3.15 Callaghan, The Economy, and the Unions Flashcards
(37 cards)
Was the nosedive of the British economy from the end of 1973 a uniquely British thing?
No - it was a worldwide problem
In the economy there were signs of _____ in 1976
Recovery
From 1960 - 1973, what had economic growth averaged?
3% a year
From 1974-9, what had economic growth averaged?
1.5% a year
In 1974, how much oil had the UK imported?
100m tonnes
In 1974, how much oil had the UK exported?
1m tonnes
When did the UK begin producing oil from the North Sea?
1975
What happened to the economy thanks to North Sea Oil?
The oil account brought dividends with a surplus of balance payments between 1977-8
Under Callaghan: What was the balance of payments deficit approaching?
£1bn
Under Callaghan: How many were unemployed?
1.25m
Under Callaghan: What was annual inflation at?
16%
Under Callaghan: What was the value of sterling?
Down to $1.57
Under Callaghan: What were interest rates at?
15%
Under Callaghan: How much did Healey ask the IMF for?
£3.9 billion
Under Callaghan: What did a £3.9bn loan from the IMF require Britain to do?
Make expenditure cuts of £2bn
Under Callaghan: What did Healey do to make expenditure cuts?
He restricted the amount of money by cutting government spending
When did Healey ask the IMF for a loan?
1976
What is monetarism?
Theory promoted by Milton Friedman
They believed pumping money into the economy would simply lead to inflation
They believed that governments should control the money supply
Restricting the amount of notes, credit available, and tolerating high interest rates.
When did Healey impose substantial spending cuts?
April and December 1976?
By 1979, what public expenditure had been majorly cut?
Housing and education
By 1977, what was the balance of payments? (Deficit or surplus)
Surplus
Where were by-elections lost by 1979?
Walsall, Workington, Birmingham, Stechford, and Ashfield
What saved the government between 1977 and 1978?
The Lib-Lab pact
1979 was one of the _____ years of the century for days lost to strike action
Worst
