UK, Allemagne et US/URSS CW Flashcards
(63 cards)
Les 30 Glorieuses
30 years after WWII, growth, near full employment, less economic inequalities, more home ownership…
Somber Seventies
Britain saw saw massive trade union stoppages against Heath’s Industrial Relations Act (2 generations of protest for Trade Unions).
Heath’s Industrial Relations Act
71, the Conservatives, aimed to restrict the power of trade unions and reduce industrial disputes.
Keynesianism
emphasizes the role of government in managing the economy (should increase spending and cut taxes to boost demand and reduce unemployment).
Britain’s economy before the 70’s
mixed economy (state/private), a legacy of WWII and a broad political consensus. Welfare system: free healthcare, unemployment benefits, State pensions, subsidized housing and education. The state owned key industries : Coal (National Coal Board), Steel (British Steel), Railways (British Rail)… A tripartite system, negotiations were between government, trade unions (millions of workers), and employers.
What changed for Britain after 45 ?
retreat of the Empire, deep economic transformation
Who was elected in 1970 ?
Edward Heath, the leader of the conservative Tories
Example of disagreements between Trade Unions and Heath
Heath wanted the rise of pay to be 4% max for national interest while Unions wanted 35%.
Economic situation in Britain in 1973
stagflation (stagnation + inflation), rising industrial competition (West Germany, Japan…), slow rise of unemployment since the end of the 1960’s…
Bretton woods
pegged international currencies to the US dollar and the US dollar to gold.
End of the Bretton Woods system
Nixon in 71 and recognized by the IMF in 76. (US running a trade deficit, declining of its gold reserves, and increasing of its debt (USSR’s arms race, Vietnam…)
Oil crisis in the beginning of the 70’s
73, Egypt and Syria (USSR) attacked Israel (USA). A group of Arab oil producing countries retaliated, raising oil prices by 17% and announcing production cuts -> price of oil quadrupled by 74 increase in energy costs, inflation and hurt manufacturing.
Consequences of the oil crisis on Britain
20% inflation and relied on coal again, reinforcing miners Unions.
Second oil crisis
6 years later, loss of production in Iran (revolution 79) and Iraq (Iran-Iraq war 80).
74 in Britain
three day week, corruption scandals, plots against the PM, IRA bombings and a general strike in Northern Ireland, strike of the now powerful National Union of Mineworkers, cut street lighting by 50%…
three day week
commercial users of electricity were limited to three specified consecutive days’ consumption each week
What did Heath do in 74 ?
Called for a surprise election, the first hung parliament since 1929 (no majority in the House of Commons).
What did Heath do after the general election ?
74, he resigned and Labour won by a small majority (James Callaghan as PM).
Application to the IMF by Britain
granted the government $3.9 billion credit as against a $2.5 billion cut in domestic expenditure -> next 18 months : reducing inflation and cutting unemployment.
Oil situation in Britain in the late 70’s
oil from the North Sea was also starting to come through
Winter of discontent
lagging pay increases and reviving price inflations -> industrial disputes (78-9). Strikes which added poverty and affected the public (transport, dustem, health workers…). almost 30 million working days were lost.
Britain as “the sick man of Europe”
Under Callaghan as he could not handle the Winter of Discontent
Margaret Thatcher’s position before being elected
free-market rights, monetarist, neoliberal (Hayek), influenced by Sir Keith Joseph and his anti-statist, colonial and immigration views.
Margaret Thatcher’s premiership
in 79, the cabinet was mainly moderate but by the end of 81, it became mainly neoliberals, assaulting Keynesian economics.