Home
/
RELIGION & LIBERTY ONLINE
/
What Margaret Thatcher understood about income inequality
What Margaret Thatcher understood about income inequality
Jan 8, 2026 6:05 PM

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
PBR: Rwanda and Reconciliation
This year April 6th marked the 15th anniversary of beginning of the genocide in Rwanda. Catherin Claire Larson, a senior writer and editor at Prison Fellowship Ministries, has written a new book called As We Forgive: Stories of Reconciliation from Rwanda, which focuses on how such wounds opened up fifteen years ago are being healed today. (Larson’s book is inspired by the award-winning film of the same name, which debuted in April 2008. Comment carried an interview with Laura Waters...
Acton Commentary: “Despotism – The Soft Way”
Sam Gregg marks the 150th anniversary of the death of Alexis de Tocqueville whose great work “Democracy in America” warned about the dangers of fortable servility. “The American Republic,” Tocqueville wrote, “will endure until the day Congress discovers that it can bribe the public with the public’s money.” Read mentary at the Acton website ment on it here. ...
Acton Commentary – “Earmarks: Don’t Mend Them, End Them”
In this piece John Pisciotta, a professor of economics at Baylor University, offers a number of sound reasons for getting rid of earmarks on appropriations bills, including their tendency to invite corruption. “Those who seek them are tempted to skirt the law to win favor with a legislator so as to be graced with an earmark,” he writes. “We should not be surprised that a handful of former members of Congress now receive free room and board at federal prisons.”...
Market and Government Failure
An essay of mine appears today over at the First Things website as part of their “On the Square: Observations & Contentions” feature. In “Between Market and State,” I explore the dialectic logic of market and government “failure,” which functions in part to provide us with a false dilemma: our solution to social problems must lie with either “market” or “state.” I work out this logic in the context of the sub-prime mortgage crisis, and conclude that non-profits play a...
Acton Commentary: Religious Freedom Doesn’t Mean Religious Silence
The First Amendment rights of religious groups are under assault in the public square. As Kevin Schmiesing reminds us in today’s Acton Commentary, “History’s tyrants recognized the progression that some of us have forgotten: Where people are free to act according their conscience, they will demand the right to determine their political destiny.” Read mentary at the Acton Website ment on it here. ...
Happy Patriots’ Day
Patriots’ memorates the opening battles of the American Revolution at Lexington and Concord on April 19, 1775. It is officially celebrated in Massachusetts and Maine, and is now observed on the third Monday in April to allow for a three day weekend. Patriots’ Day is also the day upon which the Boston Marathon is held and the Boston Red Sox are always scheduled to play at home with the only official A.M. start in Major League Baseball. My Patriots’ Day...
Notre Dame, Georgetown and President Obama
The Detroit News published a column yesterday that I wrote about Catholic identity and the controversies sparked by President Obama’s visit to Georgetown and his planned speech at Notre Dame. National Review Online also published a variation of the same column last week under the title, The Catholic Identity Crisis. Here’s the Detroit News column: President Barack Obama made an ment on economics during his April 14 speech at Georgetown University. “We cannot rebuild this economy on the same pile...
April Fools and April 15th
Just in time for April 1st and April 15th, let’s talk about taxes. On April 1st, the excise tax on cigarettes was increased dramatically—from $.39 to $1.01 per pack. It’s fitting that this occurred on April Fools’ Day, since it served to break President Obama’s campaign pledge not to increase “any form of” taxes on any family making less than $250,000 per year. Independent of breaking a campaign promise, such a tax is attractive for non-smokers since the costs are...
PBR: The End of Poverty
This Sunday I’ll be giving a talk at Fountain Street Church on the life and work of Dietrich Bonhoeffer. His unfinished Ethics is a tantalizing work, full of insights and conundrums. Here’s what he writes in the essay, “On the Possibility of the Church’s Message to the World,” with regard to the church’s engagement in social justice: Who actually says that all worldly problems should and can be solved? Perhaps to God the unsolved condition of these problems may be...
Orthodox Christianity And Capitalism — Are They Compatible?
Kevin Allen, host of The Illumined Heart podcast on Ancient Faith Radio, interviews writer, attorney, and college professor Chris Banescu, an Orthodox Christian, about the economic, moral and spiritual issues surrounding the market economy. Kevin asks: Does the capitalist system serve “the best interests of Christians living the life of the Beatitudes?” Listen to Chris Banescu on Orthodox Christianity and Capitalism: [audio: Read “A Primer on Capitalism” on Chris’ personal Web site. He is also the author of two articles...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved