The 1980s: One Joke, Separated By An Ocean

Both versions heard around 1982-3.

The setup: an international group of "bionic plastic surgeons" convene to discuss their astounding achievements.

Insert stereotypical accents in appropriate places for the British version—

German surgeon: "You know, there was a terrible accident on the Autobahn last week, and all that was left was a foot. But we operated, and today: that foot is a man, and he is walking around, looking for work!

The French surgeon: "Oh, that is nothing! Last week there was a horrible accident on the Route Nationale, and all that was left was a little toe. But we operated, and today: that little toe is a man, and he is walking around, looking for work!"

The English surgeon: "I say, chaps, that's nothing compared to the dreadful accident on the Motorway. All that was left was an asshole. But we operated, and today: that asshole is in 10 Downing Street—and a million men are walking around, looking for work!"

American version: substitute "White House" for "Downing Street"

Reagan, however, was "popular." So we are told by our media, now as well as then.

The British, at least, had commentary as biting as "Spitting Image"—and on broadcast TV.
"Spitting Image" puppet head chew toys

Although our asshole is sold in perpetuity as the most terrific guy ever, some Brits express "contempt and anger" for "a middle-aged woman with hair like candy floss"—who may look innocuous, but "does some of the most monstrous things."

That Elvis Costello video incidentally reveals the British as capable of intelligent commenting on youtube. tribble97—

A stunning, moving and sincere performance. The suggestion that Thatcher be given a state funeral is ironic given that she was so determined to dismantle so many aspects of 'the state', especially those intended to protect the poor and the powerless from exploitation. Surely, following her doctrine, her funeral should be put out to public tender with the lowest bidder getting the job.

Additional rock'n'roll sentiment: Pete Wylie, on the death of the "Wicked Witch of West...minster".

I don't know where the asshole joke originated, but musicians spread it. I first heard it from a member of a Scottish group (not sure now, but think it was Silly Wizard). Later heard it told by Utah Phillips (long, but very interesting interview with the late great singer/storyteller/activist here).