5)Lack of a close relationship between industry and banks. A Characteristic of the uk economy-A low rate of domestic industrial investment coupled with a very high rate of overseas investment.(P57, paragraph Britain's slow growth of productivity, soaring inflation, and large unemployment gave birth to the mocking term“ British disease” In 1979, Margaret Thatcher became Britains first-ever woman Prime Minister She prescribed a dose of new medicine to cure the"British Disease"and carried out an extensive program of privatization. The new doctrine ad vocated reduction of taxes so as to stimulate investment and consumption. Thatcher's economic policy achieved remarkable success 1) Inflation fell to about 4 percent 2) Britain achieved an average 3 percent increase in its economic growth 3)The worker's take-home pay increased by 20 percent 4)Profitability of industrial companies was high Yet, Thatcher's policy was like a coin with two sides 1)Widened gap between the poor and the rich 2)High Unempl )High crime rates 4) Unsatisfactory social services Ill. The Current UK Economy National economies can be broken down into three main areas. 1)"Primary'"industries 2)"Secondary "industries 3)Tertiary industries (Read P58 the third paragraph) 1. Agriculture Britain is not very large, but nearly 80% of its land area can n be used for Agriculture accounts for less than 2% of the gnp and employs some 2 % of th workforce. So compared with most other major countries, Great Britain devotes relatively small portion of its labor force(in the early 1990s about 2 percent of the employed population) to agriculture, forestry, and fishing. Farming is highly mechanized, though farms are not extremely large, and is dominated by the raising of sheep and cattle. Pastures cover about 1/2 of the land. Arable land is limited to less than 1/3 of the nations land area. In the early 1990s approximately 27 of the total land area of Great Britain was devoted to crops, and about 46% to permanent pasti and rough grazing. So the United Kingdom is not agriculturally self-sufficient. It must17 5) Lack of a close relationship between industry and banks. A Characteristic of the UK economy----A low rate of domestic industrial investment coupled with a very high rate of overseas investment. (P57, paragraph 1) Britain’s slow growth of productivity, soaring inflation, and large unemployment gave birth to the mocking term “British Disease”. In 1979, Margaret Thatcher became Britain’s first-ever woman Prime Minister. She prescribed a dose of new medicine to cure the “British Disease” and carried out an extensive program of privatization. The new doctrine advocated reduction of taxes so as to stimulate investment and consumption. Thatcher’s economic policy achieved remarkable success. 1) Inflation fell to about 4 percent. 2) Britain achieved an average 3 percent increase in its economic growth. 3) The worker’s take-home pay increased by 20 percent. 4) Profitability of industrial companies was high. Yet, Thatcher’s policy was like a coin with two sides: 1) Widened gap between the poor and the rich; 2) High Unemployment; 3) High crime rates; 4) Unsatisfactory social services. III. The Current UK Economy National economies can be broken down into three main areas: 1) “Primary” industries 2) “Secondary” industries 3) Tertiary industries (Read P58 the third paragraph) 1. Agriculture Britain is not very large, but nearly 80% of its land area can be used for agriculture. Agriculture accounts for less than 2 % of the GNP and employs some 2 % of the workforce. So compared with most other major countries, Great Britain devotes a relatively small portion of its labor force (in the early 1990s about 2 percent of the employed population) to agriculture, forestry, and fishing. Farming is highly mechanized, though farms are not extremely large, and is dominated by the raising of sheep and cattle. Pastures cover about 1/2 of the land. Arable land is limited to less than 1/3 of the nation's land area. In the early 1990s approximately 27 % of the total land area of Great Britain was devoted to crops, and about 46 % to permanent pasture and rough grazing. So the United Kingdom is not agriculturally self-sufficient. It must