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
What happened during the Falklands conflict?
-British airstrikes on Argentine forces on the island
-200 mile exclusion zone enforced
-The US allowed GB to use bases but did not support it with troops or resources
-Belgrano snak by the British submarine, HMS Sheffield destroyed by an Argentine missile
-UN worked on a peace treaty > undermined by the conflict from both sides
When did British forces reclaim port stanley?
14th June 1982
What were the political benefits of the Falkland war for Thatcher?
-Celebrated war leader > likened to Churchill
-Military victory overseas was popular > “Falklands factor”
-Personal approval ratings of Thatcher increased
-42.4% voted for conservative in the 1983 election (397 seats) > only 27.6% for labour (209 seats)
How did the Falklands strengthen Thatcher’s position?
-Could exploit the FF for full political gain > personalisation of politics
-Member state of the UN > She felt she was defending the UN
-Used Lord Carrington’s resignation (foreign sec) to lessen blame for the invasion
The military heavily supported Thatcher’s approach
-Seen to dominate the world stage
-Blame foreign and commonwealth offices for corrupting views “Rent a spine”
-War cabinet agreed with Thatcher > Declined Pym and Hague’s peace proposals
What significant quotes were said by Thatcher regarding the Falklands war?
-‘ Britain held its head high’
-‘ You can’t negotiate the freedom of your people
What was the Falklands war impact on Britain’s relationship with Britain?
-America stood ready to support ‘peace and honour’
-Alan Hagues (Secretary of State) > wanted a negotiated peace settlement
-Foreign sec > Pym and Hagues met in Washington > Thatcher did not like Hague’s proposals of conceding to the Argentines
-Thatcher ignores the US > tensions rise > rejection of American proposals > Thatcher stands her ground
What did the Falklands do to weaken opposition to the Conservatives?
-Labour party divided
-Labour fully supports the UN and wants to settle peace treaty > difficult as thatcher won the war > Cannot criticise too much > British deaths and British patriotism
What characterised the ‘Looney left’?
-Heavily influenced by Marxism
-Tied to radical Trade Unions
-Strong in Local councils > especially in London and Liverpool
-Factions within the Labour Party
-Militant tendency > far left, radical, Trotskyist branch of the Labour party > held some labour local councils
-Barmy Bernie > Bernie Grant
-Red Ken > Ken Livingstone
-Red Pete > Peter Tatchall
Who were the Labour leaders during Thatcher’s time in office?
-Callaghan until Nov 1980
-Micheal foot from Nov 1980 till Oct 1983
-Neil Kinnock Oct 1983
Why was the Labour party it’s own worst enemy from 1979-1987?
-divided party more concerned with its own internal wrangles than preparing itself for govt
-Split between right and left of the party
What was the significance of Tony Benn in the Labour Party?
-Right-wing tabloids > portrayed him as a dangerous representative of the Looney left
-opposed EEc and EU > saw them as undemocratic
-couldn’t convert his popularity into a successful bid for leadership
-More left-wing than Foot and had support of MIlitant tendency
Why was Foot deemed as unsuccessful as a leader?
-Led the 1983 campaign in an uninspiring way
What did Benn do in the 1980 and 1981?
-Led a campaign to change the party constitution > resolutions that required all Labour MPs to seek reselection by their constituencies > forcing g through left policies > hijacked left
What were elements in Labour’s 1983 manifesto which enabled them to come close to ‘political oblivion’?
-5 year plan
-Improve industrial relations through union democracy
-Increase nationalisation
-Ban arms sales to oppressive regimes
-leave the EEC
What was the gang of four?
-Four main labour MPs who broke away to form the SDP
Who were the four MPs who created the SDP?
-William’s, Owens, Jenkins, Rogers
Why did the four leave the Labour Party?
-Unhappy with Trade Unions