Thatcher (1979 to 1990) Flashcards
Describe monetarism, including the advantages & disadvantages.
Restricting the amount of money in circulation and reducing government spending. Interest rates kept high.
+ Low inflation
- High unemployment, leads to social unrest
Describe privatisation, including some of the companies that were privatised and the benefits to the economy.
Gave ordinary people the chance to become shareholders by selling shares in companies that the government previously owned. Encourages competition between businesses which would drive up production and encourage innovation. This was a part of supply-side economics.
Enterprises such as BP, British Airways (BA), and BT were all privatised. Shares in these companies increased.
The Government raised £7 billion from this policy from 1988-1989.
Describe deregulation, including two schemes which were a part of it.
The government interferes with businesses as little as possible, making it easier for businesses to grow, trade, and create wealth. Wanted to create competition. This was a part of supply-side economics.
Loan Guarantee Scheme for small businesses made it easier for them to borrow money.
Enterprise Allowance Scheme encouraged the unemployed to start a business by giving them £40 a week for up to a year.
Using statistics, describe unemployment levels under Thatcher.
Hit 3 million (around 11%) by 1982, the highest in the post-war period. It never went below this from 1983-1987. This is double what it had been in 1979. Reduced to 1.85 million by 1990.
Using statistics, describe the GDP growth of Britain under Thatcher.
Averaged 2.1% from 1979 to 1989, and averaged 3.8% from 1983 to 1987.
Both of these are higher than the European average.
Using statistics, describe inflation under Thatcher.
Average Inflation
1979 to 1983 = 12.9% 1983 to 1987 = 4.6%
Hit a low of 2.5% in 1986.
Using statistics, describe taxation under Thatcher.
Income tax reduced from 25% in 1979 to 20% in 1990 for a single person.
VAT rose from 2.9% in 1979 to 5.1% in 1990 for a single person.
Using statistics, describe the balance of payments under Thatcher.
The deficit rose from £525 million in 1979, to £18 billion in 1990.
What was the ‘right to buy’ under Thatcher?
Under the Housing Act (1980), it gave tenants the right to buy the council houses they were renting. It was intended to give an incentive to poorer members of society to become a property owner where they wouldn’t have otherwise.
By 1985, 800,000 tenants had begun to purchase the properties they previously rented. Home ownership 1981 = 15%, compared to 1990 = 68%.
Describe the Miner’s Strikes, including when they were and how successful it was.
Strikes over the government’s policy to close the pits. (1984 to 1985)
The strike failed, and it seemed that the majority of the public supported the government. Scargill refused to hold a ballot on the strikes. The closures went ahead which is what Thatcher wanted.
The miner’s strike reduced productivity in the manufacturing industry and caused great disruption. People lost their jobs, became redundant, social disruption was caused and traditional mining communities were declining. The steel and coal industries were hit.
When was North Sea Oil sold off and why was it controversial?
It was sold in 1982 which arguably squandered a national asset for a short term gain.
Describe what Poll Tax was, when it was introduced, and the public response to it.
Introduced in 1990, it was a fixed rate tax intended to tax people, not property.
This meant poorer people living in a low-value home would pay the same as upper-class people living in an expensive home.
It was heavily misjudged and met fierce resistance from all classes in Britain. Tory MPs rebelled, many people didn’t pay, and there was a violent anti-poll tax demonstration in London in 1990.
