Thatchers Economy

Some links to Thatchers principles

Apr 25, 1979

1979 Thatcher agreed to recommendations for increased public sector pay awards

Strong links to Thatchers principles

Jun 25, 1979

June 1979 Pensions would be based not on the ‘movement in prices + earnings, whichever is greater’ but solely on prices – Pensioners set to get poorer relative to those in work

Strong links to Thatchers principles

Jun 25, 1979

June 1979 Budget raised indirect taxes (most importantly Value Added Tax VAT) from 8% to 15% but he cut the top rate of income tax from 83% to 60% + the standard rate from 33% - 30% - shift from direct to indirect tax designed to boost incentives by allowing the successful high earners to keep of their income. Interest rates were raised by 14% + these later reached 17% in Nov, rewarding those with large savings, but hurting people with debts. Major relaxation of exchange controls

Strong links to Thatchers principles

Jun 25, 1979

June 1979 Government Incomes policy was dropped

Economy doing badly

Mar 28, 1980

Inflation of 22% in spring 1980 up from Labour figure in 1979

Some links to Thatchers principles

Apr 25, 1980

1980 Employment Act made secondary picketing illegal but didn’t make ballots compulsory or ban sympathetic strikes. All new closed shops (i.e. union only Labour in an industry) had to be approved by a 4/5 of those affected + public funds were made available to encouraged unions to hold postal ballots.

Some links to Thatchers principles

Apr 25, 1980

1980 Budget large pay awards for police + army

Economy doing badly

Apr 25, 1980

1980 Partly due to Govt. unwillingness to prop up manufacturing production fell by 11%

Strong links to Thatchers principles

Nov 25, 1980

Manufacturing production which was already declining, fell by 14% 1980-81, partly caused by this govt. policy unwillingness to intervene

Economy doing badly

Dec 31, 1980

1980-81 falling orders for manufactured goods saw the start of a recession + GNP fell by 3.2%.

Political and social consequences

Feb 10, 1981

Consequences of economic recession wave of riots across inner-city London, Liverpool, Manchester, Leeds + Bristol in summer 1981

Economy doing badly

Apr 25, 1981

Unemployment rose to 2.7million in 1981, the highest since the depression of the 1930s

Economy doing well

Jul 9, 1981

1981 Productivity increased amongst those still in work

Strong links to Thatchers principles

Sep 25, 1981

1981 Budget 25p lower rate of tax introduced by Labour in 1978 was abolished

Economy doing badly

Mar 24, 1982

1982 unemployment > 3 million

Political and social consequences

Apr 25, 1982

Thatchers continuation in office threatened. Opinion polls showed the prime ministers personal popularity + that of her government had declined significantly.

Strong links to Thatchers principles

Jun 25, 1982

Employment Act 1982 provided compensation from public funds to people dismissed from closed shops. It also made ‘union labour only’ requirements in contracts illegal. Trade unions became liable for damages if they were the cause of unlawful industrial actions. It gave employers legal redress against industrial action where the action was not wholly or mainly about employment matters (i.e. strikes which could be considered political)

Economy doing badly

Jul 25, 1982

Public expenditure continued to rise, reaching 44.5% of the gross domestic product (GDP) in 1982, largely as a result of the huge increases in the number of those receiving unemployment benefit

Economy doing well

Sep 4, 1982

Inflation down to 10% 1982 – partly due to high unemployment

Economy doing badly

Dec 31, 1982

Economy doing well

Jun 25, 1983

Inflation 5% in 1983

Conclusion

Apr 25, 1984

Overall, despite sticking to her principles and battling through the various issues that faced the UK, she only ended up creating more problems in order to destroy the ones that used to afflict the nation. At this stage it is unlikely that she will be re elected.