Recession of 1981

The Recession of 1981

#0123

Sofia L. & Madeleine V.

Will be presenting..

WHAT IS IT?

- The oil prices increased significantly during the early 1980s, which drove up inflation.- The British government implemented several spending cuts, including cuts to healthcare and education. - Union strikes in the UK in the early 1980s halted production in key industries. - The government raised interest rates in an effort to reduce inflation.

The recession had several important characteristics:

- High unemployment: - Falling demand: - High inflation: - Government intervention

Historians say..

A major economic downturn for Britain

" The real scandal of this recession in Britain is not its severity, but its pointlessness. " - John Pilger, New Statesman, August 1982.

The recession of 1981 in the UK began in 1980 and continued until 1982.

The plan

Multiple sources analysis.

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02

03

Source № 1

Source № 2

Conclusion

video

graph

Source № 1

A video.

" To keep my workforce going, i've had to cut my prices down. "

This video demonstrates one of the struggles that business owners had to face during the recession, and what ended up making unemployment rise. For people to be able to afford their products, they had to cut their prices by a lot, and because of that, they were making less money. Many companies had no choice but to let go of many of their workers because of this, despite trying to keep as many as possible.

Source № 2

A graph.

In conclusion, this graph is helpful in illustrating the impact of the changing exchange rates on the overall economy and can be used to provide context for the economic conditions of the time.

This graph is showing the exchange rate between the British pound and the US dollar from 1978 to 1990. This exchange rate decline can be seen as a reflection of the economic problems facing Britain at the time, including high inflation and rising interest rates. As the pound devaluated, it made imported goods more expensive, which contributed to the increase in inflation.

CONCLUSION

In conclusion, the 1981 recession was an important moment in the rise of Thatcherism, but its impact on the British economy and society was complex and mixed. While the recession created an opportunity for Thatcher to implement her economic policies, it also led to significant suffering and inequality for many people.

For Thatcher, the recession provided an opportunity to push through her economic policies, which aimed to reduce the power of unions and promote free-market principles. She believed that government intervention in the economy was the main cause of Britain's economic problems, and that free markets and low taxes were the key to economic prosperity.

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