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Britain 4/2, Thatcher's economic policies and their impact - Coggle…
Britain 4/2
Thatcherism+economic policy
Aimed for=
Full employment
Mixed economy of nationalised industry and private sector
Protection of the welfare state
Recognition of the role of trade unions
Economic decline in the 1960's and the 1970's
Thatcherism
Monetarism
Economic policy that involves controlling the amount of money that is available and in use in a country at any one time
Public spending cuts
Income tax cut
VAT rates increase from 8% to 15%
Economy in recession in 1980
Unemployment increased
Privatisation
By 1986 Thatcher had moved away from monetarism to privatisation=transfer of publicly owned or publicly operated means of production to private ownership or operation
1979-Privatisation of BP
De-regulation
Removal of red tape to encourage entrepreneurship
Caused the Big bang in October 1986-Deregulation of the LSE
London became the most important financial centre in the world
Financial services became one of the most important part of the economy
Re-alignment
Shift from manufacturing and heavy industry toward service industries due to foreign competition.
Negative effects-
Urban decay of many cities
Increase in ill health, depression and alcoholism
Traditionally skilled workers skills were outdated
Teenages move away to places with work
Government attempts to mitigate effects of realignment
Youth unemployment schemes (YTS) were created - providing subsidies to employers if they gave employment to young people.
National Insurance (NI) rates were reduced for lower paid jobs to encourage job creation.
Thatcher's economic policies and their impact