Thatcher 1979-83

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  • Created by: AshyBoy
  • Created on: 22-09-18 19:19
THATCHER GENERAL KNOWLEDGE
blah blah blah
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Thatcher moved the Conservative party to the ___
Right
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Thatcher rejected the post war ___ and ___ economics
consensus - Keynesian
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What is Keynesian economics?
It focussed on reducing unemployment and not much caring for inflation and it was based around nationalisation and welfare programs.
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What happened to Britain's economy as a result of this?
Train, Bus, communication, car manufacturing, coal, steel, iron, roads, air-planes, airports etc. Was all nationalised and because of this the unions were very powerful and had brought the country to ruin.
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What was the problem with nationalised industry?
It was very low efficiency because managers knew that any loss of profit would be covered by the government and therefore the business would lose the government money not make it. On top of that there was no demand for these products.
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What did Thatcher do to the one-nation Tories in the party?
She got rid of them and made sure that her cabinet was full of supporters. (One nation Tories include: Macmillan and Heath)
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What did Thatcher refer to liberal Tories as?
Wets
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Why were the Conservatives and the higher ups of society not keen on capitalism?
Because capitalism meant that people could move out of their class boundaries and they thought that if you were born rich then you had class but if you became rich then you had no class and therefore you did not belong.
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Thatcher believed in ___ down economics and ___-faire economics
trickle - laissez
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What did Thatcher allow people to do to their counsel homes?
She allowed them to buy it at a discount of up to 70% (1982)
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Why was this significant?
Because it allowed people to have a stake in society and be able to own something of value to hand down to their kids. Psychologically this made people work harder
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How many people bought council homes as a result of this?
400,000
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What was an argument against this policy?
Less council homes = More homeless / If they can buy a house they should buy in the private market / Why couldn't private citizens buy council homes but public can't
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When did Labour drop its opposition to this policy?
1985 (It was initially their idea)
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Why did privatisation and allowing workers to invest in their own employment businesses do?
It made workers want to keep the costs of the businesses down and make sure they worked hard so that their investment would grow. It also kept businesses competitive and so they would think of ways to become more efficient and marketable.
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Thatcher was known as a ___ politician
conviction
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Before the premiership what was her role in government?
Education minister for Heath
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As education minister what was a controversial issue that she sparked?
She took away free universal milk for primary schools
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What kind of a background was she from?
A lower middle class background
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ECONOMY (1979-83)
blah blah blah
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What is the key difference between Monetarism and Keynesianism?
While Keynesianism us focussed on keeping unemployment down and sees a little inflation as healthy Monetarism focusses on keeping inflation down and considers a little unemployment as healthy.
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What was her first act towards reducing nationalisation?
She basically dissolved the nationalised industries such as coal and iron and did not set up any programs or support for the workers that became unemployed.
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As a result of this what was the unemployment percentage in the uk?
From 5% in 1979 to 10% in 1982 to the peak of 12% in 1984 after Thatcher shut down the majority of coal mines.
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What was the response to this poor economy and high unemployment?
Although Thatcher vowed to reduce public spending and condemned the welfare state public spending went up 1.1% and in 1982 unemployment and pension payment was risen.
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Thatcher ___ income tax and ___ VAT and other forms of indirect taxation.
reduced - raised
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In the first budget in 1979 how much was VAT on luxury items and also other goods increased?
From 12.5% on luxury items and 8% on other goods both to a base rate of 15%
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How much was income tax cut for both base and top rate?
From 33% to 30% and the top rate from 83% to 60%.
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In what budget did Thatcher show her leaning away from the public sector and towards law and order?
The 1980 budget where public spending was cut and police / military resources were increased
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Why was the 1981 budget so controversial?
Because of the high unemployment and deep recession many thought that Thatcher would go easier on Monetarism but instead she went full steam ahead which both angered the opposition and some in her own party (One Conservative MP stood next to the SDP)
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By 1983 how much did the tax reduction on individuals and businesses come to?
£2 billion and £750 million
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How much privatisation was there in the early days of Thatcher?
Very little
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What is an example of Thatcher conceding to the unions?
In 1981 after a series of lightning strikes in the coal industry she conceded.
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Who was a Monetarist that criticised Thatcher and why?
Milton Friedman criticised her for not implementing Monetarism persistently or hard enough.
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What did Thatcher realise about the unions?
She realised that it was the union leaders that were radical and that workers were being forced to join the unions in order to work at the factories
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How did Thatcher use this information to control the unions?
She had the unions vote for their leaders and vote for their strikes. She also made it possible for workers to work at the factories and not have to join a union.
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When was the Falklands war?
1982 (Before the 1983 election)
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Other cards in this set

Card 2

Front

Thatcher moved the Conservative party to the ___

Back

Right

Card 3

Front

Thatcher rejected the post war ___ and ___ economics

Back

Preview of the front of card 3

Card 4

Front

What is Keynesian economics?

Back

Preview of the front of card 4

Card 5

Front

What happened to Britain's economy as a result of this?

Back

Preview of the front of card 5
View more cards

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