Thatcher part 2 - state intervention and the public sector

Question 1

what did Thatcher mean by ‘a free market and a strong state’?

Answer 1

committed to strengthen some parts of the state while rolling back others

believed rolling back the state was essential for creating a free market that would end inefficiency and inflation, which would ensure economic liberty

Question 2

in what 4 areas did Thatcher want to ‘roll back the state’?

Answer 2

ending Keynesianism

end corporatism

cut government spending on welfare

cut direct taxes

Question 3

what 3 factors did Thatcher believe threatened political and economic freedom in Britain?

Answer 3

the Soviet Union

powerful unions who wanted to use undemocratic methods for increased wages

those who threatened people with violence

Question 4

what was corporatism?

Answer 4

a style of economic management in which the government negotiated with unions to create common policy on pay, prices, and industrial development

Question 5

what view of corporatism did Thatcher and Tebbit hold?

Answer 5

Tebbit argued it was undemocratic and a key characteristic of fascist governments

Thatcher argued it stifled innovation and economic growth

Question 6

how did Thatcher abandon corporatism in 1979?

Answer 6

government abandoned income policies and effectively stopped negotiating with major unions on economic policy

Department for Trade and Industry reorganised to break its link with the Confederation of British Industry

Question 7

why did the end of Keynesianism not mark the end of economic intervention?

Answer 7

there was continued economic management

Howe’s budget cut spending to reduce inflation

Lawson cut taxes and manipulated interest rates to stimulate growth and control inflation

Question 8

what was fundamentally different about the way the Thatcher government related to TUs?

Answer 8

rather than negotiate, they tried to control TUs

passed laws allowed the government to control aspects of union activity

Question 9

what laws were passed control the unions?

Answer 9

Employment Act (1980) - criminalised secondary action

Employment Act (1982) - union leaders could only impose a closed shop if they had the backing of a majority

Trade Union Act (1984) - forced all unions to call a secret ballot and win a majority prior to starting strike action

Question 10

how did a strong defence sector fit into Thatcher’s world view?

Answer 10

Thatcher was committed to defending British interests through strengthening the state’s defence policy and resolve to act powerfully when challenged by other nations

Question 11

how did Thatcher strengthen the state in terms of defence?

Answer 11

1980: bought Trident, a new generation of nuclear weapons, from the USA, believing it would deter a Soviet attack

1981: government committed to increasing defence spending by 3% each year

1982: Thatcher approved operation to retake Falkland Islands from Argentina

1986: Thatcher permitted US bombers stationed in Britain to carry out bombing raids in Libya

Question 12

how did Thatcher react to the high cost of Trident after 1986?

Answer 12

began to reduce defence spending

1984-86: 18,000 troops made redundant

1986: plans to buy new RAF fighter plane were scrapped

Navy reduced in size

Question 13

what was the overall picture on defence spending between 1979-97?

Answer 13

defence spending fell by 7% (1979-89)

fell by 12% (1990-97)

Question 14

Thatcher’s view on the police

Answer 14

significantly extended police powers and allowed extensive use of existing powers
- clearly in favour of increasing this aspect of the state

Question 15

what were the ‘sus laws’ and their role?

Answer 15

part of Operation Swamp ‘81

used to stop and search black people in London, particularly Brixton

justified by arguing most muggings were committed by black people

aggressive policing led to Brixton Riots

Question 16

what laws were passed to strengthen police powers?

Answer 16

Police and Criminal Evidence Act (1984) - extended stop-and-search powers

Public Order Act (1986) - gave police powers to arrest and charge people involved in demonstrations and pickets

Criminal Justice Acts (1982, 88) - introduced shorter sentences for young offenders, but also tough conditions

Prevention of Terrorism Act (1989) - extended police powers of stop and search

Question 17

why do some argue that harsher policing was necessary in creation of the free market?

Answer 17

free-market policies created mass unemployment and social inequality, leading to more crime

Thatcher believed economic freedom was threatened by terrorists and those who threatened others with violence

Question 18

why was Thatcher concerned about ‘traditional freedoms’ being undermined?

Answer 18

concerned about the threat of Russian-organised communist infiltration which could undermine traditional liberties

Question 19

what is GCHQ?

Answer 19

Government Communications Headquarters

responsible for providing government with secret intelligence

responsible for keeping top-level government communications secret

Question 20

how did Thatcher made sure that GCHQ was not part of the ‘enemy within’?

Answer 20

used state power to ban union membership in GCHQ to protect the country from ‘unpatriotic socialists’

argued that unions were socialist organisations and so sympathetic with Soviet Union

Question 21

what was the Zircon Affair?

Answer 21

involved the banning of a TV documentary about a secret spy satellite

1986: BBC agreed not to show it after pressure from government

Duncan Campbell was determined to expose it so gave the story to the observer newspaper
- police raided his office and confiscated his research
- government banned him from writing or speaking about his research

Question 22

what does the Zircon Affair show us?

Answer 22

exposed the government’s willingness to interfere with the media and ignore the constitution in order to protect secret security projects

Question 23

examples of Thatcher’s government interfering with the media to protect the state

Answer 23

1985: ‘Spycatcher’ banned in England and Wales

1988: banned the broadcast of interviews with members of the IRA, the Ulster Volunteer Force and Sinn Fein

Question 24

why might Thatcher’s government have created a ‘crisis of civil liberties’?

Answer 24

critics of the government claims that sate intervention was being used to take away traditional rights of free speech

Question 25

in what ways did Thatcher expand the forces of law and order?

Answer 25

1979-89: law and order budget increased by 36% prison population increased from 42,000 (1979) to 48,000 (1989) to 60,000 (1997)

Question 26

why is Thatcher's government described as 'anticollectivist' and 'antistatist'?

Answer 26

anticollectivist - prioritised individual freedom and wellbeing over policies designed to promote the welfare of the whole society antistatist - claimed that state action was counter-productive and inferior to the action of private companies

Question 27

why did Thatcher think it was right that all council house tenants should have the right to buy their homes?

Answer 27

believed owning property was an important aspect of freedom believed the public sector would build better houses so wanted to end public-sector involvement in house building

Question 28

what did the 1980 Housing Act put into practice?

Answer 28

gave council house tenants who'd lived there for more than 3 years the right to buy their house as a 33% discount from market rate those who'd lived in their house for more than 20 years could get a 50% discount

Question 29

what were the consequences of the 1980 Housing Act?

Answer 29

extremely popular 1980-89: 1/2 mill people bought their council house every year proportion of state-owned houses in Britain fell from 31.5% (1979) to 23.6 (1989)

Question 30

what did the 1988 Housing Act do?

Answer 30

banned LAs from spending the money earned from the sale of council houses on building new projects

Question 31

why did Thatcher mistrust the Civil Service?

Answer 31

thought it did nothin to help create wealth, was inefficient, and should be reduced in size also believed it needed to be placed firmly under government control

Question 32

how did Thatcher reduce the influence of the Civil Service?

Answer 32

established an Efficiency Unit to find ways to make it more efficient commissioned the 'Next Steps' report, leading to new management culture - required to set targets, evaluate performance, and publish reports on progress

Question 33

why did Thatcher mistrust many Labour-led LAs?

Answer 33

believed some were using their power to introduce 'socialist policies' which she viewed as a threat to individual freedom

Question 34

in what ways were Labour-led LAs divided?

Answer 34

decided between the Old Left, committed to traditional Labour policies, and the New Left, associated with a new view of socialism

Question 35

what % of total government spending were LAs responsible for?

Answer 35

28.1%

Question 36

how did Thatcher reduce local government spending and how did LAs respond?

Answer 36

79-84: cut funding to from £44 million to £39 million - LAs responded by increased local taxation 81: LAs were set maximum targets for spending and those who exceeded them had their allowance reduced - this failed as LAs increased local taxation 1988 Local Government Act

Question 37

why might Thatcher reducing the power of LAs lead to the argument that she didn't roll back the state?

Answer 37

each step in the process of reducing the power of local government extended the power of the state

Question 38

what was the campaign against rate capping?

Answer 38

Labour LAs organised a campaign against the Rates Bill unsuccessful because government was prepared to compromise and the Labour councils weren't united

Question 39

what was the GLC and why was Thatcher so intent on abolishing it?

Answer 39

administered the inner city and outlying boroughs of London 1981: Ken Livingstone elected leader and introduced policies to create 'Urban socialism' Thatcher believed the policies represented unacceptable expansion of state power Thatcher also claimed the GLC was responsible for high taxes and public spending 1986: the Council was abolished

Question 40

what was the Poll Tax?

Answer 40

introduced a flat rate tax, which was highly controversial as it meant households of very different incomes would have to pay the same rate highly unpopular

Question 41

in what ways was Thatcher's record on rolling back local government spending 'mixed'?

Answer 41

local government spending increased by 15% between 1979-89, then started shrinking after 1990

Question 42

Thatcher and the NHS

Answer 42

did not propose privatising it due to its popularity 1983: reformed the NHS by making it more efficient. Roy Griffiths appointed, who added new management and made reforms. 1989: White Paper 'Working with patients' led to an internal market created within the NHS 1979-89: government spending on the NHS grew by 35%

Question 43

what were Thatcher's actions on social security?

Answer 43

spending increased under Thatcher due to rise in unemployment 1986: Social Security Act tried to stop the rise in social security costs by introducing means testing - increased poverty amongst poorest 1/5 - didn't lead to long-term reduction in bill

Question 44

what were Thatcher's actions on pensions?

Answer 44

wanted to increase uptake of private pensions changed State Earning-Related Pension Scheme to make it less attractive and encourage people to opt out of it into private schemes government spending remained constant - 6.7% of GDP (1979) to 6.5% (1990)

Question 45

what were Thatcher's actions on education?

Answer 45

strengthened central state control of schools introduced national curriculum introduced standard tests as ages 7, 11, 14, and 16 which would have results in league tables so parents could choose the best schools allowed schools to opt out of LA control and receive funding directly from the government - enabled government to break up local educational authorities (they believed the Inner London Education Authority was run by socialists)