I'm old enough to remember Maggie actually taking my milk - an iconic event which I won't bother to elaborate upon. Suffice to say I didn't start out as posh as I am now.
Maggie's problems were fourfold IMO. As usual she took a good thing far too far.
1) She broke the unions. The unions had been causing trouble I very barely remember/imagine I remember. Look up the Winter of Discontent which was in itself a good idea taken far too far. The unions didn't need breaking. They needed to stop behaving with the same rapaciousness they formed to combat. In the end we lost our coal and steel, as casualties to her objective (IMO), and saw a big rift open up between the police and local communities which has fed crime ever since.
2) She took an aggressive anti-communist stance on foreign relations that in particular saw us cozying up to Augusto Pinochet and his ilk. Although given how aggressive, and indeed possibly demented Leonid Brezhnev was at the time this again is understandable.
3) She sold off all our sodding North Sea oil because she felt it was philosophically unsound to hang on to it, and it was best given over to big business. Needless to say this was an error. This, coupled with the loss of coal and steel means the Uk is now unworkable on its own.
4) She refused to solidly address the question of Europe. She hoped that Britain would get sick of a loss of sovereignty in time and the issue would be resolved when we did. I believe this was an error. People who think we should have gone in with more enthusiasm also think this was an error.
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However, the real problem with the Tory party is less to do with their MPs than the people who vote Tory, which is the exact opposite problem with the Liberal Democrats.