Lecture 11: Thatcher’s Britain Flashcards
1
Q
How far did Thatcherism change British society?
A
- Held power for a long time – government held power for 11 years. No other 20th C PM has held power for longer.
- Determined to change things and left power convinced she had
- Dubbed the Iron Lady
- 1980s economic policies – “Lady not for turning”
- Huge degree of control
- Civil service reformed – reduced by 100,00 - Increased influence of government
2
Q
What was ‘Thatcherism’?
A
- Nigel Lawson: definition of Thatcherism as “a mixture of free markets, financial discipline, firm control over public expenditure, tax cuts, nationalism, “Victorian values” (of the Samuel Smiles self-help variety), privatisation and a dash of populism”
- Thatcherism – stands for sound finance and government running affairs of the nation in a sound and financial way. It stands for honest money – not inflation. It stands for living within our means. It stands for incentives…it stands for the wider and wider spread of ownership of property, of houses, of shares, of savings. It stands for being strong in defence – a reliable ally and a trusted friend.” – most relate to the economy and the running of the economy
3
Q
How did Thatcherism effect British society?
International Issues:
A
- Responded to world events affected how she was perceived at home e.g. Falkland’s War, Cold War
- Attitude to immigration – used inflammatory language – occurred race riots
4
Q
How did Thatcherism effect British society?
Economic Policy:
A
- Most important component of Thatcherism
- Economic policy crucial to Thatcherism and fuelled changes in wider society
- Post war years consensus argued over by historians over how economy should be run – government accepted degree of inflation as necessary but desire to Thatcher to change this approach
- Nigel Lawson, 1978 (became Chancellor) – called for a wholly new approach to economic policy
- Thatcher claimed advocator of free market economics – stemmed from grocery run family business
5
Q
Three areas that made up Thatcherite economic policy:
1. Commitment to low inflation
A
- rather than full employment that had been strived for in earlier years, low inflation became top priority
- 1981 budget = serious about following deflationary budget – deflationary budget at the height of the recession
- Successful in bringing inflation under control
- Believed particularly hurt the middle classes – thus Thatcher had representation as a middle-class warrior
- Side effect = sawing unemployment
- January 1982 rose above 3 million mark with significant as long term unemployed – later peaked at 3.3 million
- 1979 election – Conservatives tried to paint labour as party of unemployment but 3 million unemployed exceeded even the very worst figures of the inter war period
- Top priority = low inflation rather than full employment
- Successful in bringing inflation under control
- January 1982 – unemployment moved above 3 million – 1 in 10 unemployed
- Unsympathetic response to Thatcher’s ministers
- Norman Tebbit – Secretary of State for employment – linked with instruction to the unemployed with “on your bike”
6
Q
Three areas that made up Thatcherite economic policy:
2. Privatisation
A
- Reduce government intervention in the economy through a policy of privatisation
- Companies such as BT, British Gas and British Airways were sold off
- Third term – other followed such as electricity and water
- Deflected dissent from the government and putting it on to private employers
7
Q
Three areas that made up Thatcherite economic policy:
3. Taxation policy
A
- A lowering of direct taxation was consistent with same aim as privatisation
- Reducing government involvement in the economy
- Portrayal of the Conservative Party as the party of low taxes
- Cuts in income tax in 1986 and 1988 – greatest tax cuts by any governments in the 20th C – basic income tax slashed from 33% to 25% and the higher level from 80% to 40%
- Big cuts to income tax only took place in the mid-1980s – only cut in direct taxation
- Cuts gradual until then
- Overall revenue from taxation actually increased in the 1980s
- Impossible for government to cut taxes because of 2 key increases in spending: The Falkland’s War and Social Security and unemployment benefits
- Mid 1980s government spending on social security amounted on 12% of GDP compared to 8% in 1970s
8
Q
Effect on Thatcherite Economic Policy on society (inequality):
A
- Dramatic effect = increase in inequality
- Historian Peter Clarke = “By any test, from statistical surveys of relative incomes to the striking reappearance of beggars in the street, (under Thatcher) Britain had become a more unequal society”
- Privatisation saw huge salaries go to executives
- Income tax cuts = biased
- Regional differences exasperated between North/South and suburbs/inner cities and England/Scotland, Wales, Northern Ireland
- Historian E.H.H. Green = “Socially and economically, and, partly as a consequence, also ethnically, Britain was a more divided nation in 1990 than it was in 1979”
- Egalitarianism not an aim of Thatcherism – class warrior for the middle classes
9
Q
Role of the state:
Roll back the Frontiers of the State:
A
- Thatcher hostile to increase in state power
- Conflated the state with socialism e.g. too much state welfare encouraged dependency
- Influenced by Free Marketers such as F.A. Hayek – argued that collectivism and state intervention lent to totalitarianism
- “Roll back the frontiers of the State” – seen philosophy at work in economic policy e.g. privatisation
- Welfare – healthcare – less leeway due to the importance of the NHS had to declare “The NHS is safe with us” - yet care in community, particularly private, was encouraged
- Housing – symptom and cause for dependency culture – selling of council housing
10
Q
Role of the state:
Increase in state power:
A
- Andrew Gamble – depicted Thatcher as hybrid “The Free Economy and the Strong State”
- Police - Police officers got 45% pay rise
- Curtailment in power of local government – E.g. The Greater London Council
- Curtailment in union power – E.g. miners – stemmed from bringing down Heath government in 1974. Led to Employment Act in 1980 and Tebet Act 1982.
- Showdown with National Union of Miners – Miners defeated March 1985 – growing impotence of unions – NUN membership declined by 72% between 1979 and 1986
- Mass unemployment – lost union membership and decline in unionisation
11
Q
Public reactions:
A
- Shifts in values within society
- “People had developed a tendency to cast their problems on society – and who is society? There is no such thing” “There are individual men and women and there are families…It is our duty to look after ourselves and then also to help look after our neighbours…life is a reciprocal business” – 1987 – objected to use of society as abstract concept of society. Abstract concept of society determinist, emphasis on the role of the state.
- Called for a return to Victorian values – “taught to work jolly hard; taught to prove ourselves; taught self-reliance; taught to live within our income; taught that cleanliness is next to Godliness; taught self-respect; taught always to give a hand to your neighbour; taught tremendous pride in your country. All of these things are Victorian values.”
- Kenneth Baker (Conservative Minister) – “Thatcherism led to increased scope…for what might be called acquisitive individualism.”
- Capital Only Democracy – people should work for themselves
- During 1980s number of shareholders in the 1980s trebled
- 1981 % of homeowners in Britain = 55% by 1990 = 78% - most homes brought in the South and South East – positive electoral success – increase in workers vote – break up of traditional labour vote broke up in 1987 election
- Peter Clarke = “On council estates, a freshly painted front door and a copy of The Sun in the letter-box was a signal of thatcher’s achievement in remaking the Conservative Party”
- 1980s = fundamental shifts in labour parties’ values and expectations
- Britain voted for Thatcher 3 times – wasn’t the electorate that brought her down but her own party
- Support was regional – South Eastern support, particularly middle class
12
Q
Parallels with the 1950s:
A
- Support centred around economic prosperity
- Came to power at start of recession
- Falklands War – nationalistic war
- 1983 and 1988 – untouchable by electorate
13
Q
Opposition:
A
- Protest movement – focussed around rock e.g. Billy Bragg and movements of social compassion such as Live Aid in 1985
- Poll Tax riots and demonstrations, 1980s – began in Scotland in 1987 – damaging to reputation
14
Q
Class:
A
- Brought in to sharp focus in Thatcher years = class wars
15
Q
Gender:
A
- Fight for equality won = highest job
- Anti-feminist rhetoric
