K. Alec Chrystal discusses the performance of the British economy over the last few years. Focusing on the impact of the British government’s policies under Mrs. Thatcher, he argues that these policies have not been as restrictive as is often claimed. Instead, Chrystal argues that the substantial rise in British unemployment since 1979 can be attributed to the structural change that the British economy has been undergoing, primarily as a result of its transformation from an importer of oil to a substantial net exporter of oil. Chrystal explains that this adjustment involved a loss of competitiveness of the manufacturing sector, which led to contractions in the manufacturing sector and the associated substantial rise in unemployment.