Thatcher's Economic Policies

Reasons Thatcher didn't fail after 1982

Refused to change position -> "this lady's not for turning"
Purge of 1981 -> sacked 3 wets from the cabinet and demoted several others, for example, Ian Gilmour and Jim Prior (moved from employment)
Evidence of economic recovery, such as dramatic fall in inflation from 14% to 9% 1979-82
Britain (under Thatcher) won the Falklands War in 1982 -> this gave Thatcher a huge popularity boost among the public
Labour was divided -> debate between Foot and Jenkins
Labour not seen as suitable replacement as Foot's policies were too left-wing -> nuclear disarmament, commitment to full employment & nationalisation
1983 General Election -> Conservatives won a huge majority of 144 seats

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Privatisation of nationalised industries (gas, steel, rail etc) to reduce government intervention -> this enabled the cuts in taxation, as sale of BP brought in £7 million alone
1980 Right to Buy -> created 'a property-owning democracy', homeownership increased from 55% in 1960 to 64% in 1987
Deregulation -> 1986 Financial Services Act made trading of stocks and shares easier, Thatcher wanted to attract foreign investment, London became the financial capital
1987 Black Monday -> £50 million wiped off the value of shares, economy went into a recession with increased unemployment, Nigel Lawson cut interest and income tax which slowed inflation
Tamed trade unions -> after the 1984 Miners' Strike membership declined and unions lost their political and economic power
Thatcher wanted to create 'popular capitalism' through the selling of shares

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