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

Economics - Essay Example Thatcher follows a policy of monetarism and this is the difference with the other administration. Thatcher strongly believed in an open and privatized economy. Therefore her government 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 reduction of tariffs and trade duties. Thatcher government was in favor of market optimization by inviting competition. To fight with the inflation Thatcher, after coming to power increased the taxes and reduced government spending. It was reported that the first year of her tenure in the office, was marked by a reduction of 1 billion pounds in the government spendings. Policies were adopted to reduce the powers of the labor unions. Ordinary people were encouraged to own h ouses 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 paper centers on the economic 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. â€Å"When Mrs. Thatcher won the election in 1979, economic growth stood at just over 2% but this apparently respectable figure hid many problems. Unemployment had been rising from