Thatcherism: supply-side economics

  • Created by: rhubber12
  • Created on: 27-06-18 13:42
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  • Thatcherism: supply-side economics
    • Taxation
      • Low income tax
      • Overall tax bill did not change significantly
        • National Insurance, VAT and local rates increased
    • Deregulation
      • Removal of financial and legal regulations
        • Believed to inhibit efficiency and profitability
        • Areas that were deregulated
          • Finance
            • Credit and exchange controls abolished
          • Transport
            • Bus companies made more competitive
          • Education
            • Schools could opt out of state sector. Became responsible for own financing
          • Hospitals
            • Operated an internal market. Took control of finance and matching needs to resources
          • Housing
            • Council housing tenants could buy their houses
    • Supply-side economics
      • Reduce regulation of goods
      • Lower taxes
      • Increase demand by decreasing prices of goods
      • Encourages people to spend money
    • Privatisation
      • Gave ordinary people chances to become shareholders
        • Number of shareholders increased from 3 million to 9 million
      • Provided treasury with extra funds
      • Main areas privatised
        • British Airways
        • British Steel
        • British Coal
        • Cable and Wireless
        • British Gas
        • British Telecom
        • Regional water and electricity boards
    • North Sea Oil
      • Sold off BNOC shareholdings to private sector
        • British National Oil Corporation
        • Claimed oil prices had entered long-term decline
      • Put lots of money into treasury

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