramatically to the forefront of public attention in much of the world, and by no means only in Europe. It is now more clear than ever that the inclusion of a national economy in the international capitalist system (pace all varieties of “dependency theory”) favors rather than hinders development, that capitalism remains the best bet if one wishes to improve the lot of the poor, and that policies fostering economic growth are more likely to equalize income differentials than are policies that deliberately foster redistribution.
[ … ]
… to opt for capitalism is not to opt for inequality at the price of growth; rather, it is to opt for an accelerating transformation of society. This undoubtedly produces tensions and exacts costs, but one must ask whether these are likely to be greater than the tensions and costs engendered by socialist stagnation. Moreover, the clearer view of the European socialist societies that has now become public radically debunks the notion that, whatever else may have ailed these societies, they were more egalitarian than those in the West: they were nothing of the sort. One must also remember that, comparatively speaking, these European societies were the most advanced in the socialist camp. The claims to greater equality are even hollower in the much poorer socialist societies in the Third World (China emphatically included).