The Impact of Thatcherism 1979-1987 Flashcards
What were the main challenges facing Thatcher in 1979?
-Following the winter of discontent > industrial relations low
-Inflation and the value of the pound
-Devolution
-Cold war > Britains diminishing world status
-Northern Ireland
-Unemployment was high
What is Thatcherism?
-New harsh shift to the right with a strong stance on free market economics, the unions and the welfare state.
-Focus on the individual
-Small state
-The job is to get out of the way
Who was Keith Joseph?
-Leading conservative thinker
-Introduced Thatcher to the ideas of liberalism and free-market economics
What did Keith Joseph believe?
-Believed that the role of the state > provides conditions in which individuals are free to make their own choices > Individualism and liberalism
How could Thatcherism address the problems of 1979?
-Inflation > The dismantling of stop-and-go economics creates the ability to allow free-market economics and reduces the inability for economic planning
-Firm stance against the unions > challenge union leaders authority
Who was Michael Heseltine?
-Wet
-Secretary of state for the environment 1979
-Promoted “right to buy” campaign > allowed people to purchase their council houses
Who was Jim Prior?
-Wet
-1979 > Employment secretary > Norman Tebbit took over in 1981
-1981 > NI secretary
Who was Francis Pym?
-Wet
-Defence secretary and then foreign secretary
Who was Geoffrey Howe?
-Dry
-1979 > Chancellor in the first cabinet
-Foreign secretary in 1983
-1989 > demoted to leader of the commons
What was said about debating with Howe?
‘like being savaged by a dead sheep’
Who was Willie Whitelaw?
-Dry
-Deputy PM, Home Secretary until the 1983 election where was made the leader of the HOL
Who was Keith Joseph in the cabinet?
-Dry
-Appointed Trade secretary in 1979
-seen as an intellectual > driving force of Thatcherism
-dubbed the ‘mad monk’
-by 1981 he had moved to education
Why did Thatcher struggle to assert her authority when she first took over as PM?
-Did not have the backing of many senior members of the party
-Loyalties to heath from the more experienced MPs
What characterised the ‘wets’ in Thatchers cabinet?
-They were one nation tories
What characterised the ‘dries’ in Thatcher’s cabinet?
-They were ideologically aligned with the basis of Thatcherism
How did Thatcher begin to overcome the challenges within her party 1979-1982?
-Established a small band of loyalists
-Backed in the commons by an energetic group pf supportive MPs
-Very popular with grassroots members
What role did the ‘dries’ play in Thatcher’s management of cabinet?
-Key ministerial roles
-Sacked ‘wets’ to push her ideas to the forefront
How was Thatcher successful in reducing inflation through her economic policy 1979 to 1983?
-Interest rates were increased > discourage spending > 1981 VAT rose from 8% to 15%
-1981 Indirect taxation increased > duty on petrol increased 20p per gallon, duty on cigarettes increased by 13p
-By 1983 inflation fell from 22% to 5%
-Interest rates were raised to 17% in 1979
How can Thatcher’s economic policy of 1979-1983 be seen as a failure in reducing inflation?
-Tax burden in the early 1980s was higher under Thatcher than any Labour govt
-By 1980 inflation was above 15% > stagflation was back
-May 1979 Inflation hit 22%
How did Thatcher successfully support the Private sector through her economic policy from 1979 to 1983?
-The govt cut direct taxation > 1979 top rate of tax was cut to 75% > standard rate fell from 33% to 30%
-redistributed indirect taxation > favoured the wealthy
-Outsourcing > more common > local govt encouraged to give contracts to private companies
-BP privatised in 1979 > British Aerospace privatised in 1980
-Housing Act 1980 > Right to buy scheme > 2million bought their homes
How can Thatcher’s economic policy of 1979-1983 be seen as a failure in supporting the private sector?
-Enterprise Allowance Scheme 1983 > One in six of the start-up businesses failed in the first year
-Not able to pursue privatisation fully due to unemployment
-£ 9 million to save the maiden motorcycle corporation
-£200million was given to the computer giant ICL to prevent liquidation
-£13million was assigned to write off the debts of the National film finance
How can Thatcher’s economic policy of 1979-1983 be seen as a failure in reducing govt spending?
-Govt borrowing continued to rise > Howe aimed to reduce govt borrowing from £9.25billion to £8.25billion by 1980
-January 1881 Govt borrowing was revealed to hit £14.5billion
-Led to the 1981 budget cuts > “most unpopular budget in history” > The Times > 1981 364 economists wrote to the Times highly critical of Thatcher
-Public spending as a proportion of GDP jumped from 44.8% to 47.3% between 1980-1981 due to cost of unemployment benefits
How did Thatcher successfully create jobs through her economic policy from 1979 to 1983?
-Enterprise Allowance scheme 1981 > Creating new businesses > seen to create new jobs
-EAS > £40 per week to unemployed people who set up their own business
-Youth unemployment schemes created > encouraged employment to take on young people
How can Thatcher’s economic policy of 1979-1983 be seen as a failure in creating jobs?
-EAS > seen not to help those lower down in society
-Unemployment by 1980 was above 2 million
-By 1983 unemployment reached 3 million> 13.5% of the workforce > Liverpool 25% unemployed
How did Thatcher successfully control the unions through her economic policy from 1979 to 1983?
-Employment acts in 1980 and 1982 outlawed secondary picketing > made closed shops illegal and declared industrial action illegal unless the workers voted
How did the Economic policy lead to increased riots and resistance?
-Economic policy led to increased unemployment and hardship > Brixton 13% unemployment > Unemployment for ethnic minority groups 25% in Brixton > Unemployment for Black school leavers in Brixton was 50%
-Riots broke out in Brixton, Toxteth, Moss Side
-Thatcher used Police repression > ‘Sus laws’
What were the ‘SUS’ laws?
-Stop and search for a suspicious person
-Mainly aimed at young black men
What happened on the 18th of January 1981 which suggests poor relations between ethnic minorities and the govt?
-Fire broke out in New Cross (SE London) > killing 13 black teenagers celebrating a 16th birthday
-There were no messages or condolences sent by public figures > “13 dead and nothing said” became the slogan > accusations of a police cover up > peaceful protests
What happened in April 1981 which suggests poor relations between ethnic minorities and the govt?
-Campaign in Brixton to bring law and order by the police called “Swamp 81”
-Violence between the community and the police > 279 police injured, 45 members of the public, 82 arrested and 28 buildings torched
What happened in July 1981 which suggests poor relations between ethnic minorities and the govt?
-Rioting broke out in Bristol, Toxteth (Liverpool), Birmingham, Blackpool, Hull, Leeds, Leicester, Preston and Wolverhampton
When was the Falklands war?
April to June 1982
What was significant about the Falklands?
-Under British rule since 1833
-small population > 80% supported British rule
-400 miles off the coast of Argentina
What did the Foreign secretary do in 1981regarding the Falklands?
-Withdrew Britain’s only ship in the South Atlantic > HMS Endurance