Government Economic Policy
Margaret Thatcher's economic policies, often referred to as "Thatcherism," represented a significant shift in British economic thinking. This section explores key aspects of her approach, including privatization and monetarism.
Privatization of Utilities
Definition: Privatization involves the transfer of ownership of public services or assets from the state to private companies or individuals.
Thatcher's government privatized numerous state-owned industries, including:
- British Telecom
- British Gas
- British Airways
- Water and electricity companies
The aims of privatization included:
- Improving efficiency and service quality
- Reducing government involvement in the economy
- Raising revenue for the state
- Promoting wider share ownership
Monetarism
Vocabulary: Monetarism is an economic theory that focuses on controlling the money supply to manage inflation and stabilize the economy.
Key aspects of Thatcher's monetarist policies included:
- Strict control of the money supply
- High interest rates to combat inflation
- Reduction in government spending
- Emphasis on free-market principles
These economic policies continue to be debated in contemporary politics, with discussions on whether current Conservative leaders like David Cameron can be considered Thatcherites.