Economic Policy: Privatization/ Market Reform

Question 1

What did Thatcher govenrment persue for her policies of privatisation ?

Answer 1

The widespread privatisation of state owned industries and services

Question 2

What was the goal of privatisation ?

Answer 2

Thatcher believed the market competition from privatisation would drive efficiency and growth

Question 3

What was the outcome of privatisation?

Answer 3

• Whilst it did success in raising govenrment revenue and expanding private enterprises
• critics argued it led to a loss of jobs and a reduction of public services

Question 4

What is meant by the economic revolution ?

Answer 4

• there was a shift from the public sector to private sector
• private industry staying in private hands (lasted after Thatcher)
• industries were forced to become competitive with fewer restrictions on labour costs and practices
• more encouragement of enterprise and investment into the stock market
• greater encouragement of home ownership and individual share holding

All examples of there being, in many ways, an economic revolution

Question 5

How did critics view Thatcher policies ?

Answer 5

• a selfish ‘get rich quick’ culture
• lacked concerns for the rights and conditions of workers
• decline in manufacturing industry
• increased divisions between prosperous areas of the south and traditional mining communities (disparity of wealth) which continued after Thatcher effects still felt today