Thatcher and the end of consensus 1979–1990 Flashcards
(32 cards)
1
Q
What was the post-war consensus in British politics?
A
- agreement from 1945 - 1979: mixed economy, welfare state, full employment and trade union cooperation
- Both Labour and Conservative government followed these principles
2
Q
How did Thatcher reject the consensus?
A
- privatisation of key industries
- reduced state intervention
- focused on controlling inflation rather than full employment
- welfare cuts
3
Q
What did Thatcher’s economic approach represent ideologically?
A
neoliberalism: small state, free markets, ant-socialism
4
Q
How did Thatcher’s policies break the political norm?
A
- Embraced monetarism, rejecting Keynesian economics.
- Promoted privatisation
- Reduced the state’s role in the economy and welfare, shifting responsibility to individuals.
- Emphasised law and order, e.g., strong stance against the miners and trade unions.
5
Q
Who is a key historian and what do they say about Thatcher?
A
- Kevin Jeffreys
- ‘Thatcherism dismantled the central pillars of consensus’
6
Q
Why did Thatcher win in 1979?
A
- Winter of Discontent 1978 - 79: strikes, big bags in streets
- Callaghan’s Labour seen as weak, economic chaos under Labour
- Thatcher promised strong leadership and economic change
7
Q
What role did the media play in 1979?
A
- Press (Sun, Daily Mail) backed Thatcher strongly
- portrayed her as strong and principled
8
Q
What helped Thatcher win the 1983 election?
A
- Victory in the Falklands War 1982 restored national pride
- Longest Suicide Note in History 1983: seen as extreme, unilateral nuclear disarmament, withdraw from EEC
- FPTP as she only won 42% of votes but 397 seats
9
Q
What was the result of the 1983 election?
A
- Conservative majority: 397 seats to Labours 209
- Vote Share: Con 42%, Lab 27%, Alliance 25.4%
10
Q
Why did Thatcher win the 1987 election?
A
- Falling inflation and growth in home ownership gave a sense of prosperity
- labour still seen as not credible with the economy
- privatisation attracted aspiring middle class and working class
- Thatcher portrayed as experienced, tough on unions
11
Q
What were the results of the 1987 election?
A
- Conservative: 376
- Labour: 229
12
Q
What was monetarism and why did Thatcher use it?
A
- Economic theory: inflation caused by excess money supply
- aimed to reduce inflation through high interest rates and spending cuts
- Interest rates peaked at 17% in 1979.
13
Q
Was monetarism successful?
A
- inflation dropped from 18% in 1980 to 4.6% in 1983
- But: unemployment rose to 3.3 million by 1985
- High interest rates hurt businesses
14
Q
What was the scale of deindustrialisation under Thatcher?
A
- Manufacturing jobs fell by 1/3 in the 1980s
- Industrial regions in the North, Midlands, Scotland hit hard
- liverpool hit 20% unemployment
15
Q
What industries were privatised?
A
- British Telecom 1984
- British Gas 1986
- Steel, water, electricity
- raised 29 billion between 1979 - 1990
16
Q
What was the aim of privatisation?
A
- reduce the size of the state
- promote competition and efficiency
17
Q
What were the criticisms of privatisation?
A
- short term revenue but long term loss of public assets
- services became profit-driven rather than public goods
- most ordinary people could not afford shares
18
Q
What was the Big Bang and when was it?
A
- 1986
- financial sector was deregulated leading to huge growth
- turned the UK into a global finance hub
19
Q
When was the Housing Act and what did it do (Right to Buy)?
A
- 1980
- allowed council tenants to buy their homes at up to 50% discount
- 1.5 million homes sold by 1989
20
Q
What were the effects of Right to Buy?
A
- boosted working-class Tory support
- 1.5 million homes sold by 1989
- home ownership rose by 12%
- worsened housing crisis in the long term
21
Q
What was the Community Charge (Poll tax) and when was it?
A
- introduced in Scotland 1989 and England 1990
- Flat-rate tax per adult replacing rates based on property value
- regarded as unfair, same tax for rich and poor
22
Q
What were the consequences of the Poll Tax?
A
- led to 1990 riots (Trafalgar Square)
- 200,000 protestors
- poor collection: 0nly 85% paid in some areas
- major factor in Thatcher’s downfall
23
Q
Why did Thatcher target trade unions?
A
- Unions seen as too powerful after 1970s industrial unrest
- believed they undermined democracy and economic progress
24
Q
What acts were passed to weaken unions?
A
- 1980 Employment Act: outlawed secondary picketing
- 1982 Employment Act: limits of union immunity from damages
- 1984 Trade Union Act: ballots before strikes
25
What were the effects of the Miners' Strike?
- Massive defeat for NUM, membership dropped by 84%
- Union power collapsed
- over 115 pits closed between 1984 - 1994
- signalled the end of industrial age politics
26
What happened during the Miners strike and when was it?
- 1984 - 85
- NUM opposed bit closures (Led by Arthur Scargill)
- Thatcher prepared: stockpiled coal, deployed police
- strike failed after a year due to lack of support and poor strategy
27
How did Thatcher manage her cabinet early on?
- Thatcher initially balanced her cabinet with both ‘wets’ (moderates) and ‘dries’ (monetarist hardliners)
- but increasingly promoted loyalist dries as her authority grew.
28
What problems emerged with her Cabinet?
- Resignations over Europe and economic direction
- 1989: Nigel Lawson resigned as Chancellor
- 1990: Geoffrey Howe's resignation speech criticised her leadership
29
Why did Thatcher inspire strong support?
- Promoted low taxes, privatisation, attracting the aspirational middle class and skilled workers
- Projected strength against trade unions
- seen as decisive and principled, especially after victory in the Falklands War (1982)
- Her image as the 'Iron Lady'
30
Why did Thatcher face strong opposition?
- Deindustrialisation led to mass unemployment
- Poll Tax (1990) was deeply unpopular, regressive and unfair
- Her infamous quote, “There is no such thing as society”, was seen as cold and individualistic.
31
Why did Thatcher's popularity decline after 1987
- unpopularity of the Poll Tax
- Cabinet divisions, led to resignations
- economic slowdown, interest rates rose to 15% (1989)
32
What led to Thatcher's downfall in 1990?
- poll tax became unpopular, even conservatives opposed it
- resignations of key ministers
- Howe's resignation speech was a turning point
- Michael Heseltine launched a leadership bid, Thatcher won the first ballot but fell short of the required margin.
