Labour 64-70 economy Flashcards
Context of the 60’s economic position
labelled the ‘sick man of Europe’ by Thatcher
Britain was transitioning from an industrial to post industrial, this transition was not smooth and caused social disruption
800 million pounds in deficit
Economic planning; talks on devolution
Wilson did not want to become synonymous with devaluation as Labour had previously done under Atlee in the late 40’ s
even though devolution and deflationary methods would be helpful during the time
Would also make Britain look weak and unable to afford military base expenses internationally - decline in world stage
Also did not want to as Wilson had criticised conservatives for stop-go tactics
Economic planning; what was the DEA and what did it do
Department of economic planning - created and led by George Brown as Wilson believed that careful economic planning was the way to modernisation
it set growth targets that devised a national system of economic planning councils
Economic planning; Why was the DEA a fail
The lack of communication between the Treasury and the Chancellor who were practically in competition with each other
this can be seen when Brown moved into the Treasury offices that he had been allocated were spread around the building and had no furniture, and the staff were expected to be assigned different roles
Other historians blame Brown’s drinking problem and impulsive attitude
the Treasury tapped into Brown’s phone line
Industrial relations; Prices and income board
After the DEA had failed the prices and incomes board was set up 1966
which worsened relations between trade unions
the prices and incomes board focused on managing wage restraints in order to tackle the deficit and inflation
Industrial relations; prices and incomes board failures
Wilson had a constant negative attitude that angered the left wing of the party
Frank cousins leader of The general workers union resigned over this
Wilson also used critical language against the strikers such as describing them as marxists
1966 Dockers strike
Devaluation and deflation
in 1967 IMF loan despite already borrowing in 64
Went on to devalue the pound in 67 which damaged his credibility as for 3 years he had openly disproved against it
went 14 percent lower against the dollar and reassured on the TV that it was ‘great for our exporters’ however many weren’t convinced
Jenkins
Jenkins replaced callaghan following devaluation
achieved a balance of payments surplus however inflation was still 12 percent and still came at the cost of the government
he controlled gov spending and raised taxes
Why did in place of strife not work and what was it
It was a white paper which outlined proposals to limit the trade union powers
by Barbra Castle - employment minister
Most controversial measures were:
The 28 day cooling off period pre strike
Strike ballots could be imposed
Government settlements on prosecution as well as prosecuting illegal strikes
How did in place of strife cause divide in the party
Hated by the Labour left at least 50 labour Mps were willing to rebel
and also trade union leaders
However support from public and Jenkins for example
Wildcat strikes
the number of wild cat strikes grew and did not take orders from trade union quarters
