Home
/
RELIGION & LIBERTY ONLINE
/
What Margaret Thatcher understood about income inequality
What Margaret Thatcher understood about income inequality
Jan 13, 2026 2:46 AM

Margaret Thatcher once told an interviewer, “Of course, I am obstinate in defending our liberties and our law. That is why I carry a big handbag.” During her time as Prime Minister, Thatcher’s handbag became an iconic symbol of her ability to handle opponents. The term “handbagging” even entered the Oxford English Dictionary (the verb “to handbag” is defined as: (of a woman politician), treat (a person, idea etc) ruthlessly or insensitively) to describe her rhetorical style.

Thatcher’s handbagging usually occurred during Question Time, the hour every day when members of the parliament ask questions of government ministers—including the prime minister—which they are obliged to answer. A prime example is in her last appearance as Prime Minister in the House of Commons, on November 22, 1990. Liberal Democrat MP Simon Hughes taunts her on the subject of e inequality.

Mr. Hughes: There is no doubt that the Prime Minister, in many ways, has achieved substantial success. There is one statistic, however, that I understand is not challenged, and that is that, during her 11 years as Prime Minister, the gap between the richest 10 per cent. and the poorest 10 per cent. in this country has widened substantially. At the end of her chapter of British politics, how can she say that she can justify the fact that many people in a constituency such as mine are relatively much poorer, much less well housed and much less well provided for than they were in 1979? Surely she accepts that that is not a record that she or any Prime Minister can be proud of.

The Prime Minister: People on all levels of e are better off than they were in 1979. The hon. Gentleman is saying that he would rather that the poor were poorer, provided that the rich were less rich. That way one will never create the wealth for better social services, as we have. What a policy. Yes, he would rather have the poor poorer, provided that the rich were less rich. That is the Liberal policy.

Mr. Hughes: No.

The Prime Minister: Yes, it came out. The hon. Member did not intend it to, but it did.

As Thatcher might say, those concerned with e inequality many not intend for it e out, but making the rich less rich is precisely what they want—indeed, it is the only thing that can solve the faux-problem of e inequality.

Consider the example given by Mr. Hughes that, “the gap between the richest 10 percent and the poorest 10 percent has widened substantially.” To simply the math, let’s say the bottom 10 percent in a country make between $0 and $10,000 a year while the richest 10 percent make an annual e of $100,000. That’s a minimum gap of $90,000 dollars.

Now imagine if the es doubled over a period of 10 years (and inflation stayed low). The poorest 10 percent would now make between $0 to $20,000 and the poorest would make $200,000. Everyone would appear to be better off yet e inequality also doubled. The gap is now $180,000—twice as much as it was a decade ago.

So is this a problem? It would only be a concern under three conditions: (a) if the e of the rich increased at the expense of the poor (through exploitation or injustice), (b) the increase was due to illegal activity, or (c) if you care about e inequality because you want to make the rich less rich, through confiscation or redistribution of e.

Preventing or correcting Condition B is a primary concern of the State while preventing or correcting Condition A is a primary economic concern of individual Christians. There are numerous Biblical injunctions and warnings against the injustice of allowing the rich to exploit the poor. But if that is not occurring, then Christians have no right to be concerned with how much e another person is generating. Jesus even told a parable about workers making different wages for the same work (Matthew 20:1-16). While the purpose of the parable was to teach us about the Kingdom of God rather than a managerial lesson on e parity, it does show that differences of e—even for the same work— is not inherently unfair.

Thatcher intuitively understood what her opponents were loathe to admit: They were less concerned about the plight of the poor than with the wealth of the rich. Even the liberal British expatriate Andrew Sullivan admits this was true of British liberals and socialists:

No culture I know of is more brutally unkind to its public figures, hateful toward anyone with a degree of success or money, or more willing to ascribe an individual’s achievements to something other than their own ability. The Britain I grew up with was, in this specific sense, profoundly leftist in the worst sense. It was cheap and greedy and yet hostile to anyone with initiative, self-esteem, and the ability to make money.

The clip below captures the left-liberal sentiment of the time perfectly. Yes: the British left would prefer to keep everyone poorer if it meant preventing a few getting richer.

Envy, even when is it disguised as egalitarianism, is a deadly sin. It is corrosive to the soul to envy the wealth of one’s neighbor and destructive to society when we desire the State use it’s power to redistribute the wealth of citizens simply to achieve the goal of more equalized es. Ms. Thatcher understood that concerns about e inequality were really about envy. She knew envy was consuming her opponents across the aisle, even though they couldn’t see what was hiding in their own hearts. We need to follow her example and expose e inequality for what it is, before it consumes our own nation as it did Great Britain.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Alarmism and Corruption
Regis Nicoll over at The Point notes a WaPo story that is getting a lot of play on the blogosphere about the UN’s downgrade of the estimate of the extent of the AIDS epidemic, “U.N. to Cut Estimate Of AIDS Epidemic: Population With Virus Overstated by Millions.” Nicoll writes that while of course it is good news that fewer people are infected than were previously thought, “The bad news is that previous estimates were inflated because of politics, bad science,...
PowerBlog Updates
Taking a cue from No Straw Men, I’m updating the look and feel of the Acton PowerBlog. Jonathan Rick suggests pletely separating your blog from your organization’s main Web site is a bad idea because you cut off access to useful information and create two distinct audiences rather than integrating traffic between two distinct sections of one Web site. Acton’s blog has always been on the same domain as the main Acton site (www.acton.org) but we’ve recently given the blog...
Rock N Roll ‘Jesus’
Last night the American Music Awards were televised on ABC. Among the big winners were alumni of the hit TV show, “American Idol,” whose stars won 3 AMAs. Kid Rock, the Rock N Roll “Jesus.” But there was another kind of “idol” on display at the AMAs, as Detroit’s own Kid Rock was a presenter and did a spoof of his fight with rocker Tommy Lee in edy bit with host Jimmy Kimmel. Kid Rock released a new album last...
Wichita Business Journal: The Call of the Entrepreneur
Pat Sangimino wrote an article for the Wichita Business Journal titled, “Documentary seeks to dispel negative images of entrepreneurs ” (subscription required). A premiere of The Call of the Entrepreneur took place in Wichita, Kan., on November 14th. Sangimino noted in his piece: Some consider Wichita to be the Midwest’s cradle of entrepreneurship. Evidence of that is the original Pizza Hut building, which was moved to the Wichita State University campus in 1984 to serve as a reminder of what...
A Puritan Legacy
There’s no better time to re-examine the legacy of the Puritans than on the Thanksgiving holiday, which is so closely associated with the Pilgrim’s exodus to America in 1621. With that in mind, here are a few resources for understanding the worldview that Max Weber called a “worldly asceticism.” “Eat, Drink, and Relax: Think the Pilgrims would frown on today’s football-tossing, turkey-gobbling Thanksgiving festivities? Maybe not.” Christian History & Biography.“History and Theology of the Puritans.” The Shepherd’s Scrapbook (links to...
Latin America’s Messengers for Recycled Marxism
An assortment of radical socialist chums gathered in Caracas, Venezuela for a lively discussion on the issue, “United States: A possible revolution.” The event was part of the third annual Venezuela International Book Fair on November 9-18, and featured the usual campus radicals, anti-American crusaders, and Marxist activists. As usual mitted Marxists, the main target of evil and oppression in the world is the United States. Writing a summary of events for the Militant, Olympia Newton’s article is titled, “Venezuela...
No Plan? No Problem
The Cato Institute and Randal O’Toole offer an appealing new book, The Best Laid Plans—a recounting of the failures of government planning. Think of it as extensive documentation of the truth Hayek observed half a century ago: it is impossible for a central authority to collect all the information or make all the predictions necessary to foresee how economic activity will play out. Therefore, it is impossible to plan centrally the operation of major sectors of the economy such as...
A Heartwarming Story for Thanksgiving
Thanks to Rob Chaney at the Missoulian, the touching story of young Caden Stufflebeam is told. Chaney wrote a piece titled, “Rocks to riches: Missoula boy sells stones he finds to buy food for needy.” Appropriately noted as the top story for the paper in Missoula, Mont., Caden has been collecting and selling rocks and donating the proceeds to the less fortunate. The young boy is filled with an abundance of generosity and spiritual knowledge. Christ declared in Matthew, “I...
Reports on Globalization and National Capital
Last month the World Bank published a report titled, “Where is the Wealth of Nations?” (HT: From the Heartland). The report describes estimates of wealth and ponents for nearly 120 countries. The book has four sections. The first part introduces the wealth estimates and highlights the level position of wealth across countries. The second part analyzes changes in wealth and their implications for economic policy. The third part deepens the analysis by considering the importance of human and institutional capital,...
2008 Novak Award Nominations Being Accepted
The nomination process has begun for the international 2008 Novak Award. Named after theologian Michael Novak, this $10,000 award rewards new outstanding research into the relationship between religion and economic liberty. Over the past seven years, this award has been given to young, promising scholars throughout the world. To nominate an emerging scholar, plete the online form. We encourage professors, university faculty, and other scholars to nominate those who pleting exceptional research into themes relevant to the mission and vision...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved