Was Thatcher's Premiership good? 1979-90

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  • Created by: hastr010
  • Created on: 15-05-18 22:15
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  • Was Thatcher's premiership good?
    • taxation policies
      • 1979 - tax burden significantly shifted from direct to indirect tax but the initial measures worsened
        • VAT pushed up the price of goods
      • Howe resorted to previous deflationary measures; cutting gov. expenditure. reduced government borrowing and increased taxation.
      • Because of Howe: the rate at which prices rose decreased by about 15%.
        • Manufacturing output fell and many firms went out of business
        • unemployment doubled between 1979 and 1983 - reached 3 million
      • Government did not act to save businesses
      • High interest rates made it difficult for anyone to repay loans
      • Value of the pound increased
      • Helped reduce inflation but...
        • riots broke out in Brixton and all over London where there was high unemployment
      • Increase of oil exports helped increase the value of the pound and made Britain more competitive
    • Privatisation
      • Thatcher believed that nationalised companies were inefficient and over-manned
        • would be more profitable out of government control
      • believed selling off the companies would raise investments for other policies
    • Tax cuts and deregulation
      • abolished regulations of London's financial markets created a 'big bang' effect and increased the amount of trade expected
      • direct tax decreased, indirect tax increased
      • gap increased between lower and upper class
      • brought down inflation
      • privatisation lowered prices and increased performance of large companies
      • deregulation ensured a thriving city
      • much of the success came from the North Sea oil wells rather than her economic policies.
      • social cost of policies was huge and unemployment more than doubled
      • small businesses went bust
    • Social policies
      • NHS made more efficient by applying business principles
        • self-governing hospitals - in control of their own budgets
          • expected to compete with other health care services to provide GPs with the best service
            • GPs became fund-holders with their own budgets to manage
        • made NHS more disciplined but more focused on profit rather than patients
      • GCSE's introduced into schools
        • all pupils could be marked by the same exam type
        • some argued it would lower the grade average of the country
      • Thatcher believed universities should be more self-sufficient
        • Cut university spending, forcing them to take more students
        • removed polytechnics from the options
      • Council house sales
        • made long term council house tenants able to buy their home
        • lower classes still couldn't afford to buy it
        • property ownership increased by 12%

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