Lyric discussion by Hlloyge 

Indeed this song isn't about the war at all, but - as the title says - what had become of England after his daddy died (WW2) - esp. in the years under the Maggie "Iron Lady" Thatcher regime. Hence the lyrics:

What have we done? Maggie what have we done? What have we done to England?

Should we shout should we scream "What happened to the post war dream?" Oh, Maggie, Maggie what did we do?

Namely Maggie's economic programme (or rather economic debacle) resulted in collapse of many branches of British industry and high unemployment (something Mark Knopfler also sings about in his song "Why, Aye Mate!" and others).

This verse:

If it wasn't for the Nips Being so good at building ships The yards would still be open on the Clyde

means simply that Japanese surpassed British at building ships (as in (too) many other branches as well - but this is esp. painful for the English, since UK used to be the world's #1 naval force once - and very proud of it), consequentially driving Brit's industry - that just wasn't on par with Japanese - out of business.

However Japanese are also paying a high price for their own success: they're also a world leader in the suicide rate among students - many of whom just cannot cope with their insanely fast-paced and totally goal-oriented Japanese economy.

So this:

And it can't be much fun for them Beneath the rising sun With all their kids committing suicide

has nothing to do with kamikaze at all, but the Japanese own problems today.

That's more or less it. Just one more verse left:

Was it you? Was it me? Did I watch too much TV? Is that a hint of accusation in your eyes?

I believe he's asking himself who (beside Maggie, of course) is to blame for the steady decline of the post-war UK.

Not sure who's accusing eyes he means (probably people in general, who are worse off today than some 30 years ago), but I'm pretty sure he feels guilty because his generation also didn't do their part, but rather wasted their time in vain (watching TV, partying, etc.) while the things happened.

I'd agree with pretty much everything here, though I think the initial verse is him as a child. Children tend to internalize everything and look too themselves as responsible for the bad things inn their lives such as divorce etc. I think he was thinking this to himself after his father's death and the "hint of accusation" was from his mother. The entire verse seems to be from a child's perspective.

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