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Britain Transformed, 1918–97

Thatcher’s economic policies

  • 3 things to know
  • Paper 1

Overview

Recall questions on monetarism and the 1981 Budget, privatisation and Right to Buy, the union legislation, Big Bang, and how the record is judged.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What was monetarism?

Key term

What happened to manufacturing in the early 1980s?

Numbers

What was the Right to Buy?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How did Thatcher curb the trade unions?

    Model answer

    Through laws restricting strikes and by defeating the miners' strike of 1984–85.

  2. 2

    What was monetarism?

    Model answer

    The doctrine that inflation is caused by excessive growth of the money supply, so controlling it, rather than managing demand, should be the central aim of policy.

  3. 3

    What was the Medium Term Financial Strategy?

    Model answer

    The 1980 plan setting targets for reducing money supply growth and public borrowing over several years, intended to squeeze inflation out of the economy.

  4. 4

    What were the effects of the 1981 Budget?

    Model answer

    It raised taxes during a recession, against orthodox advice and a famous letter from 364 economists, and was followed by recovery which the government claimed as vindication.

  5. 5

    What happened to manufacturing in the early 1980s?

    Model answer

    Output fell by about a fifth and unemployment passed three million, as high interest rates and a strong pound made exports uncompetitive.

  6. 6

    What was privatisation?

    Model answer

    The sale of state-owned industries including British Telecom, British Gas, British Airways, water and electricity, raising revenue and creating millions of small shareholders.

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AThe government admitted 96 dead and 333 wounded.
BOther estimates run to several hundred dead.
COpponents claimed thousands.

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