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. Prices kept on rising. PRice controls created shortages. London '73- Britain's
mixed economy was also in troublePrice controls were being used here as well. T
HE GOVT even decided the price of taxi fares, etc..(unbelievable) Ted Heath ('70
-'74) was blamed and Conservatives were voted out of office. Labor (74-79). Keit
h Joseph was a minister in the Conservative govt. He knew where they went wr ong
and they needed to change the conservative policy. At the Institute of economic
Affairs(founded by Hayek).Joseph preached free mark ets. Attacked mixed economy
. Joseph was a major influence on MArgaret Thatcher(79-90) By 74 Hayek sensed th
e world beginning to go his way. He got Nobel Prize in that year. 74 was a cruci
al year. Us economy was in shackle for first time since great depression. Chicag
o School thought that price control were limting growth and curbing compet ition
. Regulations meant that major carriers like PanAm never had to compete with new
c omers. LAkers airways offered cheaper air tickets. Jimmy Carter (77-81) In 78
the Civil Aeronautics Board was Shutdown. Competition was the new rule.Alt houg
h the effect was visible 20 years later. But inflation went out of control in 81
, Carter's Keynesian policies(apart from that in C.A.B) wern't producing any res
ults.Carter lost the elections in 81. With the British Economy in decline, strik
es on the rise, People voted for Conse rvative Thatcher. Maggie cut Govt spendin
g; against Keynesian views of increasing govt. spending i n bad times. Maggie be
lieved in Hayek and Friedman's ideas of Free Market. Reagan('81-89) shared the s
ame philosophy as Thatcher. But the only way he could get inflation down was by
Monetary Contraction which m eant Recession for a short time before The Nation f
lourished. "If not Now, when? If not us, Who? " It took 3 years, 79-82 to slay t
he dragon of inflation. Reaganomics- Ltd govt. spending;modest tax rates;deregul
ation. His huge tax cuts led to deficits but the economy started growing steadil
y again . Free market forces were unleashed. Victory in the Falkland Islands( se
ized from UK by Argentina) ensured Thatchers victory in the elections.again.84.
This enabled her to implement the policies upon which she had initially embarked
, but hadnt yet produced any significant results. Atlee's govt. had Nationalise
d all the Major Industries. Nationalisation was Britain's Gift to the World. Now
it was time to come up with an anti-dote for the same. Thatcher ended their(Nat
i onalised industries) dependence on Govt subsidies. Coal miners represented the
l ast bastion of Socialist minds in the Uk. They had to be confronted. The Coal
mi nes were losing money. Previously miners had brought down Ted Heath's conser
vati ve govt 10 years earlier. But the strike collapsed in a year. Privatisation
. Sha res were sold to the public. Electricity. Telephones. Oil.Gas.COal.Steel.T
rains.Planes.Water. Sold off into t he private sector.
Less Govt. at the beginning of the 20th century. The More govt . Then Again less
govt at the end of the 20th century. BAck to the start. Ofcourse not to forget
the rise and fall of Fssascism and Communism.