KEY FORMULA: POLICY + IMPACT
Always yap New Right conservative ideology → Neo liberal economics / Neo conservatism
about… Monetarism / Supply-side economics / Boom’s / recessions
Regressive Tax
Main policies Term 1 - monetarism Term 2 - supply side economics Term 3 - boom & bust
- Reducing inflation - Stimulating growth & production in the private - Industry allowed to flourish & expand
EST sector - Stimulating a consumer boom
Ending subsidies - Cutting back on red tape & restrictions = foster DI
- Sir Keith Joseph (secretary of a competitive, enterprising culture Deregulation
state for industry) STPP - Financial Services Act 1986
- Withheld state subsidies to Subsidies - Abolished credit & exchange controls
inefficient industries - Continued to withhold subsidies - Removal of regulation that heavily impacted London’s
- Forced to make drastic - 1984: Spent £1.1bn on subsidies financial markets
restructuring efforts to improve Taxation - Council tenants: given the right to buy their homes
productivity & output - 1982 & 1983: Income tax is cut 2x by Howe - Bus companies: deregulated, to encourage competition
- More efficient = received - 1984: Lawson cuts the standard rate of income Interest & U Turn
subsidies tax (30% → 27%) 1987-1988: Giveaway budgets
Spending cuts Popular capitalism - Standard rate: 27% → 25%
1980 - 1981 - 1986: Tell Sid British gas share campaign - Top rate: 60% → 40%
- HEB - housing, education & - 4.6m bought shares - Interest rates 14% → 7.5%
benefits cut to reduce inflation - 1979: 7% → 1990: 25% owned - Historically low levels
- £11bn → £9bn Privatisation Low interest = borrowing = spending = mortgages = money in
- Intra-cabinet rebellion - 1984: Extensive plan begins circulation
prevented another £5bn - 50 large state-owned businesses sold off U-TURN!!
Taxation during her premiership - 1989: Interest re-raised 7.5% → 15%
1979: Indirect taxes raised - Jaguar / British Steel / British Gas / British - 1990: VAT 6% → 15%
- VAT (6% → 15%) Airways / Cable & Wireless / Brit Oil / British - 1990: National Insurance 6.5% → 8%
- National Insurance (6.5% → Steel / British telecoms
8%) - North Sea Oil: made up 10% of govt revenue
1981: Direct taxes lowered in the 80s
- Standard rate (33% → 30%) - TOTAL = £3.7bn profit from selling off state
- Top rate (83% → 60%) assets
, Tax & wages Restructuring industry Economic growth Debt & deficit State spending
YAY YAY YAY YAY YAY
- 1979-94: Real wages rose - 1988: Nationalised - S-S ECONOMICS - Law & order: grew 36%
by 10% (2% in France) industries made £1.3BN MIRACLE! NAY - Welfare & social security:
- Borrowing boom profit - Late-80s: The economy - Long term decline was not grew 60%
NAY - 80s: Investments into grew at a rate of 8% prevented
- 1990: Overall tax bill had manufacturing & industry - Industrial production grew - 1980- 89: Private NAY
risen 6% grew by 8% 4.2% each year householder debt grew - 80s: Defence spending
NAY - 80s: Investment into £16bn → £45bn grew 3% per year
- 1984: Still spent £1.1bn London’s financial sector - 2003: Personal debt was - 1990: £30BN deficit
per yr on nationalised grew 300% £1.3 TRILLION (the
industries - BOOM in the financial highest in Europe)
- 1979: British Steel cut 53k sector in London & the - Import export deficit grew
workers southeast from £5bn in 1979 →
- 1979: British Leyland cut £20bn in 1990
30k workers to get a NAY - Financial Services Report
£990m subsidy - Slower growth than in the 2003 → 20% of families
- 1983: British Steel shed 50s & 60s under Thatcher experienced debt
another 95k - GDP rank fell from 6th problems during the
- Decline of Britain’s (1950) to 14th (1990) Thatcherite years
industrial workforce - 1980-82: Recession - 1990: £47bn balance of
- 1970: over 9m industry (monetarism & unstable oil payments deficit
workers → 4m prices)
- 1987: Stock market crash
Privatisation Unemployment Popular capitalism Affluence gap Inflation
YAY YAY YAY NAY YAY
- £20 BILLION = assets - 1980-86: unemployment ENTERPRISING CULTURE - 1991: Widest since - Monetarism (inflation fell
gained from privatisation never fell below 2m - 1990: over 3.5m records began 13% → 8%)
- £3.7bn in assets gained NAY self-employed workers - Norman Lowe: Thatcher - 1981-88: Kept below 8%
from the 50 large - 1979: 3.1% unemployed - 1.9m → 3m firms (growth created a permanent
businesses being sold off → 1990: 9.1% in small businesses) underclass of the very NAY
NAY - 1986: Peak 3.4m SHARES poorest - 1990: 9.5% inflation
- Criticisms from - 1990: Share ownership - Surge in spending (term 3
newspapers, economists had tripled (over 11m) policy) → huge rise in
& the public - 1979: 7% → 1990: 25% inflation
Always yap New Right conservative ideology → Neo liberal economics / Neo conservatism
about… Monetarism / Supply-side economics / Boom’s / recessions
Regressive Tax
Main policies Term 1 - monetarism Term 2 - supply side economics Term 3 - boom & bust
- Reducing inflation - Stimulating growth & production in the private - Industry allowed to flourish & expand
EST sector - Stimulating a consumer boom
Ending subsidies - Cutting back on red tape & restrictions = foster DI
- Sir Keith Joseph (secretary of a competitive, enterprising culture Deregulation
state for industry) STPP - Financial Services Act 1986
- Withheld state subsidies to Subsidies - Abolished credit & exchange controls
inefficient industries - Continued to withhold subsidies - Removal of regulation that heavily impacted London’s
- Forced to make drastic - 1984: Spent £1.1bn on subsidies financial markets
restructuring efforts to improve Taxation - Council tenants: given the right to buy their homes
productivity & output - 1982 & 1983: Income tax is cut 2x by Howe - Bus companies: deregulated, to encourage competition
- More efficient = received - 1984: Lawson cuts the standard rate of income Interest & U Turn
subsidies tax (30% → 27%) 1987-1988: Giveaway budgets
Spending cuts Popular capitalism - Standard rate: 27% → 25%
1980 - 1981 - 1986: Tell Sid British gas share campaign - Top rate: 60% → 40%
- HEB - housing, education & - 4.6m bought shares - Interest rates 14% → 7.5%
benefits cut to reduce inflation - 1979: 7% → 1990: 25% owned - Historically low levels
- £11bn → £9bn Privatisation Low interest = borrowing = spending = mortgages = money in
- Intra-cabinet rebellion - 1984: Extensive plan begins circulation
prevented another £5bn - 50 large state-owned businesses sold off U-TURN!!
Taxation during her premiership - 1989: Interest re-raised 7.5% → 15%
1979: Indirect taxes raised - Jaguar / British Steel / British Gas / British - 1990: VAT 6% → 15%
- VAT (6% → 15%) Airways / Cable & Wireless / Brit Oil / British - 1990: National Insurance 6.5% → 8%
- National Insurance (6.5% → Steel / British telecoms
8%) - North Sea Oil: made up 10% of govt revenue
1981: Direct taxes lowered in the 80s
- Standard rate (33% → 30%) - TOTAL = £3.7bn profit from selling off state
- Top rate (83% → 60%) assets
, Tax & wages Restructuring industry Economic growth Debt & deficit State spending
YAY YAY YAY YAY YAY
- 1979-94: Real wages rose - 1988: Nationalised - S-S ECONOMICS - Law & order: grew 36%
by 10% (2% in France) industries made £1.3BN MIRACLE! NAY - Welfare & social security:
- Borrowing boom profit - Late-80s: The economy - Long term decline was not grew 60%
NAY - 80s: Investments into grew at a rate of 8% prevented
- 1990: Overall tax bill had manufacturing & industry - Industrial production grew - 1980- 89: Private NAY
risen 6% grew by 8% 4.2% each year householder debt grew - 80s: Defence spending
NAY - 80s: Investment into £16bn → £45bn grew 3% per year
- 1984: Still spent £1.1bn London’s financial sector - 2003: Personal debt was - 1990: £30BN deficit
per yr on nationalised grew 300% £1.3 TRILLION (the
industries - BOOM in the financial highest in Europe)
- 1979: British Steel cut 53k sector in London & the - Import export deficit grew
workers southeast from £5bn in 1979 →
- 1979: British Leyland cut £20bn in 1990
30k workers to get a NAY - Financial Services Report
£990m subsidy - Slower growth than in the 2003 → 20% of families
- 1983: British Steel shed 50s & 60s under Thatcher experienced debt
another 95k - GDP rank fell from 6th problems during the
- Decline of Britain’s (1950) to 14th (1990) Thatcherite years
industrial workforce - 1980-82: Recession - 1990: £47bn balance of
- 1970: over 9m industry (monetarism & unstable oil payments deficit
workers → 4m prices)
- 1987: Stock market crash
Privatisation Unemployment Popular capitalism Affluence gap Inflation
YAY YAY YAY NAY YAY
- £20 BILLION = assets - 1980-86: unemployment ENTERPRISING CULTURE - 1991: Widest since - Monetarism (inflation fell
gained from privatisation never fell below 2m - 1990: over 3.5m records began 13% → 8%)
- £3.7bn in assets gained NAY self-employed workers - Norman Lowe: Thatcher - 1981-88: Kept below 8%
from the 50 large - 1979: 3.1% unemployed - 1.9m → 3m firms (growth created a permanent
businesses being sold off → 1990: 9.1% in small businesses) underclass of the very NAY
NAY - 1986: Peak 3.4m SHARES poorest - 1990: 9.5% inflation
- Criticisms from - 1990: Share ownership - Surge in spending (term 3
newspapers, economists had tripled (over 11m) policy) → huge rise in
& the public - 1979: 7% → 1990: 25% inflation
