The nightmare I sometimes have, about this whole experience, runs as follows. I was involved in making a number of proposals which were partly at least adopted by the government and put in play by the government. Now, my worry is as follows – that there may have been people making the actual policy decisions, or people behind them or people behind them, who never believed for a moment that this was the correct way to bring down inflation.
They did, however, see that it would be a very, very good way to raise unemployment, and raising unemployment was an extremely desirable way of reducing the strength of the working classes — if you like, that what was engineered there in Marxist terms was a crisis of capitalism which re-created a reserve army of labour and has allowed the capitalists to make high profits ever since.
Now again, I would not say I believe that story, but when I really worry about all this, I worry whether that indeed was really what was going on.
Margaret Thatcher’s chief economic advisor
Quoted by Cheltenham & Gloucester Against Cuts, who note that the inflation rate was the same when Thatcher came into power (1979) as when she left (1990). This is true, but inflation in the UK has been highly volatile. One thing is for sure: inflation was hardly tamed by her policies. And given that, what was the point? I think we all know that inflation is generally used as a reason to justify policies that help the rich and hurt the poor.