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Saturday, April 20, 2013

”There can be no liberty unless there is economic liberty.” - Margaret Thatcher

The Lady was, definitely, not for turning and although she is no longer with us, her life and leadership show the way ahead of the current crisis. She tought many lessons on economy, leadership and freedom, which countries fighting and tired of a crisis which does not seem to come to and end, would need.  Margaret Thatcher was not a genius, but a person with good sense and much determination, still rare qualities among leaders today.  She cured the sickness, not the effects - a state spending too much.  

You will see below an example of an extraordinary lucid and pragmatic thinking, from  Lady Thatcher, of course - a rational approach which would be still very much valid in the current economic crisis. The following paragraphs are from the self-biography - ”The Downing Street Years”, Harper Press, 2011:

”The <wets> (under this name, Lady Thatcher designated those wanted to do more compromises, n.a) arguments came in different ways of varying sophistication, though their central message was always the same: spend and borrow more. They used to argue that we need extra public spendingon employment and industrial schemes, over and above what we had planned and were effectively forced to spend simply because of the recession. But this did not escape from the fact that extra public spending - whatever it was spent on - had to come from somewhere. And 'somewhere' meant either taxes levied on private individuals and industry; or borrowing, pushing up interest rates; or printing money, setting off inflation. There ws also a feeling , which I equally knew I had to resist, that the refunds which I had secured from the European Community budget should be used to finance extra spending. But why should it be assumed that public spending was better than private spending?".

So, current leaders and other decision-making people should read more of the examples given by Margaret Thatcher - these are practical examples of success, not theories (!) - than paying so much attention to Mr.Roubini or any sophisticated analysts focusing either on the effects or a wrong medication for the crisis.