Husar, you built a straw man and then knocked it down.
Thatchers words did not herald the arrival of a low tax state with no social safety net, and nothing in those words would suggest that it would or should. Britain remained a state that taxed nearly forty percent of gdp and retained a significant and we'll funded social safety net.
It was simply less than was expected on the continent - resulting from our greater emphasis of liberty over equality - but nothing out of the ordinary in the Anglo sphere countries. Large specialised and successful countries, than somehow manage without a pronounced collectivist bent.
It is a choice, not a necessity, and one I'm free not to choose.
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