Growth, what growth? Thatcherism fails to produce the goods

Cambridge University analysis casts doubt on free market economics showing GDP and productivity grew faster before 1979

Margaret Thatcher's policies of privatisation, light-touch regulation and low income tax failed to boost growth, according to a new study that casts doubt on the merits of free market economies.

In a wide-ranging analysis of Britain's performance in the decades before and after 1979, economists at the University of Cambridge say the liberal economic policies pioneered by Thatcher have been accompanied by higher unemployment and inequality. At the same time, contrary to widespread belief, GDP and productivity have grown more slowly since 1979 compared with the previous three decades.