Economics Essay Example | Topics and Well Written Essays - 1000 words - 28

Economics - Essay ExampleThatcher follows a policy of monetarism and this is the deflexion with the other administration. Thatcher strongly believed in an open and privatized economy. Therefore her authorities worked fiercely towards privatizing some of the major government organizations. This era advocated policies of free markets and nationalizations of banks and financial institutions. The soul of this era was the Big Bang of financial deregulation that prevailed in the market in the year 1986. The economy was left free to open trade by step-down of tariffs and trade duties. Thatcher government was in favor of market optimization by inviting competition. To fight with the inflation Thatcher, subsequently coming to power increased the taxes and editd government spending. It was reported that the first year of her tenure in the impinge onice, was marked by a reduction of 1 billion pounds in the government spendings. Policies were adopted to reduce the powers of the labor union s. Ordinary people were encouraged to own houses and the companies they work for. Large number of council houses was sold off to the tenants. Her government brought about reforms in government expenditure snd thus made the economy of Britain more effectual. This written report centers on the sparing principles employed during the Thatcher era and justify the use of these different approaches under the current economic scenario of our country. (Pearce, n.d.)Under this section we cover the major economic policies adopted during the Thatcher era. We further analyze the effectiveness of these policies in our country, especially in the current scenario when the economic conditions are almost the same as the one in United Kingdom before Margaret Thatcher took over as the president of United Kingdom. When Mrs. Thatcher won the election in 1979, economic growth stood at just over 2% but this apparently respectable watch hid many problems. Unemployment had been rising from