Thatcher's effect on Social Divisions 1979-90

Created by: Ellie 1905
Created on: 15-01-18 14:33


	Thatcher's effect on Social Divisions 1979-90
	Advantages The 1980 Housing Act introduced the 'Right to Buy' scheme that gave everyone the opportunity to get on the property ladder and buy their council houses. This was hugely popular and £18 billion was raised as a result of this. The deregulation of banks and the stock market made it easier for people to borrow money and get a mortgage. Through popular capitalism, applied through Privatisation and deregulation ordinary people could buy stocks and shares. Between 1983 and 1987 the economy boomed and there was low inflation meaning people were better off. The Big Bang, caused by the deregulation of the stock market in 1986 made London one of the leading financial centres in the world. This helped the south-east to boom. The middle class benefitted under thatcher as there was a boost of consumerism during the Big Bang. The wealthy also benefitted as Thatcher made tax cuts in the 1980's budget. (Top rate of income tax was cut by 23%)	Disadvantages Thatcher redistributed taxation from the wealthy to the poor sash believed that a lack of desire to work was creating a 'nanny state'. Thatcher believed that tax cuts for the wealthy would create more investment leading to greater economic growth and government income. (Trickle down economics) Meant those at the bottom of society did not benefit. Those who lived in the North, particulaly in mining communities where de-industrialisation was most prominent, suffered significantly especially during the miners strike of 1984. During 1979-83 many did not benefit as inflation climbed to 22% and unemployment reached 3 million. The poor or the disadvantaged did not benefit under Thatcher as she famously said 'there is no such thing as society'. The poll tax implemented in 1989 was a general flat rate tax and so saw the poorer members of society paying a higher percentage of their income. Many protested, rioted and some even refused to pay. It was so unsuccesfull that in 1990 it was abolished. The 1980's boom was unsustainable and so caused a recession. In 1988 house prices increased by 30% in months.
	Evaluation To conclude, Thatchers policies concerning the people and their quality of life benefitted the lives of the wealthier percentage of the nation and those who lived in the south-east of the country. This was mainly due to Thatchers belief that helping and giving welfare to the lower classes contributed to creating a 'nanny state' that had dependants. As a consequence of this belief, Thatcher made tax cuts to the top rate of income tax. However, for those living in North of the country life got harder. One of the main reasons for this was de-industralisation. Mining and other old industries including ship building and steel and iron works were common in the Northern counties. Whole communities were reliant on the incomes provided by the males in the family who worked in these industries. Thatcher made severe pit closures and so many communities suffered monumentally. Despite the NUM's attempts to prevent the reforms through a strike, the government was prepared and ultimately the strike failed causing many to return to jobs that now paid them less money for longer hours, and for many to not return to work at all.

Thatcher's effect on Social Divisions 1979-90

Advantages

The 1980 Housing Act introduced the 'Right to Buy' scheme that gave everyone the opportunity to get on the property ladder and buy their council houses. This was hugely popular and £18 billion was raised as a result of this.
The deregulation of banks and the stock market made it easier for people to borrow money and get a mortgage.
Through popular capitalism, applied through Privatisation and deregulation ordinary people could buy stocks and shares.
Between 1983 and 1987 the economy boomed and there was low inflation meaning people were better off.
The Big Bang, caused by the deregulation of the stock market in 1986 made London one of the leading financial centres in the world. This helped the south-east to boom.
The middle class benefitted under thatcher as there was a boost of consumerism during the Big Bang.
The wealthy also benefitted as Thatcher made tax cuts in the 1980's budget. (Top rate of income tax was cut by 23%)

Disadvantages

Thatcher redistributed taxation from the wealthy to the poor sash believed that a lack of desire to work was creating a 'nanny state'.
Thatcher believed that tax cuts for the wealthy would create more investment leading to greater economic growth and government income. (Trickle down economics) Meant those at the bottom of society did not benefit.
Those who lived in the North, particulaly in mining communities where de-industrialisation was most prominent, suffered significantly especially during the miners strike of 1984.
During 1979-83 many did not benefit as inflation climbed to 22% and unemployment reached 3 million.
The poor or the disadvantaged did not benefit under Thatcher as she famously said 'there is no such thing as society'.
The poll tax implemented in 1989 was a general flat rate tax and so saw the poorer members of society paying a higher percentage of their income. Many protested, rioted and some even refused to pay. It was so unsuccesfull that in 1990 it was abolished.
The 1980's boom was unsustainable and so caused a recession. In 1988 house prices increased by 30% in months.

Evaluation

To conclude, Thatchers policies concerning the people and their quality of life benefitted the lives of the wealthier percentage of the nation and those who lived in the south-east of the country. This was mainly due to Thatchers belief that helping and giving welfare to the lower classes contributed to creating a 'nanny state' that had dependants. As a consequence of this belief, Thatcher made tax cuts to the top rate of income tax. However, for those living in North of the country life got harder. One of the main reasons for this was de-industralisation. Mining and other old industries including ship building and steel and iron works were common in the Northern counties. Whole communities were reliant on the incomes provided by the males in the family who worked in these industries. Thatcher made severe pit closures and so many communities suffered monumentally. Despite the NUM's attempts to prevent the reforms through a strike, the government was prepared and ultimately the strike failed causing many to return to jobs that now paid them less money for longer hours, and for many to not return to work at all.

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Thatcher's effect on Social Divisions 1979-90