Thatcher's Economic Policies 1979-82 - Causes and effects table in A Level and IB History

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Created by: eloise
Created on: 04-05-22 14:46

Thatcher's Economic Policies 1979-82

Causes

Regressive taxation -> 1981-82 under Howe standard rate cut from 33% to 30% and top rate cut from 83% to 60%, 1988 budget standard rate cut to 25% and top rate cut to 40% (subsidised by North Sea oil)
Spending cuts -> 1980-82 public spending cut from £11 billion in 1980 to £9 billion in 1981
Decline of industry -> Thatcher didn't save failing industries such as British Steel which made 53,000 workers redundant in 1979

Effects

Regressive taxation placed a greater burden on the poor
British government made redundancy payouts of £1 billion to British Steel 1979-1982
Britain went into sudden recession 1979-82 -> manufacturing fell 10%, unemployment rose to 13% of the workforce, 'wets began to move against Thatcher

Overall summary

Thatcher's aims -> wanted to reduce inflation (14% 1979), reduce government intervention with monetarism (controlling flow of money), end corporatism (agreements between gov and unions), end Keynesianism, wanted to allow failing industries to die

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