Margaret Thatcher broke the post-war consensus in British politics and in so doing changed Conservatism in a fundamental way. Discuss.
It is generally agreed that the post-war consensus consisted of 3 broad pillars – the welfare state, a mixed economy and Keynesian demand-management to ensure full-employment. Let us firstly turn to Keynesian demand management; the post-war consensus was established when the dominant economic paradigm was Keynesian thought, it was believed that by altering government spending aggregate demand would change so as to ensure that full-employment was achieved. Traditionally, the government had the trade-off between high inflation and low unemployment or vice versa, this occurred because by reducing unemployment labour had strong bargaining power and was able to bid-up wages which caused inflation. [...]