Ken Korda said:
Did you know that prior to the Falklands War, Margeret Thatcher actually reduced both the military spending and the actual defences in the Falklands?
The embarassingly right-wing British leadership then used the political captial they gained from the Falklands victory to advance their neo-liberal agenda, leading to mass privatisation and millions unemployed. The continuation of this economic policy eventually culminated with Britain being forced to devalue its currency and exit the ERM. This destroyed public perception of the Tories as having a competent economic policy.
Hence New Labour got elected and decided the best thing to do was to continue along the same policy route which inevitably led to the current recession. Now the Conservetives will get re-elected and the whole process will be exacerbated.
Sorry to wonder off-topic but it's interesting to link the event of the Falklands war to the current economic failure.
I hate to argue with you but it is popular belief that it was the conflict in falklands that ended a lot of the strikes and helped end the recession. I pay into this belief. The British people were fed up with the decisions of the tories and had lost faith in their Identity, something that has always been important to us.
Lets not forget John Major came in next (I think, I am at work and cant be bothered to double check) so you cannot say they ruined anything! As a matter of fact to even think this has anything to do with the current economic conditions you are not thinking straight at all. This was down PRIMARILY to the mortgage and loan markets over selling risky loans, pure and simple. The rest followed it down like a house of cards.
The Falklands was good for the UK, it took pressure off the Gov't and made the people see more than picket lines. Lets not forget that whole era; car manufacturing had ceased to exist because employees only wanted to picket. We ran out of coal and couldn't beat the compititions steel prices (last time I checked there was nothing Thatcher could do about this) and this lead to ship yards and industrial manufacting going to Europe, the US and Japan.
You are making a very simple theory try to stick to a huge complex peice of history. Guess what, everything up there is a gross simplification of what actually happened, yet it is much closer than what you proposed 8).
People like to simplify things.... or I should like to say Americans do. If it isn't in a Cliff notes form it is too complex for us mere mortals to comprehend. The world is not as flat as Friedman likes to tell us, or did, I think he too changed his mind!