• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Analyse the conservative approach to state intervention after 1979 and outline Labours response since 1997

Extracts from this document...


Analyse the conservative approach to state intervention after 1979 and outline Labours response since 1997 The conservative approach to state intervention post 1979 has been on the whole to go for the minimum as is illustrated in their economic policy and this was included in their critique of government economic policy at that time. On the whole the government felt that levels of state intervention were far too high in regards to the economy which led to various negative consequences such as making industry uncompetitive and laid back since the government would bail them out at the first sign of smoke as Labour always did. They also felt it destroyed the incentives for individual entrepreneurship leading people into not achieving their full potential as it was not worth there while, this led to lack of money within the economy as well as top businessmen leaving for pastures new. On the whole Thatcher was a strong advocate of believing regulation by the state should be minimised as it had a large amount of control over things like wages, prices, profits and production systems which was thought to stifle business expansion. Most regulation was in nationalised industries and the way this problem was solved was through privatisation which was a major step towards reducing state intervention in the economy. ...read more.


The second main way of carrying through monetarism was reducing the levels of government spending. If the government was spending more then its income it resulted in a deficit which would certainly not stimulate the economy. Geoffrey Howe's budget planned to slash spending including in the following ways, put cash limits upon the public sector, Raise minimum lending rate to 14%, Sell public assets and switch to indirect tax. This was moving away form the Keynesian demand management belief since Keynes would keep unemployment down by a deficit but in this budget it was reduced even if it resulted in short term recession and unemployment which as further tightened in 81 with massive rises of indirect taxes on petrol. This was fairly effective since it resulted in a budget surplus in the mid 80's but public spending continued to rise due to increasing unemployment as the burden on social security increased which also resulted in a tax deficit as the unemployed could pay neither direct nor indirect tax. Finally a free market economy was to be created. This was linked with a reduction in government spending, they stopped employees and employers making wage policies allowing the marker to dictate wage levels instead. Not considering income policies helped it break away with Keynesian policies and privatisation helping the government to reduce its role with the state. ...read more.


Also there is a general consensus that the British economy should stay part of the European union with both parties now accepting this inevitability. The EU also helps to minimise state intervention as it now controls huge sections of the economy such as fishing quota policies which are now decided elsewhere from parliament meaning less state intervention in this regard for either party and it is nigh impossible to now disentangle the UK economy from that of the EU without major uproar and widespread opposition. Overall due to the level of consensus there is relatively little difference between the way the economy has panned out between the conservatives period in charge end the dominance that the Labour party currently are enjoying. On the whole the economy has become relatively depoliticised since the Thatcher years as politicians have less control over this increasingly globalised and privatised aspect of the agenda. Now with Brown's decision to give the Bank of England the power to set the level of interest rates the economy has become less prone to state intervention then ever especially with a clear end to the grip that Trade Unions once had over the Labour party. Overall state intervention over this period has decreased and barring a crisis it is likely that this will remain the case unless the Liberal Democrats manage to gain power, even through a coalition government. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level United Kingdom section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level United Kingdom essays

  1. How, and with what success, have governments attempted to improve the provision of health ...

    The green light by NICE then determines whether or not a drug becomes available. However physicians argue that NICE as a company tend to improve the provision of health care however, their calculation to decide whether a drug should be available is flawed as patients miss out on basic medicinal benefits.

  2. To what extent have Government been concerned with reducing the dependency culture since 1997?

    Allowance (JSA), this will have decreased from the age of 12 to 7. This is to again stop the heavy reliance on benefits and ensure parents who have the ability to work can. In September 2009 it was announced that if both parents are in employment then there stands a good chance to end child poverty.

  1. To what extent have governments and political parties agreed on how best to raise ...

    Lib Dems however propose slimmer versions of national testing consequently reducing pressure for both pupils and staff. They too would scrap the 600 page national curriculum to about 20 pages. Alternatively, the Conservatives have announced to scrap key stage 2 SATS but introduce a reading test which children undertake 2 years after primary to ensure their reading is fluent.

  2. Labour Party history since 1979

    Leader and Deputy Leader of the party as part of an electoral college which includes Members of Parliament (MPs), Members of the European Parliament and trade unions. In January 1998, the One Member One Vote principle was adopted as part of the series of reforms of the Conservative Party.

  1. Thatcherism. Assess the impact of Thatcherism on the Conservative Party's approach to Politics since ...

    From 1979 to 1983, Thatcher laid her foundations and Conservative approach began to really change. Although Conservatism had always meant low taxation, it now meant 83% (top rate) plus a surcharge. It was later lowered to 33% (basic rate) and 60% (top rate). Then came the Conservative Party's next change.

  2. The Labour Government's response to the 2008 economic crisis was reckless and irresponsible. Discuss

    In other words, the situation was serious. Labour's approach to the very sharp downturn of 2008-9 was a largely Keynesian one. They spent very heavily to save the financial institutions on the point of collapse. A bank rescue package totalling some �500 billion was announced by the British government on

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work