Rising cost of WS main reason for challenges ? Flashcards
P1
P2
P3
Increasing cost- YES
Changing attitudes- NO
Economic context- NO
P1 evidence
- Reasons for rising cost -
- Post war baby boom
- life expectancy - cost of unemployment, NHS, Education
= deficit £800 million 70’s
unemployment stood at what in 1972
6%
when was the post-war baby boom and what did this mean?
1940’s
Cost of childcare and education increase
how did life expectancy change?
1941-70
W- 64 to 74
M- 59 to 69
increase life expectancy increased the cost of what specifically
elderly care and pensions= greater burden on NHS
who argued that the government had to curb spending and reduce welfare provision?
right wing
what % of GDP were unemployment benefits in 1939
0.6%
rose to 8.8% in 1970
How much had the cost of NHS risen to in the GDP?
rose to 4.5 %
well above the target of 3%
why did the cost of the NHS increase?
expansion of services
growth of NHS staffing
1948-79 spending on drugs rose by 250
spending on technical staff rose by 300%
what was the main consequence of high spending?
worsening of Britains Deficit which reached £800 million in the 70’s
P2 evidence
- Influence of Hayek -WS= dependency, inefficiency, inflation, budget
deficits
2.Thatcher
in the 1940’s what was the dominant theory that underpinned WS
Keynesian economic theory
1970’s increasingly challenged
who did Austrian economist Hayek influence?
Conservative party
What did Hayek argue about WS?
- dependency
- inefficiency
- economic issues e.g. inflation, budget deficits
what did Hayek’s ideas lead to the resurgence of?
right-wing ideas of ws
‘rugged individualism’
‘Laissex faire’
what 2 main things did Thatcher believe in?
Hard work
self reliance
Thatcher brought an end to what?
post-war consensus
Thatcher had promised to end what and vowed to cut what?
- High gov spending
- cut taxes
= honest hard-working Britons could keep more of their hard-earned wages
what did Thatcher emphasize rather than collectivism?
individualism
what did ws suppress according to Thatcher?
personal ambition
aspiration
self-improvement
what did dependency culture perpetuate according to thathcer?
perpetuated poverty
what was a key indication that public attitudes to welfare had changed?
Thatchers landslide victory 1979
who did thatchers ideas appeal to?
growing upper class
