Consequences of Thatcher's economic policies

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Inflation
- Fell in the early 80s and stayed low from 1983-90
- Lower than European inflation in all but 5 years
- Stayed below 5% throughout the whole period
- Consequence of Thatchers economic policy
  - Industry and finance
    - Investment in finance sector rose by 300% - 8% increase in manufacturing
    - The balance of payments of manufacturing exports declined from £5 billion surplus in 1979 to £20 billion deficit in 1989
Economic Growth
- Average growth from 1983-92 was only 2.5%
- Weaker than growth under Macmillan and Wilson (3.5% from 1960-73)
- Britain ranked 6th in the world in terms of GDP in 1950 -11th by 1973, 14th in 1997
- Consequence of Thatchers economic policy
  - Industry and finance
    - Investment in finance sector rose by 300% - 8% increase in manufacturing
    - The balance of payments of manufacturing exports declined from £5 billion surplus in 1979 to £20 billion deficit in 1989
Employment
- 32 million unemployed by 1985
- 9.1% unemployed in 1980-90
Productivity
- 1979- British workers worked 50% as hard as American workers
- Still less than Japanese, French and German

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