Deregulation

Question 1

What was deregulation?

Answer 1

-gov interfere as little as possible
-removed ‘red tape’ making it easier for business trade + grow, encouraging entrepreneurship + wealth creation

Question 2

What other measures did the gov introduce to encourage start-up companies?

Answer 2

-the loan guarantee scheme
-the enterprise allowance scheme

Question 3

What was the loan guarantee scheme?

Answer 3

-made it easier for small businesses borrow money

Question 4

What was the enterprise allowance scheme?

Answer 4

-encouraged unemployed to start their own businesses by giving them £40 a week
-this was up to a year to get their businesses of the ground

Question 5

What was financial deregulation?

Answer 5

-lessening controls on banks + financial markets
-led to massive boom in investment banking + financial speculation

Question 6

What was the impact of financial deregulation?

Answer 6

-freed up the city of london + financial markets from tight controls of Bank of England
-‘big bang Oct 1986 deregulated london stock exchange

Question 7

What was the ‘big bang’ of 1986 impact?

Answer 7

-opened the way for computer screen trading
-replaced the ‘old boys network’ with free competition

Question 8

What did the big bang do?

Answer 8

-start of financial sector forming major part of Br economy
-made london one of financial capitals of world
-created 1,500 millionaires + because draw for American investment banks

Question 9

What was the ‘yuppie’?

Answer 9

-shirt for young urban professional (people working in cities with large amounts disposable income)
-an iconic image of 1980s

Question 10

What was a downside to this?

Answer 10

-productivity didn’t increase by much
-2.2% growth in GDP 1980s no better than in 1970s
-due to growth at second half decade balanced out by growth in first half

Question 11

What was the right to buy?

Answer 11

-housing act 1980 gave council tenants of over 3 years right to buy their home at discount on market
-1988 average discount 44%

Question 12

What was the downside to this act?

Answer 12

-councils prevented using income from sales to build new homes - strict limits on council spending
-no replacement homes created long term housing market crisis + didn’t benefit lower class who couldn’t afford council houses

Question 13

What was the impact of right to buy?

Answer 13

-annual sales previously peaked at 45,000 1972
-by 1982 reached 174,697 + by 1997 over 1.7m dwellings sold off