How Successful Were Thatcher's Economic And Social Polices Flashcards
What happened to retail prices between 1973 and 1979?
Prices doubled
Who was Thatchers key advisor and what did they think the economic recovery depend on?
Keith Jospeh and Conquering inflation was the depending factor for the economic recovery
How did Inflation hit social stability in Thatcher’s view?
By eroding middle-class savings and causing strikes for higher wages
How did inflation hurt British industry in Thatchers view?
Made British industry over priced, due to the ‘spiral’ of rising prices and rising wages
Why did inflation lead to reduced incentives and enterprise according to Thatcher?
Because of the higher prices leading to taxation; with Thatcher’s firm belief that business should be as free from tax and restriction as possible
Why did Thatcher believe inflation was fulled by?
Fulled by government spending and lack of effective control of the money in circulation
What did economic ideology did Thatcher think had the direct and harmful result of inflation and had to be abandoned as a principle?
‘Keynesianism’
What did Thatcher believe was the solution to stopping inflation?
‘Monetarism’ which is reducing the money in circulation
Who was the Chancellor of the Exchequer in the budget made in June 1979 that significantly shifted the tax burden from direct to indirect taxation?
Sir Geoffrey Howe
What measures made in the 1979 budget made inflation worse?
Honouring pay awards made by Callaghan’s government to some low-paid workers and VAT increase pushed up the prices of goods
What was the deflationary methods used by Thatcher’s government to tackle inflation?
Cut government expenditure, reduced government borrowing, increased taxes
What did Howe describe the 1981 budget as?
‘The most unpopular in history’
How much was inflation squashed between 1980 and 1983?
the rates at which prices rose in 1980 was at 18% to 4.5% in 1983
How much did manufacturing output fall at the beginning of the Thatcher era?
14% leading to many firms going out of business
How much did unemployment increase too between 1979 and 1983?
Doubled to over 3 million unemployed
What was a change for struggling business when Thatcher’s government first took charge?
There was no action to support industries facing problems
Why was it difficult to pay loans under Thatcher?
High interest rates, though boosted overseas confidence
Why was exports dearer under Thatcher?
The value of the pound increased, though it boosted the financial sector
What was common in the riots that occurred in Brixton, South London in April 1981 and Toxteth area of Liverpool in July 1981?
High unemployment, poverty and racial tensions
Though unemployment continued to rise, in which year dud Britain’s growth rate and productivity begin to show sign of recovery?
1982
What do critics of Thatcher suggest was the reason for Britains ‘recovery’ in the early 1980s?
The increase in North Sea oil production, turning Britain into a net exporter of oil by 1980, was a significant cause of the improvement
Though government expenditure was reduced as a percentage of the economy, how much did it increase between 1979 and 1990?
13%
After which election victory did Thatcher’s government start speeding up privatisation?
The 1983 general election
What did Thatcher believe nationalised industries were and how to improve them?
Nationalised industries were inefficient and over-manned and it would be better able to raise investment capital from government control
