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What were Thatcher's economic policies and how successful were they? -…
What were Thatcher's economic policies and how successful were they?
Unemployment
The number of people looking for but unable to find work
Unemployment grew nationwide between 1979-1986, but significantly impacted more Northern regions of the UK
Midlands, the North, central Scotland, South Wales,
These were particularly manufacturing focussed areas, which saw a decline in production of ~15%
2.1 million manufacturing jobs were lost in these manufacturing regions, equalling to 13.5% national unemployment
Production in the West Midlands fell by 1/4
Steel production saw a 30% decline
Control of inlfation via Monetarism
At the start of Thatcher's Premiership (1979), Interest Rates were set at 17% in an attempt to fight the high inflation which was causing major issues
As inflation fell, interest rates fell, By 1986, rates fell to only 2.5%, before climbing back to 11% by 1990
There was a massive cut back in taxation and Government spending to try and limit inflation
Thatcher believed that controlling inflation was the main priority, and would bring about a large boost in the economy if done so
The discovery of North Sea Oil and the expansion of operations in the North Sea in the 1980s gave a key source of funding and stability for her battle against inflation
Economic Realignment
Privatisation of Government industries to the service/private sector was a mainstay of the Thatcher Governments
The economic policies helped to reignited and deepen the North-South divide, as the South mostly benefited while the North struggled
This helped to lead to a number of riots in 1981 and 1985
Many cities began to see urban decay/decline, as well as an increase in social deprivation
More families were forced to relocate to different place in order to find work, meaning there was greater (social) mobility
Despite everything that happened, the National Economy saw growth during this period
Deregulation
The Loan Guarantee System bolstered the growth of small businesses, as it made it easier for small businesses to borrow money
Enterprise Allowance System: Unemployed individuals who were setting up as self-employed could claim £40 a week for a year, encouraging and supporting the growth of start-up businesses
The deregulation of the London Stock Exchange lead to a massive boom of both foreign and domestic investment, resulting in an economic boom in the City of London
The reduction/removal of Government controls