Effect of Thatcher's economic policies Flashcards
What date was Thatch Prime Minister from?
May 1979- November 1990.
Very influential in 80’s.
What were Thatch’s overall ideas/beliefs?
Radically different from mainstream conservative ideas.
Willingniess to discuss new, radical ideas.
Term/ideolagy known as ‘Thatcherism’- and was set of principles that inspired her throughout her leadership.
What were thatcherism?
. Neo Conservative in her social views
. Neo liberalism in economic policies
. NO society- in individualism and families.
. Harsh against unions- especially miners.
. Radical/firm beliefs and polcicies.
. Pragamatist (makes clever decisions)
. Convictionist- against consensus.
What were Thatch’s conviction politics?
She was a conviction (firm believed) politician.
She thought politics should be rooted in the firm ideas of political leaders, and not in compromise/consensus- unlike previous conservative leaders like Macmillan and Heath.
. In her opinion, finding consensus meant abandoning principles- which she thought was morally wrong (she thought the main problem of post war is how politics complied to consensus and the main issues of previous conservative party 1970’s was Heath’s willingness to comply).
Overall, what were Thatcher’s strong economic policies?
NEO liberalism economic ideas
. She was against dependancy, high levels of tax (levels of tax today are very similar in how she left them in the 90’s).
Also against powerful unions and debt.
. She believed in free market.
What were her 3 economic policies in more detail?
. Believed everyone needs to work hard in order to find a living- and that no one, even most vulnerable, should depend on state to live (“casting their problems on the state”). Benefit spending went from 4% of the countries GDP in the post war period, to up to 10% right before she took over!!!!!!
. She believed hard work should be rewared. She wanted low income taxes because she though tax stopped people from benefiting from money they earned.
. She blieved the key to economic growth was individual enterprise- and she wanted to foster a new gen of entrepreneuers, and created creativity by reeling back the economic role.
What was Thatcher’s views on economic efficiency?
She believed in economic effiency and that private companies were more efficient than gov ones, as private ones had to make a profit- and evey penny counted. However, with gov they dont aim to make a profit- so are more wasteful.
(as if u are working for private ur more likely to want all proffit)
What was Thatcher’s economic views on government spending?
She wanted to cut gov spending as it meant high tax and led to less efficient private companies.
She thought the growing taxation in post war period, was what led to high inflation and low economic growth.
What were thatcher’s economic views on trade unions?
She was critical of them, as she believed they interfered with free market- and made industry less efficient.
What is Margaret Thatcher’s background?
Margaret Thatcher came from a humble backround.
Her father was a shopkeeper, and a member of the local Conaervative Association.
She attended a grammar school, and studied chemistry at ocford during WW2.
At ocford she read the works of an Austrian Economist called Friedrich Hayek, who influenced her thinking.
She became an MP in 1959- and joined Heath’s cabiment in 1970.
Heath’s defeat to the National Union of miners, led to thatcher thinking how breaking union power was vital for conservative government and heaths lack of sticking to his own manifesto was morally wrong.
She challenged Heath for leadership in 1975, becoming the first female party leader- and the second who wasnt an Aristocrat.
What was the rule of law and what did it mean to Thatcher?
British law to her was central to politics as it was a result of a democratic process that protected individual rights.
Due to this she believed people should alyways obey the law as it will protect their rights.
What is one thing to remember about Magaret Thatcher?
Her idealogies and what she SAID herself, does not always mean she DID THEM. For example, she was all for entreneurship and cutting welfare in her speeches, but she didnt actually implement it.
What were Thatcher’s opinions on radical protests due to her views on the rule of law?
She was suspicious about radical forms of marches and strikes and thought that reform should come through elections- rather than direct action.
She also thought radical protests were undemocratic as they used force rather them debate.
She thought they were lawlesness and were too violent.
They were also tended to be used by unions, black right or feminists groups for collective rights, which is why she rejected them.
What did Nigel Lawson say about Thatcher (the quote Mr Rushworth loves)
The wrong definition is “whatever Margaret Thatcher herself at any time did or said. The right definition inolves a mixture of free market, financial discipline, firm control over public expenditure, tax cuts, nationalism, victorian values, privatisation and a dash of populism.
