At the end of the Second World War a decision was taken as to how to deal with Germany and others who supported them. Those in the positions of power recognised that the war was greatly influenced by the decision taken after the First World War to punish Germany for their actions.
In order not to repeat the same mistake the decision was taken not to punish but to assist in the rebuilding of the shattered country and economy. This decision was instrumental in assisting Germany to become a leading manufacturing powerhouse in the 21st century with a $12.8 billion surplus as it enters 2019.
Britain on the other hand ended the war almost bankrupt because of having to finance their war effort. Rationing continued into the 1950s as the governments of the day struggled to deal with the brutal reality the country now faced. At breakneck speed the British Empire was dissolved, and the British had to come to terms with the fact that they had won a war and lost an empire.
Thirty years after the end of the war Britain was in a financial mess with the trade unions in charge telling a Labour government what to do. Additionally, the government was having to deal with the Opec oil price increase in 1973. Nationalisation of many industries resulted in poor quality products and the industrial workhouse Britain once was with 25 per cent share of world industrial manufacturing now had a share of less than 10pc.
Britain at this time languished at half the wealth of Germany based on various economic indicators. Years of socialist policies introduced by Labour governments resulted in the country blindly moving towards a redundant socialist state at the edge of Europe heading the same way as Cuba.
With the trade unions pulling all the strings and Prime Minister Harold Wilson doing their bidding inflation was approaching 30pc with wage increases to match. The middle class without the power of the trade unions were being squeezed and it was obvious something had to happen, and quickly.
The change occurred with the appointment of Margaret Thatcher, the middle England shopkeeper’s daughter, as a successor to Ted Heath as leader of the Conservative Party. Her no-nonsense approach appealed to the electorate who realised strong leadership was needed to get the country out of the financial quagmire they were in.
Thatcher and her team took to the challenges that had to be addressed and implemented the necessary changes that were needed. Britain had to face up to their new brutal reality as a mid-sized nation at the edge of Europe and the days of being a global empire were at an end.
Forty years later the country is facing another key set of challenges as it leaves the European Union to go it alone in this new globalised world. Today, we have another woman at the helm in the shape of Theresa May who for over two years has been in negotiation with the Europeans and her own parliamentarians to strike an exit deal.
Two women leading the country at a critical moment in history and only time will tell if Theresa May can match up to Margaret Thatcher as another strong woman who rescues the country.
Gordon is the former president and chief executive of BMMI. He can be reached at gordonboyle@hotmail.com