Margaret Tetcher

Conservative government came to power in 1979, with a leader - vigorous Margaret Thatcher, which proposed an entirely new economic development program, differs radically from all previous programs. Such a strategy of economic development came to be known as neo-conservatism.

In this role, Thatcher made strenuous efforts to reform the British economy and society. Many state-owned companies were privatized; many of them were unprofitable on that moment. Thatcher also conducted the privatization of public services in the market, as well as privatized «British Telecom». As a result of mass privatization, many Britons become shareholders, which formed the basis of "popular capitalism".

In finance, the Government of Margaret Thatcher struggled with inflation and budget deficits. To reduce budget deficits she applied unpopular measures: reducing subsidies to the remaining public enterprises, reducing aid depressed regions, the reduction of social benefits. Also she decreased direct taxes and take steps to promote small business. Value-added tax, as well as other indirect taxes, was increased. Pension system and social insurance system were also reformed.

During the second period of Thatcher premiership she continued to conduct the old economic policy, and began actively fighting the influence of trade unions: laws, banning forced to join the union, to ban "solidarity strike", pre-warning employers about the beginning of the strike and compulsory secret ballot for a decision on the beginning of the strike, have passed. Although Thatcher's efforts were aimed at preventing in the UK mass strikes, she tried to convince Britons that these measures will help to increase the democratic trade unions. Because of significant reduction in privatized unprofitable enterprises and the rapid growth of unemployment, this policy resulted in a major strike.

In 1981 in Brixton there were serious riots, which were associated with an increase in unemployment, but the Thatcher did not stop her economic policies, the reason of high unemployment. The strike spread all over the country and affected many sectors of the economy. To minimize the effects of the strike Thatcher`s government increased oil production in the North Sea and increased oil imports, as well as making sure that the work of those who, for fear of losing their jobs not joined the strike and set up public opinion against the strikers and trade unions. The result of government action was the end of the strike in 1985. However, to reduce rising unemployment Thatcher`s government also revised the system of unemployment assistance: part-time was stimulated, earlier retirement and retraining to more popular specialty were established. In addition, the development of small businesses was stimulated. Despite the significant level of unemployment in the early and mid-80's, due to depart from the traditional post-war policy of full employment, many industries managed to significantly improve their competitiveness by reducing costs. In turn, this contributed to economic growth.

Thatcher, although adopted tough and unpopular measures in the economy and social sphere, managed to achieve stable economic growth. Foreign investments, which begun to actively enter in the UK, contributed to the modernization of production and increase the competitiveness of products. At the same time Thatcher`s government managed to keep inflation at very low levels. In addition, the late 80's due to undertaken measures unemployment was reduce significantly. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                  The Academy of Budget and Treasury of the Ministry

                              of Finance of the Russian Federation 
 
 
 
 
 

                                   Economic policy of Margaret Tetchier. 
 
 
 
 
 

                                                                                                                       Rovkova Maria

                                                                                                   Group 1A1

                                                                                               Accounting Faculty 
 
 
 
 
 
 
 
 

                                                  Moscow

                                                    2011