Margaret Thatcher Explains Why British Socialism Failed and What It Means for Free Societies

Two Fundamental Paths for Government

When considering whether the failure of British socialism carries the same meaning for the United States as it does for Venezuela, it's essential to recognize at the outset that broadly speaking, there are two ways in which any government can proceed. One is a way based on what we would call a free society, which is enshrined right at the heart of the American Constitution. The other one is a way which allows only one view both of economics and politics, in which almost everything is either owned or controlled by the state—including the media, including the ideas, including freedom of discussion and everything. There is no freedom of discussion.

Britain's Gradual Shift Away From Freedom

Between these two ways—the free society and the totally controlled society—there are of course variations. What we've learned in Britain is that we've gradually, over the last certainly 12 or 13 years with perhaps a little interruption, gone slowly further and further away from the free society towards something else. At the same time, we found—I don't find it strange but some other people do—that we have stopped creating wealth. We've had a large number of increasing restrictions.

The Redistribution Trap

You've been finding two things: first, that we are more and more concentrating on redistributing the wealth we've got rather than creating anymore. To create more, you need a slightly freer society and you need an incentive society. Naturally, when I see that happening, I look with very great alarm to societies which have gone even further left—that is, they've tried to redistribute even more and haven't had the incentives for people working hard on their own account, doing well for their families, and often then being able to create jobs for others.

The Choice Before Nations

They've produced a much more prosperous society than we have. But by and large, you've got the two broad different economic and political approaches. The evidence from Britain demonstrates clearly that as government control increases and freedom decreases, wealth creation stops. The choice facing any nation is whether to preserve the incentives that drive individuals to work hard, provide for their families, and create opportunities for others, or to focus on redistributing existing wealth until there is nothing left to redistribute.