Economic Developments: Thatcher's management of the economy 1 Flashcards
(57 cards)
Name an entity present in businesses which Thatcher wanted to reduce the power of
Trade Unions
How many Trade Union members were there by 1979?
13 million
What sort of -flation had Trade Unions caused for decades in Brtiain by the 1980s?
Stagflation
What was the concept of Monetarism in relation to government spending?
Reducing government spending and raising interest rates
What would what slow down if interest rates were put up?
Inflation
What was the concept of Monetarism in relation to interest rates?
Putting interest rates high
What was inflation at in 1979?
19%
What was inflation at by 1983?
5%
What did Monetarism not help with?
Unemployment
How many people were unemployed in 1983?
3 million people
Who was the Chancellor of the Exchequer from 1979-1983?
Geoffrey Howe
What did Howe do to interest rates in the 1979 budget?
They were put up to 14%
What was standard income tax cut to in the 1979 budget?
30%
What was standard income tax at before the 1979 budget?
33%
What was the highest rate of income tax put down to in the 1979 budget?
60%
What was the highest rate of income tax at before the 1979 budget?
83%
Why did Thatcher cut the higher rate of income tax more than the standard rate?
To encourage people to try and get to the higher rate of income tax
By what percentage was VAT increased in the 1979 budget?
7%
What was the short-term impact of increasing VAT?
It increased inflation
What was inflation at in 1981?
22%
What was higher rate income tax at by 1983?
45%
What happened to interest rates in November 1979?
They were put up to 17%
What did a Conservative backbencher think about Thatcher’s policies in a left-leaning newspaper in 1979?
They opposed the policies
What was standard rate income tax at by 1983?
27%
