Economic Developments: Overview of Changes to The Britsh Economy Flashcards
What 2 large events did Thatcher do in her second and third terms with the economy?
Deregulation and Privatisation
What was Deregeulation?
Removing government control on private businesses
What was Privatisation?
The act of selling off nationalised industries to shareholders
What century were coal mines set up in Britain?
The 16th Century
What did Thatcher do to coal mines in the 1980s?
She closed down most of them
What was empirically significant about Thatcher bringing an end to many heavy industries in Britain?
It showed that there was no longer a need by the government to keep these parts of Britain that had fueled their Empire
How did the London Stock Market change?
It became open to the rest of the world rather than just for the wealthiest people in Britain
What gap widened in the 1980s?
The gap between the income of the wealthiest in Britain and the income of the poorest in Britain
What was the impact of Nigel Lawson’s 1987 Budget?
It caused a Credit Boom
Why was a credit boom unsustainable?
It meant a lot of the British economy was existing off of borrowed money
Name 3 industries that were privatised
Oil, British Telecom, British Gas
How much did the sale of British Gas alone raise?
£5.4 billion
What did Thatcher want the British public to do with their newfound wealth?
Be frugal and not spend all of it quickly
What did the British public do in contrast to Thatcher’s wishes over how they would use their wealth?
Many people spent most of it
