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
- Finance
- Removal of financial and legal regulations
- 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
- Gave ordinary people chances to become shareholders
- 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
- Sold off BNOC shareholdings to private sector
- Taxation
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