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How successful were Thatchers economic - Coggle Diagram
How successful were Thatchers economic
Deregulation
Unemployment
The control of inflation through inflation
The first budgets of the Thatcherite government applied monetarist principals
In 1980 the economy had plunged into a serious recession-unemployment was above 2 million and inflation ran at 15 percent.
Most expected the government to reverse course but Thatcher doubled down-applying more monetarist principles in 1980 and 1981
government borrowing was reduced
Benefits were frozen
Grants to councils were cut
inflation peaked at 22 percent in may 1980
Thatcher was never able to control government spending-as the economy deteriorated welfare spending increased
Monetarism was effectively abandoned in 1986 when nigel lawson abandoned spending targets and Thatcher moved towards supply side economics
Interest rates were raised to 17 percent in 1979 but dropped to 2.5 percent in 1986.
However they were brought back up to 11 percent by 1990 due to inflation
Economic realignment
Thatcher was successful in realigning the economy away from heavy industry and towards services however the social effect of this was crippling
Industrial output
Industrail out
Social problems