Thatcher Flashcards
(53 cards)
1
Q
What were Thatcher’s beliefs?
A
- Monetarism policy
- End reliance on the state. Low taxation and encourage economic growth
- Firm believer in nationalism and Britain and suspicious of Europe.
- Benefit the individual.
2
Q
What was Monetarism?
A
- Priority of controlling inflation but cutting spending and raise taxes.
- Aim in first three years was to drain excess money out.
- Milton Freidman was architype for this.
- Broke consensus of full employment.
3
Q
What were stats on tax and what taxes were cut?
A
- Howe raised VAT from 8% to 15%.
- Income tax dropped from 335 to 30% and top rate fell from 83% to 60%.
- Corporation tax constantly cut
- New Nigel Lawson continued the cut of income taxes until 1984.
4
Q
What were industries cut of spending?
A
- Public spending dropped from £11 billion in 1980 to £9 billion in 1981.
- Introduced cuts in education and health, so were benefits.
- 364 economists wrote to the times about these cuts.
- Cabinet rebellion further in 1981 rejected further 5 billion cuts.
5
Q
How much did Thatcher receive from North Sea Oil and what was effect of British steel?
A
- From 1983-1985 government received 41 billion from North Sea Oil.
- British steel made 53,000 workers redundant in 1979 which led to government pay-outs and between 1979-81 Joseph gave out 1 billion in payments to British Steel and yet still it operated on a 450,000 loss.
6
Q
What was Supply-Side Economics?
A
- From 1982-88 Thatcher embraced a free market policy known as this.
- Designed to stimulate the production of the private sector, including tax cuts and privatisations.
7
Q
How did the government make a profit during the 80s?
A
- In 1984, with subsidising nationalised industries by around 1.1 billion they were making a profit of £1.3 billion by 1988
- Still gave grants to some but these fell from £3.8 billion in 1984 to £335 million in 1987.
- Once industries were profitable they were usually privitised.
8
Q
What was the effect of British gas and what was the campaign?
A
- In 1979, many nationalised companies were operating at a loss, requiring government subsidies. British Airways were making a £544 million loss between 1981-82.
- The “Tell Sid” Campaign which was accompanied by British gas led to £4.6 million people buying shares in the company.
9
Q
What was The Lawson Boom?
A
- On average the economy was growing at a rate of 4% more than any since 1960s.
- Lawson permitted relaxation on credit controls allowing those with low incomes to borrow large amounts. At same time, decreased interest rates from 14% to 7.5% in 1988 making borrowing cheaper. Also deregulating London Stock Exchange making it easier attracting foreign investment.
10
Q
What was the Lawson Bust?
A
- His policies led to a stock market crash known as Black Monday in 1987 which wiped £50 million off the value of shares.
- He introduced a number of measures such as reducing top rate to 40% and income tax to keep economy going but still didn’t work.
11
Q
What was Inflation like?
A
- Initially, she enjoyed some success as Inflation was running at 13.4% by 1979 but jumped to over 18% in 1980.
- However, fell low in 1980s and 90s. 4.2% being the lowest in 1987 yet at its highest was 22% in 1980.
12
Q
What was unemployment statistics at different stages?
A
- Peaked in 1985 at 3.2 million. Yet, began to fall after 1986 but unemployment still remained historically high.
- 1980-1990 average of 9.1%
- 1990-1997 average of 8.5%.
12
Q
What was productivity like compared to other countries?
A
- Thatcher did succeed in improving productivity yet lagged behind countries such as US and Japan.
- In 1979 UK workers 50% as productive as US workers but by 1997 rose to 77%.
13
Q
What was investment in finance and manufacturing up to?
How much did industrial production decline?
A
- Investment rose 300% in the finance sector and 8% rise in manufacturing investment.
- Industrial production was 40% of GDP in 1960s but had almost halved to 21% by 1997.
14
Q
What was Thatcher’s goal with state intervention?
A
- End Keynesianism
- End Corporatism
- Cut Gov spending on welfare
- Cut direct taxes
15
Q
What did Thatcher do with corporatism?
A
- Effectively abandoned it by 1979.
- And abandoned price and income policies.
16
Q
What were acts that Thatcher did to curb union power?
A
- The Employment Act 1980 criminalised secondary action including picketing.
- The Employment Act 1982 meant that union leaders could only strike if they had backing of a majority in a secret ballot.
- The Trade Union Act 1984- Forced unions to call a secret ballot and win a majority before strike action.
17
Q
What was Thatcher’s view on defence spending?
A
- Thatcher was committed to defending British interests and strengthening defence and to act powerfully if challenged.
- Defence spending therefore rose by 20% between 1979-86.
- Thatcher began to reduce it after this as the costs were higher than initiated.
18
Q
What act did she bring in to expand police powers?
A
- The Police and Criminal Evidence Act 1984 expanded police stop and search and could now search cars and premises.
- The Public Orders Act 1986 gave right to arrest those involved in picketing.
- The Prevention of Terrorism Act 1989 expanded stop and search.
19
Q
What was the GCHQ used for?
A
- Used by government for secret intelligence through monitoring and intercepting communications.
- Also used to keep government secrets.
20
Q
What was The Zircon Affair and when?
A
- Was a controversy in which the government used its powers to restrict traditional liberties.
- Relates to spy documentary that was banned on TV monitored by Zircon satellite.
- Exposed the governments willingness to intervene in the media and ignore protection of security projects.
21
Q
What was Thatcher’s effect on housing?
A
- Thatcher’s “Right to buy” in 1975 gave the right of council house residents to buy them.
- Believed it gave people responsibility and a stake in society.
- 2.5 million sold at a discount.
22
Q
What was Thatcher’s effect on local governments?
A
- Needed to reduce the size of local governments as she was concerned for two reasons.
- First, they spent 28% of government spending.
- Second, as Thatcher wanted to cut back others wanted to extend their services in which promoted socialist policies and threatened individual freedom.
23
Q
What was Thatcher’s effect on council tax rate capping on opposition?
A
- In 1985-86 Liverpool council set an illegal rate.
- Led to government cap the rates of councils including 16 Labour and 2 Conservative.
- Continued in 1987 but the gov prepared to compromise and allowed 6 councils to set higher rates.
24
What was The Greater London Assembly?
- Ken Livingstone took control who introduced several socialist policies.
25
What was Thatcher's final and controversial tax on local gov?
- Poll tax
- Was a flat rate not related to income that meant rich and poor would pay the same.
- Introduced by Local Government Finance Act 1988 yet was seriously unpopular and part of the reason for Thatcher's fall.
26
What was Thatcher's effect on the NHS and who reformed it?
- Began in 1983, she appointed Sir Roy Griffiths to advise on how to make it more efficient. Griffiths introduced a new layer of management. More radical reforms came in as NHs had to buy in services from private sector.
- Reforms did not stop rising costs and gov spending on NHS grew by 35%.
27
How was Social Security affected?
- Spending increased under Thatcher due to large rise in unemployment which meant more government spending.
- In 1986, The Social Security Act tried to stop this by introducing means testing/
28
What did Thatcher do with pensions?
How much did it decrease by GDP?
- Her goal was to increase uptake of private pensions and changed the State Earning Related Pension Scheme set up in 1975 which led to it being less attractive.
- However, only decreased from 6.7% of GDP in 1979 to 6.5% by 1990.
29
What did Thatcher do with education reforms?
- Took place in her third term and to address concerns of education system she increased state intervention and introducing a national curriculum in Maths, English and Science.
- Introduced standard tests from age 7,11,14 and 16 and introduced league tables to see what schools were best.
- Allowed schools to become "grand maintained" which allowed schools to receive funding off the government.
30
What was Thatcher's class war?
- Thatcher was dedicated to restoring the power of the government and ending socialism.
- She hoped national unity would come and all adopting "British values" with hard work and independence and move away from "foreign" socialism.
31
What did Thatcher attempt to do to create national unity?
- Was evident in her foreign policy and always talked about national unity in her speeches.
- Thatcher presented the Falklands war in Argentina as an affront for British values and with the victory led to a surge of support for Thatcher's government.
32
What were examples of Thatcher's battle with the miners?
- Led to political and social divisions
- Her conflict with the NUM was one of the biggest conflicts.
- Editor of Sunday Telegraph Worsthorne acknowledged the war was new with the miners.
- New Tories acknowledged that there was in fact a class war and wanted to be victorious.
- Conflict had deep roots even going back to the Heath government.
33
What was the impact of the miners strike and when?
- 1984
- Scargill quickly organised pickets from pits still operating however other groups of miners did not strike (NACODS) which meant there was immense anger between miners who chose to strike and not to.
- As the strike was illegal the government could not confiscate funds but the government also used MI5 officers to infiltrate the miners strategy.
34
What were the outcomes of the miners strike?
- Was a turning point in industrial relations.
- Trade union militancy that had been prominent in the 1970s had been defeated.
- It had shown the government were committed to enforcing union laws and therefore secondary picketing died out.
- NUM lost 84% of its members between 1985-90.
- Thatcher's success allowed her to continue to curb union power as laws in 1988,89,90 and 93 reduced the rights and from 1979 to 1990 union membership decreased by 40%.
35
What was Thatcher's attitudes on race?
- Was argued British police acted as colonialists and endangered minorities especially in places such as Brixton and Notting Hill.
- Thatcher deliberately used nationalist language and Anglo Saxon qualities which led to social divisions in what she believed was through immigration.
36
What happened with Thatcher and Northern Ireland?
- Thatcher's attitude towards the IRA was uncompromising, like her attitude with unions.
- Believed there could be no negotiation with them and their members and believed it could only be dealt with through force.
- Her attitude was part of her broader view of political and social division. Saw social division as right and wrong rather than complex situations and saw it was her job to provide moral leadership.
37
What was Thatcher's view on sexuality?
- Government wanted to promote family values which led to promotion of heterosexuality and passed the law to stop the promotion of homosexuality in schools.
- These were emergency concerns of a "permissive society" which was leading to "moral decline" and was worried about liberal sexual attitudes.
- Her attitude was complex as she worked closely with gay colleagues and did not want to recriminalize homosexuality.
38
What was Thatcher's issues with feminists?
- Was a division between Tories and feminists as Thatcher claimed they had become too strident and making women something their not.
- For Thatcher women's rights meant equal opportunities to allow high skilled women to reach top jobs and make a difference.
- She had little discussion of women's roles.
39
What was Thatcher's effect on the Conservatives?
- Thatcher's downfall did not end the Conservatives Party's commitment to Thatcherism and she did transform her party.
- Had an effect on all major political parties especially the "New Labour".
40
What were Tory Wets?
- These were Conservative politicians who wanted compromise with Socialism which was dominated in Thatcher's cabinet when first breaking through in 1978.
- Marginalised wets as the commitment to free market was popular which stopped wets but also the influence of upper class politicians declined with majority of her cabinet by those middle or working class.
41
What was the effect of the reshuffle in the Conservatives?
- Following the 1981 reshuffle they were increasingly dominant as Thatcher established herself as radical compared to the rest of her party.
- Her new consensus was dominant and old consensus was a minority which indicated she had a permanent effect on her party.
42
Who was Michael Heseltine?
- Was one of the few "wets" who survived Thatcher's cabinet who promoted the home ownership with the Housing Act 1980. He was secretary of state for the environment.
- Challenged Thatcher about the unemployment and believed intervention was needed to help the deprived areas.
43
What was the issue with Westland helicopters?
- In mid 80s were experienced serious financial difficulties. Thatcher was opposed to state intervene which led to her looking to the free market for a solution.
- In Nov 85, the US manufacturer Sikorsky made an offer but Heseltine opposed this bid as it would lead to increased reliance on US for defence equipment.
- Heseltine found a European buyer yet it was thatcher that let it go leading to Sikorsky buying.
44
What extent was Thatcher's fall the end?
- Her fall in 1990 did not mark the end as government still operated similarly just rejected her leadership and poll tax.
45
What was the impact of the poll tax?
- Led to widespread anger with politicians and citizens with 200,000 protestors in Trafalgar Square in 1990.
- Poll tax led to growing tax and yet some refused to pay it and presented a growing crisis.
- Thatcher refused to compromise which gave the Conservatives the idea they needed to remove Thatcher.
46
What was Thatcher's attitude to Europe?
- Was complex because on one hand wanted to embrace free market across Europe while she resented European intervention as she believed they would make Britain more socialist.
- Thatcherites were split as some thought a single currency would help trade but others argued it should keep British independence.
47
What was the effect of John Major's takeover in 1990?
- The rejection of Thatcher did not mean the rejection of Thatcherism.
- His victory meant the Conservatives still wanted to continue these policies.
- Major was chosen by the Tories yet being the most pro-Thatcher out of the 3 candidates.
- Major continued to mix in free market policies however rethought aspects such as the poll tax.
48
What was Major's policy?
What council did he abolish?
- Broadly continued with Thatcher's economic policies as were both in free trade and low inflation and rejected corporatism.
- Indeed, the National Economic Development Council which was the centrepiece of corporatism in 60s and 70s was abolished by major in 1992.
49
What was the difference in styles of Major and Thatcher?
- Major radically different in style as he was more of a consensual leader rather than Thatcher's presidential approach.
- Major's consensual approach shown as he wanted "A country that was at ease with itself" and wanted the divided years of Thatcher to have a more united country and let it heal.
50
What was the Labour left?
- Party went through a process of transformation in the 80s.
- By 1997, had abandoned most of its traditional policies but was not wholly done because of Thatcherism.
- Was all done in the creation of "New Labour".
51
What was the Labour Right and led by who?
- As a result of the defeat , Neil Kinnock led to shifting the party to the right in the mid to late 80s and started to expel militarist tendencies.
- The popularity of privatisation led to Kinnock questioning their policy of nationalisation. Nevertheless, remained committed to developing the welfare state.
- Resigned in 92.
52
Who came to power of Labour in 1994 and what was "New labour"?
- Tony Blair came to power of Labour after Smith's death and stated he was committed to Labour traditional values but wanted to achieve them with new policies.
- Therefore, the Labour party conference led to the party's constitution of justifying nationalisation.
