Background info

Question 1

what was Thatcher’s primary intention?

Answer 1

Her primary intention to change the economic basis in which Britain was run

Question 2

Thatcher intended to end what politics?

Answer 2

end the consensus politics , which allowed Britain to slip into harmful social + economic habits

Question 3

By 1980 economy plunged into a serious recession hit both by inflation and unemployment. What was the inflation level?

Answer 3

above 15%

Question 4

By 1980 economy plunged into a serious recession hit both by inflation and unemployment. What was the unemployment level?

Answer 4

above 2 million

Question 5

what was back in 1980?

Answer 5

stagflation

Question 6

what did Thatcher identify the most serious issues were (spending)

Answer 6

High levels of government spending which led to borrowing, excessive taxation and inflation

Question 7

what did Thatcher identify the most serious issues were (gov)

Answer 7

Unnecessary government interference in running of economy

Question 8

what did Thatcher identify the most serious issues were (growth of?)

Answer 8

Grow of bureaucracy which meant civil servants + officials increasing intrude in people’s lives

Question 9

What combination did Thatcher believe resulted in continual increase in wages, what was the issue of this?

Answer 9

Combination of weak management + powerful unions that had resulted in continual increase in wages + salaries but decline in productivity = led to inflation + lack of competitiveness

Question 10

Thatcherites wanted to cut public spending because they believed?

Answer 10

individuals spent their money better than the gov did

Question 11

what demonstrated Thatcher’s policies were working?

Answer 11

Decrease in inflation from 19% (1979) to 5% by 1985

Question 12

inflation in 1979

Answer 12

19%

Question 13

inflation by 1985

Answer 13

5%

Question 14

by 1980 economy in serious recession, hit both by inflation and rising unemployment? what did inflation stand at?

Answer 14

above 15%

Question 15

by 1980 economy in serious recession, hit both by inflation and rising unemployment? what did unemployment stand at?

Answer 15

going above 2 million

Question 16

in 1981 falling orders for manufactured goods had seen?

Answer 16

start of an economic recession

Question 17

what did the gov try do to try and tackle the problem, in keeping with Friedman notions?

Answer 17

the gov began to cut government spending hoping this would reverse the position in which Britain’s Public Sector Borrowing Requirement (PSBR) was always in deficit

Question 18

to control inflation further what was done?

Answer 18

inflation rates kept at a high level in order to deter excessive borrowing + keep the pound strong in international financial markets