1979 was a pivotal year for world politics – only rivalled by 2016 with the election of Donald Trump as US president. Back in 79, Margaret Thatcher swept to power in the UK general election followed by Ronald Reagan in the United States.
It heralded an era of free market economics and initially a drift to socially conservative attitudes – especially towards ethnic minorities and LGBT people. It’s sometimes conveniently forgotten that Thatcherism may have been economically “liberal” but not socially. The socially liberal Conservative Party epitomised by David Cameron was decades away.
The 1979 general election marked the end of a post-war era of political and economic consensus. Since 1945, both main parties had accepted a mixed economy – part state and part privately owned. Industry was managed in a tripartite arrangement between bosses, unions and government with formalised structures for regular talks.
State owned bodies had run the utilities and key industries with commissions regulating pay and prices. Government departments determined policy and practice in large swathes of the economy because Whitehall owned the steel, gas, mining and other sectors.
All of this came to an end in the 1979 general election. Thatcher and her free market coterie took on organised labour but also elements in her own party who preferred a “One Nation” vision of society to her more aggressively individualist vision.
On the left, there was a parallel movement of Marxists and socialists who also rejected the post-war consensus but wanted a very different kind of society with workers’ control and the end of capitalism.
The 1979 general election saw three main protagonists duke it out for the keys to Number Ten. Thatcher was by far the most energetic and with everything to win. Labour leader Jim Callaghan was more popular as a person but had dithered over calling an election for a year in which the unions had staged major industrial action – the so-called Winter of Discontent – eroding Labour’s standing in the polls. By the election, he came across as a man weary of high office.
In the middle was David Steel, the Liberal leader, who had been propping up Labour in the so-called Lib-Lab pact – as Labour lost its majority during its 1974-79 term in office. This pact would damage the Liberals, many of whose supporters switched to the Tories. In fact, Labour’s vote didn’t slump so much as the Liberals collapsed into Thatcher’s arms.