Harrison: Thatcherism & The Free Market

Question 1

Who was Margaret Thatcher and what is Thatcherism?

Answer 1

• Margret Thatcher was the longest-serving British prime minister of the 20th century and the first woman to hold the position.
• Thatcherism: economic ideas and policies, involving the privatisation of nationalised industries, a limited role for government, free markets, low taxes, individuality, and self-determination.

Question 2

What effect did her Government’s policies have on the UK’s economy and society?

Answer 2

• Thatcher’s policies were associated with substantial increases in socioeconomic and health inequalities; these issues were actively marginalised and ignored by her governments.

Question 3

What are the characteristics of a Free Market?

Answer 3

• Freedom of choice
• Profit motive
• Limited government
• Competition
• Supply and demand
• Motivation of self interest
• Competitive markets
• Consumer sovereignty
• Increasing quality of products
• Maximising profits

Question 4

How did the Free Market impact the UK in the 1980s?

Answer 4

• Taxes were cut for the high earners and business.
• Corporation tax fell from 52 to 35%.
• The highest rate of income tax was cut from 83 to 40%.