This paper reviews the main features of the supply-side policies pursued by the Thatcher Government in Britain between 1979 and 1990. It examines the performance of the real economy relative to historical and international trends and discusses the characteristics of a successful supply-side program. It concludes that, while the Thatcher era has yielded important economic benefits, the prerequisites for a sustained increase in the trend rate of output and productivity growth may not have been satisfied.
Get full access to this article
View all access options for this article.
References
1.
AshtonD (1989) The Training System of British Capitalism: Changes and Prospects', in GreenF (ed) The Restructuring of the British Economy, Harvester-Wheatsheaf.
2.
BeanC and SymonsJ (1989) Ten Years of Mrs T’, Discussion Paper Series, No 316, Centre for Economic Policy Research.
3.
BuiterW and MillerM (1983) ‘Changing the Rules: Economic Consequences of the Thatcher Regime’, Brookings Papers on Economic Activity, Vol 2.
4.
CrossM (1988) ‘Changes in Working Practices in UK Manufacturing’, Industrial Relations Review and Report, 5 May.
5.
EnglanderAS and MittelstadtA (1988) Total Factor Productivity: Macroeconomic and Structural Aspects of the Slowdown’, Economic Studies, No 10, OECD, Spring.
6.
HaskelJ and KayJ (1990) ‘Productivity in British Industry under Mrs Thatcher’, in MatherGThe State of the Economy, Institute of Economic Affairs.
7.
LayardR and NickellS (1989) The Thatcher Miracle?’, American Economic Review (Papers and Proceedings), May.
8.
MatthewsK and MinfordM (1987) ‘Mrs Thatcher's Economic Policies 1979–87’, Economic Policy, No 5.
9.
MetcalfeD (1988) ‘Water Notes Dry Up’, Centre for Labour Economics Discussion Paper, No 314, London School of Economics.
MinfordP (1990) The Labour Market: False Start, Strong Follow-Through and Now for the Finish’, in MatherGThe State of the Economy, Institute of Economic Affairs.
12.
WaltersA (1986) Britain's Economic Renaissance, Oxford University Press.
