The foundations of the working class and of the communities they lived in were crumbling. Profits encourage expansion or further investment into business. This was because businesses were sold off cheaply in order to ensure all shares were taken up which in turn meant that like was more insecure for employees. Hospitals were required to operate an ‘internal market’ by taking control of their own finance and matching needs to resources. Employees spend on goods and services produced by businesses. Demand-Side Economics Government uses tax to support full employment. Schools were entitled to opt out of the State sector and become responsible for their own financing.
Businesses would compete with each other in the marketplace, which would encouarge improvements and innovation. What was economic realignment? The ‘yuppie’ became an iconic image of the s and the City became a place where bigger risks were taken and bigger fortunes could be made. Tebbit was one of the tough guys in the cabinet. There were increased problems of ill health and depression, and also alcoholism and drugs. It also signalled the end of the post-war consensus in State role. The government also intorduced other measures to encouarge start-up companies.
The factors that caused most toruble were the poor thatccher prospects in the inner city areas, the ‘sus law’, and the high incidence of unemployment among school leavers. However, many criticised privatisation as being selfish, particularly one-nation conservatives such as Harold Macmillan.
It blew away old tradition and is credited with restoring London’s position as a world financial centre.
What was economic realignment? Overall the economic realignment that resulted from Thatcher’s economic policies depended on perspective. The riots in Brixton consisted of hundreds of black youths running riots, burning shops and looting property. The foundations of the working class and of the communities they lived in were crumbling. Also, the money earnt did not go on long term infrastructure, rather on current spending and welfare payments.
Hospitals were required to operate an ‘internal market’ by taking control of their own finance and matching needs to resources. The government also intorduced other measures to encouarge coursewkrk companies.
Some lost their jobs as privatised companies cut back on staff, and others found that they could no longer rely on long-term job security and on reliable pension provision. Tebbit was one of the tough guys in the cabinet. Demand-Side Economics Government uses tax to support full employment. To what extent were state intervention and the public sector ‘rolled back’? It also signalled the end of the post-war consensus in State role.
These old, labour-intensive industries were facing challenges from foreign competition and from technological innovation.
How was deregulation carried out? Government can tax business and individuals.
Further privatisations, such as the coal indsutry and the railways wanted to be carried out, however this was left until later in the s. The ‘Thatcher Revolution’ Thatcherism and the End of Post-War Consensus.
Thatcher’s Economy – Revision Cards in A Level and IB History
It identified poverty and race as key components. This economic realignment could also be seen in the urban decay of many inner city areas. Thatcher’s First Term as PM A few steps had been taken to carry this policy out in Thatcher’s first term, such as the privatisation of BP in and British aerospace in Such support kept her going when she said ‘this Lady’s not for turning’. What was the ‘sus law’?
This was exacerbated by the fact that these were also areas where young black and Asian people felt the ‘sus law’ meant that the police unfairly targeted them. Reducing taxation so as to provide employees with a greater incentive to work. Chief policies within this included:. This caused social and economic problems for Thatcher during her time as PM.
Although monetarism thatched never fully dropped as a policy, from the mids it was largely abadoned. Bus companies were deregulated to encourage competition.
Thatcher () – Revision Notes in A Level and IB History
In Howe advised Thatcher to leave Liverpool to ‘managed decline’. Chief policies within this included: What economic policy was thatcyer in the mids? What were the successes of economic realignment?