I actually said 'de-industrialisation' but your points are well made. The Thatcher Govts, whilst trying to combat inflation and re-vitalise the economy - all laudable enough - also had the side political project of fragmenting tradtional working class communities and thus neuter a traditional source of political opposition.
Misplaced corporatism in the 70's resulted in too large a nationalised sector but, equally, blunt monetarism and a politicalo haterd of working class Britain in the 1980's destroyed much of British Industry in the midlands and, particularly, the North. There was precious little done to help those communities, I know, I grew up in one at the time. Mine was a mining area and we went from zero unemployment and few social problems to unemployment of 20 - 30% and a whole host of attendant social ills - family breakdown, hard drug use and alcoholism.
Some de-industrialisation was inevitable but Thatcher made it worse then in comparable European countries, for instance - that was the Rightists, (as opposed to traditional One Nation Tories - who did have a conscience) who took over the Tory Party in the mid 70's, political project when in power.
Gee thanks Mrs T.

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A moderate centre right or even centre left Govt would have liberalised the economy and toned down the Unions - the Dutch managed it - but, no, in Britain we had Mrs T et al. Great.