Wilson - economy Flashcards
What was the economy like when Wilson became PM?
Balance of payment deficit of £373 million
Britain becomes known as the “sick man of Europe”
What was the National Plan?
A programme for modernisation aimed at increasing industrial production and exports by encouraging cooperation between government, employers and trade unions.
How successful was the National Plan?
Few of the National Plan targets were realised and it was abandoned quietly by 1967
When did Wilson apply for the first IMF Loan and how much did he get?
1964 - £1 billion
What was Wilson’s short term solution to the trade deficit?
In 1967, he applied for a second IMF loan, however, this was nothing more than a stop gap.
What did the trade deficit eventually force Wilson to do?
In 1967 he was forced to devalue the pound from $2.8 to $2.4.
What was the impact of devaluing the pound?
James Callaghan, Chancellor of the Exchequer, resigned
“The pound in your pocket is worth no less” - Wilson - mocked by the media
How did Wilson mishandle the the devaluation?
By delaying and over dramatizing the devaluation of the pound, it appeared as a major political and economic failure.
Who did Wilson blame the economic problems on?
Blamed the trade unions for economic failures, saying that Britain had been recovering only to be “blown off course by the seven weeks seamen strikes”
When were the seamen strikes?
1966-7
What was the consequence of blaming devaluation on the strikers?
Further angered the trade unions
What was inflation like under Wilson?
Mostly kept inflation in check
What was “In Place of Strife”?
Wilson published the White Paper in attempt to curb the unions power e.g. there would be an introduction of members of a union balloting and gaining a clear majority for a strike to be viewed as legal.
When was “In Place of Strife” and who was most associated with it?
1969, Barbara Castle
How was “In Place of Strife” received?
Poorly received by unions and the left of Labour argued that it undermined key Labour principles
