Economic Policies Flashcards
What economic policies did thatcher follow
Monetarist
This meant reducing what?
The money supply
Less of this would make money what?
More valuable
The main economic goal was to reduce what problem?
Inflation
Unfortunately what began to rise under thatchers new economic policies
Inflation
That her had to deal with a recession in stagflation in 1980. What is stagflation
Unemployment and inflation high at the same time
What saved britain from a run on the pound in 1981
Nort sea oil and gas
Government borrowing went down. Who were therefore given less money?
Councils
What was frozen
Benefits
What percent was infaltion and how many unemployed?
Inflation =15% 2 million were unemployed
How did the government cut the money supply?
Cut benefits, council budgets, government borrowing reduced
What is direct and indirect taxation
Direct = tax wage indirect = tax goods
The top rate of tac reduced from 83% to what?
40%
The standard rate of tax reduced from 33% to what?
25%
What did the left wing press refer to labour/left wing councils as?
Looney left
What was a major xouncil thatcher fought with and who was their leader?
GCL AND KEN LIVINGSTON
Thatcher imposed “rate capping” to weaken the power of councils and conform to their beliefs, what is rate capping?
Limited how much councils could tax their area
What two councils tried to rebel but were forced ri back down
Sheffeild and liverpool
By 1986 the governments push fir monetarist policies jad failed. She pursued a different approach. She decide to privatise and deregiate the economy. What type of economics is this?
Supply side
Privatisation can also be refered to as what?
Denationalisation
What company was privatised in 1979?
BP (bristish petrolium)
Privatisations gained momentum after what company was privatised in 1984?
BT
In 1986 which company was sold and became the biggest share offer in history
British gas
What sector did thatcher want to become more competitive and produce more goods?
The private sector
What was outsourcing?
Private companies take on jobs previously carried out by the public sector
Why with some employees worried during this period
Layoffs and/or long-term job security at risk and/or pensions concerns
What did radical Thatcherites want to privatise?
The NHS/coal industry/railway
What does Deregulation mean
Little to no government intervention
Government wanted to make it easier for businesses to grow in trade they thought this would work by removing what?
Red tape(rules)
What made it easier for small businesses to borrow money?
The loan guarentee scheme
What gave a start-up company £40 a week for a year to get the business running
Enterprise allowance scheme
Financial deregulation freed up the City of London and financial markets from the tight controls of what
The bank of england
