By Thatcher had accepted an invitation to become parliamentary undersecretary in the Ministry of Pensions and National Insurance. She then steadily moved up the ministerial ranks, becoming secretary of state for education and science when the Conservatives retook power in Nonetheless, she was able to keep her job, and in , with the Conservatives back in the opposition, she defeated former Prime Minister Edward Heath to take over leadership of the party.
Thatcher was now one of the most powerful women in the world. She rejected the economic theories of John Maynard Keynes, who advocated deficit spending during periods of high unemployment, instead preferring the monetarist approach of Chicago economist Milton Friedman.
In April , Argentina invaded the Falkland Islands , a sparsely populated British colony located miles from Argentina and 8, miles from the United Kingdom. Thatcher dispatched troops to the area.
On May 2, a British submarine controversially sank an Argentine cruiser that was outside of an official exclusion zone, killing over people on board. Later in the month, British troops landed near San Carlos Bay in East Falkland and, despite persistent air attacks, were able to capture the capital of Port Stanley and end the fighting. The war and an improving economy propelled Thatcher to a second term in In what became a key part of her legacy, Thatcher also privatized British Telecom, British Gas, British Airways, Rolls-Royce and a number of other state-owned companies.
On the foreign policy front, Thatcher often found herself allied with U. In Asia, meanwhile, she negotiated the eventual transfer of Hong Kong to the Chinese. In Africa she had a mixed record, facilitating the end of white minority rule in Zimbabwe but opposing sanctions against apartheid South Africa. After Thatcher was elected to a third term in , her government lowered income tax rates to a postwar low.
On November 14, , former Defense Minister Michael Heseltine challenged her for leadership of the party, partly due to differences of opinion on the European Union. Thatcher won the first ballot but by too small of a margin for outright victory. That night, her cabinet members visited her one by one and urged her to resign. She officially stepped down on November 28 after helping to assure that John Major and not Heseltine would replace her. Thatcher remained in parliament until , at which time she entered the largely ceremonial House of Lords and began to write her memoirs.
Housing Act gave security of tenure, and the right to buy homes, to tenants of local authorities and other bodies. She was educated at the local grammar school and studied Chemistry at Oxford University, where she became president of the university Conservative association. She held junior posts before becoming Shadow Spokesperson for Education, and entered the Cabinet as Education Secretary in In Opposition she stood against Edward Heath for the party leadership in and won.
Her victory was considered a surprise by many. Her first 2 years in office were not easy - unemployment was very high, but the economy gradually showed improvement. She brought more of her supporters into the Cabinet, and added to her reputation by leading the country to war against Argentina in the Falkland Islands. The Conservatives went on to win the election by an overwhelming majority, helped by a divided opposition. Her government followed a radical programme of privatisation and deregulation, reform of the trade unions, tax cuts and the introduction of market mechanisms into health and education.
The aim was to reduce the role of government and increase individual self-reliance. She also became a familiar figure internationally, creating a famous friendship with US President Reagan and gaining the praise of Soviet leader Gorbachev.
One great difficulty during her time in office was the issue of Europe. All of the newly ennobled were given life peerages, meaning they hold the rank while they live but their children do not inherit the titles. For months there was speculation about whether Thatcher would accept a life peerage as a baroness or, as is traditional for former prime ministers, become a hereditary earl in her case, a countess , two notches up the ladder in the pecking order from a baron in the House of Lords.
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