1.9 Fall of the Conservatives: Economic Developments Flashcards
What economic problems arose after the 1959 election?
The economy overheated due to wage increases, high consumer spending, and substantial imports, leading to a balance of payments crisis.
How did Selwyn Lloyd respond to economic issues during his tenure?
He implemented monetary restraints, raised the bank rate to 7%, and introduced the ‘Pay-Pause’ to freeze pay increases for public sector workers.
What were the outcomes of Lloyd’s measures?
While the measures halted pressure on currency reserves, unemployment surged to 800,000, accompanied by a wave of strikes.
What was Macmillan’s economic approach?
Macmillan aimed for economic expansion, introduced tax cuts in 1963, leading to increased imports, rising unemployment, and a growth rate up to 6% in 1964.
What was the state of exports and imports under Maudling?
Exports were slightly higher, but imports soared due to high consumer spending, contributing to a government deficit of £750m when the Conservatives left office in 1964.
How serious were the strikes during Macmillan’s time?
In 1957, shipbuilding and engineering strikes were described as the most serious crisis since 1926, pressuring employers to grant substantial wage increases.
What was the purpose of NICKY and NEDY in 1962?
These aimed to establish the National Economic Development Council, intended to discuss economic policy with various organizations. However, the TUC declined to cooperate.
How did the TUC respond to economic challenges in the world market?
Despite indications of British industry’s inability to compete globally, the TUC was unwilling to compromise, encouraged by the Labour Party for electoral gain.
