http://www.margaretthatcher.org/speeches/displaydocument.asp?docid=104431

"Those in the public sector have a duty to those in the private sector not to take out so much in pay that they cause others unemployment. That is why we point out that every time high wage settlements in nationalised monopolies lead to higher charges for telephones, electricity, coal and water, they can drive companies out of business and cost other people their jobs.

If spending money like water was the answer to our country's problems, we would have no problems now. If ever a nation has spent, spent, spent and spent again, ours has. Today that dream is over. All of that money has got us nowhere but it still has to come from somewhere. Those who urge us to relax the squeeze, to spend yet more money indiscriminately in the belief that it will help the unemployed and the small businessman are not being kind or compassionate or caring.[fo 10]

They are not the friends of the unemployed or the small business. They are asking us to do again the very thing that caused the problems in the first place. We have made this point repeatedly. "

"But it is not the State that creates a healthy society. When the State grows too powerful people feel that they count for less and less. The State drains society, not only of its wealth but of initiative, of energy, the will to improve and innovate as well as to preserve what is best. Our aim is to let people feel that they count for more and more. If we cannot trust the deepest instincts of our people we should not be in politics at all. Some aspects of our present society really do offend those instincts."

"Not for us the disastrous fantasies of unilateral disarmament, of withdrawal from NATO, of abandoning Northern Ireland.

The irresponsibility of the Left on defence increases as the dangers which we face loom larger. We for our part, under Francis Pym 's brilliant leadership, have chosen a defence policy which potential foes will respect.

We are acquiring, with the co-operation of the United States Government, the Trident missile system. This will ensure the credibility of our strategic deterrent until the end of the century and beyond, and it was very important for the reputation of Britain abroad that we should keep our independent nuclear deterrent as well as for our citizens here.

We have agreed to the stationing of Cruise missiles in this country. The unilateralists object, but the recent willingness of the Soviet Government to open a new round of arms control negotiations shows the wisdom of our firmness.

We intend to maintain and, where possible, to improve our conventional forces so as to pull our weight in the Alliance. We have no wish to seek a free ride at the expense of our Allies. We will play our full part. "