In the 20th century, England has lost an empire, built a welfare state, and begun to accept the idea of being part of Europe. Abroad, her relative power has declined; at home life has become more intolerable for the unfortunate and more secure for the majority of the people. This text surveys these two great currents of change and examines their political and economic implications. The edition has been revised to bring current events and the bibliography up-to-date. It includes a new chapter which brings the story right up to the General Election of 1992.