UK Economic Policies - Dissertation Example

UK Economic Policies Table of Contents Introduction 3 The Economic Policies 3 Economic Policy Measures undertaken on or before the 1990s. 4 Economic Policy Measures undertaken post 1990s. 5 Conclusion and Recommendations 5 Reference 7 Introduction UK has had a long history of being one of the most regulated nations in the world until the storm of liberalization swept over it by the end of the ‘80s. However, since then, when the Thatcher Government came into power, the economy has witnessed a large number of changes which ultimately has made it eligible to be ranked amongst the richest and the most egalitarian of all societies (Sentence, 1998).

The changes are a consequence of the adaptation of different policies by the British government, which were both fiscal and monetary in nature. The Economic Policies The economic policies adopted by UK can be dissected into two parts – before and after the 1990s. Broadly speaking, the plans undertaken in the 1990s were a part of the liberalization move, while those post 1990s were mostly meant either to correct some falsely predicted measures or to complement those already passed. Economic Policy Measures undertaken on or before the 1990s.

Privatization Mainly aimed to tackle the stagflation that gulped the nation during the 1970s and to prevent further such developments. However has been criticised by a number of economists. Also enabled the revision of labour laws so as to reduce the power of the labour union and assign more power to the company. Moreover, the competitive spirit that the step would instil among the producers will help the nation to achieve a comparatively advantageous position. Most relevant sectors, other than the postal system, were privatized.

The scheme was preceded by a number of failures and required a lot of effort from the then Prime Minister, Margaret Thatcher, before it finally achieved success almost a decade later. (Clarke & Morgan, 2006) Reduction in unemployment benefits combined with a modification of tax laws that might act as an incentive for higher production and thus an improved GDP position (Wagnur, 2000). Modification of the education system in the country and providing maximum financial coverage to the students.

New pension plans so as to shift the burden from the state to the individuals. Introduction of pay-as-you-go scheme in the occupational structure, where the individual has to purchase and become a part of some pension benefit scheme (Taylor-Gooby, 2006). Increased housing ownership due to introduction of buyer-side subsidies (Quilgars & Jones, 2007). Capital account convertibility that helped the inflow foreign investments (Capie, Wood & Sensenbrenner, February 18, 2003). Restructuring the national health insurance scheme – as a part of government expenditure financed from tax revenues (Luck, Pocock & Tricker, 2000).

Settlement of minimum wage. Measures for a regular inspection of the conditions of the national hospitals. Economic Policy Measures undertaken post 1990s. Conclusion and Recommendations How the nation has fared after it was liberalized and what were the consequences of the policies it adopted at that time (International Monetary Funds, 1993). The policies which the nation had adopted later to counter or correct the consequences of the economic policies implemented during liberalization (Smith & Grant, 2003; Palma, 2003).

How have those policies embraced as corrective measures fared? (Good, 2000; Cecchetti, Genberg, Lipskey & Wadhwani, 2001) Reference 1. Capie, F., Wood, G. & Sensenbrenner, G. (2003). Foreign Investment in the UK. City University, London. [A detailed account of an increase in the amount of foreign investment in UK and the mobility of funds post-liberalization] 2. Card, D., Blundell, R. & Freeman, R. B. (2004): ‘Seeking a premier economy’, CentrePiece, Winter 2004, vol.3 (1), pp 28 – 31.

[An overview of the topic – a concise discussion about the plans and policies of the British government post 1980s as well as a criticism of the same]. 3. Cecchetti, S. G., Genberg, H., Lipsky, J. & Wadhwani, S. (2001): Asset Prices and Central Bank Policy. Geneva: International Centre for Monetary and Banking Studies. 4. Clarke, R. & Morgan, E. J. (2006): New Developments in UK and EU Competition Policy. UK: Edward Elgar. [Details about privatisation in UK]. 5. Good, D. (2000): ‘Rethinking economic performance in Central and Eastern Europe, 1870 – 1989: old narratives and new evidence’ in Liberalization and its Consequences: A Comparative Perspective on Latin America and Eastern Europe by W. Baer & J. L.

Love (Eds). UK: Edward Elgar. 6. International Monetary Fund (1991): Determinants and Systematic Consequences of International Capital Flows: A study by the research department of International Monetary Fund. Washington: IMF. 7. International Monetary Fund (1993): Staff Studies for the World Economic Outlook. Washington: IMF. [Explains Asset Price Inflation as one of the prime consequences of financial liberalization]. 8. John, K. (2001): ‘Labour and Employment’ in A New Guide to Post Keynesian Economics by R. P. F. Holt & F. Pressman (Eds).

London: Routledge. 9. Luck, M., Pocock, R. & Tricker, M. (2000): Market Research in Health and Social Care. London: Routledge. 10. Palma, G. (2003): ‘National Inequality in the era of Globalisation: What do recent data tell us?’ in The Handbook of Globalisation by Michie, J. UK: Edward Elgar. 11. Quilgars, D. & Jones, A. (2007): ‘United Kingdom: Safe as houses?’ in Home ownership beyond asset and security: Perceptions of housing related security and insecurity in eight European countries by M.

Elsinga, P. De Decker, N. Teller & J. Toussaint (Eds). Netherlands: IOS Press. [Design of the housing policies in UK so as to turn the nation to one of the wealthiest in the world]. 12. Sentance, A. (1998): ‘UK Macroeconomic Policy and Economic Performance’ in Britain’s Economic Performance (2nd Edition) by P. Buxton, T. Chapman & P. Temple (Eds). New York :Routledge. [Explains the current economic policies in UK]. 13. Smith, D. & Grant, S. (2003): UK Current Economic Policy (3rd Edition).

Oxford: Heinemann. 14. Taylor-Gooby, P. (2006): ‘UK Pension Reform: A test case for a liberal welfare state?’ in Aging and pension reforms around the world: Evidence from Eleven countries by G. Bonoli & T. Shinkawa (Eds). UK: Edward Elgar. [Justifies the case for the modification of pension laws in UK and the role which it played in the optimising the prevailing financial condition of the economy] 15. Wagnur, H. (2000): Globalization and Unemployment. Berlin: Springer [Justifies the concurrence of a reduction in unemployment benefits and lowering of taxes].