thatchers economic policies Flashcards
the THREE correct dates in which Margaret Thatcher won a General Election?
1979
1983
1987
What is the idea of the economic policy of monetarism Thatcher introduced between 1979-1983.
the main goal of a government’s economic strategy should be to bring down inflation. They believe that inflation is caused by an excess of money circulating in the economy.
Tick which of the following are events that occured in Thatcher’s FIRST term as Prime Minister?
She introduced monetarist policies.
Introduced ‘Right to buy’ Council houses schemes.
Unemployment jumped significantly, but she promised not to U-turn like Heath
The Falklands War
list three consequences of Thatcher’s monetarist policies…
Unemployment rose steeply - In 1982 unemployment was at 3 million.
It reduced inflation to single figures by 1982, it never rose above 9% for the rest of the 1980s.
How much money in total did privatisations raise for the British government?
£19 billion
outline two positive consequences of the Big Bang (1986)?
These economic changes led to the ‘Lawson boom’ (Economic growth reacher 4-5% a year in the late 1980s)
It enabled the City of London to grow and become one of the major financial centres in the world.
outline two consequences, that are negative, of the Big Bang (1986)?
The Big Bang led to riskier financial schemes - individuals made huge sums of money, this culture contributed to the financial crisis of 2008.
British people became more accustomed to borrowing money - This was not what Thatcher wanted, she supported ‘careful savers’. (eg. Private household debt increased from £16 billion in 1980 to £47 billion in 1989.)
outline 3 arguments that could be used by a Thatcherite when it comes to taxation?
“People should benefit from the money that they earn”
“The people spend money better than the state ever could”.
By reducing the top rate of taxation, it encourages investment and growth in the economy.
The 1988 ‘Giveaway budget’ cut the top rate of tax from 60% (before Thatcher it had been 83%) down to what level…
40%
summarise 3 valid reasons Thatcher would want to ‘take on’ the NUM?
They were a bastion of left-wing politics and unionism
The mines were largely outdated and uncompetitive.
The unions had brought down Heath a decade before
Which of the following could be seen as consequences of Thatcher’s confrontation with the miners?
The total number of working days lost to strike action fell from 10.5 million in 1980-84 to 0.8 million in 1990-1994
Crime rate doubled during the 1980’s.
Unions became far more willing to work with government after NUM defeat
Unemployment: Between 1974 and 1991 the number of miners working fell from 200 000 to 10 000
