1964-70: Wilson's ideology and leadership and economic policies and problems Flashcards
Why were people beginning to favour Labour over the Conservatives?
Labour seemed to be more in touch with the social and cultural trends of the 1960s.
Why did Wilson appeal more than Heath?
- He was a better tactician and able to portray a more attractive image to voters (first PM from working-class background).
- He cultivated a personal image as a great moderniser and being down to earth.
What was the ‘white heat’ of technological change?
A state of intense activity or excitement in technological change.
Describe Wilson’s ‘white heat’ speech.
He claimed that if the country were to prosper, a ‘new Britain would need to be forged in the ‘white heat’ of this ‘scientific revolution’.
What personal issues did Wilson have?
He was anxious and insecure about his leadership. He relied heavily on a personal team of trusted advisors from outside the government and civil service.
What economic problems had Labour inherited by 1964?
Britain’s economy being trapped in the cycle of ‘stop-go’ as well as a deficit of about £800 million.
What was one of the main priorities of the Labour government?
Modernisation of Britain’s economy. By 1964 Britain was lagging behind other countries such as West Germany and Japan.
What were the two classic economic solutions to the deficit of £800 million?
Deflation or devaluation, however, neither Wilson nor his Chancellor of the Exchequer, James Callaghan, agreed with these solutions.
What were the pro’s of deflation?
Supports the value of the pound and prevents inflation.
What were the con’s of deflation?
- This was the old ‘stop-go’ approach that Labour was determined to break away from.
- Fears that it would stop the Labour Party from meeting its manifesto commitments of extra spending on welfare and technology
What were the pro’s of devaluation?
Makes imports more expensive to help exporters by making British goods cheaper in other countries (helps balance of payments).
What were the con’s of devaluation?
- Would make Britain look and be weaker as it would have to scale back its activities across the globe.
- Wilson feared Labour would gain reputation as party of devaluation, (already devalued the pound under Attlee in 1949).
What was done instead of deflation and devaluation?
The DEA was set up (department of economic affairs), led by George Brown.
What did Brown do?
- Set growth targets and devised a national system of ‘economic planning councils’.
- Tried to establish voluntary agreement about wages and prices with industrialists, trade union leaders and civil servants.
Why did these economic proposals come to nothing?
Did not have united government support
- Some blamed Brown, as he could be impulsive and inconsistent.
- Others blamed old-fashioned and anti-labour civil servants.
