7. The Thatcher and Major Years (1979-1997) Flashcards

1
Q

Who was Margaret Thatcher, and what made her premiership unique in Britain?

A

She was the first female Prime Minister, longest-serving PM of the 20th century, and the only British PM with an ideology named after her, “Thatcherism.”

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2
Q

Why did the Conservatives win the 1979 election, and what event marked this shift?

A

The “Winter of Discontent” showed the Labour government’s failure to manage unions and inflation, leading to a perception that the country was ungovernable, which helped the Conservatives win.

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3
Q

What did Thatcher mean by “Nanny’s state,” and how did she view the welfare system?

A

Thatcher believed the welfare state over-protected people, undermining personal responsibility. She criticized it for promoting dependence on government support.

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4
Q

What were the core principles of Thatcherism?

A

Thatcherism focused on monetarism, reducing state intervention, privatisation, union reform, individual responsibility, and a return to Victorian work ethics and 19th-century liberal values.

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5
Q

Which economist’s ideas influenced Thatcher’s monetarist approach?

A

Thatcher was influenced by Milton Friedman and Friedrich Hayek, who advocated controlling the money supply to combat inflation rather than focusing on unemployment.

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6
Q

What was the focus of Thatcher’s economic policy and reforms?

A

Key goals were low inflation, financial stability, lower taxes, reduced government spending, and fostering a free-market society with minimal state intervention.

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7
Q

What fiscal measures did Thatcher implement in her first budget to tackle economic issues?

A

Thatcher reduced income tax, doubled VAT, and raised interest rates from 12% to 17%, which, combined with global recession, led to severe economic downturns.

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8
Q

What effect did Thatcher’s early policies have on the economy and public opinion?

A

Economic activity declined, leading to increased bankruptcies, high unemployment, and reduced government popularity, with major riots breaking out in 1981 due to social tensions.

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9
Q

How did Thatcher’s government handle spending on health, social services, and education during her first terms?

A

Although these areas saw cuts, significant restructuring did not occur until her third term; housing and benefits experienced the most severe cuts.

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10
Q

What challenges did Thatcher face within her party by the summer of 1981?

A

Rising unemployment and economic decline led to a loss of confidence among some Conservatives, prompting talks of rebellion against her leadership.

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11
Q

What social unrest occurred during Thatcher’s early years in office, and what triggered it?

A

Violent “race riots” erupted in areas like Brixton, Toxteth, and Moss Side in 1981, driven by high unemployment and assimilation issues faced by Black and Asian communities.

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12
Q

Who was Margaret Thatcher?

A

The first woman Prime Minister of Great Britain (1979–1990), serving as leader of the Conservative Party.

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13
Q

What years did Thatcher serve as Prime Minister?

A

1979–1990

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14
Q

Why is Thatcher significant in British history?

A

She was the longest-serving PM of the 20th century and one of the most controversial leaders due to her policies and leadership style.

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15
Q

What major political shift did the 1979 Conservative victory represent?

A

A move away from state intervention and welfare state expansion, marked by skepticism of union power and state control.

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16
Q

What is Thatcherism?

A

A political ideology emphasizing free-market economics, privatisation, monetarism, low taxes, and reduced union power

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17
Q

What economic theory influenced Thatcherism?

A

Monetarism, based on ideas by Milton Friedman and Friedrich Hayek, focusing on controlling the money supply to reduce inflation.

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18
Q

Key economic goals of Thatcherism?

A
  • Financial stability.
  • Low inflation.
  • Reduced government spending.
  • Promotion of individual responsibility and private ownership.
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19
Q

What Victorian values did Thatcher promote?

A

Hard work, family values, individual responsibility, and patriotism.

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20
Q

What marked Thatcher’s early policies?

A
  • Reduction in income tax.
  • Doubling Value Added Tax (VAT).
  • Raising interest rates to 17%.
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21
Q

What was the economic impact of her initial policies?

A

Recession, high unemployment (over 2 million), bankruptcies, and declining public support.

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22
Q

What major social issues arose during this period?

A

Violent riots in cities like Brixton, Toxteth, and Moss Side due to unemployment and racial tensions

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23
Q

Key event that revived Thatcher’s leadership?

A

The Falklands War (1982), a victory that boosted national pride and Thatcher’s reputation.

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24
Q

What industries were privatised under Thatcher?

A
  • British Telecom.
  • British Aerospace.
  • British Gas.
  • Water and electricity supply industries.
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25
Q

What was Thatcher’s approach to unions?

A

Reduction of union power, exemplified by her handling of the 1984-85 Miners’ Strike led by Arthur Scargill

26
Q

Why did the 1984-85 Miners’ Strike fail?

A
  • Government stockpiled coal in advance.
  • Lack of a national ballot divided miners.
  • Strong police response.
27
Q

What was the Local Government Act of 1986?

A

It abolished metropolitan authorities and limited local council powers, targeting left-wing councils like the Greater London Council.

28
Q

What was the poll tax?

A

A tax that replaced property-based local taxes with a flat rate for individuals, regardless of income, leading to widespread protests and riots.

29
Q

Why was the poll tax controversial?

A

Seen as unfair since rich and poor paid the same rate; difficult and expensive to collect.

30
Q

What caused divisions in Thatcher’s government?

A
  • Disputes over European integration (e.g., European Economic and Monetary Union).
  • Resignations of key allies like Nigel Lawson and Geoffrey Howe.
31
Q

What speech showcased Thatcher’s Euroscepticism?

A

The 1988 Bruges Speech, where she opposed further European integration.

32
Q

What led to Thatcher’s resignation?

A
  • Growing unpopularity of the poll tax.
  • Divisions over Europe within her party.
  • Geoffrey Howe’s resignation and Michael Heseltine’s leadership challenge.
33
Q

When did Thatcher resign?

A

November 23, 1990

34
Q

Who succeeded Thatcher as PM?

A

John Major

35
Q

Successes of Thatcher’s tenure?

A
  • Reduced union power.
  • Promoted privatisation and home ownership.
  • Established herself as a strong leader.
36
Q

Failures of Thatcher’s tenure?

A
  • Increased inequality (rich became richer, poor became poorer).
  • Extended welfare state due to high unemployment.
  • Polarisation of British society.
37
Q

Key issues under Major’s leadership?

A
  • Continued economic challenges.
  • Internal divisions within the Conservative Party.
  • Public disillusionment leading to Labour’s victory in 1997.
38
Q

Who succeeded Margaret Thatcher as Prime Minister in 1990?

A

A: John Major.

39
Q

What was John Major’s reputation, and what was his nickname?

A

Major was seen as modest, compassionate, and a man of integrity, earning the nickname “Honest John.”

40
Q

What were two key economic issues during Major’s early years?

A

Rising unemployment and widespread property repossessions due to high mortgage rates.

40
Q

How did Major restore the functioning of the cabinet?

A

He reinstated the collegiate role of the cabinet, emphasizing collaborative decision-making.

41
Q

What scandal raised concerns about the impartiality of the justice system under Major?

A

The Birmingham Six case, where six men were wrongfully imprisoned for over 16 years.

42
Q

How did the recession of the early 1990s affect unemployment?

A

Unemployment rose from 1.8 million to 2.6 million by 1991.

43
Q

What were the “sleaze” scandals during Major’s premiership?

A

A series of sex and corruption scandals, including “cash for questions,” where MPs took money for political favors

44
Q

Why was the “cash for questions” scandal particularly damaging?

A

It highlighted hypocrisy, contrasting with the Conservative Party’s moralizing stance.

45
Q

What were Major’s controversial NHS reforms?

A

Large hospitals were allowed to become self-governing trusts, which critics argued would lead to underfunding and a crisis.

46
Q

Which organization opposed NHS reforms, and why?

A

The British Medical Association (BMA) opposed them, citing risks of underfunding and reduced care quality.

46
Q

What was Major’s initial stance on Europe?

A

He aimed to place Britain “at the heart of Europe.”

46
Q

How did Major secure ratification of the Maastricht Treaty in 1992?

A

By setting two conditions: declining the social chapter and monetary union commitments.

47
Q

What event in September 1992 undermined Major’s economic strategy?

A

Britain’s forced exit from the European Exchange Rate Mechanism (ERM).

48
Q

How did Major’s stance on Europe divide the Conservative Party?

A

Eurosceptics opposed closer integration, clashing with “One Nation” Tories.

49
Q

What did Major do in June 1995 to address internal party opposition?

A

He resigned as Conservative leader to force a leadership election.

50
Q

What was the result of the 1995 leadership challenge?

A

Major won against John Redwood, but one-third of MPs voted against him, weakening his authority.

51
Q

What was the outcome of the 1992 General Election?

A

Conservatives won with a reduced majority.

52
Q

Why did Major struggle to lead effectively after 1992?

A

A slim majority and internal divisions, especially over Europe, undermined his government.

52
Q

Who became the leader of the Labour Party in 1994, signaling a revival?

A

Tony Blair.

53
Q

What was Major’s most notable international success?

A

The Gulf War (1990–1991), which boosted his popularity.

53
Q

What was the result of the 1997 General Election?

A

Labour won in a landslide, and the Conservatives suffered a humiliating defeat.

53
Q

How did Major differ from Thatcher in leadership style?

A

He was less authoritarian, more modest, and focused on consensus.

54
Q

What domestic tax policy was replaced under Major’s leadership?

A

The poll tax, which had been unpopular during Thatcher’s premiership.