Unit 1.5 - Thatcherism (Unit 1.5.1 - Economic policies (Fighting…
Unit 1.5 - Thatcherism
Unit 1.5.1 - Economic policies
Was willing to have temporary high unemployment
1978 inflation was at 11% by 1980 it had doubled to 22%.
Thatcher refused to print more money as it punished 'careful savers' but rewarded 'reckless spenders'.
Attempted a monetarist aproach however no one really understood this and so it was replaced with supply-side policies.
Supply-side policies resulted in cuts in income tax, the welfare state and deregulation where possible.
British telecom, gas sugar and petroleum were all privatised.
Popular capitalism: this was the idea of selling shares cheap to keep up quick sale which helped boost the economy. The amount if shareowners increased from 3 to 11 million from 1979-90. However only 9% of this was unskilled manual labourers.
Public-private partnerships this was where the government encouraged local councils to hire private businesses to do public work. This meant private businesses would compete to work and so would offer lower cost and it would be of better quality.
This was where rules and restrictions were taken back to encourage greater investment with less restrictions. For example there was the removal of stock exchange controls which limited how much people can take abroad this helped increase investments overseas.
Due to deregulation this lead to the 'big bang' which was the huge deregulation of financial markets which resulting in people paying for more things with credit
Taxation and incentives
Cut by 40%
86% to 60% from 1980 to 88
Fighting the trade unions
Unit 1.5.2 - Rolling back the state
The state Thatcher inherited
Unit 1.5.3 - Political and social division
The gap between rich and the poor
Divisions between left and right
Divisions between local and national government
Unit 1.5.4 - Thatcherism and it's effects on politics
Labour party: Blair became leader in 1994 and recognised the need to move closer towards the growing number of middle class voters. Blair put together Clause IV which called the 'common ownership of the means of production exchange'. This meant they embraced the idea of the free market and encouraged big businesses. They demonstrated their embrace for Thatcherism through these policies: rejection of nationalisation, low credit taxation, no reversal of anti-trade union laws and they would no longer focus on the issue of class politics.
Tony Blair: prime minister within the labour party.
Public-private partnerships: Mixed economy. This was the idea of bringing in private businesses to do public jobs.
Mondeo man: A middle class voter
Moderate social reforms: New labourers
The SDP and liberal party