What were the key features of Thatcher's economic policies?

Thatcher's economic policies were characterised by privatisation, deregulation, tax cuts, and a focus on controlling inflation.

Margaret Thatcher, the UK's Prime Minister from 1979 to 1990, implemented a series of economic policies that came to be known as Thatcherism. These policies were grounded in neoliberal principles and marked a significant shift from the post-war consensus that had dominated British politics.

One of the key features of Thatcher's economic policies was privatisation. This involved selling state-owned industries and services to the private sector. The aim was to increase efficiency and competition, and reduce the role of the state in the economy. Major industries such as British Telecom, British Gas, and British Airways were privatised during Thatcher's tenure.

Another significant aspect of Thatcher's economic approach was deregulation. This meant reducing state control and interference in the economy, particularly in the financial sector. The 'Big Bang' of 1986, which deregulated the London Stock Exchange, is a prime example of this policy. Deregulation was intended to stimulate economic growth by fostering competition and innovation.

Thatcher also implemented tax cuts, particularly for higher earners. The top rate of income tax was reduced from 83% to 60% in her first budget, and eventually to 40%. This was based on the belief that lower taxes would incentivise work and investment, leading to economic growth.

Finally, controlling inflation was a central goal of Thatcher's economic policies. This was achieved through tight control of the money supply, a policy known as monetarism. High interest rates were used to reduce the amount of money in circulation, with the aim of stabilising prices.

In summary, Thatcher's economic policies represented a radical departure from previous approaches. They were characterised by a belief in the free market and a reduced role for the state in the economy. This involved significant privatisation and deregulation, tax cuts for higher earners, and a focus on controlling inflation.