Thatchers second term in office - supply side economics

Question 1

during Thatchers second term of office what new economic policies were introduced?

Answer 1

• deregulation
  -privatisation
  -monetarism and keynesian

Question 2

Although monetarism never formally dropped as a policy, what happened?

Answer 2

from mid 1980s, it was largely abandoned and in its place the gov began pursuing supply-side economics

Question 3

what did supply side economists argue for? why was people keeping more of their earnings good?

Answer 3

the return to incentives, people would work harder + more productively if they were allowed to keep some more of their earnings- in turn stimulate the economy

Question 4

policies supply-siders advocated for (tax)

Answer 4

Reducing taxation (greater incentive for employees to work)

Question 5

policies supply-siders advocated for (competition)

Answer 5

Encouraging competition in order to lower prices

Question 6

policies supply-siders advocated for (trade unions)

Answer 6

Limiting powers of the trade unions so that they would not block productivity/ prevent the modernisation of industry

Question 7

policies supply-siders advocated for (welfare payments)

Answer 7

Cutting wasteful welfare payments (save public money + reduce dependency)