(Read More: UK's 'Iron Lady' Margaret Thatcher Dies of Stroke)

Margaret Thatcher, who governed the U.K. from 1979 to 1990, fought socialism in England and unyieldingly promoted the free-market views of Nobelists Milton Friedman and Friedrich Hayek. She stopped the destructive British labor unions dead in their tracks. With every bone in her body she attempted to limit government by lowering spending and taxation. She opted for big-bang financial deregulation. And she put London back on the map as a world banking center.

"Freedom" was always her watchword.

She also adored former President Ronald Reagan. And the two of them formed an extraordinary partnership for freedom and free markets. Working together, they helped bring down the Soviet communist system. And it was a peaceful bring-down at that.

(Read More: Margaret Thatcher's Greatest Moments)

Thatcher saw Gorbachev first, and she reported to Reagan, "We can do business with him." Reagan did, although he refused to back down on SDI. And as the American economy roared in response to Reagan's own free-market supply-side policies, the Soviets were out-produced and eventually folded.

Thatcher famously said, "The trouble with socialists is that they always run out of other people's money." That dictum really stands the test of time, doesn't it? Running out of other people's money? Today?

The age of big government has once again, at least temporarily, reared its ugly head. It's a great battle for all the economies around the world. That's one of many reasons why we will miss Margaret Thatcher. She did not go wobbly.

By CNBC's Larry Kudlow; Follow him on Twitter @larry_kudlow

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Kudlow: Thatcher, Freedom, Free Markets