deregulation Flashcards
deregulation involved the gov interfering as little as possible, what did this mean?
meant removing ‘red tape’ making it easier for businesses to trade and grow= encouraging entrepreneurship and wealth creation
what is an example of measures introduced to start up companies, what did this allow?
e.g The Loan Guarantee Scheme , made it easer for small businesses to borrow money
what Scheme made it easier for small businesses to borrow money?
The Loan Guarantee Scheme
what scheme encouraged the unemployed and how did it help get a business off the ground?
The Enterprise Allowance scheme - encouraged the unemployed by giving £40 a week for up to year(to get business off the ground)
financial deregulation what was this?
loosening of controls on banks + financial banks which led to massive boom in investment banking + financial speculation
deregulation- what did this mean for the city of London?
Freed up city of London and the financial markets from the tight controls of the Bank of England
when was the ‘Big Bang’?
27 October 1986
what did the the ‘Big Bang’ do?
deregulated London stock exchange = opening way for computer screen trading
how did the ‘Big Bang’ impact ‘old boys’ network?
replaced ‘old boys’ network with free competition
‘Big Bang’ 27 oct 1986, impact what emerged?
‘yuppie’ iconic image of 1980s, city became a place where bigger risks taken for bigger fortunes
‘Big Bang’ 27 oct 1986, impact on London’s status?
Made London one of the financial capitals of the world, allowed it to compete with Wall street
what became one of the UK’s most important export industries?
financial services
rebuttal for success of deregulation and ‘big bang’: whilst no doubt economy grew, what did not increase by much?
Productivity did not increase by much
overall what was the growth in GDP during the 1980s, and how did this differ to 1970s?
overall 2.2% growth in GDP during the 1980s, no better than in the 1970s
chief areas of the deregulation programme (finance)
credit and exchange were abolished
