Thatcher's Economic Policies 0.0 / 5 ? HistoryModern Britain - 19th century onwardsA2/A-levelAQA Created by: kohygygygyubCreated on: 12-04-22 11:21 What was Thatcher's main economic policy? Monetarism 1 of 12 What was Monetarism? Aim to reduce inflation by controlling the supply of money, cut public spending/ government spending. 2 of 12 What was Taxation? People spend their money ‘better than government’ Aim to reduce direct taxation 3 of 12 What was Supply Side Economics? Privatisation, deregulation and lower taxation, encourage businesses to make profit and pay employees more. 4 of 12 What was privatisation? Belief that private sector was more important than state sector because it was ‘wealth creating’. 5 of 12 What were the companies that were privatised between 1979 and 1990? 1979- BP (British Petroleum) 1981- British Airway Space 1984- Jaguar 1984- BT 1986- British Gas 1987- Rolls Royce 1989- Water 1990- Electricity 6 of 12 What was Deregulation? The belief that the government should not interfere with the functioning of the economy (laissez faire). 7 of 12 What were Interest Rates? Intended to reduce inflation 8 of 12 Impact of Interest Rates? Led to increase in value of £ Made more expensive to borrow Demand for goods and productivity fell RECESSION 9 of 12 What was inflation like? 1979- 16% 1986- 3% 1990- 11% 10 of 12 Unemployment numbers? 1979- 5.3% 1983- 11.4% 1990-6.4% 11 of 12 What was economic realignment? Closure of old industries e.g mines North/ South divide 12 of 12
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