7. The Thatcher and Major Years (1979-1997) Flashcards
Who was Margaret Thatcher, and what made her premiership unique in Britain?
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.”
Why did the Conservatives win the 1979 election, and what event marked this shift?
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.
What did Thatcher mean by “Nanny’s state,” and how did she view the welfare system?
Thatcher believed the welfare state over-protected people, undermining personal responsibility. She criticized it for promoting dependence on government support.
What were the core principles of Thatcherism?
Thatcherism focused on monetarism, reducing state intervention, privatisation, union reform, individual responsibility, and a return to Victorian work ethics and 19th-century liberal values.
Which economist’s ideas influenced Thatcher’s monetarist approach?
Thatcher was influenced by Milton Friedman and Friedrich Hayek, who advocated controlling the money supply to combat inflation rather than focusing on unemployment.
What was the focus of Thatcher’s economic policy and reforms?
Key goals were low inflation, financial stability, lower taxes, reduced government spending, and fostering a free-market society with minimal state intervention.
What fiscal measures did Thatcher implement in her first budget to tackle economic issues?
Thatcher reduced income tax, doubled VAT, and raised interest rates from 12% to 17%, which, combined with global recession, led to severe economic downturns.
What effect did Thatcher’s early policies have on the economy and public opinion?
Economic activity declined, leading to increased bankruptcies, high unemployment, and reduced government popularity, with major riots breaking out in 1981 due to social tensions.
How did Thatcher’s government handle spending on health, social services, and education during her first terms?
Although these areas saw cuts, significant restructuring did not occur until her third term; housing and benefits experienced the most severe cuts.
What challenges did Thatcher face within her party by the summer of 1981?
Rising unemployment and economic decline led to a loss of confidence among some Conservatives, prompting talks of rebellion against her leadership.
What social unrest occurred during Thatcher’s early years in office, and what triggered it?
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.
